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Primoris Trades Near 52-Week High: Time to Hold or Fold the Stock?
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Key Takeaways
Primoris hit a 52-week high of $142.84, up nearly 52% in three months, driven by solid sector momentum.
New CEO Koti Vadlamudi joins in November, bringing three decades of infrastructure experience from Jacobs.
A record $11.5B backlog and expanding renewable, power and data center projects strengthen Primoris' outlook.
Primoris Services Corporation (PRIM - Free Report) has drawn investor attention in recent sessions with a strong stock performance. After hovering around $140 per share for the past four trading sessions, the stock reached a 52-week high of $142.84 last Thursday. The stock is currently trading at $132.69, marking a 3.5% discount from the previous day's closing price of $137.51.
On Oct. 7, 2025, the company announced the appointment of Koti Vadlamudi as president and chief executive officer, effective Nov. 10, 2025. Mr. Vadlamudi joins from a thirty-year career at Jacobs, a global advisory and consultancy firm for critical infrastructure and advanced manufacturing. His extensive experience is expected to further enhance operational focus and long-term growth execution.
PRIM Stock’s 3 Months’ Price Performance
Image Source: Zacks Investment Research
Shares of this Texas-based specialty construction and infrastructure company have soared 51.9% in the past three months, significantly outperforming 19.1% growth of the Zacks Building Products – Heavy Construction industry. The stock has also surpassed the broader Construction sector's 2% rise and the S&P 500 index’s 5.9% rally during the same period.
The company has been benefiting from rising demand across renewable energy, data centers and utility markets. Expanding work in power generation and communications infrastructure, supported by improving margins in utilities, is strengthening overall performance. A solid project pipeline and growing backlog are also providing good visibility for growth.
The Federal Reserve’s 25-basis-point rate cut on Sept. 17, 2025, lowering the benchmark to 4-4.25%, has created a favorable backdrop for infrastructure growth. Lower borrowing costs are expected to spur project financing and capital investment, supporting demand in the company’s core markets, including renewables, utilities and power delivery.
The PRIM stock has outperformed some other players, such as EMCOR Group, Inc. (EME - Free Report) , Quanta Services, Inc. (PWR - Free Report) and MasTec, Inc. (MTZ - Free Report) . In the past three months, EMCOR, Quanta Services and MasTec have rallied 22.3%, 10.9% and 17.9%, respectively.
What’s Driving Primoris’ Momentum?
Renewable & Power Expansion Drives Growth: Primoris is gaining strong traction across renewable energy and power generation markets, supported by the growing shift toward clean energy solutions. The renewables business remains a key growth driver, performing ahead of the earlier expectations for 2025 as execution improved in the second quarter. The segment also benefited from revenues pulled forward from later periods, reflecting sustained customer demand and solid project activity.
In addition, the company is bidding for more than $2.5 billion in natural gas generation projects and evaluating $20-$30 billion in solar opportunities through 2028. Backed by favorable policy incentives and continued energy transition investments, these developments provide long-term visibility and position the company well across both solar and gas generation markets.
Data Center & Communications Momentum Builds: Expanding data center investments and growing digital infrastructure needs are creating growth avenues for Primoris. As of the second quarter of 2025, the company was assessing a substantial volume of data center-related work, with several contracts expected to be finalized by the year-end. Communications revenues also registered double-digit growth, driven by strong momentum in fiber-to-the-home programs and increased demand from data center projects.
Consistent execution and strong client relationships have created opportunities in new regions, while higher-margin EPC projects in long-haul and middle-mile fiber networks further strengthen growth potential. These trends continue to position the company to benefit from accelerating investment in connectivity and power infrastructure.
Backlog Growth Enhances Business Visibility: A growing backlog underscores the company’s solid project execution and provides steady revenue visibility across market cycles. Primoris reported a total backlog of $11.5 billion at the end of the second quarter of 2025, reflecting a sequential increase of about $100 million. Growth was led by MSA backlog, which expanded by more than $600 million, primarily driven by higher power delivery activity within utilities.
