DALLAS – Primoris Services Corporation (NYSE:PRIM) announced today that Chief Operating Officer Jeremy Kinch has departed from his role, while the company slashed its full-year 2026 financial guidance due to cost overruns in its renewables business.
The company now expects net income between $71.0 million and $101.0 million for 2026, down from previous guidance of $223.0 million to $234.0 million. Earnings per share is projected at $1.30 to $1.85, compared to prior estimates of $4.05 to $4.25. Adjusted EBITDA is expected to range from $275.0 million to $325.0 million, down from $480.0 million to $500.0 million, according to a press release statement. The dramatic revision aligns with broader analyst sentiment, as InvestingPro data shows 11 analysts have revised their earnings downwards for the upcoming period. Despite the guidance cut, InvestingPro’s Fair Value analysis suggests the stock is currently overvalued at its current trading level.
The revised outlook stems from challenges on six previously discussed renewables projects. An assessment by a third-party industry expert identified additional cost overruns and delays. Two of the six projects were substantially completed in the second quarter, while the remaining four are expected to reach substantial completion between the third and fourth quarters of 2026.
Revenue in the renewables business for 2026 is now expected to be approximately $2.1 billion, compared to approximately $3.0 billion in 2025. The company stated that the majority of the developments are expected to be reflected in second quarter 2026 results.
President and Chief Executive Officer Koti Vadlamudi will manage most COO responsibilities while the company searches for a permanent successor.
Primoris reported securing approximately $2.0 billion in new project awards during the second quarter through its Energy segment, focused on natural gas generation, industrial projects, and electric construction services.
The company purchased approximately $50 million of common stock during the second quarter at an average price of approximately $111.29 per share. As of today, approximately $100 million remains available under the share purchase program, which expires April 30, 2028. For deeper analysis of Primoris’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro for this and 1,400+ other US equities.
In other recent news, Primoris Services Corporation has undergone several notable developments. Cantor Fitzgerald has reiterated a Neutral rating on Primoris, maintaining a price target of $124, following a leadership change in the company’s renewables division. Tim Healy has been appointed as the Interim President of Renewables after Anthony Vorderbruggen’s departure, with the company actively searching for a permanent replacement. Wolfe Research also reiterated its Outperform rating on Primoris, setting a price target of $149, and noted recent insider transactions, including a $1 million stock purchase by the CEO. Additionally, Cantor Fitzgerald raised its price target from $113 to $124 due to clarified project timelines and discussions with Primoris management. These updates follow a first-quarter 2026 renewables-driven miss and a reset to full-year 2026 guidance. The leadership transition and insider transactions reflect ongoing strategic adjustments within the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Source:
www.investing.com
