PRIM

Argan, Inc. AGX has emerged as one of the strongest performers in the engineering and construction space, riding a wave of accelerating investments in power generation, industrial infrastructure and data centers. Following an outstanding first-quarter fiscal 2027 report, investors are wondering whether the company's remarkable stock momentum still has room to run.The quarter certainly strengthened the investment case. Argan delivered record revenues of $291 million, up 50.2% year over year, while gross profit surged 65.8% to $61.1 million. Gross margin expanded 200 basis points to 21%, reflecting a favorable project mix, exceptional execution and the ahead-of-schedule completion of the Midwest Solar and Battery Project. Earnings per share more than doubled to $3.24, while adjusted EBITDA climbed 79.2% to $56.4 million, with adjusted EBITDA margin improving to 19.4%.Beyond the headline numbers, AGX’s long-term growth outlook remains compelling. The company exited the quarter with a robust $2.77 billion backlog, underpinned by large combined-cycle natural gas projects, industrial fabrication contracts and growing opportunities tied to data center expansion. Rising electricity demand, manufacturing reshoring, AI-driven data center construction and aging grid infrastructure continue to create a favorable environment for engineering, procurement and construction (EPC) contractors with proven execution capabilities.Equally impressive is Argan's financial strength. The company ended the quarter with $973.6 million in cash, cash equivalents and investments, net liquidity of $421.4 million and no debt. This fortress balance sheet provides ample flexibility to invest in strategic initiatives, including the new North Carolina fabrication facility, while continuing to reward shareholders through dividend increases and an expanded $200 million share repurchase authorization.Admittedly, execution risk remains inherent in large EPC contracts, and the business still depends heavily on a relatively concentrated portfolio of power-generation projects. However, AGX’s disciplined project selection, strong customer relationships, rising earnings estimates and specialized expertise in complex power infrastructure significantly mitigate these concerns. With secular demand drivers firmly in place, record financial performance, expanding industrial opportunities and one of the stron...

Primoris Services (PRIM) said late Monday its chief operating officer, Jeremy Kinch, is departing fr

Primoris faced a challenging first quarter, as the market responded negatively to its underperformance on both revenue and non-GAAP profit relative to Wall Street expectations. Management identified execution challenges in a limited number of solar projects as the main drivers, specifically referencing labor issues, project redesigns, and weather-related disruptions. CEO Koti Vadlamudi noted, “these impacts were driven by execution-related factors including specific labor issues, project redesigns, adjustments to sequencing, and weather-related disruptions.” The company acknowledged that rapid growth in new geographic markets contributed to gaps in preconstruction planning and estimating, requiring targeted leadership changes and revised market expansion strategies. Is now the time to buy PRIM? Find out in our full research report (it’s free). Revenue: $1.56 billion vs analyst estimates of $1.74 billion (5.4% year-on-year decline, 10.3% miss) Adjusted EPS: $0.59 vs analyst expectations of $0.84 (30.1% miss) Adjusted EBITDA: $60.5 million vs analyst estimates of $92.93 million (3.9% margin, 34.9% miss) Management lowered its full-year Adjusted EPS guidance to $4.90 at the midpoint, a 16.9% decrease EBITDA guidance for the full year is $490 million at the midpoint, below analyst estimates of $591 million Operating Margin: 1.6%, down from 4.3% in the same quarter last year Backlog: $11.6 billion at quarter end, up 1.8% year on year Market Capitalization: $6.21 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Lee Jagoda (CJS Securities) pressed for details on the components of the $110 million shortfall. CFO Ken Dodgen broke it down into timing of renewables revenue, direct cost overruns, and lingering project margin effects, confirming most negative impacts would resolve by the end of the year. Adam Robert Thalhimer (Thompson Davis) probed confidence in guidance after project challenges. CEO Koti Vadlamudi said risk assessment processes had been overhauled and most problematic projects would soon be complete, emphasizing the pipeline of verbal awards and improved controls. Julien Dumoulin-Smith (Jefferies) asked...

Primoris Services Corporation (NYSE:PRIM) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$1.6b, statutory earnings missed forecasts by an incredible 57%, coming in at just US$0.32 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, the consensus forecast from Primoris Services' ten analysts is for revenues of US$7.65b in 2026. This reflects an okay 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 8.1% to US$4.20 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.08b and earnings per share (EPS) of US$5.42 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates. View our latest analysis for Primoris Services The consensus price target fell 14% to US$150, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Primoris Services analyst has a price target of US$212 per share, while the most pessimistic values it at US$105. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Primoris Services' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.0% growth on an annualised basis. This is compared to a historical growt...

