PRIM
Primoris Services
Summary
What they do:
Specialty infrastructure contractor operating through Utilities and Energy segments — installs and maintains natural gas distribution, electric utility transmission and distribution, communications systems, and provides engineering/construction for solar, gas-fired power, industrial facilities, and increasingly data centers, including site preparation, power generation, and fiber network construction.
Why they matter:
As hyperscalers commit hundreds of billions to data center construction, they need contractors who can build the physical plant — the concrete, steel, electrical, and power infrastructure. Primoris is executing engineering services on three phases of the Stargate data center campus in Texas (a $6B initiative tied to OpenAI, Oracle, and SoftBank) and is pursuing $1.7B+ in additional data center contracts. The company's bonding capacity, utility-scale construction expertise, and existing relationships with power providers position it to capture a growing share of this spend.
Recent performance:
Full year 2025 revenue $7.6B, up 19% YoY. Net income $274.9M, or $5.02 per diluted share, up 52%. Adjusted EPS $5.62. Total backlog $11.9B, including $7.0B in MSA backlog (up 20.6%). Q4 2025 revenue ~$1.9B, adjusted EPS $1.08. FY2026 guidance: EPS $5.35-$5.55, adjusted EPS $5.80-$6.00, adjusted EBITDA $560-$580M. Stock ~$165, market cap ~$9B.
Our Verdict
A diversified specialty contractor riding record backlog and 19% revenue growth into an expanding data center construction cycle, but data centers remain under 10% of revenue, gross margins are thin (9-11%), and at ~28x forward the stock already prices in the infrastructure supercycle.
Structural trends
Structural
53
/ 100
Moat
4/10
Bonding capacity + skilled labor + utility relationships; narrow but real
AI Exp.AI Exposure
Stub~8% AI
Play Type
EmergingAI Growth
~50%
Rel. Value
58
ATTRACTIVEPriceLIVE
$166.23
+1.42%
Live via Yahoo Finance · refreshes every 5 min
Market Cap
$9.0B
P/E Ratio
32.7
P/S Ratio
1.2x
52W High
$174.43
52W Low
$53.13
52W Chg
212.9%
Beta
1.39
Primoris Services is a specialty contractor headquartered in Dallas, Texas, with approximately 15,000 employees. The company operates through two reportable segments: Utilities and Energy. Revenue in 2025 was $7.6 billion — roughly split between the two segments, with Utilities contributing approximately $3.8B and Energy approximately $3.8B.
The Utilities segment installs and maintains natural gas distribution systems, electric utility distribution and transmission lines, and communications infrastructure. This is largely recurring, MSA-driven (master service agreement) work — steady, lower-risk, and providing baseline visibility. MSA backlog was $7.0B at year-end 2025, up 20.6% YoY.
The Energy segment handles larger, fixed-price projects: solar farms, gas-fired power plants, pipeline construction, industrial facilities, and data center infrastructure. This segment carries higher revenue volatility and margin risk. Certain renewables projects in 2025 experienced cost overruns from unanticipated site conditions, contributing to margin compression in Q3 and Q4.
The data center opportunity is the emerging story. Primoris is not a data center design firm or an IT contractor — it builds the physical infrastructure that data centers sit on. This includes site preparation, power generation facilities (including on-site gas-fired generation), substation construction, electrical distribution, and fiber network installation. The company is currently executing engineering services for three phases of the Stargate data center campus in Abilene, Texas — a $6 billion initiative involving OpenAI, Oracle, and SoftBank. Management disclosed in mid-2025 that the company was pursuing more than $1.7 billion in data center-related projects, with $400-500 million expected by year-end 2025.
Data centers currently account for less than 10% of total revenue, but management describes the opportunity as a decade-long tailwind. The combination of site preparation, power infrastructure, and utility interconnection creates a multi-service bundling opportunity on each project.
Primoris grew through acquisition — the 2023 purchase of PLH Group ($1.3B) expanded high-voltage transmission capabilities, and the 2024 acquisition of PayneCrest Electric ($422M) added data center electrical contracting expertise. These acquisitions directly position the company for the convergence of data center construction and grid infrastructure.
Human scale reference
When a hyperscaler decides to build a 500MW data center campus, someone has to grade the land, pour the foundations, run the electrical conduit, build the substation connecting to the grid, install the backup generators, and lay the fiber. Primoris is one of a handful of contractors with the bonding capacity, skilled labor force, and utility relationships to do all of it on a single project. A single large data center campus can represent $200-500M in construction services.
Supply Chain Dependencies
The Catch
Primoris is a construction company. Construction companies have thin margins, project execution risk, labor intensity, and cyclicality. The 2025 story illustrates this perfectly — record revenue and 19% growth, yet H2 gross margins compressed because of bad soil conditions on a few renewables projects. One problematic project can erase the margin on several good ones. Data center construction is subject to the same dynamics: unexpected site conditions, supply chain delays on electrical equipment, labor availability, and weather. The company's gross margin has ranged from 9.4% to 14.1% across quarters in 2025 — that volatility is structural, not aberrational. At ~28x forward earnings, the stock is priced like a technology company but operates like a construction company. Quanta Services has a $39B backlog, 68,000+ workers, and deeper capabilities — PRIM is competing for the same data center projects with fewer resources. The $1.7B data center pipeline is a pipeline, not a backlog — conversion is uncertain. And the broader infrastructure spending cycle, while supported by structural demand, is sensitive to interest rates, permitting delays, and hyperscaler capex timing. If hyperscalers pause or slow their buildout, the construction layer feels it immediately and with no recurring revenue cushion.
If They Win
If Primoris converts the data center pipeline into sustained, recurring construction revenue, if the Stargate execution opens doors to additional hyperscaler mega-campus projects, and if the PLH Group + PayneCrest acquisitions create a genuinely differentiated bundled offering (site prep + power generation + electrical + utility interconnection + fiber) that competitors cannot easily replicate, Primoris becomes one of a small number of contractors capable of building the complete physical infrastructure for the AI era. Data center revenue grows from under 10% to 25%+ of total over five years. The recurring utility MSA base ($7B+ backlog) provides stability while data center projects provide growth. Margins improve as the company moves up the value chain from commodity earthwork to integrated infrastructure services. EPS compounds at 15-20% annually through 2030. The stock re-rates from construction multiples (15-20x) to infrastructure platform multiples (25-30x). But this requires flawless execution on the hardest kind of work — large, complex, fixed-price construction projects — for years running.
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Not financial advice. All scores generated via AI algorithms using public data.