Pomerantz probes Primoris after guidance cuts, stock plunge
Pomerantz LLP is investigating Primoris Services Corporation for potential securities fraud after the company drastically cut its full-year adjusted EBITDA guidance twice, leading to a significant stock price decline. The investigation focuses on whether Primoris misled investors about its renewables business performance before revealing cost overruns and project delays.
*this image is generated using AI for illustrative purposes only.
Pomerantz LLP is investigating potential securities fraud by Primoris Services Corporation and its officers following a series of drastic guidance cuts that erased billions in market value. The law firm is examining whether the company misled investors regarding the operational performance of its renewables business before disclosing significant cost overruns and delays. Investors who suffered losses are encouraged to contact the firm to inquire about pursuing a claim.
On May 5, 2026, Primoris reported financial results for the first quarter of 2026, revealing a 13.8% year-over-year revenue decline in its Energy segment to $1.6 billion and a drop in net income to $17.4 million from $44.2 million. The company slashed its full-year adjusted EBITDA guidance from $560-$580 million to $480-$500 million, citing lower renewable energy activity and increased costs. CEO Koti Vadlamudi attributed the margin collapse to execution-related factors, including project redesigns, labor issues, sequencing errors, and weather disruptions.
Following this announcement, Primoris's stock price fell $101.69 per share, or 50.11%, to close at $101.23 per share on May 6, 2026. On June 22, 2026, Primoris issued a Business Update further reducing its full-year adjusted EBITDA guidance to $275 million to $325 million. The company cited cost overruns and delays related to six projects and anticipated renewables revenue of approximately $2.1 billion, a 30% decline from the $3 billion reported for 2025. The abrupt departure of the Chief Operating Officer was also announced.
On this news, the stock price fell $23.39 per share, or 21.59%, to close at $84.95 per share on June 23, 2026. Pomerantz joins other law firms, including Hagens Berman and The Portnoy Law Firm, in examining whether Primoris' pre-May 5 statements misled investors. The firms contrast the May 5 earnings release assertion that the "majority of our renewables portfolio continues to perform in line or ahead of expectations" with the June 22 revision attributing the guidance collapse to cost overruns and schedule delays.
The table below details the revised financial outlook compared to earlier projections.
| Metric | Feb 2026 Guidance | May 2026 Guidance | June 2026 Guidance |
|---|---|---|---|
| Adjusted EBITDA | $560.0 - $580.0 million | $480.0 - $500.0 million | $275.0 - $325.0 million |
| Adjusted EPS | $5.80 - $6.00 | $4.80 - $5.00 | $2.05 - $2.60 |
| Net Income | Not Disclosed | $223.0 - $234.0 million | $71.0 - $101.0 million |
| EPS | Not Disclosed | $4.05 - $4.25 | $1.30 - $1.85 |
| Renewables Revenue | Not Disclosed | Approximately $3.0 billion | Approximately $2.1 billion |
What is the expected timeline for the investigation, and could potential litigation force further restatements of historical financial data?
How will the abrupt departure of the COO and the ongoing executive instability impact the company's ability to stabilize operations and manage the troubled project portfolio?
With renewables revenue projected to drop 30%, will Primoris pivot its strategic focus away from the renewable energy sector to stabilize earnings?
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