Primoris Services reported a weaker third quarter as lower renewable-energy revenue and margins weighed on sales and profit. The Dallas-based contractor said it is nearing completion of six previously identified troubled renewable-energy projects, while pointing to growth in utilities work and a record backlog as support for a possible return to growth in 2027.
The board also declared a quarterly cash dividend and authorized a share-repurchase program of up to $250 million.
Third-quarter results and outlook
- Revenue was $2.0 billion, down 10.4% from the third quarter of 2025. Lower renewables revenue in the Energy segment was partly offset by growth in Utilities.
- Operating income fell 30.7% to $94.9 million. Lower revenue and margins in Energy were partly offset by improved margins in Utilities.
- Net income was $51.3 million, or $0.95 per diluted share, compared with $94.6 million, or $1.73 per share, a year earlier. Primoris attributed the decline mainly to lower operating income and higher interest expense.
- On an adjusted basis, net income was $64.9 million, or $1.20 per diluted share, versus $103.1 million, or $1.88, a year earlier. Adjusted EBITDA was $134.4 million, down 20.3% from $168.7 million.
- Gross profit as a share of revenue slipped to 10.5% from 10.8%, primarily because of weaker Energy-segment margins.
- Backlog reached a record $14.1 billion, including $8.5 billion under master service agreements.
- Primoris set full-year 2026 guidance at $65.2 million to $73.2 million in net income and $290 million to $310 million in adjusted EBITDA. It expects diluted EPS of $1.20 to $1.35 and adjusted diluted EPS of $2.10 to $2.25. The announcement did not provide the previous guidance ranges for comparison.
- CEO Koti Vadlamudi said the last of six challenged renewable-energy projects is approaching completion. He described demand across the company’s markets as robust and said Primoris believes it is positioned to return to profitable growth and expand margins in 2027.
Shareholder returns
- The board declared a cash dividend of $0.08 per common share. Shareholders of record on December 31, 2026, are due to be paid on or about January 15, 2027.
- Primoris authorized repurchases of up to $250 million of its common stock. The company may buy shares on the open market or through privately negotiated transactions, depending on market conditions, share price and other factors. The program has no expiration date.
What changes for investors: The quarter’s results show continued pressure from renewable-energy projects, while Utilities growth and the record backlog offer countervailing signs of demand. The dividend sets a near-term cash payment for eligible shareholders; the repurchase authorization gives Primoris discretion to buy back shares, but does not require it to spend the full amount.