Primoris Services is a United States specialty contractor whose quarter ended June 30, 2026 turned a contained solar problem into a franchise-level execution test. Six fixed-price renewable jobs produced enough incremental cost to swing the Energy segment into a gross loss. A mid-June outlook cut also removed the chief operating officer. The debate is no longer whether demand for power infrastructure is real. It is whether the company can finish those jobs, restore Energy profitability, and prove that the rest of the book still earns the mid-cycle margins the equity used to price.
The tension sits in the mix, not the end markets. Utilities still grew and stayed profitable, even as lighter storm work and the absence of last year's favorable gas-operations closeouts compressed that segment's take. Energy revenue fell as new solar work started slowly, and the six troubled projects drove Energy's gross margin into a loss. Adjusted earnings before interest, tax, depreciation, and amortization collapsed to $11.4 million. Record total backlog still reached $13.9 billion. Demand did not disappear. The bid-and-build machine on a handful of fixed-price solar sites did.
The June quarter also closed the PayneCrest Electric purchase, added term-loan debt, used cash from operations in the first half, and bought back stock at a price well above the current quote. Management held the reduced full-year outlook issued in June and said the remaining troubled solar jobs reach substantial completion by year-end. The next several quarters resolve a single question: does Energy margin recover as those jobs leave the income statement, or do estimating and controls problems follow the company into gas generation and data-center electrical work?