Keeley Gabelli Small Cap Dividend Fund on Primoris Services Corp.
Thesis
Primoris suffered cost overruns on six solar projects and reduced full-year guidance, exposing execution problems in its Energy segment. Management responded with leadership changes and stricter project underwriting and risk controls. The recovery thesis rests on those corrective actions against strong underlying demand in natural-gas generation, transmission, solar, and pipeline markets.
“Management responded decisively with leadership changes and implemented stricter project underwriting and risk management standards.”
Key risks
- Cost overruns on six solar projects
- Reduced full-year guidance