Primoris Services (PRIM) Is Up 7.2% After Securing Major Data Center and Utility Project Backlog

• In recent weeks, Primoris Services has reported strong growth in revenue and contract backlogs, supported by rising demand for grid resiliency and infrastructure investment, especially in power delivery and utility sectors in the United States and Canada.
• An especially material insight is the company’s expectation of securing approximately US$1.7 billion in data center projects by the end of 2025, enhancing its revenue visibility and expanding its exposure to high-growth markets.
• We'll explore how accelerating contract momentum in power and utility projects could influence Primoris Services’ long-term investment outlook.

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Primoris Services Investment Narrative Recap

Shareholders in Primoris Services need to believe in sustained demand for North American infrastructure upgrades, particularly in power delivery, data center construction, and utility modernization. While the company's recent report of record revenue and backlog advances the most important near-term catalyst, demonstrated contract wins and momentum in high-growth markets, competition for new contracts and unpredictable project timing remain significant risks; the latest developments appear to strengthen, rather than materially change, these fundamental drivers and threats.

Of all recent announcements, the company’s raised earnings guidance in August 2025 stands out as most relevant, reinforcing confidence in near-term earnings potential. This update further supports the optimism around accelerating contract wins and expanded exposure to large-scale, higher-margin work in power and data centers, key elements behind Primoris’s positive short-term momentum.

However, investors should be aware that despite strong growth, ongoing margin pressure in the Energy segment could still limit ...

Read the full narrative on Primoris Services (it's free!)

Primoris Services is forecast to reach $8.7 billion in revenue and $358.2 million in earnings by 2028. This outlook is based on an expected annual revenue growth rate of 7.7% and an increase in earnings of $117.2 million from the current $241.0 million.

Uncover how Primoris Services' forecasts yield a $127.56 fair value, a 8% downside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community set fair value estimates for Primoris Services stock between US$77.76 and US$127.56. While opinions differ widely, recent contract momentum and backlog growth could impact future earnings potential in ways worth considering.

Explore 4 other fair value estimates on Primoris Services - why the stock might be worth 44% less than the current price!

Build Your Own Primoris Services Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Primoris Services research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Primoris Services research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Primoris Services' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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