Source: SEC EDGAR CIK 0001361538 · Q1 2026 10-Q · 8-K filed Feb 23, May 5, Jun 22, 2026
Primoris Services Corporation is a leading provider of critical infrastructure services to the utility, energy, and renewables markets throughout the United States and Canada. The Company delivers engineering, construction, and maintenance capabilities that power, connect, and enhance society — across utility-scale solar, renewables, power delivery, communications, power generation, and transportation infrastructure. Primoris generates revenue primarily through long-term Master Service Agreements (MSAs) and fixed-price EPC contracts for large capital projects.
Primoris earns revenue through two primary contract types: (1) Master Service Agreements (MSAs) — multi-year, recurring maintenance and service contracts with utilities and energy companies (~$7.5B of Q1'26 backlog, ~65% of total), and (2) Fixed-Price EPC Projects — engineering, procurement and construction contracts for major capital projects such as solar farms, pipelines, and power plants (~$4.2B of Q1'26 backlog). MSAs provide recurring, lower-risk revenue; fixed-price projects carry execution risk but higher potential margins.
Provides construction, installation, and maintenance services for electric utility transmission and distribution systems, natural gas distribution systems, and communications infrastructure. Serves investor-owned utilities, cooperatives, and municipalities primarily under long-term MSAs. FY2025 gross margin: ~9.9%.
Provides construction and maintenance services for the energy sector including solar/wind EPC projects, pipeline construction, industrial facilities, and natural gas power generation. Carries higher revenue but also higher execution risk from large fixed-price Renewables contracts. FY2025 gross margin: ~11.1%.
The US grid is undergoing the largest transformation in a century — driven by the energy transition, data center proliferation, electric vehicle adoption, and grid hardening. Primoris is one of a handful of contractors capable of executing at scale across all these categories simultaneously. Its MSA-based business model with large utilities provides a stable revenue floor, while the project business provides growth upside. The company's $11.6B backlog (1.5× annual revenue) provides clear multi-year visibility.
| Segment | FY2023 | FY2024 | FY2025 | TTM Q1'26 | FY2026E | FY2027E | FY2028E |
|---|---|---|---|---|---|---|---|
| Energy | $3,543 | $4,032 | $5,019 | ~$4,865 | ~$4,200E | n.a. | n.a. |
| Utilities | $2,172 | $2,439 | $2,692 | ~$2,758 | ~$2,850E | n.a. | n.a. |
| Eliminations | (—) | ($104) | ($135) | (~$136) | ~($100)E | — | — |
| Total Revenue | $5,715 | $6,367 | $7,575 | $7,487 | ~$6,950E | n.a. | n.a. |
| YoY Growth | +29.3% | +11.4% | +19.0% | — | ~−8%E | n.a. | n.a. |
FY2026E revenue derived from Jun 22, 2026 8-K: Renewables ~$2.1B (vs $3.0B FY25) + other Energy + Utilities growth + PayneCrest contribution. No explicit revenue guidance provided. FY2027E/FY2028E: no guidance issued. Source: 8-K filings.
| Quarter | Q1 2025A | Q2 2025E | Q3 2025E | Q4 2025E | Q1 2026A | Q2 2026E |
|---|---|---|---|---|---|---|
| Energy | $1,108 | ~$1,247 | ~$1,438 | ~$1,226 | $955 | ~$1,000E |
| Utilities (gross) | $563 | ~$679 | ~$783 | ~$667 | $633 | ~$660E |
| Total (consol.) | $1,648 | $1,891 | $2,178 | $1,858 | $1,560 | ~$1,660E |
| YoY Growth | +16.6% | +20.9% | +32.1% | +6.7% | −5.4% | ~−12%E |
| Gross Margin | 10.4% | ~11.5% | ~12.0% | ~9.8% | 8.6% | ~8–9%E |
Q1'25 & Q1'26 actuals from SEC 8-K filings. Q2–Q4 2025 segment splits estimated proportionally from FY2025 annual actuals (8-K Feb 23, 2026). Q2'26E: derived from Jun 22, 2026 8-K guidance.
| Geography | FY2023E | FY2024E | FY2025E | TTM Q1'26E |
|---|---|---|---|---|
| United States (~97%) | ~$5,544 | ~$6,176 | ~$7,348 | ~$7,262 |
| Canada & Other (~3%) | ~$171 | ~$191 | ~$227 | ~$225 |
| Total | $5,715 | $6,367 | $7,575 | $7,487 |
All geographic data estimated. PRIM's 10-K Item 1 notes substantially all revenues are from US operations. Source: SEC 8-K / 10-K FY2025.
