PRIM INVESTOR ALERT: Primoris Services Corporation Investors with Substantial Losses Have Opportunity to Lead the Primoris Class Action Lawsuit

Hagens Berman Sobol Shapiro LLP alerts investors in Primoris Services Corporation (NYSE: PRIM) that securities class action lawsuit has been filed against the Company and certain current and former executives who are alleged to have misled investors about the company's project management capabilities. It seeks to represent investors who purchased or otherwise acquired shares of Primoris common stock between August 5, 2025 and June 22, 2026.

The lawsuit follows a second massive selloff in Primoris shares in six weeks – this time on June 23, 2026, when shares cratered another $23.29 (-21%). The first occurred on May 6, 2026, when Primoris shares crashed $101.69 (-50%). Both were triggered by surprise revelations of Primoris' project management problems. The disclosures' toll was to erase well over $6 billion from Primoris' market capitalization between May 5, 2026 and June 23, 2026.

During the Class Period, defendants repeatedly assured investors that Primoris maintained "disciplined bidding," "well-developed estimating processes," effective project controls, and reliable forecasting that enabled it to accurately price and execute fixed-price renewable energy projects, "manage risk," and reliably forecast revenues, margins, and earnings. The complaint alleges that, in contrast to these assurances (and unknown to investors), the Defendants did not disclose that Primoris' estimating, cost-to-complete forecasting, and project oversight processes were woefully deficient. As a result, the company systematically underestimated project costs and risks on multiple significant renewable energy projects.

Investors learned the truth through a series of partial disclosures: First, in February 2026, Primoris management attributed lower gross margins to "unexpectedly higher costs" at certain renewables projects, citing difficult soil and rock conditions that required additional labor and equipment. While management later downplayed the issue as being isolated to a single project—expressing confidence in their remedial measures—they simultaneously touted the company's ability to "accelerate project timelines" for 2026.

Second, on May 5, 2026, the market's confidence in Primoris' remedial measures was shattered when the company released its Q1 2026 financial results and revealed a staggering decline in the core Energy segment, with year-over-year revenues falling by $152.9 million (13.8%) and gross profits plunging by nearly 40%. CEO Koti Vadlamudi admitted the next day during the May 6 earnings call that Primoris' financial results were battered by cost pressures across multiple solar projects. Moving beyond the "rock and soil" reason used just months prior, Vadlamudi cited a litany of execution-related factors as the cause of the margin collapse: Project Redesigns: Costly changes to existing plans. Labor Issues: Inability to manage specific workforce demands. Sequencing Errors: Failures in project management and timing. Weather Disruptions: Further complicating already delayed timelines.

Finally, after the markets closed on June 22, 2026, Primoris shocked investors when it announced that "[a]dditional challenges and cost overruns were identified as a result of continued progress on projects in the Company's Renewables business." Importantly, as a result of ongoing problems in six projects and ...