Primoris Services Corporation Reports Third Quarter 2026 Results
Higher Utilities revenue and margins partly offset weaker renewable-energy activity, while quarterly net interest expense rose to $14.3 million.
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For the third quarter of 2026, Primoris reported the following highlights (1):
-
Revenue of
$2.0 billion $0.2 billion 10.4% , compared to the third quarter of 2025; -
Net income of
$51.3 million $0.95 $43.3 million $0.78 -
Adjusted net income of
$64.9 million $1.20 $38.2 million $0.68 -
Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) of
$134.4 million $34.3 million 20.3% , from the third quarter of 2025; -
Record total backlog of
$14.1 billion $8.5 billion -
Updating net income and Adjusted EBITDA guidance ranges to
$65.2 million $73.2 million $290.0 million $310.0 million -
Updating diluted earnings per share (“EPS”) and Adjusted EPS guidance ranges to
$1.20 $1.35 $2.10 $2.25 -
Announced share purchase authorization of up to
$250 million
(1) Please refer to “Non-GAAP Measures” and Schedules 1, 2, 3 and 4 for the definitions and reconciliations of our Non-GAAP financial measures, including “Adjusted Net Income,” “Adjusted EPS” and “Adjusted EBITDA.” |
“Our third quarter results reflect meaningful progress in completing the renewable energy projects that have weighed on our margins this year, while highlighting the continued strength and resilience of the broader Primoris platform,” said Koti Vadlamudi, President and Chief Executive Officer of Primoris. “As the last of our six previously discussed challenged projects moves closer to completion, we are increasingly confident that these impacts are soon to be behind us and that Primoris is well positioned to capitalize on the significant opportunities ahead.”
“We remain confident in the long-term fundamentals of the renewables market and Primoris’ position as a leading provider of utility-scale solar and battery storage solutions. Demand for reliable and affordable energy infrastructure remains robust, and we continue to see attractive opportunities across our end markets.”
“As we approach the end of a challenging year, we believe the foundation is in place for a return to growth in 2027. Supported by a record backlog, improved project execution, and sustained demand for power generation and utility infrastructure services, we are well positioned to return to profitable growth, expand margins, and create sustainable value for our customers, employees and shareholders,” he added.
Third Quarter 2026 Results Overview
Revenue was
During the third quarter of 2026, net income was
Operating performance by segment for the three and nine months ended September 30, 2026, and 2025 was as follows:
Segment Results |
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(in millions, except %) |
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(unaudited) |
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|
|
For the three months ended September 30, 2026 |
|||||||||||||||||||||||
|
|
Utilities |
|
% of
|
|
Energy |
|
% of
|
|
Corporate
|
|
Consolidated |
|
% of
|
|||||||||||
Revenue |
|
$ |
770.9 |
|
|
— |
|
|
$ |
1,223.8 |
|
|
— |
|
|
$ |
(42.3 |
) |
(1) |
$ |
1,952.4 |
|
— |
|
|
Cost of Revenue |
|
|
670.7 |
|
87.0 |
% |
|
|
1,119.3 |
|
91.5 |
% |
|
|
(42.3 |
) |
(1) |
|
1,747.7 |
|
|
89.5 |
% |
||
Gross Profit |
|
|
100.2 |
|
|
13.0 |
% |
|
|
104.5 |
|
|
8.5 |
% |
|
|
— |
|
|
|
204.7 |
|
|
10.5 |
% |
Selling, general, and
|
|
|
30.1 |
|
|
3.9 |
% |
|
|
53.5 |
|
|
4.4 |
% |
|
|
25.4 |
|
|
|
109.0 |
|
|
5.6 |
% |
Transaction and related costs |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
|||
Operating Income |
|
$ |
70.1 |
|
|
9.1 |
% |
|
$ |
51.0 |
|
|
4.2 |
% |
|
$ |
(26.2 |
) |
|
$ |
94.9 |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Represents intersegment revenue and cost of revenue of |
|||||||||||||||||||||||||
|
|
