Primoris Services Corporation (NYSE:PRIM) shares are trading lower Tuesday after the company announced the departure of COO Jeremy Kinch. Also, the company cut its fiscal-year 2026 guidance.
- Primoris stock is testing lower boundaries. Why did PRIM hit a new low?
COO Departure
Jeremy Kinch departed from the COO role effective today. While the company conducts a search for a permanent successor, President and CEO Koti Vadlamudi will assume most COO responsibilities in the interim. “The Company thanks Jeremy for his contributions and wishes him well on his future endeavors,” Vadlamudi said.
Guidance Cut
The guidance reduction stems from additional cost overruns and delays in the company’s Renewables business, identified through continued project progress and an ongoing assessment by a third-party industry expert. The overruns are primarily related to six previously disclosed projects. Primoris now expects full-year 2026 Renewables revenue of approximately $2.1 billion, down from approximately $3.0 billion in 2025.
For the full year 2026, the company now expects net income of $71.00 million to $101.00 million, EPS of $1.30 to $1.85 per fully diluted share, adjusted EPS of $2.05 to $2.60 and adjusted EBITDA of $275.00 to $325.00 million. The majority of the impact is expected to be reflected in second-quarter results.
“While we are disappointed by the additional costs experienced on a limited number of projects in our Renewables business, we remain confident in the long-term growth opportunities in our Renewables business and Primoris broadly,” said Vadlamudi.
The Silver Lining
Despite the headwinds, Primoris announced approximately $2.0 billion in new project awards during the second quarter, secured by its Energy segment—focused on natural gas generation, industrial, and electric construction services to support power load growth and data centers. The company also repurchased approximately $50 million of common stock during the quarter at an average price of $111.29 per share, with approximately $100 million remaining under its authorized repurchase program.
Primoris Shares Fall
PRIM Price Action: At the time of publication, Primoris shares are trading 37.34% lower at $67.89, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
Login to comment