Primoris Services Corporation Q1 FY2026 earnings call

• Solar projects had cost pressures due to execution factors, but actions taken to address. • Impacted projects progressing to completion. • Timing of new project bookings and starts shifted. • Utility segment strong, energy segment rest had solid performance. • Acquired PainCrest, which has balanced end markets. • Confident in ability to mitigate risks and return to strong performance.

Utility segment had strong year-over-year top line growth with power delivery and gas operations contributing. Energy segment was impacted by solar project cost pressures but rest of segment had solid performance. Pipeline services had solid start. Acquired PainCrest. Renewables revenue expected to be ~$2.3B in 2026. Utility segment gross profit $62M, up $10.4M y/y with 9.8% margin. Energy segment gross profit $72.7M, down $46.4M y/y with 7.6% margin.

• Updated full-year outlook: EPS $405 - $425, adjusted EPS $480 - $5, adjusted EBITDA $480 - $500M. • Renewables revenue expected ~$2.3B in 2026. • Expect higher revenue and improving margins from Q2 with completion of impacted renewables projects. • Guidance doesn't include storm restoration benefits or PainCrest upside.

• Solar projects faced cost pressures from execution-related factors like labor issues, project redesigns, etc. • Timing shift of new project bookings and starts. • Geographical expansion challenges in new labor markets. • Uncertainty around tax credits and customer due diligence impacting project starts.

Q: About project issues and EBITDA reduction, how to bridge the gap and cadence of the year.

A: $110M in three buckets: revenue pushout, cost overruns, lower margins. Q2 recovery expected.

Q: On renewable revenue forecast drop, cause and renewables backlog.

A: Pull forward of one project, project delays due to client factors. Funnel strong with verbal awards.

Q: On power delivery growth rates and margins.

A: Growth cadence similar, margins in line with expectations.

Q: On Payne Crest and gas side pipeline.

A: Payne Crest adds growth opportunity, gas side has strong funnel with verbal awards.

Q: On renewables projects and risk management.

A: Risk assessed portfolio, lessons learned applied, projects nearing completion.

Q: On utility vs energy risk-reward and renewables project delays.

A: Utility has strong client relationships and opportunities, renewables delays due to tax credit and engineering clarity issues.