For the three months ended September 30, 2025 |
|||||||||||||||||||||||
|
|
Utilities |
|
% of
|
|
Energy |
|
% of
|
|
Corporate
|
|
Consolidated |
|
% of
|
|||||||||||
Revenue |
|
$ |
737.5 |
|
|
— |
|
|
$ |
1,485.7 |
|
|
— |
|
|
$ |
(44.8 |
) |
(1) |
$ |
2,178.4 |
|
|
— |
|
Cost of Revenue |
|
|
651.5 |
|
88.3 |
% |
|
|
1,336.0 |
|
89.9 |
% |
|
|
(44.8 |
) |
(1) |
|
1,942.7 |
|
89.2 |
% |
|||
Gross Profit |
|
|
86.0 |
|
|
11.7 |
% |
|
|
149.7 |
|
|
10.1 |
% |
|
|
— |
|
|
|
235.7 |
|
|
10.8 |
% |
Selling, general, and
|
|
|
30.9 |
|
|
4.2 |
% |
|
|
41.1 |
|
|
2.8 |
% |
|
|
25.7 |
|
|
|
97.7 |
|
|
4.5 |
% |
Transaction and related costs |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
|||
Operating Income |
|
$ |
55.1 |
|
|
7.5 |
% |
|
$ |
108.6 |
|
|
7.3 |
% |
|
$ |
(26.7 |
) |
|
$ |
137.0 |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Represents intersegment revenue and cost of revenue of |
|||||||||||||||||||||||||
|
For the nine months ended September 30, 2026 |
||||||||||||||||||||||||
|
|
Utilities |
|
% of
|
|
Energy |
|
% of
|
|
Corporate
|
|
Consolidated |
|
% of
|
|||||||||||
Revenue |
|
$ |
2,116.4 |
|
|
— |
|
|
$ |
3,179.1 |
|
|
— |
|
|
$ |
(95.0 |
) |
(1) |
$ |
5,200.5 |
|
|
— |
|
Cost of Revenue |
|
|
1,869.1 |
|
88.3 |
% |
|
|
3,004.6 |
|
94.5 |
% |
|
|
(95.0 |
) |
(1) |
|
4,778.7 |
|
91.9 |
% |
|||
Gross Profit |
|
|
247.3 |
|
|
11.7 |
% |
|
|
174.5 |
|
|
5.5 |
% |
|
|
— |
|
|
|
421.8 |
|
|
8.1 |
% |
Selling, general, and
|
|
|
92.3 |
|
|
4.4 |
% |
|
|
150.1 |
|
|
4.7 |
% |
|
|
78.7 |
|
|
|
321.1 |
|
|
6.2 |
% |
Transaction and related costs |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
8.2 |
|
|
|
8.2 |
|
|
|
|||
Operating Income |
|
$ |
155.0 |
|
|
7.3 |
% |
|
$ |
24.4 |
|
|
0.8 |
% |
|
$ |
(86.9 |
) |
|
$ |
92.5 |
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Represents intersegment revenue and cost of revenue of |
|||||||||||||||||||||||||
|
For the nine months ended September 30, 2025 |
||||||||||||||||||||||||
|
|
Utilities |
|
% of
|
|
Energy |
|
% of
|
|
Corporate
|
|
Consolidated |
|
% of
|
|||||||||||
Revenue |
|
$ |
1,993.9 |
|
|
— |
|
|
$ |
3,830.9 |
|
|
— |
|
|
$ |
(107.5 |
) |
(1) |
$ |
5,717.3 |
|
|
— |
|
Cost of Revenue |
|
|
1,758.7 |
|
88.2 |
% |
|
|
3,428.0 |
|
89.5 |
% |
|
|
(107.5 |
) |
(1) |
|
5,079.2 |
|
88.8 |
% |
|||
Gross Profit |
|
|
235.2 |
|
|
11.8 |
% |
|
|
402.9 |
|
|
10.5 |
% |
|
|
— |
|
|
|
638.1 |
|
|
11.2 |
% |
Selling, general, and administrative expenses |
|
|
96.4 |
|
|
4.8 |
% |
|
|
122.9 |
|
|
3.2 |
% |
|
|
82.4 |
|
|
|
301.7 |
|
|
5.3 |
% |
Transaction and related costs |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
2.4 |
|
|
|
2.4 |
|
|
|
|||
Operating Income |
|
$ |
138.8 |
|
|
7.0 |
% |
|
$ |
280.0 |
|
|
7.3 |
% |
|
$ |
(84.8 |
) |
|
$ |
334.0 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Represents intersegment revenue and cost of revenue of |
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Utilities Segment (“Utilities”): Revenue increased by
Energy Segment (“Energy”): Revenue decreased by
Gross profit as a percentage of revenue decreased to
Other Income Statement Information
Selling, general and administrative (“SG&A”) expenses were
Interest expense, net for the quarter ended September 30, 2026, was
The effective tax rate on income for the nine months ended September 30, 2026, of
Outlook
The Company is updating its estimates for the year ending December 31, 2026. Net income is expected to be between
The Company is targeting SG&A expenses as a percentage of revenue in the low
Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. Please refer to “Non-GAAP Measures” and Schedules 1, 2, 3, and 4 below for the definitions and reconciliations. The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items. Supplemental information relating to the Company’s financial outlook is posted in the Investor Relations section of the Company’s website at www.prim.com.
