Primoris Services Corporation Reports Q1 2026 Financial Results: Revenue, Earnings, and Strategic Acquisition Update

Date: May 5, 2026

Location: Dallas, TX

Key Financial Highlights for Q1 2026

• Revenue: \$1.6 billion, a decrease of \$0.1 billion or 5.4% compared to Q1 2025, primarily due to lower revenue in the Energy segment, partially offset by growth in the Utilities segment.
• Net Income: \$17.4 million (\$0.32 per diluted share), a sharp decrease of \$26.8 million, or \$0.49 per share, from Q1 2025.
• Adjusted Net Income: \$32.2 million (\$0.59 per diluted share), down \$21.3 million, or \$0.39 per share, versus Q1 2025.
• Adjusted EBITDA: \$60.5 million, down \$38.9 million, or 39.1%, from Q1 2025.
• Total Backlog: \$11.6 billion (down \$0.3 billion from Q4 2025), with Master Service Agreements (“MSA”) backlog at \$7.5 billion.
• Dividend: \$0.08 per share was declared for shareholders of record on June 30, 2026, payable around July 15, 2026.

Segment Performance

Utilities Segment

• Revenue: Increased by \$69.5 million (12.3%) to \$632.9 million, driven by strong activity in power delivery and gas operations.
• Operating Income: Increased by \$12.4 million to \$30.5 million; gross margin rose to 9.8% (up from 9.2% in Q1 2025).
• Backlog: \$6.9 billion, with fixed backlog of \$93.4 million and MSA backlog of \$6.8 billion.

Energy Segment

• Revenue: Decreased by \$152.9 million (13.8%) to \$955.4 million, due to a slower than anticipated start of new renewable projects and delays in new work and financial close.
• Operating Income: Dropped by \$49.1 million (62.2%) to \$29.8 million, reflecting lower revenue and higher costs, especially in renewables due to project redesigns, sequencing changes, labor productivity issues, and weather challenges.
• Gross Margin: Fell to 7.6% from 10.7% in Q1 2025.
• Backlog: \$4.7 billion, with fixed backlog of \$4.1 billion and MSA backlog of \$652.1 million.

Other Significant Financial Information

• Selling, General & Administrative (SG&A) Expenses: \$105.8 million, up 6.3% from Q1 2025, and representing 6.8% of revenue (vs. 6.0% last year) as a result of lower revenue.
• Interest Expense: \$4.6 million (down \$3.2 million YoY due to lower average debt balances). FY 2026 interest expected between \$35 million and \$38 million.
• Effective Tax Rate: 12.6% for Q1, down from 21%, due to discrete tax benefits. Tax rate expected to trend higher to 28-29% for the full year.
• Cash and Cash Equivalents: \$361.5 million at March 31, 2026 (down from \$535.5 million at year-end 2025).
• Capital Expenditures: \$27.8 million in Q1; full-year 2026 capex expected at \$90-110 million, with \$70-90 million for equipment.
• Share Repurchases: No shares purchased in Q1 2026; \$150 million remains available under the current authorization (expires April 2028).

Strategic and Price-Sensitive Developments

Acquisition of PayneCrest Electric, Inc.

On May 1, 2026, Primoris completed the acquisition of PayneCrest Electric, Inc. in an all-cash transaction valued at approximately \$399.5 million (net of cash acquired). PayneCrest is a leading electrical construction and services provider for industrial, manufacturing, and advanced facilities. This acquisition is expected to:

• Strengthen Primoris’ position in the high-growth data center market.
• Expand opportunities for integrating industrial and renewables with complementary electrical construction capabilities.
• Support long-term value creation for shareholders by leveraging the combined company’s expertise and market reach.

This acquisition is highly significant and likely to impact future results and the company’s share price due to expanded market opportunities and potential synergies.

Updated 2026 Guidance (Post-Acquisition)

• Net Income: \$223 million to \$234 million (up from \$17.4 million in Q1; includes PayneCrest impact)
• EPS: \$4.05 to \$4.25 per diluted share
• Adjusted EPS: \$4.80 to \$5.00
• Adjusted EBITDA: \$480 million to \$500 million
• SG&A as % of Revenue: Targeting mid-to-high 5% range for 2026
• Gross Margin Targets: Utilities: 10-12%; Energy: 9-11%

These guidance figures reflect management’s confidence in the company’s market positioning, the expected performance of the PayneCrest acquisition, and sustained demand for infrastructure services in power generation, data centers, and renewables.

Backlog Overview

• Total Backlog at March 31, 2026: \$11.6 billion, including:
• Utilities: \$6.9 billion (fixed: \$93.4 million; MSA: \$6.8 billion)
• Energy: \$4.7 billion (fixed: \$4.1 billion; MSA: \$652.1 million)
• Notable Trends: Fixed backlog decreased 16.1% (\$0.8 billion) since year-end 2025, while MSA backlog increased by 7.2% (\$0.5 billion).

Note: Backlog is not a comprehensive indicator of future revenue, as project scope and contract values can change, and projects may be cancelled at customers’ discretion.

Management Commentary

CEO Koti Vadlamudi noted that first quarter results were impacted by cost pressures on a limited number of renewables projects, which are expected to reach substantial completion in 2026. Excluding these impacts, the rest of the business saw improved performance, particularly in power delivery and industrial markets. The company sees continued robust demand in power generation, data centers, and critical infrastructure, positioning Primoris to capitalize on industry growth.

Conference Call Details

Management will host a conference call and webcast on May 6, 2026, at 9:00 a.m. Central (10:00 a.m. Eastern) to discuss results and outlook.

Dial-in: 1-800-715-9871 (U.S.) or 1-646-307-1963 (Int’l), access code: 1324356. Slides and replay will be available at www.prim.com.

Key Risks and Forward-Looking Statements

• Results and outlook are subject to risks including project timing, customer spending, inflation, labor availability, supply chain, weather, regulatory changes, and integration of acquisitions.
• Management expects the tax rate to move higher in the rest of 2026.
• Backlog and future results may be affected by customer contract changes or cancellations, and economic conditions.

Investor Takeaway: The Q1 2026 report includes news likely to move the share price, especially the significant PayneCrest acquisition and updated guidance for 2026. While Q1 results were below the prior year due to renewables headwinds, the Utilities segment showed robust growth, and the company expects improved performance for the remainder of the year.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review all available company filings, press releases, and consult with a qualified financial advisor before making any investment decisions. Forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from expectations.

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