Primoris Services: The Stealthy AI Stock Surging Over 50% YTD.

Primoris Services (PRIM) has quietly become a top-performing industrial infrastructure stock in 2025, driven by booming demand for its services in the power and utilities sectors and for AI-related data centers. The company has a $1.7 billion data center project pipeline and has seen a 50% increase in its stock price so far this year. Its earnings surged in Q2, driving shares up 17%, and its valuation is reasonable with a P/E multiple of 23.8 and a P/S multiple of 0.97.

Primoris Services Corporation (PRIM) has quietly emerged as a top-performing industrial infrastructure stock in 2025, driven by robust demand for its services in the power and utilities sectors, as well as for AI-related data centers. The company's stock has surged by 73.7% in the past six months, significantly outperforming industry peers and broader market indices [1].

During the first six months of 2025, PRIM's Utilities segment experienced a 13.4% year-over-year revenue growth, reaching $1.26 billion. The total segmental backlog as of June 30 also increased by 15.1% to $6.03 billion [1]. This growth is attributed to an uptick in power-related projects across industrial and residential markets, as well as increased demand for emerging technologies and data center development.

PRIM has highlighted an 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 [1]. This prospective multi-year opportunity is expected to boost the company’s revenue visibility and expand its market exposure towards new project possibilities in the future.

In addition to favorable market trends, PRIM is undertaking strategic measures to ensure operational efficiency and expand its bottom line. The company is focusing on keeping the cost and expense structure mix pliable to avoid pressurizing margins despite revenue growth. During the first six months of 2025, PRIM’s gross margin expanded year over year by 60 basis points (bps) to 11.4% due to rising leverage from the increased top line and its ongoing cost-optimization efforts [1]. Adjusted earnings per share increased to $2.66 from $1.52 a year ago.

Earnings estimates for PRIM have trended upward in the past 30 days, with estimates for 2025 and 2026 now at $4.67 and $5.23 per share, respectively. These estimates imply year-over-year growth of 20.7% and 12.1%, respectively [1].

PRIM competes with firms like EMCOR Group (EME) and Quanta Services, Inc. (PWR) in the public infrastructure field, particularly in power, communications, and industrial infrastructure. However, PRIM's niche strengths in utility, pipeline, and specialty contracting give it an edge in profitability and execution. Its ability to balance risk and remain agile helps it carve out a defensible position despite the scale advantage of EMCOR and Quanta Services [1].

PRIM stock is currently trading at a premium compared with industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 22.21. The stock sports a Zacks Rank #1 (Strong Buy) [1]. This valuation indicates strong potential in the market.

References:
[1] https://www.nasdaq.com/articles/will-strong-utilities-demand-drive-primoris-services-eps-higher
[2] https://finance.yahoo.com/news/strong-utilities-demand-drive-primoris-135900311.html