Backlog |
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(in millions) |
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|
|
|
|
|
|
|
|
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|
||||
|
September 30, 2026 |
|
December 31, 2025 |
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|
Next 12 Months |
|
Total |
|
Next 12 Months |
|
Total |
||||||||
Utilities |
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed Backlog |
$ |
70.9 |
|
|
$ |
70.9 |
|
|
$ |
96.1 |
|
|
$ |
96.1 |
|
MSA Backlog |
|
2,372.2 |
|
|
8,008.0 |
|
|
1,904.8 |
|
|
6,327.3 |
||||
Backlog |
$ |
2,443.1 |
|
|
$ |
8,078.9 |
|
|
$ |
2,000.9 |
|
|
$ |
6,423.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Energy |
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed Backlog (1) |
$ |
3,709.6 |
|
|
$ |
5,498.2 |
|
|
$ |
3,081.7 |
|
|
$ |
4,889.8 |
|
MSA Backlog |
|
222.5 |
|
|
|
490.8 |
|
|
|
208.8 |
|
|
|
632.1 |
|
Backlog |
$ |
3,932.1 |
|
|
$ |
5,989.0 |
|
|
$ |
3,290.5 |
|
|
$ |
5,521.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed Backlog |
$ |
3,780.5 |
|
|
$ |
5,569.1 |
|
|
$ |
3,177.8 |
|
|
$ |
4,985.9 |
|
MSA Backlog |
|
2,594.7 |
|
|
|
8,498.8 |
|
|
|
2,113.6 |
|
|
|
6,959.4 |
|
Backlog |
$ |
6,375.2 |
|
|
$ |
14,067.9 |
|
|
$ |
5,291.4 |
|
|
$ |
11,945.3 |
|
(1) Total Fixed Backlog as of September 30, 2026, includes approximately |
|||||||||||||||
Total backlog as of September 30, 2026, was
Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue. Revenue from certain projects where scope, and therefore contract value, is not adequately defined, is not included in Fixed Backlog. At any time, any project may be cancelled at the convenience of the Company’s customers.
Balance Sheet and Capital Allocation
At September 30, 2026, the Company had
The Company also announced that on October 30, 2026, its Board of Directors declared a
The Company also announced that on October 30, 2026, its Board of Directors authorized a share purchase program under which Primoris may, from time to time and depending on market conditions, share price and other factors, acquire shares of its common stock on the open market or in privately negotiated transactions up to an aggregate purchase price of
Conference Call and Webcast
As previously announced, management will host a conference call and webcast on Wednesday, November 4, 2026, at 9:00 a.m.
Interested parties are invited to dial-in:
Presentation slides to accompany the conference call are available for download under “Events & Presentations” in the “Investors” section of the Company’s website at www.prim.com.
