Key Takeaways:
Primoris Services Corp. slashed its full-year 2026 net income guidance to a range of $71 million to $101 million, down from a prior forecast of $223 million to $234 million, as additional cost overruns emerged on six renewable energy projects.
"While we are disappointed by the additional costs experienced on a limited number of projects in our Renewables business, we remain confident in the long-term growth opportunities," Chief Executive Officer Koti Vadlamudi said.
The Dallas-based infrastructure contractor now expects Renewables segment revenue of about $2.1 billion for 2026, compared with $3 billion in 2025. Adjusted EBITDA guidance was cut to $275 million to $325 million from $480 million to $500 million, while adjusted EPS was lowered to $2.05 to $2.60 from $4.80 to $5.00. The company identified the overruns through an ongoing assessment by a third-party industry expert, with two of the six problem projects substantially completed in the second quarter and the remaining four expected to finish by the fourth quarter.
The guidance cut comes alongside the departure of Chief Operating Officer Jeremy Kinch, effective June 22. Vadlamudi will assume most COO responsibilities while the company searches for a permanent successor. Despite the operational setbacks, Primoris secured about $2 billion in new Energy segment awards during the second quarter, focused on natural gas generation, industrial infrastructure and electric construction to support data center power demand. The company also purchased $50 million of its common stock in the quarter at an average price of $111.29 per share, with about $100 million remaining under its buyback program through April 2028.
The revised outlook implies a roughly 68% reduction in net income at the midpoint, signaling that project execution in the renewables unit remains the company's primary risk factor. Investors will watch the second-quarter earnings report, due later this summer, for further detail on the cost overruns and whether the Energy segment's $2 billion in new awards can offset the Renewables headwinds.
This article is for informational purposes only and does not constitute investment advice.
