Primoris Services (PRIM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $1,688.2 million, down 10.7% year-over-year, mainly due to lower Energy segment revenue and margin pressure on a limited number of renewable projects.

• Net loss for Q2 2026 was $24.2 million, compared to net income of $84.3 million in Q2 2025; adjusted net loss was $14.6 million.

• Record total backlog reached $13.9 billion, driven by strong bookings in utilities, energy, and major natural gas power generation awards.

• Strategic focus remains on disciplined project selection, operational rigor, and risk management, especially in renewables, to restore profitability and support long-term growth.

• Acquisition of PayneCrest Electric expanded data center services and contributed positively to backlog and segment capabilities.

Financial highlights

• Q2 2026 revenue was $1,688.2 million, down from $1,890.7 million in Q2 2025; gross profit for Q2 was $82.4 million, with gross margin falling to 4.9% from 12.3% last year.

• SG&A expenses were $106.3 million (6.3% of revenue), up slightly due to the PayneCrest acquisition.

• Net interest expense rose to $10.6 million, reflecting higher debt from the PayneCrest acquisition.

• Q2 cash used in operations was $8.7 million, down from $78 million provided in the prior year, mainly due to lower net income.

• Diluted loss per share was $(0.45); adjusted diluted loss per share was $(0.27).

Outlook and guidance

• Full-year 2026 guidance maintained: EPS of $1.30-$1.85, adjusted EPS of $2.05-$2.60, and adjusted EBITDA of $275-$325 million.

• Sequential improvement in revenue and earnings expected through H2 2026, with adjusted EBITDA guidance of $90-$110 million for Q3 and $100-$120 million for Q4.

• Energy segment gross margins expected at 6%-8% for 2026, with a return to 10%-12% in 2027 as renewables challenges subside.

• Free cash flow for 2026 projected at $150-$200 million, down from initial $350-$400 million due to renewables impacts.

• Capital expenditures for the remainder of 2026 projected at $70-$90 million.