Second Quarter 2026
Filed Aug 4, 2026Primoris Services Corporation Reports Second Quarter 2026 Results
Revenue declined 10.7%, the Company reported a net loss and operating loss, and Adjusted EBITDA declined 92.6% as renewable-project cost overruns and lower Energy revenue sharply reduced margins.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended June 30GAAP | $1,688.2 million | – | down $202.5 million, or 10.7% |
| Cost of revenue, three months ended June 30GAAP | $1,605.8 million | – | – |
| Gross profit, three months ended June 30GAAP | $82.4 million | – | – |
| Gross profit as a percentage of revenue, three months ended June 30GAAP | 4.9% | – | – |
| Selling, general, and administrative expenses, three months ended June 30GAAP | $106.3 million | – | increase of $1.7 million |
| Selling, general, and administrative expense as a percentage of revenue, three months ended June 30GAAP | 6.3% | – | – |
| Transaction and related costs, three months ended June 30GAAP | $2.9 million | – | – |
| Operating loss, three months ended June 30GAAP | $26.8 million | – | decrease of $153.4 million, or 121.2% |
| Operating margin, three months ended June 30GAAP | (1.6)% | – | – |
| Interest expense, net, three months ended June 30GAAP | $10.6 million | – | increase of $3.1 million |
| Net loss, three months ended June 30GAAP | $24.2 million | – | decrease of $108.5 million |
| Diluted loss per share, three months ended June 30GAAP | $0.45 per diluted share | – | – |
| Adjusted net loss, three months ended June 30non-GAAP | $14.6 million | – | decrease of $106.7 million |
| Adjusted loss per diluted share, three months ended June 30non-GAAP | $0.27 per diluted share | – | – |
| Adjusted EBITDA, three months ended June 30non-GAAP | $11.4 million | – | down $143.2 million, or 92.6% |
| Total backlogother | $13.9 billion | – | – |
| Total master service agreement backlogother | $8.2 billion | – | – |
| Revenue, six months ended June 30GAAP | $3,248.1 million | – | – |
| Cost of revenue, six months ended June 30GAAP | $3,031.0 million | – | – |
| Gross profit, six months ended June 30GAAP | $217.1 million | – | – |
| Gross profit as a percentage of revenue, six months ended June 30GAAP | 6.7% | – | – |
| Selling, general, and administrative expenses, six months ended June 30GAAP | $212.0 million | – | – |
| Transaction and related costs, six months ended June 30GAAP | $7.4 million | – | – |
| Operating loss, six months ended June 30GAAP | $2.3 million | – | – |
| Operating margin, six months ended June 30GAAP | (0.1)% | – | – |
| Effective tax rate on income, six months ended June 30GAAP | 59.5% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| UtilitiesIncreased activity in gas operations and power delivery businesses, partially offset by decreased activity in the communications business. | $712.6 million | – | increased by $19.6 million, or 2.8% |
| EnergyDecreased renewable energy activity due to slower than anticipated starts of new projects, release of new work, and slower than expected financial close associated with certain projects; partially offset by the incremental impact from the acquisition of PayneCrest. | $999.9 million | – | decreased by $236.9 million, or 19.2% |
full year 2026 outlook
- NoteInterest expense: between $43 million and $47 million
What drove it
- Record total backlog of $13.9 billion, including $8.2 billion of total master service agreement backlog.
- Utilities revenue growth reflected increased activity in gas operations and power delivery businesses.
- Energy revenue was partially supported by the incremental impact from the acquisition of PayneCrest.
- Management cited demand supported by renewable energy, natural gas generation, pipeline, and power delivery markets.
Concerns
- Energy gross loss as a percentage of revenue was (0.3%), compared to gross profit as a percentage of revenue of 10.8% in the second quarter of 2025.
- Cost overruns on six renewable energy projects reflected project redesign efforts, changes in project sequencing, labor productivity challenges, sub-surface issues, and unfavorable weather conditions.
- Lower than anticipated volumes in 2026 led to higher relative carrying costs for equipment and personnel.
- Utilities gross profit as a percentage of revenue declined to 11.9% from 14.1%, reflecting favorable gas-operations project closeouts in 2025 and lower higher-margin storm restoration work in 2026.
- Interest expense, net increased to $10.6 million from $7.5 million, primarily due to higher average debt balances.
What to watch
- Three of the six challenged renewable energy projects are expected to be substantially complete in the third quarter of 2026, and the remaining project is expected to be substantially complete in the fourth quarter of 2026.
- Management expects revenue growth and margin improvement in the second half of 2026.
- The pace of renewable project starts, release of new work, and financial closes.
- Execution on the record total backlog of $13.9 billion.
Analysis
Second-quarter performance deteriorated sharply. Revenue was $1,688.2 million, down $202.5 million, or 10.7%, from the second quarter of 2025, while the Company moved from $126.6 million of operating income to a $26.8 million operating loss. Net loss was $24.2 million and Adjusted EBITDA was $11.4 million, down $143.2 million, or 92.6%. The filing attributes the revenue decline primarily to lower renewables revenue in Energy.
Energy was the principal pressure point. Segment revenue declined by $236.9 million, or 19.2%, to $999.9 million as new project starts, releases of new work, and financial closes were slower than anticipated. Energy generated a gross loss of (0.3)% of revenue and an operating loss of $56.4 million. Cost overruns on six renewable energy projects arose from redesign efforts, sequencing changes, labor productivity challenges, sub-surface issues, and unfavorable weather conditions. Lower-than-anticipated volumes also increased the relative carrying costs of equipment and personnel.
Utilities provided limited offset. Revenue increased by $19.6 million, or 2.8%, to $712.6 million, supported by gas operations and power delivery activity, but segment operating income declined by $11.0 million, or 16.8%, to $54.5 million. Utilities gross profit as a percentage of revenue fell to 11.9% from 14.1%. Consolidated gross profit as a percentage of revenue fell to 4.9% from 12.3%, while SG&A expense as a percentage of revenue rose to 6.3% from 5.5% because of lower revenue.
The first half also shows a substantial reduction in profitability. Six-month revenue was $3,248.1 million versus $3,538.8 million, gross profit as a percentage of revenue was 6.7% versus 11.4%, and the Company reported a $2.3 million operating loss versus $197.0 million of operating income. Interest expense, net rose to $10.6 million in the quarter from $7.5 million, with the increase attributed primarily to higher average debt balances.
The backlog is the principal positive reported indicator: total backlog reached a record $13.9 billion, including $8.2 billion of total master service agreement backlog. Two challenged renewable projects were substantially complete in the second quarter, three are expected to be substantially complete in the third quarter, and one is expected to be substantially complete in the fourth quarter. Management expects revenue growth and margin improvement in the second half of 2026 and guided full-year 2026 interest expense to between $43 million and $47 million.
Management, verbatim
Despite the challenges on a limited number of renewables projects that impacted our earnings during the quarter, Primoris delivered record bookings and achieved the highest total backlog in our history,
Koti Vadlamudi, President and Chief Executive Officer of Primoris
Although our first-half 2026 financial performance fell short of our expectations, we are encouraged by the momentum we see across the business. With a record backlog, improving project mix, and continued operational focus, we expect revenue growth and margin improvement in the second half of 2026, providing a solid foundation for stronger performance and long-term value creation in 2027 and beyond,
Koti Vadlamudi, President and Chief Executive Officer of Primoris
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics
- Full-year 2026 revenue guidance
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expense guidance
- Full-year 2026 tax-rate guidance
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Dividends
- Prior outlook for comparison with reported results
- Full second-quarter consolidated financial statements and non-GAAP reconciliations, which were not included in the provided filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.