Will Strong Infrastructure Demand Support PRIM's Growth in 2025?

Primoris Services Corporation PRIM entered the second half of 2025 with a robust pipeline of essential infrastructure projects, reflecting strong demand across its core markets. Even amid an unpredictable tariff and regulatory environment, the company’s portfolio of energy, utilities and transportation solutions continues to perform well, supported by a diversified customer base and long-term contracts.

For the second quarter of 2025, revenues were $1.89 billion, up 20.9% from the prior year. The increase was led by strong performance in the renewables business and growth in the Utilities segment. Utilities revenues rose on higher activity in gas, communications and power delivery, with improved productivity and favorable contract rates. Communications demand was supported by fiber-to-the-home programs and network builds for data centers.

The Energy segment’s growth came mainly from utility-scale EPC solar and battery storage projects. Renewables are now on track to generate close to $2.5 billion in 2025, exceeding earlier expectations of $2.2-$2.3 billion. Industrial services also saw higher natural gas generation activity, while pipeline revenues declined but showed signs of recovery.

Backlog at the end of the second quarter was just under $11.5 billion, increasing about $100 million sequentially. Management expects booking momentum to continue in the second half, supported by renewables, energy projects and growing opportunities in the data center market.

With a solid backlog, strong end-market demand and disciplined execution, Primoris appears set to maintain growth in 2025, reinforcing its position as a key provider in North America’s infrastructure landscape.

Peers Set to Benefit

As infrastructure demand continues to accelerate, companies like EMCOR Group, Inc. EME and Tutor Perini Corporation TPC are well-positioned to capture growth opportunities across critical sectors. 

EMCOR is benefiting significantly from rising infrastructure demand, particularly within the network and communications sector, driven by data center growth. This surge is fueled by expanding artificial intelligence applications and accelerating digital transformation efforts. Strong public infrastructure spending in the United States further supports EMCOR’s growth prospects. Backed by sustained demand, the company has provided a positive 2025 outlook, expecting year-over-year growth across both revenues and earnings.

Tutor Perini is focusing on large-scale construction and civil works that align with national and regional priorities for upgrading essential infrastructure. The company’s expertise spans transportation, healthcare, hospitality and other key markets, enabling it to compete for complex, high-value projects. Backed by a diverse portfolio and active bidding on upcoming developments, Tutor Perini is positioned to build on its momentum and strengthen presence in the years ahead.

PRIM’s Price Performance, Valuation & Estimates

Shares of Primoris have gained 45% in the past three months compared with the Zacks Building Products - Heavy Construction industry’s growth of 28.5%.

From a valuation standpoint, PRIM trades at a forward 12-month price-to-earnings ratio of 22.38X, up from the industry’s 21.85X.

Primoris’ earnings estimates for 2025 and 2026 have trended upward in the past 30 days by 2.7% to $4.60 per share and 2.4% to $5.21, respectively. The estimated figures for 2025 and 2026 indicate 18.9% and 13.2% year-over-year growth, respectively.

Tutor Perini currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research