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Primoris Services
(NYSE:PRIM)
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Rating:59Neutral
Price Target:
$68.00
▼(-9.09% Downside)
Action:Reiterated
Date:10/08/26
PRIM scores in the upper-50s primarily due to weakened near-term profitability and cash flow despite a strengthened balance sheet. Earnings-call commentary points to a potential second-half recovery supported by record backlog, but execution risk (renewables overruns) remains prominent. Technically, momentum has improved, yet the stock remains below key long-term moving averages, and valuation is relatively rich given recent margin and cash-flow pressure.
Positive Factors
Record backlog supports revenue visibility
Record bookings and backlog provide substantial contracted-work visibility across utilities, energy and infrastructure. This supports future revenue conversion, improves workforce and equipment planning, and gives Primoris a durable base from which execution improvements can translate into stronger earnings over the next several quarters.
Negative Factors
Renewable project overruns damaged execution
Cost overruns on renewable projects demonstrate meaningful execution risk in a major operating area and have already impaired margins. Although management has strengthened oversight and expects completion, remediation may continue to consume cash and management attention while the portfolio returns to normal economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog supports revenue visibility
Record bookings and backlog provide substantial contracted-work visibility across utilities, energy and infrastructure. This supports future revenue conversion, improves workforce and equipment planning, and gives Primoris a durable base from which execution improvements can translate into stronger earnings over the next several quarters.
Read all positive factors
Primoris Services Key Performance Indicators (KPIs)
Any
Total Backlog
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Data provided by:
The Fly
The FlyPrimoris Services (PRIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.50B
Dividend Yield0.49%
Average Volume (3M)1.48M
Price to Earnings (P/E)25.2
Beta (1Y)1.51
Revenue Growth5.12%
EPS Growth-42.27%
CountryUS
Employees18,526
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.58
Shares Outstanding53,832,330
10 Day Avg. Volume1,616,640
30 Day Avg. Volume1,481,111
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)3.99
Price to Sales (P/S)0.88
P/FCF Ratio19.69
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit10.21
Enterprise Value/Ebitda20.90
Forecast
1Y Price Target
$105.50Price Target Upside41.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.14
Revenue Forecast (FY)$7.26B
Primoris Services Business Overview & Revenue Model
Company Description
Primoris Services Corporation functions as a prominent specialized contracting firm, offering a wide array of services that include construction, fabrication, upkeep, modernization, and advanced engineering expertise throughout the United States a...
How the Company Makes Money
Primoris makes money by performing contracted construction and maintenance services on infrastructure assets, recognizing revenue as it satisfies performance obligations under customer contracts (generally over the life of a project). Its primary ...
Primoris Services Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call had a mixed but forward-looking tone. Current-quarter results were materially pressured by renewable project cost overruns, lower revenue, sharply reduced gross margins, weaker operating cash flow, and higher leverage. However, management emphasized record bookings and backlog, strong demand in utilities, natural gas generation, pipeline, and electrical services, better-than-expected PayneCrest performance, substantial liquidity, and expected sequential improvement through the second half of 2026. The positive outlook and backlog momentum were balanced by the severity of the renewables reset and the gradual pace of margin recovery.Positive Updates
Progress on Challenged Renewable Projects
Primoris achieved mechanical completion on one additional challenged renewable project and expects to submit another for mechanical completion this week. Three projects are still expected to reach substantial completion during Q3 2026, while the sixth and final project is expected to reach mechanical completion in early November and substantial completion by year-end. The remainder of the renewables portfolio is performing, on average, within expectations.
Negative Updates
Revenue Declined 10.7% Year-over-Year
Q2 revenue was just under $1.7 billion, down approximately $200 million, or 10.7%, from the prior year. The decline was driven by lower energy-segment revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Progress on Challenged Renewable Projects
Primoris achieved mechanical completion on one additional challenged renewable project and expects to submit another for mechanical completion this week. Three projects are still expected to reach substantial completion during Q3 2026, while the sixth and final project is expected to reach mechanical completion in early November and substantial completion by year-end. The remainder of the renewables portfolio is performing, on average, within expectations.
