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Can Primoris Capitalize as Grid Resiliency Spending Explodes?

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Key Takeaways

  • Primoris is benefiting from grid resiliency projects as government funding boosts transmission modernization.
  • PRIM is evaluating $1.7B in data center-related work, with contracts expected by the end of 2025.
  • Utility backlog rose to $6.03B from $5.52B, highlighting strong demand for grid and renewable projects.

Having expertise in constructing utility-scale power generation resources and infrastructure supporting the transmission and distribution of power, Primoris Services Corporation (PRIM - Free Report) is gaining from ramped-up infrastructure investment. The primary gain of the company is from the increased demand for grid resiliency projects, as the government is allocating unprecedented funds to modernize transmission lines, expand renewable integration and harden energy infrastructure.

PRIM has steadily positioned itself as a go-to partner in power delivery and utility services, particularly in transmission and distribution. The company’s existing capabilities in undergrounding, grid hardening and renewable energy integration align closely with the market’s demand in this infrastructure space.

Recently, 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. This prospective multi-year opportunity is expected to boost the company’s revenue visibility as well as expand its market exposure toward new project possibilities in the future. Through the Utility segment, the company mainly operates across grid resiliency projects. Owing to the favorable market trends, the total backlog under this segment was $6.03 billion, up from $5.52 billion as of Dec. 31, 2024.

Moreover, the recent Fed rate cut of 0.25 percentage points, with the expectations of two more rate cuts in the remainder of 2025, is expected to catalyze the demand trends in the upcoming period. For investors and industry watchers alike, Primoris may be approaching an inflection point, one where policy tailwinds, market demand and execution capability converge to drive sustained growth in an era of energy transformation.

PRIM’s Competition Position

Primoris Services is increasingly benefiting from the robust infrastructure demand across the United States, particularly in the power and energy markets. The company has been expanding its capabilities in renewable generation, transmission and utility-scale projects, giving it access to the same long-term tailwinds fueling peers such as EMCOR Group, Inc. (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) .

EMCOR has traditionally been stronger in mechanical and electrical construction services with a broad commercial and industrial footprint. Its recent growth in energy efficiency and grid modernization projects positions it well in the current environment. Contrarily, Quanta remains the undisputed leader in electric power infrastructure, especially in transmission and distribution, with scale and execution capacity that outpace most competitors.

Compared with EMCOR, Primoris is less dependent on cyclical commercial construction, giving it a steadier growth profile tied more directly to utility and energy infrastructure. Relative to Quanta, Primoris cannot match the scale but often competes effectively in mid-sized contracts where responsiveness and cost efficiency matter more than sheer capacity. Thus, while EMCOR and Quanta dominate in certain segments, Primoris carves out a competitive niche by balancing traditional and renewable energy opportunities within the infrastructure buildout.


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