PRIM earnings analysis
What we found in PRIM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Primoris posted a weak second quarter: revenue declined 10.7% year over year to $1.6882 billion, gross margin fell to 4.9% from 12.3%, and GAAP diluted EPS was negative $0.45, versus $1.54 in the prior-year quarter and $0.32 in Q1 2026. The core issue was Energy, where a 19.2% revenue decline and overruns on six renewables projects produced a $56.4 million operating loss. Utilities growth, record $13.8563 billion backlog, and $740.7 million of revolver availability provide offsets, but negative $131.3 million six-month operating cash flow and acquisition-funded debt increase near-term execution risk.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Utilities delivers modest revenue growth
- Utilities revenue increased $19.6 million, or 2.8%, to $712.6 million, led by gas operations and power delivery activity. Despite lower margins, Utilities produced $54.5 million of operating income.
- Backlog reaches $13.9 billion
- Total backlog increased to $13.8563 billion at June 30, 2026 from $11.9453 billion at December 31, 2025. Next-12-month backlog rose to $6.0949 billion from $5.2914 billion.
- PayneCrest expands data-center capabilities
- The company acquired PayneCrest on May 1, 2026 for approximately $404.7 million net of acquired cash, adding electrical construction capabilities and exposure to data-center services. PayneCrest added approximately $432.2 million of fixed backlog.
- Ample revolver liquidity remains
- Liquidity remains substantial: cash was $218.2 million and revolver availability was $740.7 million at June 30, 2026, with no revolver borrowings outstanding.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue and margins deteriorate sharply
- Consolidated revenue fell $202.5 million, or 10.7%, year over year to $1.6882 billion, while gross margin collapsed 740 basis points to 4.9% from 12.3%. Operating income reversed from $126.6 million to a $26.8 million operating loss.
- Six renewables projects drive Energy loss
- Energy revenue declined $236.9 million, or 19.2%, to $999.9 million and its gross margin turned negative at (0.3%), versus positive 10.8% a year earlier. Six renewable-energy projects incurred cost overruns tied to redesigns, sequencing changes, labor productivity, subsurface issues, and weather.
- Cash flow turns materially negative
- Six-month operating cash flow reversed to a $131.3 million outflow from $144.6 million inflow, and free cash flow was approximately negative $181.6 million after $50.3 million of capex. The working-capital outflow included a $129.6 million decline in accounts payable/accruals and a $20.0 million increase in receivables.
- Acquisition increases leverage and rate exposure
- Cash and cash equivalents declined $317.3 million from $535.5 million at December 31, 2025 to $218.2 million, principally amid $401.4 million used for PayneCrest. The term loan was increased by $411.8 million to $779.6 million, and a 1.0% rate increase would add approximately $7.8 million of annual interest expense because no variable-rate debt was hedged.
- Inflation and fuel costs may pressure margins
- Management anticipates elevated cost inflation could persist through the remainder of 2026, while recent Iran-related conflict has increased fuel-cost pressure. Contract escalation caps and timing lags can leave costs unrecovered; the filing specifically notes actual increases have in some cases exceeded contractual caps.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.45
- Gross margin
- 4.9%
- Operating margin
- -1.6%
- Segment
- Utilities revenue: $712.6 million, up $19.6 million (2.8%) year over year; operating income: $54.5 million, down $11.0 million (16.8%).
- Segment
- Energy revenue: $999.9 million, down $236.9 million (19.2%) year over year; operating loss: $56.4 million versus $92.6 million operating income.
What they said about what is next.
The 10-Q contains no quantitative earnings or revenue outlook. Management states it expects capital expenditures of $70.0 million to $90.0 million in the remaining six months of 2026 and expects existing liquidity sources to fund operating needs, planned capex, and commitments for the next 12 months.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 5, 2026
- Primoris Services Corporation reported disappointing Q1 2026 results, with revenue of $1.56 billion and diluted EPS of $0.59, both falling short of analyst estimates. Revenue decreased by 5.4% year-over-year, driven by…
- 10-K · February 24, 2026
- Primoris reported a materially higher topline in 2025 with quarterly revenues summing to $7.58 billion (Q1–Q4: $1.65B, $1.89B, $2.18B, $1.86B) and full-year free cash flow of $344 million (Q1–Q4: $26M, $45M, $148M,…
- 10-Q · August 5, 2025
- Primoris reported a strong Q2 2025: revenue rose 20.9% year-over-year to $1,890,745,000 and diluted EPS jumped to $1.54 from $0.91 a year ago. Gross margin expanded to 12.3% and operating margin improved to 6.7%, driven…
- 10-Q · May 6, 2025
- Primoris reported a strong Q1 2025 quarter: revenue rose 16.7% year-over-year to $1,648,112,000, gross profit increased 28.0% to $170,657,000 (10.4% margin) and operating income improved to $70,364,000. Diluted EPS was…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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