Stock Markets June 22, 2026 04:18 PM

Primoris Shares Plunge After Major 2026 Outlook Revision, COO Exits

Company cites Renewables project overruns and delays; CEO assumes COO duties while search for replacement begins

By Ajmal Hussain
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PRIM

Primoris Services Corporation stock dropped sharply in after-hours trading following the company’s announcement of a materially reduced 2026 earnings and EBITDA outlook and the departure of its chief operating officer. The guidance cuts stem from cost overruns and schedule slips in six previously disclosed Renewables projects, with two projects now substantially complete and four slated for completion between the third and fourth quarters of 2026. The Energy segment secured $2.0 billion in second-quarter awards, and the company continued share purchases during the quarter.

Primoris Shares Plunge After Major 2026 Outlook Revision, COO Exits
PRIM
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Key Points

  • Primoris downgraded 2026 EPS guidance to $1.30 - $1.85 and adjusted EBITDA to $275M - $325M, reflecting a significant contraction from previous ranges.
  • Cost overruns and schedule delays in six previously disclosed Renewables projects prompted the guidance cut; two projects were substantially complete in Q2 and four are expected to be substantially complete between Q3 and Q4 of 2026.
  • The Energy segment secured $2.0 billion in second-quarter project awards focused on natural gas generation, industrial work, and electric construction for power load growth and data centers; the company also bought about $50 million of common stock in Q2 with ~$100 million remaining under its purchase program.

Market reaction

Shares of Primoris Services Corporation (NYSE:PRIM) fell about 28% in after-hours trading Monday after the company lowered its full-year 2026 financial guidance and disclosed the exit of its chief operating officer. The market move followed the company’s updated outlook and related operational details announced at the same time.


Revised 2026 guidance

Primoris cut its full-year 2026 earnings per share guidance to a range of $1.30 to $1.85, down from the prior forecast of $4.05 to $4.25. The company also reduced adjusted EBITDA guidance to $275 million to $325 million, versus an earlier range of $480 million to $500 million.


Drivers of the downward revision

The company attributed the weaker outlook to further cost overruns and schedule delays within its Renewables business, centered on six projects that were already disclosed previously. Those issues were identified through ongoing project progress monitoring and an assessment conducted by an independent industry expert. According to Primoris, two of the six projects reached substantial completion during the second quarter, while the remaining four are expected to achieve substantial completion between the third and fourth quarters of 2026.

Primoris now anticipates that Renewables revenue for full-year 2026 will be approximately $2.1 billion, down from roughly $3.0 billion reported for 2025. The company indicated that most of the developments tied to the guidance change will be reflected in its second quarter 2026 results.


Leadership change

In addition to the financial revision, Primoris said Jeremy Kinch has departed his role as chief operating officer, effective Monday. The company’s president and chief executive officer, Koti Vadlamudi, will assume the bulk of COO responsibilities while the company conducts a search for a permanent successor.


Business wins and cash returns

Despite the headwinds in its Renewables unit, Primoris reported $2.0 billion in new project awards during the second quarter, obtained by its Energy segment. Those awards are concentrated on engineering and construction work for natural gas generation, industrial projects, and electric construction services that support rising power demand and data center growth.

The company also disclosed share purchases during the quarter, acquiring approximately $50 million of common stock at an average price near $111.29 per share. Approximately $100 million remains available under the firm’s share purchase program through April 30, 2028.


What the company said about reporting

Primoris stated that the majority of the items driving the guidance change will appear in its second quarter 2026 results, aligning the timing of the accounting and operational impacts with its near-term reporting period.


This article presents the company’s disclosures and market response without additional commentary or speculation.

Risks

  • Continued cost overruns and project delays in the Renewables business could further pressure financial results and margins - particularly affecting the Renewables and Infrastructure sectors.
  • Leadership transition following the COO departure may introduce short-term execution and operational risk while CEO assumes COO responsibilities and a search for a replacement is underway - impacting company operations and governance.
  • A notable reduction in Renewables revenue expected for 2026 (approximately $2.1 billion versus $3.0 billion in 2025) may affect investor confidence and capital allocation decisions in energy and construction markets.

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