Primoris Restores Profit After Second-Quarter Operating Loss

The Tip Desk · November 4, 2026 · 4 min read

Third-quarter revenue was $2.0 billion as Energy renewables work stayed weak. Utilities reported $70.1 million in operating income; Primoris returned to consolidated profit.

Primoris Services Corporation (PRIM), a provider of infrastructure services to utility, energy and renewables markets, reported net income of $51.3 million, or $0.95 a share, for the three months ended September 30, 2026, after a $24.2 million net loss in the second quarter.

Revenue was $2.0 billion, down 10.4% from a year earlier, a slightly smaller year-over-year decline than the 10.7% drop in the second quarter. Operating income was $94.9 million, versus an operating loss of $26.8 million in the prior quarter. Adjusted EBITDA was $134.4 million.

The company said the revenue decrease was primarily due to lower renewables revenue in the Energy segment, partially offset by growth in Utilities. Gross profit as a percentage of revenue was 10.5%, after collapsing to 4.9% in the second quarter.

Energy revenue fell 17.6% to $1,223.8 million. The company attributed the decline primarily to slower-than-anticipated starts on new projects and release of new work, partially offset by the May 1, 2026, acquisition of PayneCrest Electric and an increase in power generation projects. Energy operating income was $51.0 million. Energy gross profit as a percentage of revenue was 8.5%. The company said the margin decline reflected the lagging effect of completing renewables projects that experienced operational challenges, plus lower 2026 volumes that raised relative carrying costs for equipment and personnel.

Utilities revenue rose 4.5% to $770.9 million, which the company said was primarily due to increased activity in gas operations and power delivery, partially offset by decreased communications activity. Utilities operating income was $70.1 million. Utilities gross profit as a percentage of revenue was 13.0%.

President and Chief Executive Officer Koti Vadlamudi said third-quarter results reflected progress in completing renewable energy projects that had weighed on margins, and that as the last of six previously discussed challenged projects moves closer to completion, the company is increasingly confident those impacts are soon behind it. He said the company remains confident in long-term renewables fundamentals and that the foundation is in place for a return to growth in 2027.

SG&A expenses were $109.0 million, or 5.6% of revenue, which the company said was driven by lower revenue and additional SG&A from PayneCrest. Interest expense, net, was $14.3 million. The company said the increase was primarily due to higher average debt and accounts receivable securitization balances, partially offset by a lower average interest rate. Full-year 2026 interest expense, net, is expected to be between $43 million and $47 million.

The company updated full-year 2026 net income guidance to $65.2 million to $73.2 million, or $1.20 to $1.35 a share, and Adjusted EBITDA guidance to $290.0 million to $310.0 million. Adjusted EPS guidance is $2.10 to $2.25 a share. Targeted full-year gross margins are 10.0% to 12.0% for Utilities and 6.0% to 8.0% for Energy. The company is targeting SG&A in the low 6.0% range of revenue for the full year and expects an effective tax rate of approximately 33.0%.

Total backlog was a record $14.1 billion at September 30, 2026, including $8.5 billion of MSA backlog, up $2.1 billion from $11.9 billion at year-end 2025. The company said the increase was primarily due to Utilities MSA backlog and Energy fixed backlog, including natural gas generation and electrical construction from PayneCrest. Utilities backlog was approximately $8.1 billion and Energy backlog $6.0 billion.

Unrestricted cash was $203.5 million at quarter-end. In the third quarter the company purchased 1,330,627 shares for $100.0 million at a weighted average of $75.15 a share, completing the $150.0 million legacy authorization. On October 30, 2026, the board authorized a new share purchase program of up to $250.0 million and declared a $0.08 a share cash dividend payable about January 15, 2027. Capital expenditures for the remaining three months of 2026 are expected to total $30.0 million to $40.0 million.