Primoris Services Corp (NYSE:PRIM) shares are under pressure Wednesday after the company delivered a disappointing first‑quarter report and slashed its full‑year 2026 earnings outlook.

• Primoris Services stock is among today’s weakest performers. What’s pressuring PRIM stock?

Earnings Miss

Primoris posted adjusted earnings of 59 cents per share, far short of the 84 cents analysts were looking for and down sharply from 98 cents a year ago. Revenue also missed, coming in at $1.56 billion versus the $1.732 billion consensus and falling 5.34% from last year's first quarter.

The bigger blow came from guidance. Management cut its full‑year adjusted EPS forecast to $4.80–$5.00 and down from $5.80–$6.00.

Renewables Projects Drive The Weakness

CEO Koti Vadlamudi said the quarter was dragged down by "cost pressures on a limited number of renewables projects," which the company expects to substantially complete during 2026. The impact was clear across the financials: operating income fell to $24.4 million from $70.4 million, margins compressed to 1.6% from 4.3%, adjusted EBITDA dropped to $60.5 million from $99.4 million and net income slid to $17.4 million from $44.2 million.

Adjusted net income also declined meaningfully, falling to $32.2 million from $53.5 million.

Revenue softness was concentrated in the Energy segment, partially offset by growth in Utilities. Backlog ended the quarter at $11.6 billion, down $0.3 billion from the fourth quarter of 2025.

Management Commentary

Vadlamudi emphasized that the renewables issues are isolated, noting that performance across the rest of the company improved, with margin expansion led by the power delivery and industrial businesses. He added that most of the renewables portfolio is performing "in line or ahead of expectations."

Primoris also pointed to strong bidding activity across natural gas generation, renewables and pipeline markets, which it expects to support bookings through the remainder of 2026. The company completed its acquisition of PayneCrest Electric on May 1, and the updated guidance reflects that addition.

Revised Outlook

For 2026, Primoris now expects net income of $223–$234 million and adjusted EBITDA of $480–$500 million. SG&A is projected to land in the mid‑to‑high 5% range as a percentage of revenue, while gross margins are targeted at 10–12% for Utilities and 9–11% for Energy.

PRIM Shares Are Dropping

PRIM Price Action: Primoris shares were down 48.57% at $104.37 at the time of publication on Wednesday, according to Benzinga Pro.

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