Non-GAAP Measures
This press release contains certain financial measures that are not recognized under generally accepted accounting principles in
About Primoris
Primoris Services Corporation is a leading provider of critical infrastructure services to the utility, energy, and renewables markets throughout
Forward-Looking Statements
This press release contains certain forward-looking statements, including the Company’s outlook, that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including with regard to the Company’s future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “targets”, “will”, “would” or similar expressions. Forward-looking statements include information concerning the possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, effects of regulation and the economy, generally. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ materially as a result of a number of factors, including, among other things, customer timing, project duration, weather, and general economic conditions; changes in our mix of customers, projects, contracts and business; regional or national and/or general economic conditions and demand for our services; price, volatility, and expectations of future prices of oil, natural gas, and natural gas liquids; variations and changes in the margins of projects performed during any particular quarter; increases in the costs to perform services caused by changing conditions; the termination, or expiration of existing agreements or contracts; the budgetary spending patterns of customers; inflation, tariffs and other increases in construction costs that we may be unable to pass through to our customers; cost or schedule overruns on fixed-price contracts; availability of qualified labor for specific projects; changes in bonding requirements and bonding availability for existing and new agreements; the need and availability of letters of credit; increases in interest rates and slowing economic growth or recession; the instability in the banking system; costs we incur to support growth, whether organic or through acquisitions; the timing and volume of work under contract; losses experienced in our operations; the results of the review of prior period accounting on certain projects and the impact of adjustments to accounting estimates; governmental investigations and/or inquiries; intense competition in the industries in which we operate; failure to obtain favorable results in existing or future litigation or regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure of our partners, suppliers or subcontractors to perform their obligations; failure to maintain safe worksites; risks or uncertainties associated with events outside of our control, including conflicts in the
PRIMORIS SERVICES CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(In Millions, Except Per Share Amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Revenue |
$ |
1,952.4 |
|
|
$ |
2,178.4 |
|
|
$ |
5,200.5 |
|
|
$ |
5,717.3 |
|
Cost of revenue |
|
1,747.7 |
|
|
|
1,942.7 |
|
|
|
4,778.7 |
|
|
|
5,079.2 |
|
Gross profit |
|
204.7 |
|
|
|
235.7 |
|
|
|
421.8 |
|
|
|
638.1 |
|
Selling, general, and administrative expenses |
|
109.0 |
|
|
|
97.7 |
|
|
|
321.1 |
|
|
|
301.7 |
|
Transaction and related costs |
|
0.8 |
|
|
|
1.0 |
|
|
|
8.2 |
|
|
|
2.4 |
|
Operating income |
|
94.9 |
|
|
|
137.0 |
|
|
|
92.5 |
|
|
|
334.0 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange gain, net |
|
0.1 |
|
|
|
0.9 |
|
|
|
0.4 |
|
|
|
0.2 |
|
Other (expense) income, net |
|
(0.1 |
) |
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.2 |
|
Interest expense, net |
|
(14.3 |
) |
|
|
(7.0 |
) |
|
|
(29.4 |
) |
|
|
(22.3 |
) |
Income before provision for income taxes |
|
80.6 |
|
|
|
131.0 |
|
|
|
63.9 |
|
|
|
312.1 |
|
Provision for income taxes |
|
(29.3 |
) |
|
|
(36.4 |
) |
|
|
(19.3 |
) |
|
|
(88.9 |
) |
Net income |
$ |
51.3 |
|
|
$ |
94.6 |
|
|
$ |
44.6 |
|
|
$ |
223.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends per common share |
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.96 |
|
|
$ |
1.75 |
|
|
$ |
0.83 |
|
|
$ |
4.14 |
|
Diluted |
$ |
0.95 |
|
|
$ |
1.73 |
|
|
$ |
0.82 |
|
|
$ |
4.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
53.5 |
|
|
|
54.0 |
|
|
|
53.9 |
|
|
|
53.9 |
|
Diluted |
|
54.1 |
|
|
|
54.8 |
|
|
|
54.5 |
|
|
|