| Metric | FY2023 | FY2024 | FY2025 | TTM Q1'26 | FY2026E | FY2027E | FY2028E |
|---|---|---|---|---|---|---|---|
| Revenue ($M) | $5,715 | $6,367 | $7,575 | $7,487 | ~$6,950E | n.a. | n.a. |
| Revenue Growth | +29.3% | +11.4% | +19.0% | — | ~−8%E | n.a. | n.a. |
| Gross Profit ($M) | $587.5 | $703.2 | $813.1 | $777 | n.a. | n.a. | n.a. |
| Gross Margin | 10.3% | 11.0% | 10.7% | 10.4% | ~9–10%E | n.a. | n.a. |
| Operating Income ($M) | $253.1 | $317.4 | $411.5 | $366 | n.a. | n.a. | n.a. |
| Operating Margin | 4.4% | 5.0% | 5.4% | 4.9% | n.a. | n.a. | n.a. |
| EBITDA ($M) | $360.1 | $412.9 | $503.4 | $459.8 | $235–286E | n.a. | n.a. |
| Adj EBITDA ($M) | ~$370 | ~$435 | $531.1 | ~$480 | $275–325E | n.a. | n.a. |
| Net Income ($M) | $126.1 | $180.9 | $274.9 | $248 | $71–101E | n.a. | n.a. |
| EPS (Diluted) | $2.33 | $3.31 | $5.02 | $4.54 | $1.30–1.85E | n.a. | n.a. |
| Adj EPS | ~$2.65 | $3.87 | $5.62 | ~$5.00 | $2.05–2.60E | n.a. | n.a. |
| FCF ($M) | $95.5 | $381.8 | $340.5 | $164.5 | n.a. | n.a. | n.a. |
| Total Debt ($M) | — | — | $469.9 | $453.5 | ~$850E* | n.a. | n.a. |
| Cash ($M) | — | — | $535.5 | $361.5 | n.a. | n.a. | n.a. |
| Total Backlog ($B) | — | $11.8 | $11.9 | $11.6 | n.a. | n.a. | n.a. |
* FY2026E debt elevated due to PayneCrest acquisition ($399.5M, May 1, 2026). FY2026E guidance from Jun 22, 2026 8-K. TTM = LTM ending Q1 2026 (Mar 31, 2026). Source: SEC 8-K filings.
| Metric | Q2 2025A | Q3 2025A | Q4 2025A | Q1 2026A | Q2 2026E | Q3 2026E |
|---|---|---|---|---|---|---|
| Revenue ($M) | $1,891 | $2,178 | $1,858 | $1,560 | ~$1,660E | n.a. |
| YoY Growth | +20.9% | +32.1% | +6.7% | −5.4% | ~−12%E | n.a. |
| Gross Profit ($M) | ~$218 | ~$261 | ~$163 | $134.7 | n.a. | n.a. |
| Gross Margin | ~11.5% | ~12.0% | ~8.8% | 8.6% | ~8–9%E | n.a. |
| Operating Income ($M) | ~$119 | ~$158 | ~$65 | $24.4 | n.a. | n.a. |
| Adj EBITDA ($M) | $154.8 | $168.7 | $108.2 | $60.5 | n.a. | n.a. |
| Net Income ($M) | $84.3 | $94.6 | $51.8 | $17.4 | n.a. | n.a. |
| EPS (Diluted) | $1.54 | $1.73 | $0.95 | $0.32 | n.a. | n.a. |
| Adj EPS | $1.68 | $1.88 | ~$1.08 | $0.59 | n.a. | n.a. |
Q2–Q3 2025 GP/OpInc estimated from adjusted EBITDA + D&A patterns. Q2'26E from Jun 22 8-K: majority of overruns hit Q2 2026. Source: 8-K filings May 5, Nov 3, 2025; Feb 23, May 5, 2026.
Primoris operates at the intersection of three of the most powerful secular tailwinds of the next decade: grid modernization, the energy transition, and data center proliferation. Even with the FY2026 execution headwinds, the structural demand for Primoris's services is growing, not shrinking.
The US grid requires $2+ trillion of investment through 2050. Aging infrastructure, load growth from EVs and data centers, and resilience mandates are driving long-term multi-year utility capex programs — Primoris's core Utilities MSA business.
