Primoris Services Q3 revenue falls on lower renewables revenue
Overview
U.S. infrastructure services firm's Q3 revenue declined 10.4% yr/yr but met analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company's board authorized new $250 mln share repurchase program on October 30
Outlook
Primoris sees 2026 net income between $65.2 mln and $73.2 mln
Company expects 2026 adjusted EPS of $2.10 to $2.25
Primoris forecasts 2026 adjusted EBITDA of $290 mln to $310 mln
Result Drivers
RENEWABLES SLOWDOWN - Lower renewables revenue in the Energy segment was the main reason for the revenue decline, partially offset by growth in Utilities segment
PROJECT DELAYS - Co cited slower than anticipated start of new renewables projects and release of new work in the Energy segment
OPERATIONAL CHALLENGES - Lagging effects from renewables projects with operational challenges and lower volumes increased costs in the Energy segment
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $1.95 bln | ||
Q3 Adjusted EPS | Beat | $1.20 | $0.78 (14 Analysts) |
Q3 EPS | $0.95 | ||
Q3 Adjusted Net Income | Beat | $64.9 mln | $42.99 mln (12 Analysts) |
Q3 Net Income | $51.3 mln | ||
Q3 Adjusted EBITDA | $134.4 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Primoris Services Corporation is $106.66, about 44.5% above its November 2 closing price of $73.79
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)