Primoris: Looking Beyond The 2026 Earnings Trough

Primoris Services Corporation is rated a buy, with near-term headwinds from six troubled renewable projects expected to resolve by the end of 2026. Gross margins are projected to normalize to 10%-12% in 2027 as problematic projects roll off, supporting earnings recovery and rerating potential. A record $13.9B backlog, robust natural gas generation bookings, and Utilities MSA growth provide strong multi-year revenue visibility and diversification beyond solar. PRIM trades at 14.21x 2027 EPS, a discount to peers and historical averages, with margin normalization and growth drivers supporting a favorable risk-reward.

While Primoris ( PRIM ) is facing near-term headwinds from cost overruns on six renewable projects, the issues are mostly localized to these six projects and should be resolved by the end of 2026.