Key Highlights

  • Third quarter 2026 Revenue was USD 2.0 billion, down 10.4% from a year earlier, mainly because renewables work in the Energy segment slowed.
  • Total Backlog reached a record USD 14.1 billion at September 30, 2026, including USD 8.5 billion of master service agreement backlog.
  • Adjusted EBITDA fell 20.3% to USD 134.4 million, while adjusted Earnings Per Share dropped to USD 1.20 from USD 1.88 a year earlier.
  • Primoris announced authorization to repurchase up to USD 250 million of common shares alongside updated full-year 2026 guidance.

Third Quarter Results Show Energy Segment Drag

Primoris Services (NYSE:PRIM) reported third quarter 2026 results on November 3, 2026, for the period ended September 30. Revenue was USD 2.0 billion, a decline of 10.4% from the third quarter of 2025. Net Income was USD 51.3 million, or USD 0.95 per diluted share, compared with USD 1.73 a year earlier. On an adjusted basis, a non-GAAP measure that strips out items the company excludes, earnings were USD 1.20 per share against USD 1.88. Operating Income fell 30.7% to USD 94.9 million. Gross Profit as a share of revenue slipped to 10.5% from 10.8%, and higher net interest expense of USD 14.3 million, up from USD 7.0 million, also weighed on the bottom line.

Why Renewables Slowed While Utilities Gained

The split between the two segments explains most of the quarter. Energy revenue dropped 17.6%, or USD 261.9 million, because new renewable projects started more slowly than expected and new work was released later than planned. Energy gross Margin fell to 8.5% from 10.1%, which the company tied to completing projects that had run into operational problems and to idle equipment and staff carrying costs when volumes are light. Utilities moved the other way: revenue rose 4.5% and gross margin improved to 13.0% from 11.7% on stronger gas and power delivery work. The May 1, 2026 Acquisition of PayneCrest Electric added to Energy revenue and about USD 593.6 million to fixed backlog. Management said the last of six previously discussed challenged projects is nearing completion.

Guidance Reset, Buyback and the Risks Ahead

Primoris updated its 2026 outlook: net income of USD 65.2 million to USD 73.2 million, Diluted Earnings per Share of USD 1.20 to USD 1.35, adjusted earnings per share of USD 2.10 to USD 2.25, and adjusted EBITDA of USD 290.0 million to USD 310.0 million. Full-year segment gross margin targets are 10.0% to 12.0% for Utilities and 6.0% to 8.0% for Energy. Nine-month operating income was USD 92.5 million, compared with USD 334.0 million in the same period of 2025, so the year remains well below last year's pace. Backlog is not revenue: Energy backlog is mostly fixed-price work, where cost overruns on a project fall on the contractor, and conversion depends on project timing. Watch whether the six troubled projects finish on schedule, whether Energy margins reach the targeted range, and how the USD 250 million repurchase is executed.

Where Things Stand

The record USD 14.1 billion backlog is a real sign of demand, but it is not yet showing up in earnings. Primoris Services (NYSE:PRIM) saw revenue, operating income and adjusted EBITDA all fall in the third quarter, with problem renewables projects and slow project starts as the main causes. Utilities is growing at better margins, and backlog is up from USD 11.9 billion at December 31, 2025 (rounded from USD 11,945.3 million), which supports management's view of a 2027 return to growth, a company expectation and not a certainty. The next markers are the fourth quarter report, the completion of the last challenged project, and progress on the buyback.