Primoris: 2Q Review: No New Surprises; Recovery Intact Thus Far; Maintain Overweight

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

06 August 2026

Primoris

2Q Review: No New Surprises; Recovery Intact Thus

Far; Maintain Overweight

Overweight

PRIM, PRIM US

Price (05 Aug 26):$83.40

▼Price Target (Dec-27):$105.00

Prior (Dec-26):$116.00

PRIM reported 2Q results that came in slightly better than our estimates, and the

company maintained its FY26 guidance from its latest June update, a signal of no

further deterioration in the renewables portfolio. The quarter produced a record

total backlog of $13.9bn on the back of strong bookings across both segments, with

Utilities bookings a notable positive surprise, in our view. Management expects

renewables bookings of $1.4–2.0bn in 2H26 (weighted to 4Q) and strong 1Q27

bookings, setting up a “modest growth” year for renewables in 2027. On the rest

of Energy, management expects an additional 1.5-2.bn of bookings in the 2H. For

Utilities, management expects book-to-bill for the year of ~1x, implying a much

softer 2H of bookings for the segment. We are updating our model to reflect the

results, introducing FY28 targets, and establishing a Dec 27 price target of $105,

from a prior Dec 26 price target of $116. The lower price target is largely driven

by marking to market our SOTP valuation to lower trading multiples across the

peer set. We continue to believe the stock is undervalued, especially through a

SOTP lens versus peers. We expect the stock to outperform our coverage universe

over the next 12 months and maintain our Overweight rating.

Guidance reiteration a positive in our view; 2027 back to

normal. Management maintained its FY26 Adj. EBITDA guidance of $275325mm and Adj. EPS of $2.05-2.60, unchanged from the June 22 update. The

2Q result absorbed the bulk of the financial impact from the six troubled

renewables projects, consistent with prior guidance, and the sequential

recovery trajectory seems to be intact. The CFO guided to sequential EBITDA

improvement to $90–110mm in 3Q26 and $100–120mm in 4Q26. Energy

gross margins are now expected to be 6-8% in FY26, from a prior target of 7-9%

as of the June update. Management indicated Energy gross margins are likely

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