Although certain energy projects experienced timing delays, renewables awards gained momentum in the early third quarter, supporting stronger bookings ahead. With a balanced mix of utility, renewable and industrial projects, the company remains well-positioned to sustain growth and margins into 2026.
Factors to Weigh on Performance
The company’s near-term outlook faces a few external and timing-related challenges. The pipeline business remains soft compared with the prior year, as several large-diameter natural gas and liquids projects are still awaiting final investment approvals. The company expects activity in this area to improve gradually, with most contributions likely in 2026.
Additionally, a volatile tariff and regulatory environment continues to affect renewables, introducing uncertainty in project planning and cost management. Although no cancellations have occurred, evolving policies and supply-chain factors tied to tax incentives and domestic content rules may create short-term execution risks.
PRIM Trades at a Premium
Primoris’s stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.36, as evidenced by the chart below.
Image Source: Zacks Investment Research
Moreover, Primoris is currently trading at a discount compared with similar players. EMCOR, Quanta Services and MasTec are trading higher with forward 12-month P/E multiples of 24.27, 32.18 and 25.07.
Earnings Estimate Revision of PRIM
Although Primoris’s earnings estimates for 2025 and 2026 have been unchanged over the past 30 days, indicating year-over-year growth of 31.3% and 9.3%, respectively. This steady outlook reflects consistent market expectations for the company’s earnings performance over the near term.
Image Source: Zacks Investment Research
What Should be Your Take on PRIM Stock?
Primoris has maintained strong momentum in 2025, supported by expanding opportunities in renewables, power delivery and data center infrastructure. A record backlog, improving utility margins and a solid project pipeline highlight consistent execution and demand visibility, aided by a favorable macro backdrop and steady industry spending. Also, the recent leadership change, with Koti Vadlamudi set to assume the role of CEO in November, is expected to strengthen strategic direction and operational focus.
While short-term challenges, such as margin pressure, seasonality and regulatory uncertainty, may weigh on near-term performance, the company’s fundamentals remain solid. Existing shareholders may consider holding their positions, while prospective investors can keep the stock on their watchlist for potential long-term opportunities, as PRIM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Primoris Trades Near 52-Week High: Time to Hold or Fold the Stock?
Key Takeaways
Primoris Services Corporation (PRIM - Free Report) has drawn investor attention in recent sessions with a strong stock performance. After hovering around $140 per share for the past four trading sessions, the stock reached a 52-week high of $142.84 last Thursday. The stock is currently trading at $132.69, marking a 3.5% discount from the previous day's closing price of $137.51.
On Oct. 7, 2025, the company announced the appointment of Koti Vadlamudi as president and chief executive officer, effective Nov. 10, 2025. Mr. Vadlamudi joins from a thirty-year career at Jacobs, a global advisory and consultancy firm for critical infrastructure and advanced manufacturing. His extensive experience is expected to further enhance operational focus and long-term growth execution.
PRIM Stock’s 3 Months’ Price Performance
Image Source: Zacks Investment Research
Shares of this Texas-based specialty construction and infrastructure company have soared 51.9% in the past three months, significantly outperforming 19.1% growth of the Zacks Building Products – Heavy Construction industry. The stock has also surpassed the broader Construction sector's 2% rise and the S&P 500 index’s 5.9% rally during the same period.
The company has been benefiting from rising demand across renewable energy, data centers and utility markets. Expanding work in power generation and communications infrastructure, supported by improving margins in utilities, is strengthening overall performance. A solid project pipeline and growing backlog are also providing good visibility for growth.
The Federal Reserve’s 25-basis-point rate cut on Sept. 17, 2025, lowering the benchmark to 4-4.25%, has created a favorable backdrop for infrastructure growth. Lower borrowing costs are expected to spur project financing and capital investment, supporting demand in the company’s core markets, including renewables, utilities and power delivery.