54.8 |
|
PRIMORIS SERVICES CORPORATION |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In Millions) |
|||||||
(Unaudited) |
|||||||
|
September 30, |
|
December 31, |
||||
|
2026 |
|
2025 |
||||
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
203.5 |
|
|
$ |
535.5 |
|
Accounts receivable, net |
|
935.0 |
|
|
|
723.4 |
|
Contract assets |
|
880.6 |
|
|
|
936.9 |
|
Prepaid expenses and other current assets |
|
137.5 |
|
|
|
137.8 |
|
Total current assets |
|
2,156.6 |
|
|
|
2,333.6 |
|
Property and equipment, net |
|
561.6 |
|
|
|
531.2 |
|
Operating lease assets |
|
484.2 |
|
|
|
488.9 |
|
Intangible assets, net |
|
361.7 |
|
|
|
190.2 |
|
Goodwill |
|
1,051.5 |
|
|
|
856.9 |
|
Other long-term assets |
|
12.6 |
|
|
|
7.0 |
|
Total assets |
$ |
4,628.2 |
|
|
$ |
4,407.8 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable |
$ |
720.8 |
|
|
$ |
744.3 |
|
Contract liabilities |
|
680.2 |
|
|
|
633.6 |
|
Accrued liabilities |
|
439.5 |
|
|
|
405.4 |
|
Dividends payable |
|
4.2 |
|
|
|
4.3 |
|
Current portion of long-term debt |
|
42.5 |
|
|
|
60.9 |
|
Total current liabilities |
|
1,887.2 |
|
|
|
1,848.5 |
|
Long-term debt, net of current portion |
|
741.8 |
|
|
|
409.0 |
|
Noncurrent operating lease liabilities, net of current portion |
|
307.0 |
|
|
|
325.6 |
|
Deferred tax liabilities |
|
54.4 |
|
|
|
71.4 |
|
Other long-term liabilities |
|
82.1 |
|
|
|
72.3 |
|
Total liabilities |
|
3,072.5 |
|
|
|
2,726.8 |
|
Commitments and contingencies |
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
||
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
141.5 |
|
|
|
296.9 |
|
Retained earnings |
|
1,417.3 |
|
|
|
1,385.6 |
|
Accumulated other comprehensive loss |
|
(3.1 |
) |
|
|
(1.5 |
) |
Total stockholders’ equity |
|
1,555.7 |
|
|
|
1,681.0 |
|
Total liabilities and stockholders’ equity |
$ |
4,628.2 |
|
|
$ |
4,407.8 |
|
PRIMORIS SERVICES CORPORATION |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In Millions) |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
2026 |
|
2025 |
||||
Cash flows from operating activities: |
|
|
|
|
|
||
Net income |
$ |
44.6 |
|
|
$ |
223.2 |
|
Adjustments to reconcile net income to net cash provided by
|
|
|
|
|
|
||
Depreciation and amortization |
|
88.5 |
|
|
|
67.7 |
|
Stock-based compensation expense |
|
15.6 |
|
|
|
14.9 |
|
Gain on sale of property and equipment |
|
(14.5 |
) |
|
|
(18.7 |
) |
Other non-cash items |
|
1.5 |
|
|
|
1.7 |
|
Changes in assets and liabilities: |
|
|
|
|
|
||
Accounts receivable |
|
(116.5 |
) |
|
|
(205.8 |
) |
Contract assets |
|
81.1 |
|
|
|
(184.7 |
) |
Other current assets |
|
(6.1 |
) |
|
|
(38.4 |
) |
Other long-term assets |
|
(1.1 |
) |
|
|
(0.3 |
) |
Accounts payable |
|
(73.5 |
) |
|
|
322.2 |
|
Contract liabilities |
|
(26.7 |
) |
|
|
9.9 |
|
Operating lease assets and liabilities, net |
|
(1.5 |
) |
|
|
(2.9 |
) |
Accrued liabilities |
|
8.2 |
|
|
|
130.8 |
|
Other long-term liabilities |
|
9.3 |
|
|
|
7.9 |
|
Net cash provided by operating activities |
|
8.9 |
|
|
|
327.5 |
|
Cash flows from investing activities: |
|
|
|
|
|
||
Purchase of property and equipment |
|
(92.4 |
) |
|
|
(108.2 |
) |
Proceeds from sale of assets |
|
21.0 |
|
|
|
27.0 |
|
Proceeds from repayment of note receivable |
|
8.0 |
|
|
|
3.0 |
|
Cash paid for acquisitions, net of cash acquired |
|
(404.7 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(468.1 |
) |
|
|
(78.2 |
) |
Cash flows from financing activities: |
|
|
|
|
|
||
Proceeds from issuance of debt |
|
411.8 |
|
|
|
— |
|
Payments on long-term debt |
|
(33.5 |
) |
|
|
(312.6 |
) |
Borrowings under revolving line of credit |
|
370.0 |
|
|
|
— |
|
Payments on revolving line of credit |
|
(370.0 |
) |
|
|
— |
|
Payments on pledged accounts receivable under securitization facility |
|
(62.5 |
) |
|
|
— |
|
Proceeds from pledge of accounts receivable under securitization facility |
|
— |
|
|
|
62.5 |
|
Payments related to tax withholding for stock-based compensation |
|
(21.2 |
) |
|
|
(11.0 |
) |
Stock purchases |
|
(150.0 |
) |
|
|
— |
|
Dividends paid |
|
(13.0 |
) |
|
|
(12.9 |
) |
Other |
|
(5.5 |
) |
|
|
(0.6 |
) |
Net cash provided by (used in) financing activities |
|
126.1 |
|
|
|
(274.6 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
0.9 |
|
|
|
1.2 |
|
Net change in cash, cash equivalents and restricted cash |