Read all positive updates
Company Guidance
Guidance was maintained for full year 2026 at EPS of $1.30-$1.85 per fully diluted share, adjusted EPS of $2.05- $2.60 per fully diluted share, and adjusted EBITDA of $275-$325 million, with adjusted EBITDA expected in the range of $90-$110 million for the third quarter and $100- $120 million in the fourth quarter; Q2 was expected to represent the low point for the year, with sequential improvement in revenue and earnings through the remainder of 2026. The company expects full-year energy segment gross margins to be in the 6%-8% range, Q3 energy margins in the 6%-8% range, Q4 in the 8%-10% range, and the normal 10%-12% range next year, while SG&A is expected to be a little over 6% of revenue, interest expense between $43 million and $47 million, and the full-year effective tax rate in the 30%-32% range. Renewables bookings are expected to be $1.5 billion-$2 billion in the H2 of the year, primarily in Q4, with modest growth for 2027, while renewables projects are expected to reach substantial completion by year-end; natural gas generation revenue is expected to be in the $500 million-$600 million range for the full year and $800 million to comfortably $1 billion in revenue next year. Free cash flow is expected to be $150 million-$200 million for the full year, leverage is expected to be a little under two in Q3, comfortably back down to 1.5x by the end of the year, and trend down to 1x again over the course of 2027.Primoris Services Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.28B | 7.57B | 6.37B | 5.72B | 4.42B | 3.50B |
| Gross Profit | 627.81M | 813.10M | 703.25M | 587.49M | 456.88M | 416.66M |
| EBITDA | 306.52M | 504.60M | 415.75M | 362.88M | 297.65M | 275.91M |
| Net Income | 139.62M | 274.90M | 180.89M | 126.14M | 133.02M | 115.74M |
Balance Sheet | ||||||
| Total Assets | 4.64B | 4.41B | 4.20B | 3.83B | 3.54B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 218.20M | 541.30M | 455.82M | 217.78M | 248.69M | 200.51M |
| Total Debt | 1.11B | 1.28B | 1.19B | 1.32B | 1.35B | 821.11M |
| Total Liabilities | 3.03B | 2.73B | 2.79B | 2.59B | 2.44B | 1.55B |
| Stockholders Equity | 1.61B | 1.68B | 1.41B | 1.24B | 1.11B | 990.05M |
Cash Flow | ||||||
| Free Cash Flow | 87.98M | 340.50M | 381.76M | 95.55M | -11.34M | -54.09M |
| Operating Cash Flow | 194.47M | 470.40M | 508.31M | 198.55M | 83.35M | 79.75M |
| Investing Cash Flow | -465.99M | -93.90M | -27.23M | -30.01M | -481.94M | -691.27M |
| Financing Cash Flow | 100.04M | -296.30M | -244.36M | -205.28M | 452.04M | 485.73M |
Primoris Services Technical Analysis
Negative
74.80
Price Trends
76.14
Negative
84.31
Negative
114.97
Negative
Market Momentum
-2.15
Positive
30.00
Neutral
9.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRIM, the sentiment is Negative. The current price of 74.8 is below the 20-day moving average (MA) of 76.53, below the 50-day MA of 76.14, and below the 200-day MA of 114.97, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 30.00 is Neutral, neither overbought nor oversold. The STOCH value of 9.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRIM.
Primoris Services Risk Analysis
Primoris Services disclosed 42 risk factors in its most recent earnings report. Primoris Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primoris Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $10.87B | 25.32 | 36.67% | ― | 60.83% | 51.23% | |
70 Outperform | $82.15B | 61.81 | 14.86% | 0.08% | 26.30% | 34.94% | |
66 Neutral | $3.96B | 23.94 | 24.17% | ― | 16.06% | 121.28% | |
65 Neutral | $13.74B | 26.94 | 15.30% | ― | 23.46% | 86.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $3.50B | 25.21 | 8.46% | 0.49% | 5.12% | -42.27% | |
58 Neutral | $4.66B | -28.24 | -16.01% | 0.49% | 21.80% | -204.13% |
* Industrials Sector Average
PRIM
Primoris Services
65.03
-76.32
-53.99%
GVA
Granite Construction
106.45
3.04
2.94%
MTZ
MasTec
171.05
-40.87
-19.29%
MYRG
MYR Group
254.49
35.05
15.97%
PWR
Quanta Services
546.43
104.95
23.77%
STRL
Sterling Infrastructure
355.30
-21.44
-5.69%
Primoris Services Corporate Events
Business Operations and StrategyExecutive/Board Changes
Primoris Services Expands Board With Veteran Energy Leaders
Positive
Aug 31, 2026
On August 25, 2026, Primoris Services Corporation’s board voted to expand its size to ten members and appointed veteran energy executives James A. Greer and Oscar K. Brown as directors, effective October 1, 2026, with their initial terms run...
Business Operations and StrategyDividendsFinancial Disclosures
Primoris Services Reports Q2 Loss Amid Record Backlog
Negative
Aug 4, 2026
On July 31, 2026, Primoris’ board declared a cash dividend of $0.08 per share, payable mid-October to shareholders of record at the end of September, signaling continued capital returns despite near-term earnings pressure. On August 4, 2026,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.