Primoris Services (NYSE:PRIM) reported second-quarter revenue of approximately $1.7 billion, down $200 million or 10.7% compared to the same period last year, due to significant cost overruns in its renewables sector and a 19.2% decline in energy-segment revenue. Gross profit plummeted to $82.4 million, with gross margin falling to 4.9% from 12.3%. The company identified six renewable projects facing margin pressures, attributing the decline largely to two completed and three nearing completion in the third quarter.
Despite these challenges, Primoris secured $3.9 billion in new awards during the quarter, boosting its backlog to a record of nearly $13.9 billion, an increase of approximately $2.2 billion since the first quarter. The company anticipates energy-segment gross margins of 6% to 8% for 2026, with expectations to return to historical margins of 10% to 12% in 2027. Furthermore, liquidity at the end of the quarter stood at $959 million, with cash flow guidance adjusted down to approximately $150 million to $200 million for 2026.
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