Primoris Services' Q4 performance exceeded expectations, but the 2026 guidance caused the stock price to fall

LootboxPhobia · 2026-02-23T23:16:36+00:00

Primoris Services Corporation's Q4 results exceeded expectations, with earnings of $1.08 per share and revenue of $1.9 billion, but net profit declined by 4.1%. The 2026 guidance disappointed investors, with the stock price falling 10.1%. The company expects a 19% year-over-year revenue growth in 2025, achieving profit growth.

LootboxPhobia

2026-02-23 23:16:36

Abstract generation in progress

Investing.com – Primoris Services Corporation (NYSE: PRIM) reported Q4 results that exceeded Wall Street expectations, but the guidance for 2026 disappointed investors, leading to a 10.1% drop in stock price in after-hours trading on Monday.

The infrastructure services company posted an adjusted Q4 earnings of $1.08 per share, surpassing analyst consensus estimates of $1.01 by $0.07. Revenue reached $1.9 billion, up 6.7% year-over-year, beating the $1.7 billion forecast and exceeding the $1.81 billion estimate. However, net income declined 4.1% to $51.8 million, or $0.95 per diluted share, down from $54 million in the same period last year, mainly due to increased costs on certain renewable energy projects and reduced storm repair work.

For fiscal 2026, Primoris provided an adjusted earnings per share guidance of $5.80 to $6.00. The midpoint of $5.90 exceeds the analyst consensus estimate of $5.84, but the significant stock decline indicates investors were expecting more robust guidance. The company expects adjusted EBITDA for 2026 to be between $560 million and $580 million.

President and CEO Koti Vadlamudi stated, “Primoris achieved another year of profit growth in 2025, setting records in revenue, earnings, and backlog, allowing us to reach our multi-year goals ahead of schedule.”

For the full year 2025, Primoris reported revenue of $7.6 billion, up 19.0% from $6.4 billion in 2024, with both the energy and utility segments achieving double-digit growth. Adjusted net income reached $308.2 million, or $5.62 per diluted share, a 45.8% increase year-over-year. The company generated $470.4 million in operating cash flow, with total backlog at the end of the year amounting to $11.9 billion.

Utility segment revenue for Q4 was $697.8 million, up 5.1% year-over-year, but operating revenue declined 13.5% to $43.7 million due to reduced storm repair work. The energy segment revenue was $1.2 billion, up 8.0% year-over-year, but operating revenue decreased 8.4% to $61 million due to increased costs on renewable energy projects caused by poor soil conditions.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.