TLDR
- PRIM plunged 21.59% as renewables overruns hit 2026 guidance.
- Primoris cut net income outlook after six renewables projects worsened.
- PRIM closed at $84.95 after a sharp selloff tied to guidance cuts.
- COO Jeremy Kinch exited as Primoris works through project delays.
- Energy segment awards reached $2 billion despite renewables pressure.
Primoris Services Corporation (PRIM) shares plunged 21.59% to $84.95 after the company sharply reduced its full-year 2026 financial guidance. Renewables project overruns, weaker revenue expectations, and a senior leadership departure drove the steep decline. PRIM stock later stabilized near $84.90 during after-hours trading.
Primoris Services Corporation, PRIM
Renewables Problems Force Major Guidance Reduction
Primoris identified further cost overruns and delays across six projects within its Renewables business. An ongoing assessment by an independent industry expert helped uncover the additional project challenges. The company expects most related charges to affect its second-quarter 2026 results.
Two affected projects reached substantial completion during the second quarter, while another should finish early in the third quarter. Primoris expects two more projects to reach substantial completion later during the third quarter. The final project should reach substantial completion during the fourth quarter of 2026.
Primoris expects Renewables revenue of about $2.1 billion for the full year. The segment generated approximately $3 billion in revenue during 2025. Therefore, the revised estimate represents a $900 million year-over-year reduction.
Primoris Cuts Earnings and EBITDA Forecasts
Primoris now expects full-year net income between $71 million and $101 million. Its previous forecast placed net income between $223 million and $234 million. The revised range reflects project costs and weaker expected performance from the Renewables segment.
The company also reduced its diluted earnings forecast to between $1.30 and $1.85 per share. Previously, Primoris expected diluted earnings between $4.05 and $4.25 per share. Adjusted earnings guidance also fell to between $2.05 and $2.60 per share.
Meanwhile, Primoris lowered adjusted EBITDA guidance to between $275 million and $325 million. The previous outlook projected adjusted EBITDA between $480 million and $500 million. These reductions highlighted the scale of the financial pressure caused by project execution problems.
Leadership Change and New Awards Shape Outlook
Primoris also announced the immediate departure of Chief Operating Officer Jeremy Kinch. Chief Executive Officer Koti Vadlamudi will handle most operating responsibilities during the search for a permanent replacement. The transition adds another operational change as the company addresses its Renewables challenges.
The Energy segment secured approximately $2 billion in new projects during the second quarter. These awards cover natural gas generation, industrial projects, and electrical construction services. They also support rising power demand from data centers and other major infrastructure developments.
Primoris repurchased about $50 million of its common stock during the quarter. The company paid an average price of approximately $111.29 per share. Primoris still had about $100 million available under its authorized repurchase program on June 22.
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