Primoris Services Corporation (PRIM) Earnings
Primoris Services Corporation is expected to report next earnings on November 2, 2026 (in NaN days), with a consensus EPS estimate of $0.78. PRIM has beaten EPS estimates in 9 of its last 12 reported quarters (average surprise +2.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $-0.35 | $-0.27 | +23.8% | $1.7B | -2.6% |
| May 6, 2026 | $0.85 | $0.59 | -30.6% | $1.6B | -9.8% |
| Feb 23, 2026 | $0.95 | $1.08 | +13.7% | $1.9B | +6.5% |
| Feb 26, 2024 | $0.67 | $0.69 | +3.0% | $1.5B | -2.0% |
| Feb 27, 2023 | $0.72 | $0.77 | +6.9% | $1.3B | +1.4% |
| Feb 28, 2022 | $0.56 | $0.54 | -3.6% | $884M | -1.0% |
| Aug 3, 2021 | $0.72 | $0.67 | -6.9% | $882M | +0.0% |
| May 5, 2021 | $-0.09 | $0.32 | +455.6% | $818M | +5.9% |
| Feb 22, 2021 | $0.43 | $0.66 | +53.5% | $897M | +30.3% |
| Nov 5, 2020 | $0.66 | $0.90 | +36.4% | $943M | +36.4% |
| Aug 4, 2020 | $0.29 | $0.68 | +134.5% | $908M | +17.2% |
| May 5, 2020 | $0.01 | $0.03 | +314.4% | $743M | +700.0% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Renewable Project Progress - 6 challenged renewable projects have experienced material cost overruns; all remaining renewable projects outside these 6 perform within expectations on average, with most exceeding as-sold margins. - 2 of the 6 challenged projects are mechanically complete; 3 are expected to reach substantial completion in Q3 2026, and the 6th is expected to reach mechanical completion in early November 2026 and substantial completion by the end of 2026. - Post-project review, management has strengthened operational oversight, enhanced pre-construction risk planning, and increased organizational accountability to prevent future cost overruns. - Backlog and Bookings - Total backlog reached a record just under $13.9 billion at quarter-end, up $2.2 billion sequentially from Q1 2026. Fixed backlog increased $1.5 billion sequentially, while MSA backlog increased $700 million sequentially, driven mostly by higher power delivery activity. - Q2 2026 secured $3.9 billion in total new awards: $1.5 billion in the utility segment and $2.4 billion in the energy segment, with $1.4 billion of energy segment awards coming from natural gas power generation. - $200 million of backlog from the Paynecrest acquisition was included at quarter-end, and Paynecrest added an additional $250 million in new bookings in Q2 after close. Renewables backlog growth is expected in H2 2026, mostly in Q4 2026. - Segment-specific Operational Updates - Utility: Communications segment saw lower activity as expected, as customers transition fiber-to-the-home buildouts to BEAD-funded programs; activity is expected to ramp later in 2026, with ~$300 million in BEAD-funded opportunities currently tracked. Gas operations outperformed revenue growth expectations in the quarter. Power delivery continues to deliver strong margin improvement from higher productivity and favorable project mix, with growing customer demand for transmission and substation work. - Energy: Pipeline delivered double-digit YoY revenue growth and substantial margin improvement, continuing its recovery from the 2025 cyclical trough, with a $7 billion+ multi-year addressable project funnel. Paynecrest acquisition performance has exceeded expectations, with strong early results and a solid strategic/cultural fit. Natural gas power generation saw strong bookings, with full year 2026 revenue expected to hit $500-$600 million, growing to $800 million-$1 billion in 2027. Total addressable natural gas power generation funnel now exceeds $8 billion.
