Primoris Services Corporation PRIM is sharpening its focus on large-scale infrastructure opportunities, with data centers emerging as a major growth avenue. As demand for digital infrastructure accelerates, the company is positioning itself to capture significant work in this expanding sector.
In the second quarter of 2025, the company highlighted that it is actively pursuing more than $1.7 billion worth of data center projects. These efforts build on its established expertise in delivering mission-critical infrastructure across energy, utilities and communications. The company emphasized that data centers represent a natural extension of its core capabilities, providing long-term visibility and diversified growth opportunities.
The company’s backlog remains robust, reflecting strong execution across energy and utilities, while civil work continues to provide recurring opportunities. For the second quarter, revenues reached $1.89 billion, up 20.9% year over year, driven by strong growth in the Energy and Utilities segments. Backlog at quarter-end improved sequentially to $11.5 billion, supporting activity for the remainder of the year. Furthermore, the addition of data center projects into the pipeline underscores the company’s confidence in addressing evolving infrastructure needs tied to digital transformation and AI-driven capacity requirements.
The company maintains a disciplined approach in balancing growth with cost efficiency, ensuring that new pursuits like data centers complement its broader portfolio rather than stretching resources. With strong demand across essential services and a clear focus on the data center market, the company appears well-placed to expand its infrastructure footprint.
As the $1.7 billion opportunity unfolds, execution on these projects could serve as a meaningful catalyst for growth, helping the company sustain momentum in 2025 and beyond.
Other Market Players Benefiting From the Trend
Rising demand for data centers is creating opportunities across the infrastructure sector. Several companies, like EMCOR Group, Inc. EME and MasTec, Inc. MTZ, are positioned to capture this trend as investment in digital capacity and connectivity continues to expand.
EMCOR is benefiting from resilient demand for its services, mainly across network and communications, including data centers, healthcare, water and wastewater market sectors. In the second quarter of 2025, strong activity in data center construction projects supported growth trends. For the first six months of 2025, revenues from the U.S. Electrical Construction segment grew 55.2% year over year to $2.43 billion. With public infrastructure spending at elevated levels, data center demand is expected to stay strong, providing solid growth visibility for the remainder of the year.
MasTec is benefiting from robust data center demand, particularly through fiber deployment tied to hyperscaler capital spending. The company posted a 42% year-over-year increase in Communications revenues in the second quarter of 2025, supported by middle-mile broadband build-outs and telecom infrastructure linked to data centers. With backlog reaching a record level, MasTec is well-placed to leverage demand across both wireline and wireless businesses.
PRIM’s Price Performance, Valuation & Estimates
Shares of Primoris have gained 66.3% in the past three months compared with the Zacks Building Products - Heavy Construction industry’s growth of 29.7%.
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From a valuation standpoint, PRIM trades at a forward 12-month price-to-earnings ratio of 23.72X, up from the industry’s 22.18X.
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Primoris’ earnings estimates for 2025 and 2026 have trended upward in the past 30 days by 4.2% to $4.67 per share and 2.3% to $5.23, respectively. The estimated figures for 2025 and 2026 indicate 20.7% and 12.1% year-over-year growth, respectively.
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PRIM’s Zacks Rank
Primoris currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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