Primoris Services (PRIM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue and margins declined year-over-year due to cost pressures and delays in a small number of solar projects, with execution issues, labor challenges, project redesigns, and weather disruptions impacting results.

• Utilities segment saw strong revenue and margin growth, driven by increased power delivery and gas operations, partially offsetting Energy segment declines.

• Acquisition of PayneCrest Electric, Inc. closed on May 1, 2026, expanding electrical construction and data center market exposure.

• Full-year 2026 guidance updated to reflect solar project challenges and PayneCrest contribution, with optimism for improved performance in the second half.

• Decisive actions taken include leadership changes, enhanced pre-construction planning, and refined geographic expansion strategy.

Financial highlights

• Q1 2026 revenue was $1.6 billion, down 5.4% year-over-year, with Utilities segment revenue up 12.3% to $632.9 million and Energy segment revenue down 13.8% to $955.4 million.

• Gross profit was $134.7 million, down 21.1% year-over-year; gross margin declined to 8.6% from 10.4%.

• Net income for Q1 2026 was $17.4 million ($0.32 per diluted share), down from $44.2 million ($0.81 per share) in Q1 2025.

• Adjusted EBITDA for Q1 2026 was $60.5 million, down from $99.1 million in Q1 2025.

• SG&A expenses increased to $105.8 million (6.8% of revenue), up from 6% last year.

Outlook and guidance

• Full-year 2026 EPS guidance: $4.05–$4.25; adjusted EPS: $4.80–$5.00; adjusted EBITDA: $480–$500 million.

• Energy segment gross margin expected in the high 9%–10% range; Utilities targeted at 10%–12%.

• Book-to-bill in Energy segment anticipated to exceed 1x for 2026, with most bookings in the second half.

• SG&A as a percentage of revenue targeted in the mid-to-high 5% range for 2026.

• Higher revenue and margin improvement expected from Q2 onward as troubled projects complete.