Primoris Services (PRIM) Declines -18% Over 30 Days After Q2 Miss and Guidance Reductions
Key Takeaways
- Primoris Services (PRIM) shares declined roughly 18% over the last 30 days, falling from about $90.85 to approximately $74.32.
- The pullback was driven primarily by weak second-quarter 2026 results, including a net loss, compressed margins, and an Energy segment that swung to a gross loss.
- Over the last quarter, the stock is down roughly 41%, reflecting successive guidance reductions tied to cost overruns on six renewable-energy projects.
- An ongoing securities class action, with a lead-plaintiff deadline of September 21, 2026, adds a legal overhang to the shares.
- Record backlog, strong Utilities demand, and new gas-fired generation awards provide partial offsets to the negative sentiment.
Company Background and Competitive Landscape
Primoris Services Corporation operates as a specialty construction and infrastructure services firm focused on utility, energy, and renewables markets in the United States and Canada. Its two main segments are Utilities, centered on natural gas and electric distribution, transmission, and communications infrastructure, and Energy, which handles engineering, procurement, and construction for energy, renewables, storage, renewable fuels, and petrochemical projects.
The company competes with peers including Quanta Services (PWR), MasTec (MTZ), and EMCOR Group (EME). Its advantages include a sizable diversified backlog, established master service agreements, and exposure to long-term themes like power delivery, data-center infrastructure, and natural-gas-fired generation. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Recent Stock Price Movement: 30 Days and the Quarter
Over the past 30 days, Primoris Services (PRIM) shares fell approximately 18%, moving from a closing level of about $90.85 down to roughly $74.32. The drop gathered pace in early August after the second-quarter 2026 results came out, with the shares continuing to ease through late August before finding some stability in the $72-to-$74 area.
The quarterly picture shows a steeper move. From around $126 in early June, the stock has dropped about 41%, as earnings expectations were repriced lower following repeated guidance adjustments. The trend has been consistently negative, with sharp single-day drops tied to those resets.
Key Drivers Behind the 30-Day Decline
The main catalyst over the last 30 days was the second-quarter 2026 earnings release in early August. Revenue fell 10.7% year over year to $1.69 billion, and the company reported a net loss of $24.2 million versus net income of $84.3 million in the same period a year earlier. Adjusted EBITDA declined to $11.4 million from $154.6 million, while consolidated gross margin narrowed to 4.9% from 12.3%.
The Energy segment saw the largest deterioration, posting a gross loss due to cost overruns and reduced volumes on six renewable-energy projects. Management lowered full-year free cash flow guidance to a range of $150 million to $200 million from the prior $350 million to $400 million range, citing an estimated $200 million cash-flow impact from those projects. An ongoing securities class action, Boston Retirement System v. Primoris Services Corporation, with a lead-plaintiff deadline of September 21, 2026, added further pressure. Positive offsets such as a record total backlog of approximately $13.86 billion, roughly $3.9 billion in new awards, and solid Utilities demand helped limit the extent of the decline but did not reverse it.
Factors Behind the Quarterly Performance
The broader quarterly decline stems from ongoing execution challenges in the renewables business. On June 22, 2026, Primoris provided a business update that disclosed additional cost overruns on the six renewable projects and significantly reduced full-year guidance. The 2026 adjusted EPS outlook was lowered to a range of $2.05 to $2.60 from $5.80 to $6.00, and adjusted EBITDA guidance was cut to $275 million to $325 million from $560 million to $580 million. The departure of Chief Operating Officer Jeremy Kinch, effective immediately, was also announced, and the stock fell more than 20% in the next session.
This followed an earlier decline in May after first-quarter results showed a 5.4% revenue drop and a notable miss on adjusted EPS, with management pointing to higher costs on renewable projects from redesigns, sequencing changes, labor issues, and weather. The departure of the renewables president in early June and the May closing of the Paynecrest acquisition also influenced sentiment during the period.
Looking Ahead: Key Items to Monitor
Going forward, attention will likely center on how the remaining troubled projects are completed. Management has noted that two of the six problem projects are finished, three should reach substantial completion in the third quarter, and the last one by year-end. Any further cost increases would be closely watched.
The next earnings report and updates on free cash flow and margin recovery will be important. Consensus estimates anticipate a rebound in fiscal 2027 earnings, though that depends on margin normalization across segments. Progress on the securities litigation ahead of the September 21, 2026 lead-plaintiff deadline remains a notable risk. Broader factors such as utility capital spending, data-center demand, natural-gas generation awards, and interest-rate conditions will also play a role in the stock’s path.
Using AI Tools for Market Analysis
When evaluating names like this one amid volatility, I find it helpful to review systematic trading approaches. Tickeron’s AI Trading Bots provide a range of strategies across different timeframes and objectives, allowing investors to examine historical performance metrics and align approaches with their own goals. From what I see, these tools can offer additional context when assessing execution risks and sector trends.
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Financial analyst and market blogger with expertise in equity research, fundamental analysis, and macroeconomic trends. I regularly publish coverage on individual stocks, ETFs, and sector developments — combining rigorous financial analysis with clear, engaging writing for a broad investment audience.
PRIM in upward trend: price rose above 50-day moving average on October 02, 2026
PRIM moved above its 50-day moving average on October 02, 2026 date and that indicates a change from a downward trend to an upward trend. In 28 of 30 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 02, 2026. You may want to consider a long position or call options on PRIM as a result. In 72 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 85%.
The Moving Average Convergence Divergence (MACD) for PRIM just turned positive on September 29, 2026. Looking at past instances where PRIM's MACD turned positive, the stock continued to rise in 38 of 47 cases over the following month. The odds of a continued upward trend are 81%.
Following a +7.45% 3-day Advance, the price is estimated to grow further. Considering data from situations where PRIM advanced for three days, in 262 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PRIM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
PRIM broke above its upper Bollinger Band on October 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for PRIM entered a downward trend on September 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 44 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.383) is normal, around the industry mean (16.441). P/E Ratio (27.890) is within average values for comparable stocks, (203.442). Projected Growth (PEG Ratio) (0.440) is also within normal values, averaging (3.522). Dividend Yield (0.004) settles around the average of (0.007) among similar stocks. P/S Ratio (0.575) is also within normal values, averaging (2.926).
The Tickeron PE Growth Rating for this company is 48 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. PRIM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 72 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PRIM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron SMR rating for this company is 75 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a provider of engineering, construction and specialty contracting services
Industry EngineeringConstruction
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