GET DAILY SIGNALSPrimoris Services (PRIM) Delivers Q3 Earnings Beat Amid Record Backlog
Key Takeaways
- Primoris posted adjusted earnings per share (EPS) of $1.20, beating the consensus estimate of $0.78 by a wide $0.42 margin.
- Revenue came in at roughly $1.95 billion, down 10.4% year over year and slightly below analyst expectations of about $2.0 billion.
- Net income was $51.3 million, or $0.95 per diluted share, compared with $94.6 million, or $1.73 per diluted share, a year earlier.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) totaled $134.4 million, down 20.3% from the prior-year period.
- Total backlog reached a record $14.1 billion, up $2.1 billion from year-end 2025, driven by Utilities and Energy segment strength.
- The company set full-year 2026 adjusted EPS guidance of $2.10 to $2.25, with the midpoint slightly above the analyst consensus.
Why This Quarter Matters
Primoris Services Corporation, a specialty construction and infrastructure company serving utilities and energy markets, entered this quarter under pressure. The first half of 2026 was weighed down by cost overruns and delays on a limited number of renewables projects, which produced a net loss in the second quarter. I was focused on whether management could stabilize margins while sustaining the record demand that has expanded the company's backlog. The third-quarter report matters because it offers a read on execution recovery, the pace of renewables project completion, and the durability of infrastructure spending across power delivery, natural gas generation, and pipelines. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Results
For the third quarter ended September 30, 2026, Primoris reported adjusted EPS of $1.20, comfortably above the consensus estimate of $0.78. Revenue of approximately $1.95 billion declined 10.4% from $2.18 billion in the prior-year quarter and slightly missed the roughly $2.0 billion analysts expected, reflecting lower renewables activity in the Energy segment that was partially offset by Utilities growth.
On a GAAP basis, net income was $51.3 million, or $0.95 per diluted share, down from $94.6 million, or $1.73 per diluted share, in the year-ago period. Adjusted EBITDA was $134.4 million, a 20.3% decline from $168.7 million a year earlier. The company's gross profit margin narrowed to 8.5% from 10.1%, reflecting the lagging effect of challenged renewables projects and higher relative equipment and personnel costs tied to lower volumes.
Primoris also updated its full-year 2026 outlook, guiding to net income of $65.2 million to $73.2 million, or $1.20 to $1.35 per diluted share, and adjusted EPS of $2.10 to $2.25. Full-year adjusted EBITDA is now expected in a range of $290.0 million to $310.0 million.
Market Reaction and Investor Sentiment
Investors responded positively to the report, with Primoris shares rising roughly 8.7% in after-hours trading following the announcement. The rally reflected relief that adjusted earnings and EBITDA beat expectations even as revenue came in slightly below estimates. Sentiment was further supported by the record $14.1 billion backlog and full-year adjusted EPS guidance whose midpoint sat just above the consensus. From what I see, the market appeared to weigh the improving earnings trajectory and strong demand environment more heavily than the year-over-year revenue decline and ongoing renewables-related margin pressure.
Forward Outlook and Key Factors to Monitor
Looking ahead, I’m watching closely whether Primoris can convert its record backlog into improved profitability. Management has pointed to improving project mix and continued operational focus, with expectations for revenue growth and margin improvement in the second half of 2026. The pace at which the previously disclosed challenged renewables projects are completed will be a central factor, since those projects have weighed on gross margins across recent quarters.
Segment-level execution also warrants attention. The Utilities segment has shown consistent growth in power delivery and gas operations, while the Energy segment has been the primary source of margin drag. Monitoring the balance between these two segments, along with targeted gross margin ranges, will help investors gauge whether the company can sustain the earnings momentum seen this quarter.
Finally, the integration and contribution of the PayneCrest acquisition, rising interest expense, and the timing of new project awards across natural gas generation, pipelines, and power delivery will be important catalysts. With SG&A expenses as a percentage of revenue being closely managed, cost discipline remains a key factor in the company's ability to deliver on its updated full-year guidance.
Exploring AI Tools in My Research
In my analysis of earnings reports like this one from Primoris, I often turn to Tickeron’s AI Screener for quick comparisons across peers and to spot patterns in fundamentals and technicals. It helps filter thousands of stocks efficiently using customizable criteria, saving time while surfacing relevant ideas that align with my watchlist. This approach keeps my process grounded in data without replacing my own judgment on execution risks and backlog conversion.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PRIM in +9.39% Uptrend, growing for three consecutive days on October 29, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where PRIM advanced for three days, in 256 of 321 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PRIM's RSI Indicator exited the oversold zone, 19 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
The Moving Average Convergence Divergence (MACD) for PRIM just turned positive on November 02, 2026. Looking at past instances where PRIM's MACD turned positive, the stock continued to rise in 36 of 48 cases over the following month. The odds of a continued upward trend are 75%.
PRIM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PRIM as a result. In 50 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 60%.
PRIM moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PRIM crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 86%.
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%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 46 (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 (2.473) is normal, around the industry mean (15.267). P/E Ratio (28.490) is within average values for comparable stocks, (166.907). Projected Growth (PEG Ratio) (0.440) is also within normal values, averaging (3.522). Dividend Yield (0.004) settles around the average of (0.198) among similar stocks. P/S Ratio (0.575) is also within normal values, averaging (2.856).
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average 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 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 Profit vs. Risk Rating rating for this company is 75 (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 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 78 (best 1 - 100 worst), indicating slightly worse than average price growth. PRIM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a provider of engineering, construction and specialty contracting services
Industry EngineeringConstruction
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