Primoris Services Stock Earnings Reports

Primoris reported Q1 2026 revenue of $1.6 billion (down 5.4% YoY) and gross profit of $134.7 million (gross margin 8.6% vs. 10.4% prior year). The primary driver of the quarter’s underperformance was a small number of solar (renewables) projects awarded in 2024 that experienced execution-related cost overruns and schedule shifts (labor issues, redesigns, sequencing adjustments, weather, and unfamiliar geographic labor/permit markets). Management has taken targeted corrective actions — leadership changes, added preconstruction/estimating/project management talent, and paused new work in the problematic geographies — and expects most impacted projects to be substantially complete in 2026. Renewables revenue for 2026 is now expected to be about $2.3 billion, with a pull-forward/ timing effect pushing some bookings from Q2 into Q3. Segment performance: Utility segment showed solid top-line growth and margin expansion (Q1 utility gross profit $62M, margin 9.8%), Energy segment was down (Q1 Energy gross profit $72.7M, margin 7.6%) due to renewables issues but industrial and pipeline services performed well. Backlog ended at $11.6 billion (slight decline from $11.9B year-end), with continued strong funnels and verbal awards across gas generation and renewables; management expects Energy book-to-bill >1x for 2026 with many awards shifting to H2. Paynecrest acquisition closed May 1 — strategic, accretive electrical services addition (data center and industrial exposure) with upside if further hyperscaler scope materializes. Liquidity remains strong ($676.5M), revolver increased to $750M, net debt/EBITDA expected just under 1.5x. Updated full-year guidance: GAAP EPS $4.05–$4.25, adjusted EPS $4.80–$5.00, adjusted EBITDA $480M–$500M. Net interest expense guidance increased to $35M–$38M reflecting ~$400M increase in term loan to fund Paynecrest. Management expects margins and revenue to improve starting in Q2 with stronger recovery in H2 and notable upside in 2027–2028 as backlog converts. Key risks remain project execution, weather and timing of contract awards, but management states corrective measures and franchise strength position the company to recover.