Can Primoris Sustain Renewables Momentum Amid Shifting Award Timing?

Primoris Services Corporation PRIM is navigating a critical phase in its Renewables business as shifting project timelines, customer-driven delays and evolving supply-chain decisions reshape the pace of award activity. Although long-term demand for utility-scale solar and battery storage remains firmly intact, the company’s ability to sustain the Renewables momentum now depends on how effectively it balances accelerated execution with temporarily slower bookings.

In the third quarter of 2025, the Energy segment grew $475 million or 47% from the prior year, supported largely by increased renewables and industrial activity. Within Renewables, project progress continued to accelerate, with revenues exceeding internal expectations by more than $400 million for the quarter and over $900 million year to date as several large projects pulled forward work that was originally expected in later periods. Strong execution and early material deliveries prompted the company to raise its full-year Renewables revenue expectation to approximately $3 billion, up from a prior estimate of $2.6 billion. 

This exceptional performance contributed to a reduction in backlog. The company highlighted that faster-than-anticipated revenue burn and project signings pushed out by one or two quarters were key drivers behind the decline. Primoris expressed high confidence in securing several high-value awards in the coming quarters that could support another strong year in 2026.

However, the company cautioned that Renewables revenue growth heading into 2026 is likely to be more modest and may be lower by a couple of hundred million as timing normalizes and pulled-forward activity resets the baseline for growth. Sustaining momentum will depend on how quickly new bookings replenish backlog while project execution continues to run ahead of expectations.

Primoris Stock’s Price Performance vs. Other Market Players

Shares of this Texas-based specialty construction and infrastructure company have moved up 75.5% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

Moreover, firms like MasTec, Inc. MTZ and Jacobs Solutions Inc. J offer substantial competition to Primoris in the public infrastructure field, especially across pipelines, telecom, utility markets, and in engineering and construction services. In the past six months, shares of MasTec and Jacobs Solutions have gained 34.9% and 7.8%, respectively.

PRIM’s Valuation Trend

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 22.9, as evidenced by the chart below.

Earnings Estimate Revision of PRIM

PRIM’s earnings estimates for 2025 and 2026 have remained unchanged over the past 60 days at $5.08 and $5.55 per share, respectively. However, the estimated figures for 2025 and 2026 imply year-over-year growth of 31.3% and 9.3%, respectively.

Primoris currently carries a Zacks Rank #3 (Hold). 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