Key Highlights

  • Revenue for the third quarter of 2026 came to USD 2.0 billion, a 10.4% drop from the prior year, chiefly due to a slowdown in renewables work within the Energy segment.
  • Backlog touched a record USD 14.1 billion as of September 30, 2026, with USD 8.5 billion of it under master service agreements.
  • Adjusted EBITDA slid 20.3% to USD 134.4 million, and adjusted EPS fell to USD 1.20 from USD 1.88 a year before.
  • Alongside revised full-year 2026 guidance, the company unveiled a plan to buy back up to USD 250 million in common shares.

Energy Weakness Pulls Third-Quarter Numbers Lower

Primoris Services (NYSE:PRIM) disclosed third-quarter 2026 results on November 3, 2026, covering the three months ended September 30. Sales of USD 2.0 billion fell 10.4% compared with the same period of 2025. Net Income reached USD 51.3 million, equal to USD 0.95 per diluted share, versus USD 1.73 previously. Adjusted earnings, a non-GAAP figure that filters out items management excludes, came to USD 1.20 per share compared with USD 1.88. Operating Income dropped 30.7% to USD 94.9 million. Gross Profit as a share of Revenue eased to 10.5% from 10.8%, and net interest expense rose to USD 14.3 million from USD 7.0 million, adding further pressure.

Renewables Delays Offset Gains in the Utilities Business

The segment divergence explains most of the quarter. Energy revenue fell 17.6%, a USD 261.9 million decline, as new renewable projects launched slower than forecast and new awards arrived later than planned. Energy gross Margin declined to 8.5% from 10.1%, a shift management connected to wrapping up initiatives that hit operational snags, along with idle equipment and staffing costs during low-volume periods. Utilities went the opposite way, with revenue up 4.5% and gross margin rising to 13.0% from 11.7% thanks to better gas and power delivery activity. Acquiring PayneCrest Electric on May 1, 2026 boosted Energy sales and contributed roughly USD 593.6 million to fixed backlog. Leadership noted that the final of six previously flagged troubled projects is close to finishing.

Revised Targets, Buyback Plan and Execution Risks

Primoris refreshed its 2026 view, now calling for net income between USD 65.2 million and USD 73.2 million, diluted EPS of USD 1.20 to USD 1.35, adjusted EPS 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 goals sit at 10.0% to 12.0% for Utilities and 6.0% to 8.0% for Energy. Operating income for the first nine months stood at USD 92.5 million, down from USD 334.0 million in the same stretch of 2025, leaving the year far behind last year's pace. Backlog does not equal revenue: much of Energy's backlog is fixed-price, so cost overruns land on the contractor, and conversion hinges on timing. Investors should monitor completion of the six difficult projects, Energy margins reaching target and execution of the USD 250 million repurchase.

Where Things Stand

Demand appears firm, since the USD 14.1 billion backlog sits at a high, but profit has yet to follow. Quarterly revenue, operating income and adjusted EBITDA all declined, with troubled renewables jobs and slow starts as the root causes. The utilities side is widening margins, and backlog was USD 11,945.3 million at the close of 2025, or USD 11.9 billion when rounded, which supports management's forecast of growth returning in 2027 without guaranteeing it. Next signposts include the fourth-quarter report, closing the last challenged Job and buyback progress.