Overview

• US infrastructure contractor's Q1 revenue fell 5.4%, missing analyst expectations, primarily driven by lower revenue in the Energy segment

• Adjusted EPS for Q1 dropped and missed analyst expectations

• Company cites cost pressures on select renewables projects for Q1 results

Outlook

• Primoris expects 2026 net income between $223 mln and $234 mln

• Company sees 2026 EPS between $4.05 and $4.25, adj EPS $4.80 to $5.00

• Primoris expects 2026 adj EBITDA of $480 mln to $500 mln

Result Drivers

• RENEWABLES PROJECT COSTS - Higher costs on certain renewables projects, including project redesigns, changes in sequencing, labor productivity challenges, and unfavorable weather, weighed on Energy segment margins and overall results

• ENERGY SEGMENT WEAKNESS - Lower revenue and margin in the Energy segment, mainly due to slower starts and delays in new renewables projects, drove overall revenue and profit declines

• UTILITIES SEGMENT GROWTH - Utilities segment revenue and margins improved, supported by increased activity in power delivery and gas operations

Company press release: ID:nBw273PK6a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$1.60 bln	$1.73 bln (13 Analysts)
Q1 Adjusted EPS	Miss	$0.59	$0.84 (12 Analysts)
Q1 EPS		$0.32
Q1 Adjusted Net Income	Miss	$32.20 mln	$44.85 mln (9 Analysts)
Q1 Net Income		$17.40 mln
Q1 Adjusted EBITDA	Miss	$60.50 mln	$92.93 mln (13 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Primoris Services Corp is $175.00, about 5.7% below its May 4 closing price of $185.55

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 25 three months ago

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