Primoris Faces Investor Lawsuit Over Renewable Energy Project Failures

The litigation centers on allegations that Primoris misled investors regarding its bidding and project management capabilities. While company leadership previously touted disciplined estimating processes and effective risk controls for its fixed-price renewable energy portfolio, the subsequent reality revealed significant deficiencies. Management eventually attributed declining margins to a combination of labor productivity bottlenecks, sequencing errors, and costly project redesigns across six specific sites.

The financial impact of these failures became apparent throughout 2026. After initially blaming isolated soil conditions in February, the company revealed a sharp decline in Energy segment profits by May. The situation culminated in June, when Primoris announced that ongoing project complications would lead to a 30% reduction in renewables revenue, representing a $900 million loss in expected sales. This disclosure triggered a broader investigation into whether the firm adequately disclosed the severity of these execution risks.

Reed Kathrein, the Hagens Berman partner leading the investigation, noted that the firm is scrutinizing the company's internal oversight mechanisms. Primoris reported a net loss of $24.2 million for the second quarter of 2026, with adjusted EBITDA falling to $11.4 million. The core Energy segment, which previously maintained double-digit margins, reported a gross loss of -0.3%. Shareholders who suffered substantial losses are encouraged to contact Hagens Berman for participation in the pending claims.