Primoris Services (PRIM) Earnings Date & Reports

Key Takeaways

• Second quarter 2026 revenue came in at $1.69 billion, down 10.7% year over year, pressured by lower renewables activity in the Energy segment.
• Adjusted earnings per share (EPS) of -$0.27 beat the consensus estimate of -$0.35, though the company posted a net loss of $24.2 million.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 92.6% year over year to $11.4 million.
• Total backlog reached a record $13.9 billion, including $8.2 billion of master service agreement (MSA) backlog.
• Management maintained its full-year 2026 guidance, pointing to a stronger second half on improving project mix.

Earnings Context and Why It Matters

Primoris Services Corporation, a specialty contractor serving the utility, energy, and renewables markets, entered the quarter under pressure after first-quarter results were hit by cost overruns on a limited number of solar projects. Investors have been closely watching whether the company can work through those troubled contracts while still converting strong end-market demand into profitable bookings. This report matters because it tests both sides of that story: a record backlog signals robust demand for critical infrastructure, while a second consecutive quarter of margin compression shows the financial toll of project execution challenges. The results carry broad read-through for contractors exposed to power generation, data centers, and the energy transition.

Reported Results

For the second quarter ended June 30, 2026, Primoris reported revenue of $1,688.2 million, a decline of 10.7% from $1,890.7 million in the prior-year period. The drop was driven primarily by lower renewables revenue in the Energy segment, where revenue fell 19.2% to $999.9 million amid slower-than-expected project starts, releases of new work, and financial closes. The Utilities segment partially offset this with revenue of $712.6 million, up 2.8% year over year.

The company posted a net loss of $24.2 million, or $0.45 per diluted share, compared with net income of $84.3 million, or $1.54 per share, a year earlier. On an adjusted basis, Primoris reported a net loss of $14.6 million, or -$0.27 per diluted share, versus adjusted net income of $92.1 million, or $1.68 per share, in the prior-year quarter. The adjusted EPS figure came in ahead of the consensus estimate of -$0.35.

Adjusted EBITDA was $11.4 million, down 92.6% from $154.6 million a year ago. Gross margin narrowed sharply to 4.9% from 12.3%, reflecting cost overruns on six renewables projects tied to redesigns, sequencing changes, labor productivity challenges, sub-surface conditions, and weather. Two of those projects reached substantial completion in the quarter, with three expected to finish in the third quarter and one in the fourth quarter. Despite the near-term losses, total backlog climbed to a record $13.9 billion, including $8.2 billion of MSA backlog.

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Market Reaction and Investor Sentiment

Investor sentiment around Primoris has been cautious through 2026, following first-quarter results that missed expectations and prompted an updated full-year outlook. The second quarter presented a mixed picture: the adjusted EPS beat of -$0.27 versus the -$0.35 consensus offered a modest positive signal on a challenged basis, but the swing to a net loss and a steep decline in adjusted EBITDA underscored the ongoing cost overruns in renewables. The record backlog, however, gave investors a concrete reason to focus on the recovery path rather than solely on near-term losses. Market participants generally weighed the promise of record bookings against the reality of compressed margins, a tension that is likely to persist until the troubled projects are completed.

Forward Outlook and Key Factors to Monitor

Primoris maintained its full-year 2026 guidance, which was updated in June 2026, targeting net income between $71.0 million and $101.0 million, or $1.30 to $1.85 per diluted share, along with adjusted EPS of $2.05 to $2.60 and adjusted EBITDA of $275 million to $325 million. Management expects revenue growth and margin improvement in the second half of 2026, supported by a record backlog and a more favorable project mix.

Several factors will shape whether that recovery materializes. First, investors should monitor the completion of the remaining challenged renewables projects, as any further cost creep could pressure results into 2027. Second, the conversion of the record backlog into revenue will be key, particularly in natural gas generation, power delivery, and data center-related work.

Finally, watch segment margins. The company is targeting gross margins of 10% to 12% for Utilities and 6% to 8% for Energy, and selling, general and administrative (SG&A) expenses in the low-6% range as a percentage of revenue. Progress toward those targets, alongside disciplined execution on newly booked work, will be central to investor confidence heading into 2027.

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