Primoris Services Corporation PRIM offers a diversified range of services, which are proving beneficial for its strong backlog growth. It is capitalizing on market opportunities across various business sectors, including the Renewables business, power, grid, data centers and other related infrastructure projects. Various federal and state funding initiatives, followed by tax incentives, have boosted confidence in the North American market for ramping up the demand for such infrastructure projects.
The Renewables business of PRIM is going strong, thanks to robust demand in utility-scale solar and EPC work, alongside increased activity in battery storage projects. Moreover, it is witnessing an uptick in power-related projects across industrial and residential market sections, coupled with increased demand for emerging technologies and data center development prospects. As of June 30, 2025, Primoris’ total backlog was $11.49 billion, with the next 12-month backlog standing at $5.14 billion. This compares favorably with the total backlog of $10.45 billion and the next 12-month backlog worth $4.26 billion in the year-ago period.
Recently, following the 0.25 percentage point Fed rate cut, there has been a positive buzz in the economy, with additional optimism fueled by expectations of two more rate cuts in the remainder of 2025. Although this rate cut is a breath of fresh air after months of uncertainty, the market is still adjusting to the new tariff regime and the cons that come with it. Amid such a scenario, PRIM is working on building its project pipeline across diversified business offerings and cashing in on them over the long term.
Primoris highlighted the evaluation process for about $1.7 billion of work related to data centers, which it expects to receive contracts for by the end of 2025. These projects include solutions across early-stage site preparation, power generation, utility infrastructure and fiber network construction. With the ongoing market trends, the company expects to witness robust bookings, primarily in the renewables and energy sectors, thereby maintaining a solid backlog position through 2026.
Primoris vs. Other Market Players
Primoris recently emerged as a notably agile competitor in North America’s infrastructure space, particularly in renewables, utility energy systems and the budding data center build-out market.
By contrast, MasTec, Inc. MTZ has a deeper scale and broader diversification, participating across clean energy, pipelines, communications and power delivery, and has been aggressively growing its backlog. Moreover, Quanta Services, Inc. PWR remains a heavyweight in the electric power infrastructure and utility sectors, particularly in transmission and distribution, grid modernization, and large-scale integration of renewables.
While MasTec and Quanta have superior scale, Primoris’ positioning allows it to potentially achieve higher returns in niche or mid-sized contracts, particularly if data-center and clean energy demand continue to rise. The challenge for Primoris will be managing costs, regulatory risk and executing larger projects against more established competition from MasTec and Quanta.
PRIM Stock’s Price Performance & Valuation Trend
Shares of this Texas-based specialty construction and infrastructure company have surged 68.1% in the past three months, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
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PRIM stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 25.02, as evidenced by the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market.
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Earnings Estimate Revision of PRIM
PRIM’s earnings estimates for 2025 and 2026 have trended upward in the past 60 days to $4.83 and $5.50 per share, respectively. The estimated figures for 2025 and 2026 imply year-over-year growth of 24.8% and 13.9%, respectively.
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The favorable year-over-year comparisons indicate that PRIM will be able to capitalize on its in-house business strategies and ensure incremental prospects amid favorable market fundamentals.
Primoris stock 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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