Can Primoris Ride on North America's Infrastructure Momentum?

Primoris Services Corporation PRIM delivered a standout second quarter in 2025, underscoring its growing role in North America’s infrastructure expansion. Revenues rose 20.9% year over year to $1.89 billion, surpassing estimates by 12.3%, while adjusted EPS of $1.68 jumped more than 60% and topped expectations by 58.5%. Operating cash flow set a new second-quarter record at $78 million, reinforcing balance sheet strength and capital flexibility.

The momentum stems from robust performance across both Utilities and Energy. Utilities revenues climbed 11.6%, with margins expanding to 14.1% from 10.3% a year ago, driven by power delivery and gas operations. Energy revenues surged 27% on record renewables activity, with solar and storage projects pacing toward $2.5 billion in annual revenues. Primoris’ growing exposure to high-demand markets — transmission, substations and utility-scale renewables — positions it well as governments and corporations accelerate energy transition and power reliability investments.

Beyond renewables, management is tracking nearly $1.7 billion of potential data center-related work to be contracted by year-end. This opportunity, incremental to base projections, offers Primoris a foothold in one of the fastest-growing infrastructure markets. Meanwhile, a backlog approaching $11.5 billion provides multi-year revenue visibility, with strong booking momentum anticipated through 2026.

Risks remain, including tariff pressures, regulatory uncertainties and weather-driven project costs. Yet, with raised 2025 guidance — adjusted EPS now expected at $4.90-$5.10 — Primoris appears well-placed to benefit from secular infrastructure tailwinds.

Competitors in the Infrastructure Race

When assessing Primoris, two close peers worth comparing are Quanta Services PWR and MasTec, Inc. MTZ. Both companies, like Primoris, are deeply tied to the expansion of North America’s infrastructure and energy networks.

Quanta Services has established itself as a leader in transmission and distribution, and its scale gives it a competitive edge in grid modernization. PWR’s exposure to renewable integration and utility hardening overlaps with PRIM’s utility segment, making it a key benchmark for investors tracking infrastructure-driven growth. PWR’s consistent backlog growth also mirrors PRIM’s momentum in power delivery and communications.

MasTec similarly competes with PRIM across renewables, pipeline and communications work. MTZ has aggressively expanded in clean energy EPC projects, positioning itself alongside PRIM in solar and gas generation opportunities. As MTZ scales its backlog above $13 billion, comparisons with PRIM highlight how both companies are leveraging grid and energy transition tailwinds.

PRIM’s Price Performance, Valuation & Estimates

Shares of Primoris have gained 71.4% in the past three months compared with the Zacks Building Products - Heavy Construction industry’s growth of 25.5%.

PRIM Share Price Performance

From a valuation standpoint, PRIM trades at a forward 12-month price-to-earnings ratio of 23.89, up from the industry’s 21.68X.

PRIM’s P/E Ratio (Forward 12-Month) vs. Industry

Estimates for Primoris’ 2025 and 2026 earnings have trended upward in the past 60 days, as shown below. The estimated figures for 2025 and 2026 indicate 24.8% and 13.9% year-over-year growth, respectively.

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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