Primoris (PRIM): First Take: Business Update – COO departure; guidance lowered on renewables challenges

Research evidence excerpt

Primoris (PRIM): First Take: Business Update – COO departure; guidance lowered on renewables challenges

Equity Research

22 June 2026 | 6:14PM CDT

Primoris (PRIM): First Take: Business Update – COO departure; guidance

lowered on renewables challenges

Today after the close, PRIM announced a business update including (i) the departure Adam Bubes, CFA

+1(212)357-9824 |

of its COO, (ii) additional renewables cost overruns primarily related to the six adam.bubes@gs.com

Goldman Sachs & Co. LLC

problem projects previously identified, (iii) expectations for these projects to be

Anuj Khandelwal

substantially complete by year-end, and (iv) revised guidance, with 2026 EBITDA +1(332)245-7710 |

guidance lowered by ~39% at the mid-point driven by incremental cost overruns and anuj.khandelwal@gs.comGoldman Sachs India SPL

lower renewables revenue expectations (~$2.1 bn vs expectations of ~$2.3 bn prior),

and (v) on the positive side, ~$2 bn of Energy awards QTD in 2Q.

While PRIM indicated that most of the financial impact from these developments will

be recognized in its 2Q26 results and that the six problem projects are expected to

be substantially complete by year-end 2026, we remain cautious on the extent and

duration of Renewables headwinds given the magnitude of the guidance revision,

recent management changes, and evolving project updates. On the positive side, the

update on ~$2 bn of Energy awards provides improved visibility into a growth

acceleration in Energy ex‑Renewables, and we expect 2Q Energy book‑to‑bill to be

strong and well above 1x. We await further details on the moving pieces driving the

$190 mn reduction in EBITDA guidance at the midpoint, as well as margin cadence,

when PRIM attends an upcoming investor conference later this week.