Primoris Services Corporation PRIM is scheduled to report its first-quarter 2026 results on May 5, after market close.
In the last reported quarter, the company’s adjusted earnings per share (EPS) and revenues topped the Zacks Consensus Estimate by 13.7% and 9.6%, respectively. On a year-over-year basis, the top line increased 6.7%, but the bottom line declined 4.4%.
Primoris Services’ earnings topped the consensus mark in each of the past four quarters, with an average surprise of 37.7%.
Trend in PRIM’s Q1 Estimates
The Zacks Consensus Estimate for the company’s first-quarter EPS has decreased to 87 cents from 88 cents over the past 30 days. The estimated figure indicates an 11.2% year-over-year decline from adjusted EPS of 98 cents.
Primoris Services Corporation Price and EPS Surprise
Primoris Services Corporation price-eps-surprise | Primoris Services Corporation Quote
The consensus estimate for revenues is pegged at $1.7 billion, indicating a 5.2% increase from $1.65 billion reported in the year-ago quarter.
Factors Likely to Shape Primoris Services’ Q1 Results
Revenues
Primoris Services' first-quarter revenues are likely to have increased year over year, supported by steady activity in the Energy segment (contributed 62.4% to fourth-quarter 2025 revenues), particularly in renewables and natural gas-related work. Continued demand for utility-scale solar and battery storage projects, along with growing opportunities in natural gas generation, is expected to have supported performance, though overall contribution might have remained stable.
Growth is expected to have been driven by the Utilities segment (contributed 37.6% to fourth-quarter 2025 revenues), aided by ongoing demand in power delivery, communications and gas operations. Strength in grid investment and data center-related activity is likely to have supported the segment despite seasonal weakness.
The Zacks Consensus Estimate for the Energy and Utilities segment revenues is pegged at $1.1 billion and $603 million, indicating flat year-over-year performance and a 7% increase, respectively.
However, the Utilities segment is expected to have faced some pressure due to seasonality, as the first quarter is typically the weakest period. Lower storm-related work in power delivery compared with the prior-year period is also likely to have weighed on performance.
The growth is expected to have been partially offset by continued weakness in pipeline activity, as project timing and execution have remained uneven despite an improving opportunity pipeline. Additionally, some project timing shifts and slower conversion of large awards might have limited near-term upside.
Earnings & Margins
The bottom line of Primoris Services is expected to have declined year over year due to margin pressure across both segments. In the Energy segment, margins are likely to have remained under pressure in the first quarter due to the carryover impact of lower-margin renewable projects and cost overruns experienced in prior periods. These projects are expected to continue into early 2026, weighing on profitability.
In the Utilities segment, margins are expected to have been affected by seasonal weakness and lower storm restoration activity, which typically carries higher profitability. First-quarter margins for the segment are expected to remain lower than the full-year range due to this seasonality.
Additionally, the absence of strong project closeouts, which generally provide margin upside, is likely to have limited earnings growth in the quarter. Lower productivity in certain ongoing projects and execution timing might have also impacted margins.
For the first quarter, gross profit margin performance in the Energy segment is expected to remain at the lower end of the 10-12% range, with gradual improvement anticipated in subsequent quarters as legacy project issues are resolved.
Backlog
Furthermore, a strong backlog position and rising demand across power generation, transmission and distribution markets are likely to have supported visibility. The company’s improved balance sheet and cash flow generation also provide flexibility to capitalize on long-term growth opportunities.
The Zacks Consensus Estimate for backlog of the Energy segment is expected to be $6.08 billion, up 5.2% year over year. Conversely, the backlog expectation for the Utilities segment is expected to increase 14.5% to $6.42 billion from $5.61 billion reported in the year-ago quarter.
What the Zacks Model Says About Primoris Services
Our proven model does not conclusively predict an earnings beat for Primoris Services this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.
PRIM’s Earnings ESP: The company has an Earnings ESP of -4.32%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
PRIM’s Zacks Rank: The stock currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector, which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
MasTec, Inc. MTZ has an Earnings ESP of +2.22% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
MasTec’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.4%. In the to-be-reported quarter, MasTec’s earnings are expected to register a 92.2% year-over-year increase.
EMCOR Group, Inc. EME has an Earnings ESP of +2.00% and a Zacks Rank of 2.
EMCOR’s earnings beat estimates in three of the last four quarters and missed on one occasion, the average surprise being 10.4%. In the to-be-reported quarter, EMCOR’s earnings are expected to register a 4% year-over-year increase.
Dycom Industries, Inc. DY currently has an Earnings ESP of +0.55% and a Zacks Rank of 3.
Dycom’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the to-be-reported quarter, Dycom’s earnings are expected to register a 30.6% year-over-year increase.
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This article originally published on Zacks Investment Research (zacks.com).