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Primoris Services (PRIM) is under close watch after first quarter 2026 earnings showed sales of US$1.56b and net income of US$17.4m, along with a cut to full year profit expectations. See our latest analysis for Primoris Services. The Q1 earnings miss and lower full-year profit guidance have sharply reset expectations, with a 7-day share price return of a 40.39% decline and a 30-day share price return of a 27.51% decline suggesting momentum has cooled, even though the 1-year total shareholder return of 58.13% and very large 3-year total shareholder return show longer-term holders remain well ahead. If the recent volatility around Primoris has you reassessing your watchlist, it could be a good moment to look at other infrastructure-exposed opportunities using our power grid and energy infrastructure stocks screener 35 power grid technology and infrastructure stocks With Q1 earnings under pressure, guidance reset lower, a value score of 4, and the stock trading at a discount to both analyst targets and intrinsic value estimates, is there still a buying opportunity here, or is future growth already priced in? With Primoris Services last closing at $107.98 against a narrative fair value of $152.86, the most followed view suggests the market is treating future cash flows cautiously. Read the complete narrative. Curious what supports a fair value so far above the current price? The narrative leans on a specific mix of revenue growth, margin uplift, and valuation multiple compression. The exact balance of those moving parts is where the story gets interesting. Result: Fair Value of $152.86 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the story breaks quickly if data center and utility scale renewable awards disappoint or if Energy segment margin pressures and project timing issues persist. Find out about the key risks to this Primoris Services narrative. The current P/E of 22.1x sits well below both peers at 41.5x and the US Construction industry at 48.2x, and also below a 42.5x fair ratio. That gap suggests the market is pricing in meaningful execution or cycle risk, so which side of that trade do you think is right? See what the numbers...

Image source: The Motley Fool. Tuesday, Nov. 4, 2025 at 10 a.m. ET Interim Chief Executive Officer — David King Chief Financial Officer — Ken Dodgen David King: Thank you, Blake. Good morning, and thank you for joining us today to discuss our third quarter 2025 operational and financial results. Primoris had another great quarter, once again delivering record revenue, operating income and earnings. I am proud of our employees and their ability to execute at a high level, while providing our customers with safe, reliable service and driving profitable growth. Operating cash flow was also a highlight in the third quarter and further demonstrates the hard work we have put in to improve in this area. As a result of this emphasis, we have been able to make tremendous progress in delevering the balance sheet and allowing us to invest in the business to be well prepared for the surge in demand we are currently seeing across our end markets. I am particularly proud of how we have generated free cash flow and set new highs on our return on invested capital since making these metrics a priority. We are a company focused on the development of quality people and delivering quality projects for our clients. We continue to allocate our time and resources to capitalize on what we believe is a generational opportunity for our infrastructure solutions that will drive value for our shareholders. Last quarter, I discussed the significant demand on the horizon for power generation and the growing prospect of providing more services, which support the development of data centers. I want to reiterate that these and other opportunities remain squarely in front of us. The ramp-up in revenue, combined with the delay of a couple of larger dollar value projects, led to a higher-than-anticipated backlog burn rate in the Energy segment. The timing of when projects are signed and placed into backlog can [be due to] a number of factors, including changes in scope and design and the shifting of supply chain schedules. We continue to direct our attention toward the things we can control during the process and providing our customers with the resources they need from us to get the projects built timely. I want to emphasize that our lower than forecasted bookings in Q3 were not a result of projects being canceled or awarded to other service providers, but are instead being impacted by other c...

