NEW YORK, June 23, 2026, 09:08 EDT
- Primoris shares were indicated about 35% lower in premarket trade as the company cut its 2026 guidance and announced its COO is leaving.
- The company lowered its adjusted EBITDA guidance to $275 million-$325 million, down from a prior range of $480 million-$500 million.
- KeyBanc dropped its rating on the shares. Mizuho and Wells Fargo both lowered their price targets.
Primoris Services Corp (PRIM) dropped 35.5% in premarket trading Tuesday, Dow Jones/FactSet said, after the infrastructure firm cut its 2026 profit forecast. The move follows new cost overruns in its renewables unit.
This isn’t just a routine guidance cut. The decision has stirred up worries that the issues dogging renewable-energy projects since the first quarter haven’t let up. Those projects seem to be turning against the company again, and now there’s also a new operations head in the mix.
Primoris dropped hard in early trading as the S&P 500 futures lost 1.34% and Dow futures slipped 0.50%. The broader market was weak, but Primoris stood out among the session’s biggest losers.
Primoris cut its 2026 net income outlook to $71 million to $101 million, down from its earlier range of $223 million to $234 million. The company now sees earnings per share in a range of $1.30 to $1.85, compared to its previous $4.05 to $4.25 forecast.
The company slashed its adjusted EBITDA outlook to $275 million-$325 million, down from the previous $480 million-$500 million range. Adjusted EPS was also lowered to $2.05-$2.60 from $4.80-$5.00.
Primoris said new pressure is mostly from six renewables projects it has talked about before. Two wrapped up in the second quarter. The rest are set to be done between early Q3 and the end of Q4. The Dallas-based company also lowered its 2026 renewables revenue outlook to around $2.1 billion, down from about $3.0 billion in 2025.
Primoris said Energy segment operating income slumped 62.2% year-over-year in the first quarter, with the company pointing to lower revenue and higher costs on some renewables projects. The company mentioned redesigns, sequencing shifts, labor issues, and weather as key factors.
Primoris said Chief Operating Officer Jeremy Kinch exited the company as of June 22. In a filing, the company said CEO Koti Vadlamudi will handle most COO responsibilities for now while they look for a new operations chief. The company classified Kinch’s exit as a termination without cause and said it wasn’t because of finance or accounting issues or any disagreement.
Mizuho’s Maheep Mandloi dropped his price target to $117 from $135 on concerns about renewables, but held his Outperform rating, pointing to continued “strong” bookings. Wells Fargo’s Jerry Revich also cut his target, down to $85 from $118, and reiterated Equal Weight, saying there’s “risk of higher project losses” in the second half. TipRanks
KeyBanc cut Primoris to Sector Weight from Overweight, saying the stock is “tough to defend” after another guidance cut. Analysts at the firm said they need a “clear picture” on the renewables business before they can recommend the shares. TipRanks
Offsets were in play, but buyers weren’t showing up premarket. Primoris reported about $2 billion in Energy segment wins for Q2, including natural gas generation projects, industrial jobs and electric construction for power load growth and data centers. Vadlamudi called out “disappointed by the additional costs,” but pointed to “strong demand across our end markets.” SEC
Narrow competitive read-through so far. Primoris holds a spot alongside bigger players like Quanta Services and MasTec in heavy construction and infrastructure, a group popular for grid, power and data-center themes. But this update looks like an execution story. Demand might not be the issue, it’s project controls weighing on the stock now.
The risk isn’t limited to Tuesday’s open. If renewables jobs drop again, or cost estimates stay under, Primoris’s new 2026 outlook may face questions. Second-quarter results are the next test—Primoris said most recent changes should be clear then. Management is also set to present at the J.P. Morgan Natural Resources Conference in New York on June 24.