Hyperscalers (Microsoft, Amazon, Google, Meta) are committing $200B+ in annual capex. PRIM's PayneCrest acquisition (May 2026) directly targets this market with industrial electrical construction capabilities. Q2 2026 awards include ~$2B in new Energy segment projects focused on data centers.
AI-driven load growth is making natural gas the bridge fuel of the decade. New gas turbine plant construction is surging. Primoris's Energy segment is positioned to capture significant EPC revenue from power generation projects in 2026–2028.
The US needs 2,000+ GW of new renewable capacity by 2050 per DOE targets. Despite FY2026 execution issues on 6 projects, PRIM's Renewables business is one of the top 5 US solar EPC contractors. The long-term opportunity remains intact — the issue is contract structure (fixed-price vs cost-plus), not demand.
$7.5B MSA backlog (65% of total) represents multi-year recurring maintenance contracts with investment-grade utilities. These contracts renew regularly and provide a stable, low-risk revenue floor through economic cycles. MSA margins are predictable and not exposed to fixed-price execution risk.
Natural gas pipeline maintenance, industrial facility construction, and LNG infrastructure remain strong. Environmental compliance-driven pipeline replacements, plus industrial reshoring (manufacturing, semiconductors, chemicals) are driving incremental demand across PRIM's pipeline and industrial sub-verticals.
The $399.5M acquisition of PayneCrest Electric (May 1, 2026) adds industrial electrical construction capabilities specifically targeting data centers. PayneCrest increases PRIM's exposure to hyperscaler capex — the fastest-growing segment in North American construction. Q2 2026 saw ~$2.0B in new Energy awards focused on this market.
Management committed to shifting away from large fixed-price Renewables EPC contracts toward T&M (time-and-materials) and cost-plus structures. Pre-construction soil assessments, geotechnical surveys, and enhanced project controls are being implemented. Target: eliminate fixed-price execution risk from the Renewables business model.
Primoris is actively bidding power generation EPC projects (gas turbines, combined cycle plants) to support the AI-driven electricity demand surge. This sub-vertical offers better margins than solar EPC and benefits from PRIM's existing pipeline and industrial expertise.
Management targets growing the MSA backlog (currently $7.5B, up from $7.0B at year-end 2025) as a percentage of total backlog. MSA revenue is lower-margin but highly predictable. New MSA wins with utilities in the Utilities segment provide the stable base for sustained profitability.
PayneCrest is the latest in a series of acquisitions designed to add capabilities in high-growth end markets. Post-PayneCrest integration is a near-term priority. Future M&A likely to focus on data center services, EV charging infrastructure, and grid-hardening specialties given management's stated priorities.
$150M share buyback program ($100M remaining as of Jun 22). Purchased $50M of stock at average $111.29/share in Q2 2026 — above current market price, signaling management conviction. Dividend: $0.08/quarter ($0.32 annual), growing. Capex guidance $90–110M for remaining 9 months of 2026.
| Date | Event | Impact |
|---|---|---|
| Jun 22, 2026 | COO Jeremy Kinch departs; 3rd guidance cut; Adj EBITDA $275–325M | Highly Negative |
| May 1, 2026 | PayneCrest Electric acquisition completed ($399.5M) | Strategic Positive |
| May 5, 2026 | Q1 2026 earnings: Adj EBITDA $60.5M; guidance maintained (before Jun 22) | Negative |
| Mar 30, 2026 | PayneCrest merger agreement announced | Positive |
| Feb 23, 2026 | FY2025 record results; initial FY2026 guidance $4.40–4.60 EPS | Positive |
| Oct 7, 2025 | Jeremy Kinch appointed as COO (departed Jun 22, 2026) | Neutral → Neg |
| Jun 4, 2025 | Auditor change (Item 4.01 8-K) | Neutral |
| Jan 8, 2025 | Executive compensation / officer agreements (Item 5.02 8-K) | Neutral |
Primoris has historically grown through bolt-on acquisitions that add service capabilities, geographic reach, or end-market exposure. The PayneCrest deal reflects a strategic pivot toward higher-margin technology-adjacent construction (data centers, advanced manufacturing). Prior acquisitions have included specialty contractors in pipeline, utility services, and industrial. The company targets acquisitions that can be integrated into existing segment structures and leverage existing customer relationships.
