PRIM NYSE Russell 1000 Earnings call
Primoris Services Corporation (PRIM) · Q1 2026 results and valuation
Share price: $72.22 · 2026-11-11
Primoris Services Corporation provides construction, maintenance, and engineering services for the utilities and energy sectors. The company serves customers in the gas, electric, renewable energy, and petrochemical industries across the United States and Canada. Source: 10-K annual report (2026-02-24)
Results Q1 2026 vs Q4 2025 · previous quarter · published 6 May 2026 and 24 Feb 2026
Net income down 66.4% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
1 · Numbers
−66.4%
Net income vs Q4 2025
Outlook given
Net income 17.4M vs 51.7M
Revenue −16.0%
Against the same quarter last year (Q1 2025) it is −60.6%, so it is not just seasonal.
Why Against the same quarter last year (−60.6%), net income fell primarily because the Energy segment was down $152.9 million due to the timing of renewables projects and slower-than-anticipated starts, alongside cost pressures from a small number of solar projects.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Primoris Services Corporation received verbal awards of $1.1 billion for the second half of the year and another $2.8 billion that will sign.
Valuation
Is Primoris Services Corporation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 19.7% growth a year (3-year revenue growth), the model's fair value is $293.75 a share — the stock trades 75% below it. Today's price assumes 1.9% growth a year.
Current price
$72.22
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+1.9% for 10 yrs
Fair value / share
$293.75
Buy below
$220.31
Price vs fair value
Undervalued 75%
Price vs buy-below price
Undervalued 67%
Read between the lines
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Guidance
The company updated its 2026 Renewables revenue guidance to approximately $2.3 billion based on specific timing dynamics.
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Guidance
The company expects full-year Energy segment gross margins to be in the high-9% to low-10% range.
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Guidance
The company raised full-year net interest expense guidance to $35 million to $38 million from $23 million to $26 million due to a $400 million loan for the Paynecrest acquisition.
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Guidance
The company expects full-year earnings per fully diluted share to be between $4.05 and $4.25 and adjusted EPS to be between $4.80 and $5.00.
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Key theme
Margins are expected to be in line with projections, with the potential to reach the upper half of the 10% to 12% range for the year.
Source quote
“And the margins should be in line with what we have expected and, with some storm work, we could even end up in the upper half of our 10% to 12% range for the year.”
4 more
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Guidance
The company expects a significant increase in project awards across both natural gas generation and solar in the coming quarters.
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Figure
The Utility segment increased by nearly $70 million or 12.3% due to growth in power delivery and gas operations compared to the prior year.
Source quote
“The Utility segment was up nearly $70 million or 12.3%, supported by continued growth in our power delivery and gas operations compared to the prior year.”
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Key theme
The company expects the Energy segment to be in the upper single digits in Q2 as they continue to work it off.
Source quote
“I expect the Energy segment as a whole in Q2 to be in the upper single digits as we continue to work this off.”
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Figure
Cost pressures on a small number of solar projects resulted in lower reported gross profit and margins for the first quarter.
Source quote
“Our first quarter results reflected the impact of a small number of solar projects that experienced cost pressures resulting in lower reported gross profit and margins for the period.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“The decrease was primarily driven by a reduction in accounts payable as well as lower operating income during the quarter.”
“Given demand, we can be very careful and judicious about our risk posture and do not need to grow beyond our skis.”
“Net interest expense for the quarter was $4.6 million, a decrease of $3.2 million from the prior year driven by lower debt balances.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-03-31)
| Metric | Q1 2026period end 2026-03-31 | Q4 2025period end 2025-12-31 | Change | Q1 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.56B | 1.86B | −16.0% | 1.65B | −5.4% |
| Gross profit | 134.7M | 175.0M | −23.0% | 170.7M | −21.1% |
| Operating income | 24.4M | 77.5M | −68.5% | 70.4M | −65.3% |
| Net income | 17.4M | 51.7M | −66.4% | 44.2M | −60.6% |
| EPS | 0.32 | 0.95 | −66.3% | 0.81 | −60.5% |
| P/E today 36.9 | 31.6 | 24.7 | +6.9 | 15.2 | +16.4 |
Topics
Most discussed now
- New Since these contracts were executed in 2024, Primoris Services has taken decisive actions to address these areas.
- New Primoris Services has also refined its geographic expansion approach to avoid locations that could present similar execution risks.
- The majority of the impacted projects were subsequent to the project discussed in Primoris Services' Q4 earnings call, which experienced…
- Primoris Services made targeted leadership changes and added experienced talent to strengthen its preconstruction, estimating, and project…
- These impacts were driven by execution-related factors including specific labor issues, project redesigns, adjustments to sequencing, and…
Faded since Q4 2025
- Dropped This has to be done with a view that there's proper cultural fit as well as really extreme good diligence...
- Fading These aspects of Primoris Services' culture help build morale, attract and retain talent, execute consistently and uphold trust with its…
- Fading Gross margins fell to 8.5% compared to 9.5% in the prior year.
- Fading Primoris Services is energized to tackle the tremendous opportunities ahead of it across its end markets.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Other events · SEC 8-K
- Director or officer change · SEC 8-K
Primoris Services Corporation appointed James A. Greer and Oscar K. Brown to its Board of Directors, effective October 1, 2026, increasing the total number of directors to ten.
- Results of operations; Other events · SEC 8-K
Primoris Services Corporation reported revenue of $1,688.2 million for the second quarter of 2026, down 10.7% from the second quarter of 2025, and declared a cash dividend of $0.08 per share.
- Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
Primoris Services Corporation updated its 2026 outlook, projecting Renewables revenue of approximately $2.1 billion, down from approximately $3.0 billion in 2025, and announced the departure of Chief Operating Officer Jeremy Kinch.
- Results of operations; Director or officer change; Shareholder vote results; Other events · SEC 8-K
Primoris Services Corporation reported revenue of $1.6 billion for the first quarter of 2026, down $0.1 billion or 5.4% compared to the first quarter of 2025.
- Director or officer change · SEC 8-K
John P. Schauerman will retire from the Board of Directors of Primoris Services Corporation following the 2026 Annual Meeting, and the Board size will be reduced to eight members.
- Results of operations; Other events · SEC 8-K
Primoris Services Corporation reported 2025 annual revenue of $7.6 billion, up 19.0% year over year, and declared a cash dividend of $0.08 per share.
- Results of operations; Other events · SEC 8-K
Primoris Services Corporation reported revenue of $2,178.4 million for the third quarter of 2025, an increase of 32.1% compared to the third quarter of 2024.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2026
completion of all impacted projects
Source quote
“All of the impacted projects are progressing toward completion and are expected to be substantially complete in 2026, with several concluding within the next month and the final project scheduled for completion in 2026.”
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third quarter
move of certain bookings originally anticipated in the second quarter
Source quote
“As a result, we now expect certain bookings originally anticipated in the second quarter to move into the third quarter, and revenue from projects booked late in 2025 to be recognized later than previously forecasted.”
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2026
Renewables revenue
Source quote
“Based on these timing dynamics, we now expect Renewables revenue to be approximately $2.3 billion for 2026.”
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second quarter
expected expansion of revenue and margin in utilities
Source quote
“The first quarter is typically a seasonal low point in utilities, so we would expect to see further revenue and margin expansion as activity accelerates in the second quarter.”
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beginning in the second quarter
lower volumes in fiber-to-the-home programs
Source quote
“We do anticipate lower volumes in fiber-to-the-home programs beginning in the second quarter as we transition from legacy programs toward BEAD-related build-outs in certain markets.”