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PRIM · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Primoris Services Corporation (PRIM) stock moving?
Primoris reported Q3 2026 on Nov 3. Adjusted EPS of $1.20 beat the $0.78 estimate, but sales of $1.952B missed the $2.000B estimate, and revenue and adjusted EBITDA both fell year over year. The company cut its GAAP EPS guidance to $1.20-$1.35 and narrowed adjusted EPS guidance to $2.10-$2.25, with a lower midpoint. The stock fell from $79.57 on Nov 3 to $68.45 on Nov 4 on 3.08M shares, about twice the typical volume, and hit a low of $57.72 on Nov 5. It has since recovered to $69.88 on Nov 10, still below the pre-earnings close. Analysts cut targets across the board: Oppenheimer ($115, Outperform) and Needham ($110, Buy) remain positive, while Goldman ($81), Piper Sandler ($80) and Wells Fargo ($64) hold Neutral or Hold ratings. Supportive points include a record $14.1B total backlog, including $8.5B of MSA backlog, a new $250M buyback, and management's statement that the last of six challenged renewables projects is nearing completion with growth expected in 2027. Offsetting these are the guidance cut, the shareholder investigation over revenue recognition, and the lack of sell-side upgrades.
News behind the analysis
- Primoris Services Corporation Reports Third Quarter 2026 Financial ResultsQ3 revenue fell 10.4% to $2.0B, adjusted EBITDA dropped 20.3% to $134.4M, and record total backlog reached $14.1B. Full-year net income and adjusted EBITDA guidance were revised.
- Primoris Services Q3 Adj. EPS $1.20 Beats $0.78 Estimate, Sales $1.952B Miss $2.000B EstimateAdjusted EPS beat consensus by a wide margin, but reported sales fell short of the $2.000B estimate.
- Primoris Services Narrows FY2026 Adj EPS Guidance from $2.05-$2.60 to $2.10-$2.25The adjusted EPS range was narrowed, and its midpoint moved down from $2.325 to $2.175.
- Primoris Services Lowers FY2026 GAAP EPS Guidance from $1.30-$1.85 to $1.20-$1.35GAAP EPS guidance for 2026 was cut, with the new range well below the prior one.
- Primoris Announces New Buyback Program Of Up To $250MThe company authorized share repurchases of up to $250 million of common stock.
- Primoris Services Corporation Faces Shareholder InvestigationA shareholder investigation was opened into potential securities claims tied to revenue recognition practices and the financial outlook.
- Piper Sandler Maintains Hold Rating and Lowers Price Target for Primoris ServicesPiper Sandler kept a Hold rating and cut its price target from $90 to $80.
- Goldman Sachs Maintains Neutral Rating on Primoris ServicesGoldman Sachs kept a Neutral rating and an $81 price target on the stock.
- Wells Fargo Maintains Equal-Weight on Primoris Services, Lowers Price Target to $64Wells Fargo kept an Equal-Weight rating and cut its price target to $64, the lowest target among the cited brokers.
About Primoris Services Corporation
Primoris Services is a Dallas-based specialty contractor that builds and maintains infrastructure for utilities, energy, and renewables customers across the US and Canada. It stands out for its large exposure to utility-scale solar and battery construction, power transmission and substation work, and pipeline projects, and it reported a record backlog in 2026 even as cost overruns on some renewables projects hurt its profits.
How it makes money
Primoris earns money from construction and maintenance contracts. It runs two main segments. The larger one, Energy, covers utility-scale solar and storage, industrial plants, and pipelines, and is roughly two-thirds of revenue. The other, Utilities, covers power delivery, transmission, substations, gas distribution, and communications, and is roughly one-third. Much of the Utilities work comes under recurring master service agreements, while Energy work is mostly fixed-price or cost-plus projects. Profit margins are thin and depend heavily on how well each project is carried out.
What usually moves PRIM
- Utility spending on transmission and grid upgrades
- Solar and battery project volumes and margins
- Cost overruns on fixed-price projects
- Data-center and power-demand driven construction
- Pipeline and natural gas project activity