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Is Primoris Positioned to Gain From Rising Power and Network Demand?
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Key Takeaways
Primoris posted Q3 2025 revenues of $2.2B, up 32.1% on Utilities and Energy strength.
Utility segment backlog neared $6.6B on stronger grid-upgrade work for data-center load growth.
Communications activity rose with broadband, fiber and EPC network projects tied to data-center builds.
Primoris Services Corporation (PRIM - Free Report) is benefiting from broader digital infrastructure expansion as data centers increase demand for power and network upgrades. Large facilities are expanding at a fast pace and need stronger electrical systems and higher-capacity communication links. This growing demand is shaping the company’s outlook as customers plan for heavier and more complex load requirements.
In the third quarter of 2025, Primoris delivered revenues of $2.2 billion, representing a 32.1% year-over-year increase. This growth was supported by stronger activity in the Utilities and Energy segments. Within Utilities, Power Delivery saw faster work releases as customers invested more in grid improvement. Utility segment's backlog reached nearly $6.6 billion, reflecting rising investment in grid expansion and strengthening programs that support higher load growth from data-center projects.
Primoris also recorded higher activity across its Communications operations. Broadband programs and major project build-outs increased as data-center developers focused on expanding supporting infrastructure. The company is targeting more than $100 million in EPC network projects tied to these facilities over the next few quarters. Demand for data-loop and middle-mile fiber work also improved, helping large facilities connect to wider networks and manage rising traffic volumes linked to digital expansion.
Primoris appears positioned to benefit as data-center development accelerates. Growing network requirements and higher electrical loads across key markets are creating steady opportunities for the company in the coming periods.
Rising Demand for Data Centers Spurs Growth Opportunities
The rapid expansion of digital infrastructure is opening new opportunities across the construction and services industry. Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) are two companies benefiting from the accelerating demand for data center development.
Sterling continues to strengthen its position in large-scale, mission-critical site development. In the third quarter of 2025, Sterling reported an exceptional 125% year-over-year increase in data center revenues, reflecting the growing need for technically complex and high-capacity facilities. The E-Infrastructure Solutions segment remains the key growth driver, supported by broad-based demand and strong execution. With robust project flow and a healthy pipeline, the company is well-positioned to capitalize on the ongoing expansion in data-related infrastructure.
Quanta is also seeing strong demand tied to rising data center construction, driven by its capabilities in electric power, communications and grid connectivity. The company continues to secure large contracts that enhance network reliability and energy delivery for high-load facilities. With a record backlog and steady bookings across transmission and communications projects, Quanta is positioned to benefit further from sustained investment in digital and power infrastructure.
PRIM Stock’s Price Performance & Valuation Trend
Shares of this Texas-based specialty construction and infrastructure company have moved up 64.5% 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 discount compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 22.29, as evidenced by the chart below.
Image Source: Zacks Investment Research
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.
Image: Bigstock
Is Primoris Positioned to Gain From Rising Power and Network Demand?
Key Takeaways
Primoris Services Corporation (PRIM - Free Report) is benefiting from broader digital infrastructure expansion as data centers increase demand for power and network upgrades. Large facilities are expanding at a fast pace and need stronger electrical systems and higher-capacity communication links. This growing demand is shaping the company’s outlook as customers plan for heavier and more complex load requirements.
In the third quarter of 2025, Primoris delivered revenues of $2.2 billion, representing a 32.1% year-over-year increase. This growth was supported by stronger activity in the Utilities and Energy segments. Within Utilities, Power Delivery saw faster work releases as customers invested more in grid improvement. Utility segment's backlog reached nearly $6.6 billion, reflecting rising investment in grid expansion and strengthening programs that support higher load growth from data-center projects.
Primoris also recorded higher activity across its Communications operations. Broadband programs and major project build-outs increased as data-center developers focused on expanding supporting infrastructure. The company is targeting more than $100 million in EPC network projects tied to these facilities over the next few quarters. Demand for data-loop and middle-mile fiber work also improved, helping large facilities connect to wider networks and manage rising traffic volumes linked to digital expansion.
Primoris appears positioned to benefit as data-center development accelerates. Growing network requirements and higher electrical loads across key markets are creating steady opportunities for the company in the coming periods.
Rising Demand for Data Centers Spurs Growth Opportunities
The rapid expansion of digital infrastructure is opening new opportunities across the construction and services industry. Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) are two companies benefiting from the accelerating demand for data center development.
Sterling continues to strengthen its position in large-scale, mission-critical site development. In the third quarter of 2025, Sterling reported an exceptional 125% year-over-year increase in data center revenues, reflecting the growing need for technically complex and high-capacity facilities. The E-Infrastructure Solutions segment remains the key growth driver, supported by broad-based demand and strong execution. With robust project flow and a healthy pipeline, the company is well-positioned to capitalize on the ongoing expansion in data-related infrastructure.
Quanta is also seeing strong demand tied to rising data center construction, driven by its capabilities in electric power, communications and grid connectivity. The company continues to secure large contracts that enhance network reliability and energy delivery for high-load facilities. With a record backlog and steady bookings across transmission and communications projects, Quanta is positioned to benefit further from sustained investment in digital and power infrastructure.
PRIM Stock’s Price Performance & Valuation Trend
Shares of this Texas-based specialty construction and infrastructure company have moved up 64.5% 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 discount compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 22.29, as evidenced by the chart below.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
Primoris stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.