Primoris (NYSE:PRIM) reports sales below analyst estimates in Q3, but its non-GAAP EPS beat expectations

What happened

Primoris reported Q3 2026 revenue of $1.95 billion, below analyst estimates of $2.03 billion and down 10.4% from a year earlier. Adjusted earnings per share of $1.20 beat the $0.78 consensus estimate by 53.4%.

Confirmed

Global impact / market context

Sales fell short while profit beat expectations, so the company earned more per share on less revenue. Management also lowered full-year adjusted EPS guidance to $2.18 at the midpoint, which means expected profit for the year is now lower.

Analyst inference

Operating margin fell to 4.9% from 6.3%, and free cash flow turned negative at -$33.07 million from $148.4 million, which means the business used more cash than it generated. Backlog rose 27.2% to $14.07 billion, suggesting future work remains strong.

Analyst inference

What to watch

1. Watch whether Primoris converts its $14.07 billion backlog, which is contracted future work, into revenue and whether renewable energy projects stop weighing on margins. Confirmed
2. Management lowered full-year adjusted EPS guidance to $2.18 at the midpoint, a 6.5% decrease, so watch whether actual results land near that reduced target. Proposed
3. Watch free cash flow, which was -$33.07 million this quarter, because continued cash use could limit the company's ability to fund capital spending or repay borrowed money. Analyst inference

Evidence

• stockstory.org