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Argan vs. Primoris: Which Power Infrastructure Stock Has More Upside?
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Key Takeaways
AGX's fiscal Q2 2027 revenues surged 62% to $384 million, driven by strong Power and Industrial activity.
PRIM secured $3.9 billion in Q2 2026 awards, lifting its record backlog to nearly $13.9 billion.
AGX's fiscal 2027 EPS estimate rose to $13.72, while PRIM's 2026 estimate edged down to $2.00.
Growing electricity demand and the need for reliable power are driving increased investment in power generation, electrical infrastructure and data center-related projects. Against this backdrop, Argan, Inc. (AGX - Free Report) and Primoris Services Corporation (PRIM - Free Report) are positioned to benefit from expanding opportunities across power infrastructure and energy construction. Both companies are seeing demand for natural gas-fired power generation as customers seek reliable, around-the-clock electricity to support electrification, data center development and broader industrial activity.
Argan focuses on building power facilities, including natural gas-fired plants and renewable energy projects, while also providing industrial fabrication and Teledata services for power distribution, communications and data networks. Primoris, meanwhile, has a broader infrastructure platform spanning natural gas power generation, utility-scale solar and battery storage, pipeline infrastructure, electrical construction, transmission, substations and power delivery. Both companies emphasize disciplined project selection, skilled workforces, strong customer relationships and reliable execution on complex projects, positioning them to capitalize on rising demand for power generation and supporting infrastructure.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for AGX Stock
This Virginia-based engineering and construction company is benefiting from rising demand for reliable power generation, expanding data center infrastructure and increased investment in industrial facilities. In the second quarter of fiscal 2027, Argan’s consolidated revenues increased 62% year over year to $384 million, driven by strong activity across its Power and Industrial segments. Power revenues rose 53% to $301 million, reflecting demand for new generation capacity as electrification, domestic manufacturing, electric vehicle adoption and data center development increase the need for dependable electricity.
Argan is also pursuing opportunities beyond traditional power plant construction as data center investment creates demand for supporting infrastructure. Its Industrial segment is executing a $125 million project involving thermal expansion and energy storage tanks, while a second fabrication facility in North Carolina is expected to be completed in the third quarter of fiscal 2027. The new facility is projected to generate more than $10 million in quarterly revenues later in fiscal 2027 and into the following year.
Meanwhile, Argan’s $2.5 billion backlog as of July 31, 2026, included four U.S. gas-fired power plants with combined capacity exceeding 4.1 gigawatts. Natural gas projects accounted for approximately 80% of the backlog, and the company expects to add several projects over the next seven to 15 months as demand for reliable generation continues.
However, Argan faces near-term challenges from cost overruns on two Industrial projects unrelated to its data center work. Although Industrial revenues surged 111% year over year to $76.2 million in the second quarter of fiscal 2027, gross margin declined to 7.3% from 12.5% a year earlier. Margins could remain under pressure for another quarter or two as the company completes the affected projects. Additionally, its backlog declined to $2.5 billion from $2.9 billion at the start of fiscal 2027, highlighting the importance of securing new project awards to sustain growth.
Looking ahead, Argan is positioned to benefit from continued investment in natural gas-fired power generation and data center infrastructure. Its expanding project pipeline, new fabrication capacity and strong financial position provide flexibility to pursue growth opportunities. While new project awards and Industrial margin recovery remain important factors to watch, the company’s expertise in power plant construction and growing data center exposure support its longer-term prospects.
The Case for PRIM Stock
This Texas-based specialty contractor and infrastructure services provider is benefiting from rising demand for reliable power generation, expanding electrical infrastructure and growing investment in data center connectivity. In the second quarter of 2026, Primoris secured more than $3.9 billion in new awards, including approximately $1.5 billion in Utilities and $2.4 billion in Energy. Demand for natural gas-fired power generation and power delivery remains strong as customers invest in generation capacity, transmission, substations and distribution infrastructure to support rising electricity needs.
Primoris is expanding its exposure to natural gas generation and electrical infrastructure as demand for dependable power and data center connectivity grows. Natural gas generation bookings increased approximately $1.4 billion sequentially during the quarter, while its record backlog reached nearly $13.9 billion, up about $2.2 billion from the first quarter. The company is also benefiting from strong demand for transmission, substations and power delivery, while its PayneCrest acquisition expands the electrical construction capabilities.
In addition, Primoris sees more than $16 billion in solar and battery storage opportunities and a pipeline of larger pipeline infrastructure projects exceeding $7 billion in total contract value. These opportunities provide multiple avenues to participate in continued investment across power generation and supporting infrastructure.
