Shares of Primoris Services Corporation dropped 34.5% in pre-open trading following a significant revision to the company's full-year 2026 financial outlook and the immediate exit of Chief Operating Officer Jeremy Kinch. The Dallas-based infrastructure contractor said the cuts stem from additional cost overruns and delays tied to six troubled projects in its Renewables business.
Primoris narrowed its adjusted EBITDA guidance to a range of $275 million to $325 million, down from a previous range of $480 million to $500 million. Full-year diluted earnings per share guidance was reduced to $1.30 to $1.85 from $4.05 to $4.25. The company said the adjustments reflect the financial impact of the Renewables projects, a conclusion supported by an assessment from an outside industry expert.
The personnel change compounds the operational setback. Primoris announced that COO Jeremy Kinch has departed immediately. CEO Koti Vadlamudi will take on most of the COO responsibilities while the company conducts a search for a permanent successor.
Analyst reactions and market repercussions
Wall Street moved quickly to reprice Primoris after the announcement. KeyBanc downgraded PRIM from Overweight to Sector Weight, describing the guidance cut as the fourth consecutive negative update for the company. That string of setbacks includes weak fourth-quarter 2025 results, a miss in first-quarter 2026, an earlier removal of the Renewables segment head, and now the COO departure alongside the guidance reset.
Mizuho kept an Outperform rating on the shares but trimmed its price target to $117 from $135. Cantor Fitzgerald reiterated a Neutral stance with a $124 target. Analysts flagged concerns over management credibility and questioned the reliability of the revised cost-to-complete assumptions for the remaining troubled projects.
Wider market context and investor response
There was limited shelter for Primoris investors from broader market moves. The S&P 500 edged down about 0.4% while the NASDAQ fell roughly 1.3%, reflecting a cautious tone across U.S. equities. The engineering and construction sector, which includes peers such as Quanta Services, MasTec, and Dycom Industries, also drew scrutiny as execution risk became a central valuation concern for the group.
The combination of a severe guidance reset, a high-profile leadership departure, a sell-side downgrade, and a sequence of prior adverse updates produced a sharp pre-market sell-off. The stock traded near $71.01 after the announcement - well under its 52-week high of $205.50 - as investors reassess whether the Renewables cost overruns have been fully captured or if further negative revisions remain possible.
What remains clear
Primoris has disclosed material downward revisions to its 2026 outlook and an immediate COO departure, and it has cited six problematic Renewables projects and an independent assessment as drivers of the change. Management has assigned interim COO duties to the CEO while searching for a new operations chief. Analysts and investors have reacted by lowering expectations and questioning the durability of the company’s updated cost estimates for the affected projects.