Risk assessment based on 10-K FY2025 Item 1A (Risk Factors), Q1 2026 8-K management commentary, and Jun 22, 2026 8-K business update. Severity reflects current materialization status.
| Company | Revenue FY23 | Revenue FY24 | Revenue FY25 | Gross Margin | Mkt Cap | EV/EBITDA | Fwd P/E | Growth |
|---|---|---|---|---|---|---|---|---|
| Primoris (PRIM) | $5.7B | $6.4B | $7.6B | 10.7% (FY25) | ~$5.9B | 13.0× (TTM) | ~69× (trough) | Trough 2026 |
| MasTec (MTZ) | ~$12.7B | ~$13.3B | ~$14.5B | ~14% | ~$28.5B | ~22× | ~35× | Strong |
| EMCOR Group (EME) | ~$14.1B | ~$16.1B | ~$17B | ~16% | ~$35.7B | ~18× | ~28× | Strong |
| Dycom (DY) | ~$4.2B | ~$4.6B | ~$5.0B | ~18% | ~$11.8B | ~16× | ~32× | Solid |
| Granite Construction (GVA) | ~$2.5B | ~$2.7B | ~$2.8B | ~12% | ~$5.5B | ~12× | ~20× | Moderate |
Primoris sits at a significant valuation discount to peers due to the FY2026 execution crisis. On trailing EBITDA, PRIM trades at 13.0× vs MTZ at ~22× and EME at ~18×. This discount is justified given the earnings reset, but creates opportunity if the six troubled projects complete cleanly by Q4 2026. PRIM's core competitive advantages — scale, MSA relationships with major utilities, geographic reach across the Sun Belt, and a $11.6B backlog — remain intact. The key differentiation question post-crisis: can PRIM successfully transition Renewables to cost-plus/T&M structures and restore execution credibility?
Compared to MasTec (the closest direct competitor), PRIM has significantly more Renewables EPC exposure and less telecom/cable construction exposure. MTZ's higher gross margins (~14%) vs PRIM (~10.7%) partly reflect MTZ's mix being more telecom MSA-weighted. Post-PayneCrest, PRIM moves toward higher-margin data center electrical work.
| Activity | Details | Signal |
|---|---|---|
| Company Buyback | $50M repurchased at avg $111.29/sh in Q2 2026 per Jun 22, 2026 8-K. $100M remaining under program (exp Apr 30, 2028). | Strongly Bullish |
| RSU Vest Sales | Typical bi-weekly/monthly RSU auto-sell by officers under 10b5-1 plans. Routine compensation harvesting — not discretionary. | Neutral |
| COO Departure | Jeremy Kinch departed Jun 22, 2026. No post-employment share purchase / sale noted in EDGAR yet. | Mildly Negative |
Institutional ownership estimates from SEC 13F filings via EDGAR. Insider activity from Form 4 filings, CIK 0001361538. Company buyback from Jun 22, 2026 8-K official disclosure.
| Metric | Pre-Drop ($111) | Current ($108) | Notes |
|---|---|---|---|
| Market Cap | $6.1B | $5.9B | ~54.8M diluted shares |
| Enterprise Value | ~$6.1B | ~$6.0B | +$454M debt − $362M cash (Q1'26) |
| P/E (TTM EPS $4.54) | 24.4× | 23.9× | LTM ending Q1'26 |
| Adj P/E (FY2025 $5.62) | 19.7× | 19.3× | Best full year |
| Fwd GAAP P/E (FY2026E $1.575 mid) | ~70× | ~69× | Trough year distorted |
| Fwd Adj P/E (FY2026E $2.325 mid) | ~48× | ~47× | Still elevated on trough |
| EV/EBITDA (TTM $460M) | 13.3× | 13.0× | Reasonable vs history |
| EV/EBITDA (FY2026E $300M mid) | ~20.3× | ~20.0× | Elevated on trough EBITDA |
| P/Sales (TTM $7.49B) | 0.81× | 0.79× | Inexpensive vs peers |
| P/FCF (TTM $165M) | 37.0× | 35.8× | Elevated; FCF temporarily depressed |
| Price/Book | 3.6× | 3.5× | Book $30.73/sh (Q1'26: $1,684M equity) |
| EV/Revenue (TTM) | 0.81× | 0.80× | Cheap vs peers (MTZ ~1.8×, EME ~2.0×) |
| Scenario | FY2027E Adj EPS | Target P/E | Implied Price | Key Assumption |
|---|---|---|---|---|
| Bull | $5.50 | 22× | $121 | Clean Q3/Q4 2026 project completions; PayneCrest adds $0.50+ EPS; Adj EBITDA recovers to $480M+ |
| Base | $4.25 | 18× | $77 | Modest recovery; some further Renewables friction; PayneCrest integrates but below plan |
| Bear | $2.75 | 13× | $36 | 4th guidance cut; further Renewables overruns; management exodus; leverage concern |
Scenario analysis uses FY2027E (normalized year). P/E multiples reflect sector comps discounted for credibility risk. Bull case implies ~12% upside from $108; base case −29%; bear case −67%. Wide range reflects genuine uncertainty. This is not investment advice.
