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 limited number of solar/renewables projects, while Utilities segment saw strong revenue and margin growth driven by power delivery and gas operations.

• 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.

• The $399.5 million acquisition of PayneCrest Electric, Inc. closed May 1, 2026, expanding electrical construction and data center market exposure.

• Full-year 2026 guidance was updated to reflect solar project challenges and the PayneCrest contribution, with optimism supported by a strong backlog and robust demand in utilities, gas generation, and pipeline services.

Financial highlights

• Q1 2026 revenue was $1.6 billion, down 5.4% year-over-year, mainly due to lower Energy segment revenue, partially offset by Utilities growth.

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

• Operating income for Q1 2026 was $24.4 million, down $46.0 million year-over-year; operating margin fell to 1.6% from 4.3%.

• 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, driven by higher personnel costs.

Outlook and guidance

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

• Renewables revenue forecast for 2026 is $2.3 billion, down from prior expectations due to project delays and a major project pull-forward to 2025.

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

• Gross margin targets: Utilities 10–12%, Energy 9–11%.

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