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Will Strong Utilities Demand Drive Primoris Services' EPS Higher?
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Key Takeaways
PRIM's Utilities segment revenues rose 13.4% YoY to $1.26B in H1 2025, with backlog up 15.1% to $6.03B.
Data center work worth $1.7B is under evaluation, boosting revenue visibility for future years.
Adjusted EPS jumped to $2.66 from $1.52 in H1 2025, with 2025 estimates raised 20.7% YoY to $4.67.
Primoris Services Corporation (PRIM - Free Report) has been witnessing strong demand trends for projects concerning power delivery, gas operations and communication. It is witnessing an uptick in power-related projects not only across industrial and residential market sections, but also due to the increased demand for emerging technologies and data center development. This tailwind is directly aiding its Utilities segment, through which it offers services across power and gas distribution, communications infrastructure and underground utility. During the first six months of 2025, the revenues from the Utilities segment grew year over year by 13.4% to $1.26 billion, with total segmental backlog as of June 30 increasing 15.1% to $6.03 billion.
Recently, PRIM 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. This prospective multi-year opportunity is expected to boost the company’s revenue visibility as well as expand its market exposure towards new project possibilities in the future.
Besides favorable market trends, the company is also undertaking strategic measures to ensure operational efficiency and expand the bottom line. It is putting efforts into keeping the cost and expense structure mix pliable to not pressurize margins despite revenue growth. During the first six months of 2025, the company’s gross margin expanded year over year by 60 basis points (bps) to 11.4% because of rising leverage from the increased top line and its ongoing cost-optimization efforts. During the said time frame, adjusted earnings per share increased to $2.66 from $1.52 a year ago.
Earnings Estimate Revision of PRIM
PRIM’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days to $4.67 and $5.23 per share, respectively. The estimated figures for 2025 and 2026 imply year-over-year growth of 20.7% and 12.1%, respectively.
Image Source: Zacks Investment Research
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 vs. Other Market Players
Firms like EMCOR Group (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) offer substantial competition to Primoris Services in the public infrastructure field, mainly across power, communications and industrial infrastructure.
EMCOR’s breadth in mechanical and electrical construction and Quanta Services’ dominance in electric power infrastructure create intense competition, with Primoris Services competing by focusing on niche strengths in utility, pipeline and specialty contracting. Although the mentioned market players often secure the largest projects, PRIM is competitive on specialized contracts and selective bidding, giving it an edge in profitability and execution in its chosen areas. Its ability to balance risk and remain agile helps it carve out a defensible position despite the scale advantage of EMCOR and Quanta Services.
PRIM Stock’s Price Performance & Valuation Trend
Shares of this Texas-based specialty construction and infrastructure company have surged 73.7% in the past six months, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
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 22.21, as evidenced by the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market.
Image: Bigstock
Will Strong Utilities Demand Drive Primoris Services' EPS Higher?
Key Takeaways
Primoris Services Corporation (PRIM - Free Report) has been witnessing strong demand trends for projects concerning power delivery, gas operations and communication. It is witnessing an uptick in power-related projects not only across industrial and residential market sections, but also due to the increased demand for emerging technologies and data center development. This tailwind is directly aiding its Utilities segment, through which it offers services across power and gas distribution, communications infrastructure and underground utility. During the first six months of 2025, the revenues from the Utilities segment grew year over year by 13.4% to $1.26 billion, with total segmental backlog as of June 30 increasing 15.1% to $6.03 billion.
Recently, PRIM 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. This prospective multi-year opportunity is expected to boost the company’s revenue visibility as well as expand its market exposure towards new project possibilities in the future.
Besides favorable market trends, the company is also undertaking strategic measures to ensure operational efficiency and expand the bottom line. It is putting efforts into keeping the cost and expense structure mix pliable to not pressurize margins despite revenue growth. During the first six months of 2025, the company’s gross margin expanded year over year by 60 basis points (bps) to 11.4% because of rising leverage from the increased top line and its ongoing cost-optimization efforts. During the said time frame, adjusted earnings per share increased to $2.66 from $1.52 a year ago.
Earnings Estimate Revision of PRIM
PRIM’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days to $4.67 and $5.23 per share, respectively. The estimated figures for 2025 and 2026 imply year-over-year growth of 20.7% and 12.1%, respectively.
Image Source: Zacks Investment Research
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 vs. Other Market Players
Firms like EMCOR Group (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) offer substantial competition to Primoris Services in the public infrastructure field, mainly across power, communications and industrial infrastructure.
EMCOR’s breadth in mechanical and electrical construction and Quanta Services’ dominance in electric power infrastructure create intense competition, with Primoris Services competing by focusing on niche strengths in utility, pipeline and specialty contracting. Although the mentioned market players often secure the largest projects, PRIM is competitive on specialized contracts and selective bidding, giving it an edge in profitability and execution in its chosen areas. Its ability to balance risk and remain agile helps it carve out a defensible position despite the scale advantage of EMCOR and Quanta Services.
PRIM Stock’s Price Performance & Valuation Trend
Shares of this Texas-based specialty construction and infrastructure company have surged 73.7% in the past six months, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
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 22.21, as evidenced by the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market.
Image Source: Zacks Investment Research
The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.