Image source: The Motley Fool. Wednesday, May 6, 2026 at 10 a.m. ET President and Chief Executive Officer — Koti Vadlamudi Chief Financial Officer — Ken Dodgen Koti Vadlamudi: Thank you, Blake. Good morning and thank you for joining us today to discuss our first quarter 2026 financial and operational results. Our first quarter results reflected the impact of a small number of solar projects that experienced cost pressures resulting in lower reported gross profit and margins for the period. These impacts were driven by execution-related factors including specific labor issues, project redesigns, adjustments to sequencing, and weather-related disruptions. The majority of the impacted projects were subsequent to the project discussed in our Q4 earnings call, which experienced cost overruns driven by unforeseen underground conditions. Through our review, we identified two primary drivers behind these challenges: preconstruction planning and the complexity associated with new geographic labor markets. The rapid pace of growth in the solar market placed increased demands on our organization and, in a limited number of cases, this resulted in gaps during the early planning, estimating, and construction phases. Importantly, since these contracts were executed in 2024, we have taken decisive actions to address these areas. We made targeted leadership changes and added experienced talent to strengthen our preconstruction, estimating, and project management functions. In addition, we have adjusted our market expansion approach and have not pursued new work in the geographies where first-time entry contributed to these outcomes. We are confident these actions position us well to mitigate similar risk on projects booked in 2025 and beyond. All of the impacted projects are progressing toward completion and are expected to be substantially complete in 2026, with several concluding within the next month and the final project scheduled for completion in 2026. In addition to the margin impacts associated with these projects, we have also seen the timing of new project bookings and starts shift to the right. As a result, we now expect certain bookings originally anticipated in the second quarter to move into the third quarter, and revenue from projects booked late in 2025 to be recognized later than previously forecasted. Based on these timing dynamics, we now expect Renewable...

Primoris earnings tumbled 40%, worse than expected, But two heavy construction peers beat views late.

Primoris Services (PRIM) came out with quarterly earnings of $0.59 per share, missing the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -31.99%. A quarter ago, it was expected that this construction contractor would post earnings of $0.95 per share when it actually produced earnings of $1.08, delivering a surprise of +13.68%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Primoris Services, which belongs to the Zacks Building Products - Heavy Construction industry, posted revenues of $1.56 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 10.02%. This compares to year-ago revenues of $1.65 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Primoris Services shares have added about 49.5% since the beginning of the year versus the S&P 500's gain of 5.2%. While Primoris Services has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Primoris Services was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see th...

DALLAS (AP) — DALLAS (AP) — Primoris Services Corp. (PRIM) on Tuesday reported first-quarter profit of $17.4 million. On a per-share basis, the Dallas-based company said it had profit of 32 cents. Earnings, adjusted for one-time gains and costs, were 59 cents per share. The results fell short of Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 87 cents per share. The construction contractor posted revenue of $1.56 billion in the period, which also did not meet Street forecasts. Four analysts surveyed by Zacks expected $1.73 billion. Primoris Services expects full-year earnings in the range of $4.80 to $5 per share. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PRIM at https://www.zacks.com/ap/PRIM

Performance was impacted by cost overruns on six specific solar projects bid in 2024, driven by labor issues, project redesigns, and unforeseen underground conditions. Management attributed renewables challenges to rapid market growth which outpaced preconstruction planning and execution capabilities in new geographic markets. The Utility segment achieved double-digit top-line growth, benefiting from increased transmission and substation activity in Texas and the Southeast. The Energy segment is experiencing its most favorable natural gas generation environment in over a decade, with a growing funnel of simple and combined-cycle opportunities. Strategic positioning was bolstered by the Paynecrest acquisition, which provides immediate entry into the high-growth data center 'inside-the-fence' electrical market. Operational pivots include a moratorium on bidding new work in geographies that contributed to recent solar project distress to mitigate future risk. Renewables revenue guidance was lowered to approximately $2.3 billion for 2026 due to project starts shifting into the third quarter and tax credit clarity delays. Management expects a significant recovery in the second half of 2026 as distressed solar projects reach substantial completion and new awards mobilize. The company anticipates a segment book-to-bill ratio exceeding 1x for the full year, supported by $1.1 billion in verbal awards expected to sign in the second half. Utility margins are projected to trend toward the 10% to 12% target range, aided by seasonal acceleration and potential storm restoration work. Long-term growth is anchored by a $15 billion renewables funnel and a total unrestricted pipeline of over $7 billion in identified natural gas generation opportunities. Identified $110 million in total headwinds for the year, comprising $45 million from revenue pushouts and $65 million from direct cost overruns and margin compression. Net interest expense guidance was raised to $35 million to $38 million to account for the $400 million term loan used to fund the Paynecrest acquisition. Management implemented targeted leadership changes in preconstruction and project management to address gaps identified during the solar execution review. The 48E tax credit implementation remains a variable, causing some customers to re-engineer projects multiple times to maximize financial incentives. Our anal...

Primoris Services (PRIM) reported Q1 adjusted net income late Tuesday of $0.59 per diluted share, do