Primoris Services Corporation Q3 2026 Earnings Recap

Primoris shares fell 14.0% after earnings, with investors likely focused on a deeper-than-expected renewables slowdown: the company cut its 2026 renewables revenue outlook to approximately $1.7 billion from $2 billion at midyear and said about $450 million of revenue had been deferred beyond 2026. Management expects a return to profitable growth in 2027, but that outlook comes after execution challenges and weaker-than-expected project awards and starts.

Key Takeaways

• Five of six renewable projects with significant cost overruns are complete; the last is expected to finish in the coming weeks.
• Renewables revenue is now expected to be approximately $1.7 billion in 2026, down from the prior $2 billion expectation; approximately $450 million of revenue is deferred beyond the year.
• Utility performance was mixed: power delivery gross profit doubled year over year, while communications remains challenged and is expected to have softer revenue in the fourth quarter.
• Pipeline revenue and profitability improved year over year; the segment’s sales funnel reached a record level of more than $8 billion at quarter end.
• Management expects available execution teams to be fully utilized in 2027 and says it is targeting a return to its target margin profile, while acknowledging that renewables execution and market conditions weighed on 2026.