Primoris Services Corporation Reports 10.7% Revenue Decline in Q2 2026

Primoris Services Corporation reported a significant decline in financial performance for the second quarter of 2026, with total revenue of $1.688 billion, a decrease of 10.7% from $1.891 billion in the same period of 2025. For the first half of 2026, revenue also fell to $3.248 billion, down 8.2% from $3.539 billion year-over-year. The company's gross profit for the quarter was $82.4 million, a sharp decline of 64.4% compared to $231.7 million in the prior year, resulting in a gross profit margin of 4.9%, down from 12.3%. The net loss for the quarter was $24.2 million, translating to a loss per share of $0.45, compared to a net income of $84.3 million, or earnings per share of $1.56, in the previous year.

The decline in revenue and profitability was primarily attributed to decreased activity in the Energy segment, particularly in renewable energy projects, which faced delays and cost overruns. The Utilities segment, however, saw a slight revenue increase of 2.8% due to heightened activity in gas operations and power delivery, although this was not enough to offset the losses in the Energy segment. The company also incurred higher selling, general, and administrative expenses of $106.3 million, up 1.6% from the previous year, largely due to costs associated with the acquisition of PayneCrest Electric, Inc., which was completed on May 1, 2026, for approximately $404.7 million.

Operationally, Primoris reported a total of $6.0 billion in remaining performance obligations as of June 30, 2026, with expectations to recognize 65.1% of this amount as revenue within the next 12 months. The company’s backlog increased to $13.856 billion, up from $11.945 billion at the end of 2025, indicating a strong pipeline of future work. However, the company also noted challenges in project execution, including labor productivity issues and unfavorable weather conditions, which have impacted project timelines and costs.

Looking ahead, Primoris anticipates continued challenges due to inflationary pressures and market volatility, particularly in the energy sector. The company is focused on mitigating these impacts through strategic pricing adjustments and operational efficiencies. Despite the current downturn, management remains optimistic about long-term growth opportunities, particularly in the renewable energy sector, and plans to leverage the capabilities gained from the PayneCrest acquisition to enhance service offerings and market reach. The company’s liquidity position remains strong, with cash and cash equivalents totaling $218.2 million as of June 30, 2026, and significant borrowing capacity under its credit facilities.