Primoris faced significant pressure from cost overruns on a limited number of renewable energy projects, contributing to lower revenues and margins in the second quarter. Consolidated revenues declined 10.7% year over year to approximately $1.69 billion, primarily due to reduced renewable activity and project execution challenges. Management expects to complete the remaining challenged projects by the end of 2026 and has strengthened its focus on preconstruction planning, risk assessment and execution discipline. Meanwhile, the company anticipates renewed momentum in renewable awards, with $1.5-$2 billion in bookings expected in the second half of 2026, mostly in the fourth quarter.
Looking ahead, Primoris expects natural gas generation, power delivery and data center connectivity to support growth as infrastructure investment continues. Management anticipates a meaningful ramp in activity during the second half of 2026 and expects revenues and earnings to improve sequentially, with a return to revenue growth and margin expansion in 2027. Its broad project pipeline across energy and utility infrastructure, combined with strong customer relationships and expanding electrical construction capabilities, positions Primoris to participate in the growing need for reliable power and supporting infrastructure.
Stock Performance & Valuation Trend
As witnessed from the chart below, in the year-to-date ("YTD") period, Argan’s share price performance has outperformed Primoris’ share price performance and the broader Construction sector.
AGX vs PRIM Price Performance (YTD)
Image Source: Zacks Investment Research
Considering valuation, Argan has been trading above Primoris on a forward 12-month price-to-earnings (P/E) ratio basis.
AGX vs PRIM Valuation (P/E F12M)
Image Source: Zacks Investment Research
AGX Leads PRIM in Earnings Estimate Revisions
Over the past 30 days, the Zacks Consensus Estimate for Argan’s fiscal 2027 EPS increased from $13.37 to $13.72. The projections indicate 50.5% EPS growth on 40.9% revenue growth in fiscal 2027.
Argan’s EPS Estimate
Image Source: Zacks Investment Research
Conversely, Primoris’ consensus estimate for 2026 EPS edged down from $2.01 to $2.00 over the past 30 days. The company is projected to report a 64.4% decline in earnings alongside a 4.4% drop in revenues.
PRIM’s EPS Estimate
Image Source: Zacks Investment Research
AGX or PRIM: Which Stock Offers Better Upside?
Both Argan and Primoris are positioned to benefit from rising electricity demand and increased investment in power infrastructure. While both carry a Zacks Rank #3 (Hold), Argan appears more attractive based on its stronger share price performance and more favorable earnings estimate revisions. AGX’s focus on natural gas-fired power generation and expanding data center opportunities further supports its growth outlook.
Primoris also offers exposure to natural gas generation, power delivery and broader energy infrastructure. However, Argan’s stronger momentum in earnings estimates and stock performance gives it the edge at present. Overall, AGX appears to be the better investment choice for investors seeking exposure to growing power infrastructure demand.
View the Zacks #1 Rank List
Image: Bigstock
Argan vs. Primoris: Which Power Infrastructure Stock Has More Upside?
Key Takeaways
Growing electricity demand and the need for reliable power are driving increased investment in power generation, electrical infrastructure and data center-related projects. Against this backdrop, Argan, Inc. (AGX - Free Report) and Primoris Services Corporation (PRIM - Free Report) are positioned to benefit from expanding opportunities across power infrastructure and energy construction. Both companies are seeing demand for natural gas-fired power generation as customers seek reliable, around-the-clock electricity to support electrification, data center development and broader industrial activity.
Argan focuses on building power facilities, including natural gas-fired plants and renewable energy projects, while also providing industrial fabrication and Teledata services for power distribution, communications and data networks. Primoris, meanwhile, has a broader infrastructure platform spanning natural gas power generation, utility-scale solar and battery storage, pipeline infrastructure, electrical construction, transmission, substations and power delivery. Both companies emphasize disciplined project selection, skilled workforces, strong customer relationships and reliable execution on complex projects, positioning them to capitalize on rising demand for power generation and supporting infrastructure.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for AGX Stock
This Virginia-based engineering and construction company is benefiting from rising demand for reliable power generation, expanding data center infrastructure and increased investment in industrial facilities. In the second quarter of fiscal 2027, Argan’s consolidated revenues increased 62% year over year to $384 million, driven by strong activity across its Power and Industrial segments. Power revenues rose 53% to $301 million, reflecting demand for new generation capacity as electrification, domestic manufacturing, electric vehicle adoption and data center development increase the need for dependable electricity.
Argan is also pursuing opportunities beyond traditional power plant construction as data center investment creates demand for supporting infrastructure. Its Industrial segment is executing a $125 million project involving thermal expansion and energy storage tanks, while a second fabrication facility in North Carolina is expected to be completed in the third quarter of fiscal 2027. The new facility is projected to generate more than $10 million in quarterly revenues later in fiscal 2027 and into the following year.
Meanwhile, Argan’s $2.5 billion backlog as of July 31, 2026, included four U.S. gas-fired power plants with combined capacity exceeding 4.1 gigawatts. Natural gas projects accounted for approximately 80% of the backlog, and the company expects to add several projects over the next seven to 15 months as demand for reliable generation continues.
