Primoris Services Conference: Renewables Bookings Strong, But 2026 Revenue Seen Flat to Slightly Down

Primoris expects 2026 renewables revenue to be flat to slightly down after a significant pull‑forward of work into 2025; bookings remain strong but contract timing could skew later in the year and tax‑equity (Section 48E) issues may stretch verbal‑to‑sign timelines though the company has not seen cancellations.
The company completed roughly 4 GW of solar in both 2024 and 2025 and ramped battery work from ~500 MWh in 2024 to ~2 GWh in 2025, saying about $500 million of work was pulled into 2025, and it plans to expand eBOS manufacturing from ~1.5 GW to add 4.5 GW with a $30 million facility due online in Q4 2026.
Renewables are about 40% of company revenue, while growth priorities include natural gas generation (a ~$6 billion funnel with $1.5–2 billion potential early‑year bookings and $150–200 million of potential revenue) and a midstream pipeline funnel grown to ~$3 billion, with bid margins generally in the 10–12% range.
Executives from Primoris Services (NYSE:PRIM) outlined expectations for its renewables business and discussed growth opportunities across other segments, including natural gas generation, midstream pipeline construction and power delivery, during a company event featuring renewables head Anthony Vorderbruggen, VP of investor relations Blake Holcomb and Chief Accounting Officer Travis Stricker.
Renewables outlook: strong bookings, but 2026 revenue expected to be flat to slightly down
Vorderbruggen said the company expects 2026 renewables revenue to be “flat to slightly down” compared with 2025, following what he described as a significant pull-forward of work into 2025. He noted that booking opportunities remain “really, really strong,” but that the timing of contract signings could skew bookings toward the back half of the year.
He said Primoris only counts backlog once contracts are signed, and described a pipeline of verbal awards in the first quarter that could convert into signed contracts in the second and third quarters, and potentially as late as the fourth quarter. He also referenced open commitments and limited notices to proceed (LNTPs) expected to move toward full EPC signings.
Tax equity and Section 48E: no signings paused, but timing could stretch
Asked about market concerns that some banks are pausing activity tied to Section 48E investment tax credits (ITCs), Vorderbruggen said Primoris has not received indications from customers that signings are being paused. He cited one battery storage project executed last year that will apply Section 48 and said the company is working through the administrative requirements with the project owner.
He added that, if tax equity issues were to have an effect, Primoris would more likely see a longer duration between a verbal award and a signed contract, and potentially a longer timeline from LNTP to full notice to proceed (NTP). He said the typical duration from verbal award to contract signing is “right around 8 months,” depending on project complexity and financing needs, and that this timeline “may stretch out a little bit.”
Vorderbruggen emphasized that the company was not seeing cancellations or suspensions. “If anything,” he said, projects could shift “a little push potentially to the right,” adding that solving domestic content requirements could also allow schedules to be pulled back if solutions are developed quickly.
ITC extension discussions: limited visibility beyond 2028, but opportunities remain large
On the topic of potential ITC extension and its impact on the industry, Vorderbruggen said it was too early for firm views. He noted there are “a couple of election cycles” before the ITC sunsets and said he did not believe the market should assume a “big cliff” without greater visibility. He added that even in stronger periods, the industry did not have clear line of sight into 2029 and 2030, but said opportunities for 2026 through 2028 remain “really large.”
Solar and storage execution: 4 GW of solar EPC in 2024 and 2025; battery volumes increased
Vorderbruggen said Primoris completed roughly 4 GW of solar EPC work in 2025 and about 2 GWh of battery projects. In 2024, he said the company also completed roughly 4 GW of solar, while battery work was “very, very small,” around 500 MWh.
He attributed the flattish outlook for renewables to a pull-forward into 2025, including two projects (with two phases each) that were originally planned sequentially but were accelerated and built concurrently. Vorderbruggen said that shift pulled about $500 million of work, spanning both battery and solar, into 2025. He said the company ramped resources by taking on “bigger” work while maintaining the number of execution teams, leaving experienced teams to support a similar quantity of projects in 2026 but with somewhat lower revenue.
On battery storage, Vorderbruggen said the company completed one battery project in 2024 and built eight in 2025, calling it a “big ramp-up.” He said Primoris sees additional opportunity in 2026 through 2028 and views storage as an internal growth opportunity. In response to a question about standalone battery work, he said 30% of the company’s battery execution last year was standalone storage, with activity cited in markets including California, Arizona, ERCOT and Indiana.
Supply chain and eBOS: tracker relationships and manufacturing expansion plans
Discussing tracker suppliers, Vorderbruggen identified Nextracker as the top tracker provider in Primoris’ mix, along with Array and GameChange as other major players. He also said the company’s approved vendor list includes PVHardware and Nevados, among others.
Vorderbruggen also detailed the company’s in-house electrical balance of system (eBOS) offering, described as a DC collection system. He said Primoris provides eBOS for its own projects and also sells to other “tier one” EPCs. He said about 20% of manufacturing sales typically go to third-party EPCs, but that share is running 30% to 45% this year as the product gains traction.
On manufacturing capacity, he said the company currently has about 1.5 GW of harnessing capacity at its Crossett facility and plans to add 4.5 GW with a $30 million investment in a 276,000-square-foot manufacturing facility in the Dallas-Fort Worth area. He said the expansion has started and is expected to come online in the fourth quarter of 2026, with further ramp-up through 2027.
Company-wide growth priorities: natural gas generation and pipeline funnel
Holcomb said renewables represent about 40% of total company revenue and are a “nice margin contributor.” He also outlined other business lines, including T&D work (about 25% of the business), natural gas generation (about $480 million of 2025 revenue), communications (about $400 million), gas utility (about $1 billion), and midstream pipeline and heavy civil combined (about $900 million).
He pointed to tailwinds in natural gas generation—particularly simple-cycle, and potentially combined-cycle—as both margin accretive and a source of revenue growth. Holcomb said the company’s funnel for natural gas generation stands around $6 billion, with $1.5 billion to $2 billion of potential bookings in the first half of the year under evaluation. He said that could translate into $150 million to $200 million of revenue growth this year.
In midstream pipeline, Holcomb described a fast conversion cycle, noting that once projects reach the contracting phase, mobilization can occur within 45 to 60 days, with projects potentially completed within 6 to 9 months. He said the opportunity funnel in that business grew from about $1 billion per year to about $3 billion over the last 12 months, and that some customers are attempting to secure capacity for 2027. He also cited typical prerequisites—including permitting, rights-of-way, materials and engineering—before construction begins.
On margins, Holcomb said bid margins for natural gas generation are typically in the 10% to 12% range, with the potential for realized margins “north of that” with strong execution. Vorderbruggen added that renewables bids are also generally in the 10% to 12% range, with larger projects carrying slightly lower margins and smaller projects somewhat stronger.
Holcomb also said Primoris is evaluating M&A as part of its strategy, including potential expansion into interior electrical work relevant to data centers, natural gas generation and advanced manufacturing. He said increasing size and scale in T&D—particularly in substation and transmission—remains a top priority.
About Primoris Services (NYSE:PRIM)
Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation.