Primoris Services reported third quarter 2026 results featuring a significant earnings beat and record backlog, despite a 10.4 percent decline in year-over-year revenue. The company demonstrated progress in clearing its backlog of low-margin renewable energy projects, allowing the Energy segment's gross margin to recover to 8.5 percent, exceeding management's previous guidance range of 6.0 to 8.0 percent.
Key Highlights
- GAAP EPS of $0.95 exceeded the consensus estimate of $0.77, driven by improved execution in power delivery and the stabilization of Energy segment margins.
- Total backlog reached a record $14.1 billion, representing a $2.1 billion increase from year-end 2025, supported by the PayneCrest acquisition and robust MSA demand.
- The Energy segment reported 8.5 percent gross margins, a recovery from recent lows as five of the six previously identified "challenged" solar projects move toward completion.
- The Board authorized a new $250 million share purchase program following the completion of the prior $150 million authorization during the quarter.