| Company | EV/EBITDA | P/E (Fwd) | P/Sales | Gross Margin | Assessment |
|---|---|---|---|---|---|
| PRIM | 13.0× (TTM) | ~47× (FY26E adj) | 0.79× | 10.7% (FY25) | Trough — discount warranted |
| MTZ | ~22× | ~35× | ~1.8× | ~14% | Premium — execution strong |
| EME | ~18× | ~28× | ~2.0× | ~16% | Premium — data center leverage |
| DY | ~16× | ~32× | ~2.3× | ~18% | Fair — telecom MSA focused |
| GVA | ~12× | ~20× | ~1.8× | ~12% | Similar discount to PRIM |
The FY2026 earnings collapse is driven by 6 specifically identified fixed-price Renewables projects. Two of six already completed Q2 2026. The remaining four are expected to complete Q3–Q4 2026 per the Jun 22, 2026 8-K. This is not a "we don't know what's wrong" situation — management has named the projects and a third-party expert has reviewed them. The trough is visible and time-bounded. Source: 8-K Jun 22, 2026.
Master Service Agreement backlog grew from $7.0B (Dec 2025) to $7.5B (Mar 2026) even during the crisis. MSAs represent multi-year recurring maintenance contracts with investment-grade utility counterparties — they are not exposed to fixed-price execution risk. This MSA floor underpins ~65% of Primoris's revenue base and provides the platform from which earnings will recover when Renewables normalizes. Source: Q1 2026 8-K backlog table.
The $399.5M acquisition of PayneCrest Electric (May 2026) adds electrical construction capabilities in the fastest-growing capital-spending category in North America. Hyperscalers have committed $200B+ in annual capex. The Q2 2026 new Energy awards of ~$2.0B already reflect data center-related demand. PayneCrest positions PRIM to grow a higher-margin electrical services business alongside its traditional infrastructure work. Source: 8-K May 1, 2026; Jun 22, 2026 awards commentary.
During Q2 2026, the Board and management authorized and executed $50M of share repurchases at an average of $111.29/share. This occurred while management was aware of the ongoing Renewables project cost assessments — and before the Jun 22 disclosure. This is the single clearest signal of insider conviction available. $100M remains authorized. Source: Jun 22, 2026 8-K.
Grid modernization, AI-driven data center power demand, natural gas generation buildout, and the energy transition are all structural, multi-decade trends that drive demand for exactly what Primoris builds. The US needs ~$2T of grid investment through 2050. Hyperscaler data center capex is locked-in for years. Natural gas generation is having a renaissance. These are not cyclical tailwinds — they are structural. PRIM's $11.6B backlog is the real-time proof of demand. Source: 10-K FY2025 Item 1; Q1 2026 CEO commentary.
On an EV/Revenue basis, PRIM at 0.80× is trading at less than half the multiple of MasTec (1.8×) and EMCOR (2.0×). While some discount is justified for the execution issues, a 60%+ discount to peers on revenue — when the core MSA business is growing — suggests the market is pricing in a permanent impairment that the data does not support. FY2025 Adj EBITDA of $531M at peer multiples of 18–22× implies a fair value of $9.6B–$11.7B vs current EV of $6.0B.
Management committed (Q1 2026 8-K and Jun 22 8-K) to shifting Renewables from fixed-price to T&M and cost-plus structures, implementing enhanced pre-construction soil assessments, geotechnical surveys, and project controls. If successfully implemented, the fixed-price Renewables execution risk — the single cause of all FY2026 earnings destruction — is structurally mitigated. A Primoris that retains its Renewables market position but eliminates fixed-price EPC risk would warrant a significantly higher multiple than today. The jury is out on execution, but the commitment is clear. Source: Q1 2026 & Jun 22, 2026 8-K filings.