Key Highlights

  • Revenue was USD 2.0 billion, down 10.4%, as lower renewables Revenue in the Energy segment outweighed Utilities growth.
  • Net income was USD 51.3 million, or USD 0.95 per diluted share, against USD 94.6 million, or USD 1.73.
  • Adjusted EBITDA fell 20.3% to USD 134.4 million, while total Backlog reached a record USD 14.1 billion.
  • Share purchases of up to USD 250 million were authorized, and adjusted EPS guidance is USD 2.10 to 2.25.

Lower Revenue in Energy

Primoris Services Corporation (NYSE:PRIM), the Dallas-based infrastructure contractor, reported third-quarter 2026 revenue of USD 1,952.4 million, down USD 0.2 billion, or 10.4%, from USD 2,178.4 million. The decline came primarily from lower renewables revenue in the Energy segment, partly offset by growth in the Utilities segment. Operating Income was USD 94.9 million, down 30.7% from USD 137.0 million, and Gross Profit as a share of revenue slipped to 10.5% from 10.8%.

Net income was USD 51.3 million, or USD 0.95 per diluted share, compared with USD 94.6 million, or USD 1.73, a year earlier. The company attributes the decline largely to lower operating income, from lower revenue and gross profit, and higher interest expense. Adjusted Net Income was USD 64.9 million, or USD 1.20 per share, versus USD 103.1 million, or USD 1.88, and adjusted EBITDA was USD 134.4 million versus USD 168.7 million.

Analyst estimates were EPS of USD 0.81 against reported EPS of USD 1.20, and revenue of USD 2.00 billion against reported revenue of USD 1.95 billion.

Segment Detail

President and Chief Executive Officer Koti Vadlamudi said the quarter reflected progress in completing the renewable energy projects that have affected margins this year. He said the last of six previously discussed projects is moving closer to completion, and that the company is increasingly confident those impacts are soon behind it. He added that the foundation is in place for a return to growth in 2027, supported by record backlog and sustained Demand for power generation and Utility infrastructure services.

Backlog, Guidance and Balance Sheet

Total backlog was a record USD 14.1 billion, including USD 8.5 billion of master service agreement backlog. Full-year 2026 guidance was updated to net income of USD 65.2 million to USD 73.2 million, adjusted EBITDA of USD 290.0 million to USD 310.0 million, diluted EPS of USD 1.20 to USD 1.35 and adjusted EPS of USD 2.10 to USD 2.25. Net interest expense for the year is guided to USD 43 million to USD 47 million.

Unrestricted cash and cash equivalents were USD 203.5 million at September 30, 2026, against USD 535.5 million at the prior year end, while long-term debt, net of the current portion, rose to USD 741.8 million from USD 409.0 million. Accounts Receivable increased to USD 935.0 million from USD 723.4 million. Capital expenditures were USD 42.1 million in the quarter, including USD 30.5 million of construction equipment, and are guided to USD 30.0 million to USD 40.0 million for the final three months. The board declared a Cash Dividend of USD 0.08 per share and announced a share purchase authorization of up to USD 250 million.

Utilities revenue was USD 770.9 million versus USD 737.5 million, with segment gross Margin of 13.0% against 11.7% and operating income of USD 70.1 million, or 9.1% of segment revenue. Energy revenue was USD 1,223.8 million versus USD 1,485.7 million, with gross margin of 8.5% against 10.1% and operating income of USD 51.0 million, or 4.2% of segment revenue.

Items to Follow

Completion of the last renewables project, cash conversion and use of the new share purchase authorization are the items to follow.