|
(332.2 |
) |
|
|
(24.1 |
) |
Cash, cash equivalents and restricted cash at beginning of the period |
|
541.3 |
|
|
|
461.4 |
|
Cash, cash equivalents and restricted cash at end of the period |
$ |
209.1 |
|
|
$ |
437.3 |
|
Non-GAAP Measures
Schedule 1 |
Primoris Services Corporation |
Reconciliation of Non-GAAP Financial Measures |
Adjusted Net Income and Adjusted EPS |
(In Millions, Except Per Share Amounts) |
(Unaudited) |
Adjusted Net Income and Adjusted EPS
Primoris defines Adjusted Net Income as net income (loss) adjusted for certain items including, (i) non‐cash stock‐based compensation expense; (ii) transaction/integration and related costs; (iii) asset impairment charges; (iv) changes in fair value of the Company’s interest rate swap; (v) change in fair value of contingent consideration liabilities; (vi) amortization of intangible assets; (vii) amortization of debt discounts and debt issuance costs; (viii) losses on extinguishment of debt; (ix) severance and restructuring charges; (x) selected (gains) charges that are unusual or non-recurring; and (xi) impact of changes in statutory tax rates. The Company defines Adjusted EPS as Adjusted Net Income divided by the diluted weighted average shares outstanding. Management believes these adjustments are helpful for comparing the Company’s operating performance with prior periods. Because Adjusted Net Income and Adjusted EPS, as defined, exclude some, but not all, items that affect net income and diluted earnings per share, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income and diluted earnings per share, and information reconciling the GAAP and non‐GAAP financial measures, are included in the table below.
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Net income as reported (GAAP) |
$ |
51.3 |
|
|
$ |
94.6 |
|
|
$ |
44.6 |
|
|
$ |
223.2 |
|
Non-cash stock-based compensation |
|
4.7 |
|
|
|
4.5 |
|
|
|
15.6 |
|
|
|
14.9 |
|
Transaction/integration and related costs |
|
0.8 |
|
|
|
1.0 |
|
|
|
8.2 |
|
|
|
2.4 |
|
Amortization of intangible assets |
|
13.5 |
|
|
|
4.3 |
|
|
|
27.9 |
|
|
|
13.5 |
|
Amortization of debt issuance costs |
|
0.4 |
|
|
|
0.6 |
|
|
|
1.5 |
|
|
|
1.7 |
|
COO severance costs |
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
CEO severance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.1 |
|
Impairment of assets |
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
1.4 |
|
Income tax impact of adjustments (1) |
|
(5.8 |
) |
|
|
(3.3 |
) |
|
|
(16.0 |
) |
|
|
(10.3 |
) |
Adjusted net income |
$ |
64.9 |
|
|
$ |
103.1 |
|
|
$ |
82.4 |
|
|
$ |
248.9 |
|
Weighted average shares (diluted) |
|
54.1 |
|
|
|
54.8 |
|
|
|
54.5 |
|
|
|
54.8 |
|
Diluted earnings per share |
$ |
0.95 |
|
|
$ |
1.73 |
|
|
$ |
0.82 |
|
|
$ |
4.07 |
|
Adjusted diluted earnings per share |
$ |
1.20 |
|
|
$ |
1.88 |
|
|
$ |
1.51 |
|
|
$ |
4.54 |
|
(1) Adjustments above are reported on a pre-tax basis before the income tax impact of adjustments. The income tax impact for each adjustment is determined by calculating the tax impact of the adjustment on the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
|||||||||||||||
Schedule 2 |
Primoris Services Corporation |
Reconciliation of Non-GAAP Financial Measures |
EBITDA and Adjusted EBITDA |
(In Millions) |
(Unaudited) |
EBITDA and Adjusted EBITDA
Primoris defines EBITDA as net income (loss) before interest, income taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for certain items including, (i) non‐cash stock‐based compensation expense; (ii) transaction/integration and related costs; (iii) asset impairment charges; (iv) severance and restructuring charges; (v) change in fair value of contingent consideration liabilities; and (vi) selected (gains) charges that are unusual or non-recurring. The Company believes the EBITDA and Adjusted EBITDA financial measures assist in providing a more complete understanding of the Company’s underlying operational measures to manage its business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. EBITDA and Adjusted EBITDA are non‐GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non‐GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The most comparable GAAP financial measure, net income, and information reconciling the GAAP and non‐GAAP financial measures are included in the table below.
