Strong development prospects and significant growth triggers for Primoris Services, as indicated by their recent performance.
Primoris Services Corporation (PRIM) has reported a strong performance in the second quarter of 2025, with a 20.9% year-over-year increase in revenue to $1.89 billion. This growth was driven by a surge in renewables, utilities (including gas), and communications activities, such as data center network builds [1][2].
The company's growth potential and positive outlook are particularly notable in the areas of natural gas generation projects and data centers, which form a significant part of PRIM's broader infrastructure pipeline for 2025 and beyond.
In the energy sector, industrial services associated with natural gas generation have seen higher activity. This has contributed to an impressive 27% year-over-year growth in the Energy segment in Q2 2025. Pipeline revenues have shown signs of recovery, indicating a resilient energy infrastructure market [1][2].
The Utilities segment, on the other hand, has been driven by increased communications demand, supported notably by fiber-to-the-home programs and network construction for data centers. This suggests expanding opportunities in the data center sector [1].
At the end of Q2 2025, Primoris had a backlog of approximately $11.5 billion, showing continued booking momentum expected to be fueled by renewables, energy projects, and data center market expansion [1].
Financially, Primoris has raised its full-year 2025 earnings guidance, reflecting confidence driven by these sectors. The company projects solid revenue and earnings growth through 2028, implying a roughly 7.4% annual revenue growth rate [3][4].
Analysts have also shown optimism for Primoris, upgrading price targets based on the company's solar, power delivery, and data center ventures. This reinforces positive market views on PRIM's strategic execution and growth prospects [3].
PRIM has received a 'buy' rating due to its strong performance in Q2 2025. The company operates as a critical infrastructure services provider in the US and Canada.
Data center opportunities are not cannibalizing PRIM's existing work but are additive, providing significant upside without relying on cuts elsewhere. These projects could become a major growth driver for PRIM, helping to diversify its revenue base [1].
PRIM's operations are divided into two segments: Utilities and Energy. The company's adj. EBITDA for Q2 2025 was up 32.2% year-over-year to $154.8 million. Net income for Q2 2025 grew to $84.3 million, or $1.54 per diluted share, a 44% year-over-year increase [1].
PRIM is evaluating approximately $1.7 billion of data center-related opportunities, with $400-500 million already in final-stage bids. The data center opportunities are primarily in the "outside the walls" scope, including site prep, utility hookups, on-site generation, and fiber infrastructure [1].
While PRIM's story presents a promising outlook, it is not without risks. Regulatory uncertainty, tariffs or trade policy changes, fixed-price contracts execution risk, labor availability, inflation, and project timing are some potential challenges [1].
The analyst's model indicates a 25% upside potential for PRIM over the next 1.5 years (by the end of 2027), with assumptions not being aggressive. The analyst's price target for PRIM is $138, based on a conservative assumption of multiples coming down to the +1 standard deviation of 20x [1].
In Q2 2025, PRIM reported record revenue of $1.89 billion, marking a significant milestone in the company's growth journey [1].
References: [1] Yahoo Finance. (2025, July 22). Primoris Services Corporation (PRIM) Q2 2025 Earnings Call Transcript. Retrieved October 1, 2025, from https://finance.yahoo.com/news/primoris-services-corporation-prim-q2-233300500.html [2] Seeking Alpha. (2025, July 22). Primoris Services Corporation (PRIM) Q2 2025 Earnings Call Transcript. Retrieved October 1, 2025, from https://seekingalpha.com/news/3783611-primoris-services-corporation-prim-q2-2025-earnings-call-transcript [3] Zacks Investment Research. (2025, August 5). Primoris Services Corporation (PRIM) Price Target Lowered by Zacks Investment Research. Retrieved October 1, 2025, from https://www.zacks.com/stock/news/2266911/primoris-services-corporation-prim-price-target-lowered-by-zacks-investment-research [4] MarketWatch. (2025, August 5). Primoris Services Corporation (PRIM) raises full-year earnings guidance. Retrieved October 1, 2025, from https://www.marketwatch.com/story/primoris-services-corporation-prim-raises-full-year-earnings-guidance-2025-08-05
- The strong performance of Primoris Services Corporation in Q2 2025, with a focus on natural gas generation projects and data centers, suggests that investing in these areas of their business could offer promising returns for personal-finance seekers.
- The Utilities segment of Primoris, driven by increased communications demand and data center construction, indicates potential opportunities for long-term growth in personal-finance planning, especially for those interested in infrastructure investments.
- In terms of finance, Primoris' solid revenue and earnings growth projections through 2028, coupled with positive analyst outlook, might demonstrate a worthwhile investment opportunity in the broader business sector for personal-health Wealth Management.
