Primoris stock jumps 8.7% after earnings beat despite lower operating revenue
Key Facts
Primoris Services shares rose 8.7% in after-hours trading on Tuesday, November 3, 2026, after the company reported third-quarter results, according to Investing.com. The move came after the company posted adjusted earnings per share of $1.20, exceeding the analyst consensus of $0.78 by $0.42. But the EPS beat coincided with weaker revenue, which fell short of estimates and declined from a year earlier. Operating income and net income also fell year over year, amid the continuing impact of lower renewable energy activity. The results put the company’s backlog and annual outlook up against the challenge of executing projects and improving margins in the energy segment.
Revenue was $2.0 billion in the third quarter, below analysts’ estimate of $2.02 billion, and down 10.4% from $2.2 billion in the same period of 2025, according to Investing.com. The company attributed the decline primarily to lower renewable energy revenue in its Energy segment, partly offset by growth in Utilities. Operating income fell to $94.9 million, down $42.1 million, or 30.7%, from a year earlier. The company said lower revenue and margins in the Energy segment were the main drivers of the decline in operating income. Net income was $51.3 million, compared with $94.6 million in the third quarter of 2025, while diluted earnings per share fell to $0.95 from $1.73.
By segment, Utilities revenue rose 4.5%, or $33.4 million, compared with the third quarter of 2025, supported by gas activity and power delivery, while a decline in communications partly limited growth. By contrast, Energy revenue fell 17.6%, or $261.9 million, as renewable energy activity declined and the start of new projects slowed. The company said the impact of the PayneCrest acquisition, completed on May 1, 2026, and increased power generation projects offset part of the decline. The chief executive said the company was making progress in completing renewable energy projects that had weighed on margins. He added that the last of the 6 troubled projects the company had previously discussed was nearing completion. The differing performance of the two segments reflects that Utilities growth was not enough to offset weaker activity in Energy during the period.
Company data show net interest expense rose to $14.3 million in the third quarter from $7.0 million a year earlier, an increase of $7.3 million. The company attributed the increase to higher average debt and accounts receivable securitization facility balances. As background to the results, the second quarter had recorded a loss of $0.27 per share and revenue of $1.69 billion; the loss was slightly worse than analysts’ forecast of $0.26 per share, according to an Investing.com report attributed to Reuters. Those figures provide context for the prior period, while the third-quarter announcement showed adjusted EPS above expectations despite year-over-year declines in revenue and operating earnings. Before the results announcement, the stock closed at $73.79 on November 2, according to EL7 data; this was not the closing price for the results-announcement session or a measure of subsequent trading.
Total backlog reached a record $14.1 billion on September 30, 2026, including $8.5 billion under master service agreements. The total increased by $2.1 billion from the end of 2025, according to the company’s statement. The backlog indicates the volume of work recorded, while management said progress was being made on completing troubled renewable energy projects, which had weighed on segment margins. The company set 2026 gross margin targets of 10% to 12% for Utilities and 6% to 8% for Energy. These are full-year target ranges, not actual third-quarter results. The conversion of backlog into revenue and margins remains a key factor in assessing the company’s outlook for the year.
Primoris raised its 2026 adjusted earnings per diluted share guidance range to $2.10 to $2.25 and forecast adjusted EBITDA of $290 million to $310 million. It estimated full-year net interest expense at $43 million to $47 million, according to the earnings release. Separately, the board authorized a share repurchase program of up to $250 million on October 30, with purchases possible in the open market or through privately negotiated transactions, depending on market conditions, the stock price and other factors. The chief executive and chief financial officer are scheduled to discuss the results and business outlook on an investor call on November 4, 2026, at 9 a.m. Central Time, or 10 a.m. Eastern Time. The call will give management an opportunity to present details of the results and annual outlook amid the divergence between the EPS beat and declines in revenue and operating income.