The PRIM stock has outperformed some other players, such as EMCOR Group, Inc. (EME - Free Report) , Quanta Services, Inc. (PWR - Free Report) and MasTec, Inc. (MTZ - Free Report) . In the past three months, EMCOR, Quanta Services and MasTec have rallied 22.3%, 10.9% and 17.9%, respectively.
What’s Driving Primoris’ Momentum?
Renewable & Power Expansion Drives Growth: Primoris is gaining strong traction across renewable energy and power generation markets, supported by the growing shift toward clean energy solutions. The renewables business remains a key growth driver, performing ahead of the earlier expectations for 2025 as execution improved in the second quarter. The segment also benefited from revenues pulled forward from later periods, reflecting sustained customer demand and solid project activity.
In addition, the company is bidding for more than $2.5 billion in natural gas generation projects and evaluating $20-$30 billion in solar opportunities through 2028. Backed by favorable policy incentives and continued energy transition investments, these developments provide long-term visibility and position the company well across both solar and gas generation markets.
Data Center & Communications Momentum Builds: Expanding data center investments and growing digital infrastructure needs are creating growth avenues for Primoris. As of the second quarter of 2025, the company was assessing a substantial volume of data center-related work, with several contracts expected to be finalized by the year-end. Communications revenues also registered double-digit growth, driven by strong momentum in fiber-to-the-home programs and increased demand from data center projects.
Consistent execution and strong client relationships have created opportunities in new regions, while higher-margin EPC projects in long-haul and middle-mile fiber networks further strengthen growth potential. These trends continue to position the company to benefit from accelerating investment in connectivity and power infrastructure.
Backlog Growth Enhances Business Visibility: A growing backlog underscores the company’s solid project execution and provides steady revenue visibility across market cycles. Primoris reported a total backlog of $11.5 billion at the end of the second quarter of 2025, reflecting a sequential increase of about $100 million. Growth was led by MSA backlog, which expanded by more than $600 million, primarily driven by higher power delivery activity within utilities.
Although certain energy projects experienced timing delays, renewables awards gained momentum in the early third quarter, supporting stronger bookings ahead. With a balanced mix of utility, renewable and industrial projects, the company remains well-positioned to sustain growth and margins into 2026.
Factors to Weigh on Performance
The company’s near-term outlook faces a few external and timing-related challenges. The pipeline business remains soft compared with the prior year, as several large-diameter natural gas and liquids projects are still awaiting final investment approvals. The company expects activity in this area to improve gradually, with most contributions likely in 2026.
Additionally, a volatile tariff and regulatory environment continues to affect renewables, introducing uncertainty in project planning and cost management. Although no cancellations have occurred, evolving policies and supply-chain factors tied to tax incentives and domestic content rules may create short-term execution risks.
PRIM Trades at a Premium
Primoris’s stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.36, as evidenced by the chart below.
Image Source: Zacks Investment Research
Moreover, Primoris is currently trading at a discount compared with similar players. EMCOR, Quanta Services and MasTec are trading higher with forward 12-month P/E multiples of 24.27, 32.18 and 25.07.
Earnings Estimate Revision of PRIM
Although Primoris’s earnings estimates for 2025 and 2026 have been unchanged over the past 30 days, indicating year-over-year growth of 31.3% and 9.3%, respectively. This steady outlook reflects consistent market expectations for the company’s earnings performance over the near term.
Image Source: Zacks Investment Research
What Should be Your Take on PRIM Stock?
Primoris has maintained strong momentum in 2025, supported by expanding opportunities in renewables, power delivery and data center infrastructure. A record backlog, improving utility margins and a solid project pipeline highlight consistent execution and demand visibility, aided by a favorable macro backdrop and steady industry spending. Also, the recent leadership change, with Koti Vadlamudi set to assume the role of CEO in November, is expected to strengthen strategic direction and operational focus.
While short-term challenges, such as margin pressure, seasonality and regulatory uncertainty, may weigh on near-term performance, the company’s fundamentals remain solid. Existing shareholders may consider holding their positions, while prospective investors can keep the stock on their watchlist for potential long-term opportunities, as PRIM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.