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Net income as reported (GAAP) |
$ |
51.3 |
|
|
$ |
94.6 |
|
|
$ |
44.6 |
|
|
$ |
223.2 |
|
Interest expense, net |
|
14.3 |
|
|
7.0 |
|
|
29.4 |
|
|
22.3 |
||||
Provision for income taxes |
|
29.3 |
|
|
|
36.4 |
|
|
|
19.3 |
|
|
|
88.9 |
|
Depreciation and amortization |
|
34.0 |
|
|
|
23.8 |
|
|
|
88.5 |
|
|
|
67.7 |
|
EBITDA |
|
128.9 |
|
|
|
161.8 |
|
|
|
181.8 |
|
|
|
402.1 |
|
Non-cash stock-based compensation |
|
4.7 |
|
|
|
4.5 |
|
|
|
15.6 |
|
|
|
14.9 |
|
Transaction/integration and related costs |
|
0.8 |
|
|
|
1.0 |
|
|
|
8.2 |
|
|
|
2.4 |
|
COO severance costs |
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
CEO severance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.1 |
|
Impairment of assets |
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
1.4 |
|
Adjusted EBITDA |
$ |
134.4 |
|
|
$ |
168.7 |
|
|
$ |
206.2 |
|
|
$ |
422.9 |
|
Schedule 3 |
Primoris Services Corporation |
Reconciliation of Non-GAAP Financial Measures |
Forecasted Adjusted Net Income and Adjusted Diluted Earnings Per Share for Full Year 2026 |
(In Millions, Except Per Share Amounts) |
(Unaudited) |
The following table sets forth a reconciliation of the forecasted GAAP net income to Adjusted Net Income and EPS to Adjusted EPS for the year ending December 31, 2026.
|
Estimated Range |
||||||
|
Full Year Ending |
||||||
|
December 31, 2026 |
||||||
Net income as defined (GAAP) |
$ |
65.2 |
|
|
$ |
73.2 |
|
Non-cash stock-based compensation |
|
20.5 |
|
|
|
20.5 |
|
Amortization of intangible assets |
|
41.5 |
|
|
|
41.5 |
|
Amortization of debt issuance costs |
|
2.0 |
|
|
|
2.0 |
|
Transaction/integration and related costs |
|
9.1 |
|
|
|
9.1 |
|
COO severance costs |
|
0.6 |
|
|
|
0.6 |
|
Income tax impact of adjustments (1) |
|
(24.6 |
) |
|
|
(24.6 |
) |
Adjusted net income |
$ |
114.3 |
|
|
$ |
122.3 |
|
Weighted average shares (diluted) |
|
54.3 |
|
|
|
54.3 |
|
Diluted earnings per share |
$ |
1.20 |
|
|
$ |
1.35 |
|
Adjusted diluted earnings per share |
$ |
2.10 |
|
|
$ |
2.25 |
|
| (1) Adjustments above are reported on a pre-tax basis before the income tax impact of adjustments. The income tax impact for each adjustment is determined by calculating the tax impact of the adjustment on the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. | |||||||
Schedule 4 |
Primoris Services Corporation |
Reconciliation of Non-GAAP Financial Measures |
Forecasted EBITDA and Adjusted EBITDA for Full Year 2026 |
(In Millions) |
(Unaudited) |
The following table sets forth a reconciliation of the forecasted GAAP net income to EBITDA and Adjusted EBITDA for the year ending December 31, 2026.
|
Estimated Range |
||||||
|
Full Year Ending |
||||||
|
December 31, 2026 |
||||||
Net income as defined (GAAP) |
$ |
65.2 |
|
|
$ |
73.2 |
|
Interest expense, net |
|
43.0 |
|
|
47.0 |
||
Provision for income taxes |
|
32.1 |
|
|
|
36.1 |
|
Depreciation and amortization |
|
119.5 |
|
|
|
123.5 |
|
EBITDA |
$ |
259.8 |
|
|
$ |
279.8 |
|
Non-cash stock-based compensation |
|
20.5 |
|
|
|
20.5 |
|
Transaction/integration and related costs |
|
9.1 |
|
|
|
9.1 |
|
COO severance costs |
|
0.6 |
|
|
|
0.6 |
|
Adjusted EBITDA |
$ |
290.0 |
|
|
$ |
310.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20261103817819/en/
Company Contacts
Ken Dodgen
Executive Vice President, Chief Financial Officer
(214) 740-5608
kdodgen@prim.com
Blake Holcomb
Senior Vice President, Investor Relations
(214) 545-6773
bholcomb@prim.com
Source: Primoris Services Corporation