PRIM · Primoris Services Corporation

Primoris Services Corporation reported a challenging first quarter of 2026, with financial results significantly impacted by cost pressures in its renewables portfolio. Revenue declined 5.4% year-over-year to $1.6 billion, while GAAP net income fell sharply to $17.4 million, or $0.32 per diluted share, compared to $44.2 million, or $0.81 per share, in the prior year period. The underperformance was concentrated in the Energy segment, where operating income dropped 62.2% due to project redesign efforts, labor productivity challenges, and unfavorable weather on certain renewables projects. Consequently, consolidated operating margin compressed to 1.6% from 4.3%. Conversely, the Utilities segment demonstrated resilience, posting a 12.3% revenue increase and a $12.4 million improvement in operating income, driven by strong activity in power delivery and gas operations markets.

Strategically, the company completed the acquisition of PayneCrest Electric, Inc. on May 1, 2026, for approximately $399.5 million in cash. This acquisition is intended to expand Primoris' exposure to the high-growth data center services market and integrate complementary electrical construction capabilities. Management highlighted that excluding the isolated renewables project impacts, the remainder of the business showed margin expansion. Looking forward, the company updated its full-year 2026 guidance to reflect the PayneCrest acquisition, targeting Adjusted EPS of $4.80 to $5.00 and Adjusted EBITDA of $480 million to $500 million. Total backlog stood at $11.6 billion, with a notable 7.2% increase in Master Service Agreement (MSA) backlog to $7.5 billion, suggesting a solid foundation for future revenue despite the near-term operational headwinds. The Board also declared a quarterly dividend of $0.08 per share, payable in mid-July.