Guidance
- Full year 2026 guidance is maintained from the June 2026 operational update: EPS of $1.30 to $1.85 per fully diluted share, adjusted EPS of $2.05 to $2.60 per fully diluted share, and adjusted EBITDA of $275 to $325 million. Guidance retains a buffer for potential upside, with management comfortable that results will land at the low end or above the range. - Q2 2026 results are expected to be the low point for full year 2026, as all cost impacts from challenged renewable projects were recognized in the quarter. Sequential improvement in revenue and earnings is expected for H2 2026: adjusted EBITDA is expected to be $90-$110 million in Q3 2026 and $100-$120 million in Q4 2026. - Full year 2026 energy segment gross margin is guided to 6% to 8%, with sequential improvement to 6%-8% in Q3 2026 and 8%-10% in Q4 2026, returning to the historical 10%-12% range in 2027. - Full year 2026 SG&A as a percentage of revenue is expected to be slightly over 6%, driven by non-cash amortization from the Paynecrest acquisition. Interest expense guidance is updated to $43-$47 million for full year 2026, and the full year effective tax rate is expected to be 30% to 32%. - Full year 2026 free cash flow is expected to be $150-$200 million, down from the prior $350-$400 million guide due to the impact of challenged renewable projects. - Renewables bookings of $1.5-$2 billion are expected in H2 2026, almost all in Q4 2026, with modest revenue growth for the renewables segment expected in 2027, returning to a normal growth cadence by 2028.
Segment performance
Overall company Q2 2026 revenue was just under $1.7 billion, a 10.7% decrease year-over-year (YoY). Gross profit was $82.4 million, down $149.3 million YoY, with a gross margin of 4.9% compared to 12.3% YoY. 1. Utility Segment: - Revenue increased $19.6 million (2.8%) YoY, driven by higher activity in gas operations and power delivery, partially offset by lower communications revenue. - Gross profit was $85.1 million, down $12.4 million YoY, with a gross margin of 11.9% compared to 14.1% YoY. - Revenue contribution: ~42.5% of total company revenue. 2. Energy Segment: - Revenue decreased $236.9 million (19.2%) YoY, driven by reduced renewable energy activity, partially offset by higher natural gas generation, pipeline activity, and the addition of Paynecrest in May-June 2026. - Gross profit declined $136.9 million YoY, resulting in a slightly negative gross margin for the segment, down from 10.8% YoY. Gross margin drag came entirely from cost overruns on challenged renewable projects, partially offset by improved margins in pipeline and positive contributions from Paynecrest. - Revenue contribution: ~57.5% of total company revenue.
Risks & headwinds
- Renewable energy projects continue to carry execution risk: cost overruns on 6 challenged projects have already materially reduced Q2 2026 gross profit and full year 2026 earnings and free cash flow, though all remaining cost impacts are captured in current guidance. - Most high-demand end markets (including natural gas power generation, electrical construction, and utility power delivery) face labor and resource constraints that can limit growth capacity. - Texas data center development pauses could impact near-term interconnect fiber and power delivery opportunities, though Primorus' exposure to the data center end market is only 10%-15% of total portfolio. - Long project procurement cycles for large pipeline projects push revenue ramp out to late 2027/early 2028, creating near-term visibility risk.
Analyst Q&A
Q: Does the statement that remaining renewable projects perform "on average" mean there are still unrecognized additional risks of further cost charges, and are those captured in guidance? /
A: Of the more than two dozen active renewable projects, only the 6 already identified have material cost issues. Most other projects deliver above as-sold margins, with only small immaterial deviations on a few others. All expected remaining costs for the 6 challenged projects are already included in current guidance. The 6 projects are on track to be completed by the end of 2026 as scheduled.
Q: What is the confidence level for 2027 renewables growth, and have any planned projects moved far enough to the right to impact guidance, potentially being rebid to other firms? /
A: The renewables project funnel remains very strong at over $16 billion of total opportunity. While one projected Q3 2026 award has shifted to Q4 2026, this is consistent with prior disclosures and does not change the planned 2027 backlog build. Management's base case is for modest renewables growth in 2027 after the 2026 reset, with most bookings coming in Q4 2026 to set up 2027 revenue.
Q: What is the geographic and project breakdown of the $1.4 billion in Q2 natural gas power generation bookings, and how large is the current opportunity funnel? /
A: All $1.4 billion in Q2 awards are simple cycle projects, which align with market demand for fast time-to-market capacity. Projects are located in Texas, Missouri, and Nevada. The total tracked natural gas power generation opportunity funnel has grown to over $8.7 billion, and management remains disciplined in project and customer selection given constrained industry resources.
Q: What changes have been made to incentivize better risk management for future renewable projects, and what leading indicators will show process improvements are working? /
A: Management has adjusted incentive structures for field and project leadership, adding restricted stock units that vest over time to align compensation with long-term value creation, rather than just booking volume. This adjustment primarily incentivizes the current teams leading the completion of challenged projects, who have shown strong resilience through the execution process. Accountability for risk starts at the leadership level, with strengthened pre-construction review processes already in place.