Primoris Services Corp. Stock Surges 22.8% Since Q2 Earnings

Primoris Services' share price has risen 22.8% since Q2 2025 earnings, outperforming the Zacks Construction sector and S&P 500 index. The company reported adjusted earnings of $1.68 per share and revenues of $1.89 billion, topping the Zacks Consensus Estimate by 58.5% and 12.3%, respectively. The growing demand for infrastructure solutions in North America, federal and state initiatives, and the company's internal approach to reducing debt and controlling costs are driving Primoris Services' momentum.

Primoris Services Corporation (PRIM) has seen its share price surge by 22.8% since reporting its second-quarter 2025 earnings on August 4, outperforming the Zacks Construction sector and the S&P 500 index. The company reported adjusted earnings of $1.68 per share and revenues of $1.89 billion, surpassing the Zacks Consensus Estimate by 58.5% and 12.3%, respectively. This strong performance can be attributed to the growing demand for infrastructure solutions in North America, federal and state initiatives, and the company's internal approach to reducing debt and controlling costs.

The company's robust financial performance is driven by a 162.5% year-over-year increase in adjusted earnings and a 20.9% increase in revenues. The growth was primarily fueled by the demand for infrastructure solutions across power generation, electric utility, and data centers throughout North America. Federal and state initiatives supporting public infrastructure demand have further bolstered the company's position.

Primoris Services' internal efforts to reduce debt levels and enhance operating leverage by controlling costs and expenses have also contributed to its momentum. The company's total backlog as of June 30, 2025, increased by 10% to $11.49 billion from $10.45 billion a year ago. Additionally, the company has lifted its 2025 adjusted earnings per share (EPS) and adjusted EBITDA guidance, expecting adjusted EPS between $4.90 and $5.10 and adjusted EBITDA between $490 million and $510 million.

The company's expertise in constructing utility-scale power generation resources and infrastructure supporting the transmission and distribution of power has positioned it well to capitalize on the strong demand for data center infrastructure. Primoris Services has highlighted the evaluation process for about $1.7 billion of work related to data centers, which it expects to receive contracts for by the end of 2025. These projects include solutions across early-stage site preparation, power generation, utility infrastructure, and fiber network construction.

Primoris Services is also planning to submit bids for more than $2.5 billion in natural gas generation projects for the upcoming years, alongside about $20-$30 billion worth of solar projects planned through 2028. The company's gross margin expanded year over year by 60 basis points (bps) to 11.4% during the first six months of 2025, driven by rising leverage from the increased top line and ongoing cost-optimization efforts. Selling, general, and administrative expenses (as a percentage of revenue) contracted year over year by 50 bps to 5.8%.

Primoris Services holds a solid yet smaller-scale position compared to larger peers like EMCOR Group, Inc. (EME), Quanta Services, Inc. (PWR), and MasTec, Inc. (MTZ). While these market players dominate with greater scale and diversification across power, communications, and industrial infrastructure, Primoris Services differentiates itself with strong regional relationships, mid-market flexibility, and targeted growth in renewable and civil sectors. The company's ability to balance risk and remain agile helps it carve out a defensible position despite the scale advantage of its larger peers.

Primoris Services' earnings estimates for 2025 and 2026 have trended upward in the past seven days to $4.67 and $5.23 per share, respectively, indicating year-over-year growth of 20.7% and 12.1%. The company's stock is currently trading at a premium compared to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 22.28.

Analysts' optimism regarding PRIM stock is reflected in nine of the 10 recommendations pointing to a "Strong Buy", representing 90% of all recommendations.

References:
[1] https://www.nasdaq.com/articles/primoris-services-stock-228-q2-earnings-buy-or-wait
[2] https://www.nasdaq.com/articles/will-strong-infrastructure-demand-support-prims-growth-2025