Primoris Services Corporation PRIM rides on rising investments in energy and utility infrastructure markets. The company is seeing growing opportunities in power delivery, renewables and natural gas projects. This demand backdrop is helping the company build a solid pipeline of work. A strong backlog provides better revenue visibility and supports future growth.
The company ended 2025 with a total backlog of about $11.95 billion, slightly higher than $11.86 billion in the prior year. Utilities backlog stood at $6.4 billion, while Energy backlog was nearly $5.5 billion. The growth reflects steady demand across both segments. In the fourth quarter of 2025, the company booked nearly $3 billion of new work, which supported backlog expansion.
The company also reported strong momentum in recurring work. MSA backlog increased more than 20% year over year. This growth was driven by contract renewals and higher expected spending from utility customers, especially in power delivery. The Utilities segment saw double-digit growth in both revenues and backlog. Higher activity in gas operations and continued strength in power delivery and communications supported this trend.
The company highlighted improving opportunities across natural gas generation, renewables and pipeline construction. These areas are expected to support backlog growth in the coming quarters. The company also sees rising investments in grid upgrades and power infrastructure.
Overall, steady backlog growth and strong bookings provide better revenue visibility. This positions the company well to deliver stable growth in 2026 and beyond.
Understanding Primoris’ Competitive Position
In the energy, power and infrastructure markets, Primoris faces strong competition from established players, including EMCOR Group, Inc. EME and Quanta Services, Inc. PWR.
EMCOR competes through a broad mechanical and electrical services network, providing wide regional reach across industrial, commercial and utility markets. Meanwhile, Quanta remains a key peer in electric power, backed by deep expertise in transmission and distribution and long-standing utility relationships.
Accelerated renewable deployment, rising grid congestion, electrification across industries and supportive policy trends are expanding opportunities across the sector. In this environment, Primoris holds an advantage with its ability to execute across utilities, renewables, natural gas and communications, supported by a diversified service mix and strong project execution capabilities.
Primoris Stock’s Price Performance
Shares of this Texas-based specialty construction and infrastructure company have moved up 2.8% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry. However, the stock outperformed the broader Construction sector and the S&P 500 index in the said period, as evidenced by the chart below.
Image Source: Zacks Investment Research
In the past six months, shares of EMCOR and Quanta have gained 11.8% and 30.5%, respectively.
PRIM’s Valuation Trend
PRIM stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 23.39, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of PRIM
PRIM’s earnings estimates for 2026 and 2027 have increased over the past 30 days to $5.96 and $6.58 per share, respectively. The estimated figures for 2026 and 2027 imply year-over-year growth of 6.1% and 10.4%, respectively.
Image Source: Zacks Investment Research
Primoris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quanta Services, Inc. (PWR): Free Stock Analysis Report
EMCOR Group, Inc. (EME): Free Stock Analysis Report
Primoris Services Corporation (PRIM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).