However, Argan faces near-term challenges from cost overruns on two Industrial projects unrelated to its data center work. Although Industrial revenues surged 111% year over year to $76.2 million in the second quarter of fiscal 2027, gross margin declined to 7.3% from 12.5% a year earlier. Margins could remain under pressure for another quarter or two as the company completes the affected projects. Additionally, its backlog declined to $2.5 billion from $2.9 billion at the start of fiscal 2027, highlighting the importance of securing new project awards to sustain growth.
Looking ahead, Argan is positioned to benefit from continued investment in natural gas-fired power generation and data center infrastructure. Its expanding project pipeline, new fabrication capacity and strong financial position provide flexibility to pursue growth opportunities. While new project awards and Industrial margin recovery remain important factors to watch, the company’s expertise in power plant construction and growing data center exposure support its longer-term prospects.
The Case for PRIM Stock
This Texas-based specialty contractor and infrastructure services provider is benefiting from rising demand for reliable power generation, expanding electrical infrastructure and growing investment in data center connectivity. In the second quarter of 2026, Primoris secured more than $3.9 billion in new awards, including approximately $1.5 billion in Utilities and $2.4 billion in Energy. Demand for natural gas-fired power generation and power delivery remains strong as customers invest in generation capacity, transmission, substations and distribution infrastructure to support rising electricity needs.
Primoris is expanding its exposure to natural gas generation and electrical infrastructure as demand for dependable power and data center connectivity grows. Natural gas generation bookings increased approximately $1.4 billion sequentially during the quarter, while its record backlog reached nearly $13.9 billion, up about $2.2 billion from the first quarter. The company is also benefiting from strong demand for transmission, substations and power delivery, while its PayneCrest acquisition expands the electrical construction capabilities.
In addition, Primoris sees more than $16 billion in solar and battery storage opportunities and a pipeline of larger pipeline infrastructure projects exceeding $7 billion in total contract value. These opportunities provide multiple avenues to participate in continued investment across power generation and supporting infrastructure.
Primoris faced significant pressure from cost overruns on a limited number of renewable energy projects, contributing to lower revenues and margins in the second quarter. Consolidated revenues declined 10.7% year over year to approximately $1.69 billion, primarily due to reduced renewable activity and project execution challenges. Management expects to complete the remaining challenged projects by the end of 2026 and has strengthened its focus on preconstruction planning, risk assessment and execution discipline. Meanwhile, the company anticipates renewed momentum in renewable awards, with $1.5-$2 billion in bookings expected in the second half of 2026, mostly in the fourth quarter.
Looking ahead, Primoris expects natural gas generation, power delivery and data center connectivity to support growth as infrastructure investment continues. Management anticipates a meaningful ramp in activity during the second half of 2026 and expects revenues and earnings to improve sequentially, with a return to revenue growth and margin expansion in 2027. Its broad project pipeline across energy and utility infrastructure, combined with strong customer relationships and expanding electrical construction capabilities, positions Primoris to participate in the growing need for reliable power and supporting infrastructure.
Stock Performance & Valuation Trend
As witnessed from the chart below, in the year-to-date ("YTD") period, Argan’s share price performance has outperformed Primoris’ share price performance and the broader Construction sector.
AGX vs PRIM Price Performance (YTD)
Image Source: Zacks Investment Research
Considering valuation, Argan has been trading above Primoris on a forward 12-month price-to-earnings (P/E) ratio basis.
AGX vs PRIM Valuation (P/E F12M)
Image Source: Zacks Investment Research
AGX Leads PRIM in Earnings Estimate Revisions
Over the past 30 days, the Zacks Consensus Estimate for Argan’s fiscal 2027 EPS increased from $13.37 to $13.72. The projections indicate 50.5% EPS growth on 40.9% revenue growth in fiscal 2027.
Argan’s EPS Estimate
Image Source: Zacks Investment Research
Conversely, Primoris’ consensus estimate for 2026 EPS edged down from $2.01 to $2.00 over the past 30 days. The company is projected to report a 64.4% decline in earnings alongside a 4.4% drop in revenues.
PRIM’s EPS Estimate
Image Source: Zacks Investment Research
AGX or PRIM: Which Stock Offers Better Upside?
Both Argan and Primoris are positioned to benefit from rising electricity demand and increased investment in power infrastructure. While both carry a Zacks Rank #3 (Hold), Argan appears more attractive based on its stronger share price performance and more favorable earnings estimate revisions. AGX’s focus on natural gas-fired power generation and expanding data center opportunities further supports its growth outlook.
Primoris also offers exposure to natural gas generation, power delivery and broader energy infrastructure. However, Argan’s stronger momentum in earnings estimates and stock performance gives it the edge at present. Overall, AGX appears to be the better investment choice for investors seeking exposure to growing power infrastructure demand.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.