Primoris Services Corporation Reports $1.56 Billion Revenue in Q1 2026, Down 5.4%

Primoris Services Corporation reported a revenue of $1.56 billion for the first quarter of 2026, reflecting a decrease of 5.4% compared to $1.65 billion in the same period of 2025. The decline was primarily attributed to reduced activity in the Energy segment, which saw a revenue drop of 13.8%, partially offset by a 12.3% increase in the Utilities segment. Gross profit for the quarter was $134.7 million, down 21.1% from $170.7 million a year earlier, with gross profit margins decreasing to 8.6% from 10.4%. The company reported a net income of $17.4 million, significantly lower than the $44.2 million recorded in the prior year, resulting in earnings per share of $0.32, down from $0.82.

In terms of operational changes, Primoris experienced a notable increase in selling, general, and administrative (SG&A) expenses, which rose to $105.8 million from $99.5 million in the previous year. This increase was attributed to higher costs associated with the acquisition of PayneCrest Electric, Inc., which was finalized on May 1, 2026, for approximately $399.5 million. The acquisition is expected to enhance Primoris's capabilities in the high-growth data center services market and integrate its industrial and renewable businesses with complementary electrical construction services.

The company’s balance sheet showed total assets of $4.21 billion as of March 31, 2026, down from $4.41 billion at the end of 2025. Current liabilities decreased to $1.67 billion from $1.85 billion, primarily due to a reduction in accounts payable and contract liabilities. Cash and cash equivalents also saw a decline, totaling $361.5 million compared to $535.5 million at the end of the previous year. The company’s total debt stood at $455.9 million, with a weighted average interest rate of 5.0%.

Looking ahead, Primoris anticipates that the integration of PayneCrest will provide significant growth opportunities, particularly in the renewable energy sector. The company has a backlog of $11.64 billion, which includes $5.27 billion in fixed backlog and $7.46 billion in Master Service Agreement (MSA) backlog, indicating a strong pipeline of future work. However, management remains cautious about potential challenges, including inflationary pressures, regulatory changes, and market volatility, which could impact project timelines and profitability. The company plans to continue monitoring these factors closely while leveraging its existing resources and capabilities to navigate the evolving market landscape.