Primoris Services Q3 2026: EPS Beats Big as Renewables Drag Nears Its End

Primoris Services reported adjusted earnings per share of $1.20 for Q3 2026, more than 53% above the consensus estimate of $0.78. That is a sharp swing from the loss posted in Q2 2026, when the company reported negative $0.30 per share, and it marks a return to the kind of outperformance the company showed consistently through 2024 and 2025.

The rebound came despite a revenue miss. At $1.95 billion, quarterly revenue fell short of the $2.00 billion Wall Street expected and was down about 10% from a year earlier. The shortfall was concentrated in the Energy segment, where revenue dropped 17.6% year over year to $1.22 billion, with management pointing to slower-than-anticipated starts on new renewables projects and elevated equipment and personnel carrying costs on lower volumes. Energy gross margin compressed to 8.5% from 10.1% a year earlier.

The more important signal for investors may be what comes next. CEO Koti Vadlamudi said the last of six previously disclosed troubled renewables projects is nearing completion, adding: "As the last of our six previously discussed challenged projects moves closer to completion, we are increasingly confident that these impacts are soon to be behind us." If that proves true, the margin drag that turned Q2 2026 into a loss quarter will have largely run its course.

On the other side of the ledger, the Utilities segment held up well, with revenue growing 4.5% to $770.9 million and operating income rising 27.2%, as improved power delivery performance pushed gross margin to 13.0% from 11.7%. The May 2026 acquisition of PayneCrest Electric contributed approximately $593.6 million to the fixed backlog and pushed the company's total backlog to a record $14.1 billion, including $8.5 billion of master service agreement backlog.

Management updated full-year 2026 guidance to adjusted EPS of $2.10 to $2.25 and adjusted EBITDA of $290 million to $310 million, while projecting a return to profitable growth in 2027. The board also authorized a new $250 million share repurchase program after fully exhausting a prior $150 million program, including $100 million of buybacks at an average price of $75.15 in Q3 alone. With the stock near a 52-week low, the gap between that buyback price and the current trading level is a tension investors will be watching closely heading into 2027.