Primoris Services Corporation PRIM is strengthening its presence in high-growth energy and data center markets through its $422 million acquisition of PayneCrest Electric. This deal expands its electrical construction capabilities and broadens its customer base. By integrating PayneCrest into its Energy segment.
Following the news, shares of PRIM gained 6.5% during the trading session yesterday.
Deep Dive Into the Acquisition
The acquisition strengthens Primoris’ exposure to high-growth data center services and advanced electrical infrastructure, both benefiting from strong secular tailwinds. PayneCrest brings solid expertise in electrical design, construction and maintenance, along with a skilled workforce and long-standing customer relationships.
Financially, the deal appears accretive, with PayneCrest expected to generate $350-$370 million in revenues and $38-$42 million in EBITDA in 2026, including a partial-year contribution of $260-$280 million. The all-cash transaction, expected to close in the second quarter of 2026, will also expand Primoris’ geographic presence and create opportunities to cross-sell services to existing clients.
Furthermore, the acquisition aligns closely with Primoris’ focus on energy transition, power delivery and renewable integration. As the electrical scope becomes increasingly critical across utility, industrial and data center projects, PayneCrest strengthens the company’s ability to deliver integrated, end-to-end solutions across its Energy platform. This is particularly important as customers invest in grid modernization, electrification and power-intensive infrastructure.
Strong Backlog Supports Primoris’ Growth
Primoris benefits from rising investments in energy and utility infrastructure markets, supporting steady demand across power delivery, renewables and natural gas projects. The company reported a total backlog of about $11.95 billion at the end of 2025, slightly higher than the prior year, with growth seen in both Utilities and Energy segments. Strong bookings of nearly $3 billion in the fourth quarter of 2025 and more than 20% growth in MSA backlog, driven by contract renewals and higher utility spending, indicate healthy demand.
Primoris also sees improving opportunities in natural gas generation, renewables and pipeline construction, along with rising investments in grid upgrades. These factors are expected to support backlog growth and improve revenue visibility, positioning the company for stable growth ahead.
PRIM Stock’s Price Performance
Shares of this Texas-based specialty construction and infrastructure company have soared 140.8% in the past year, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
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PRIM’s Zacks Rank & Key Picks
Primoris stock currently carries a Zacks Rank #3 (Hold).
Here are some top-ranked stocks from the Construction sector.
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The Zacks Consensus Estimate for Comfort Systems’ fiscal 2026 sales and EPS indicates growth of 20.3% and 26.7%, respectively, from the prior-year levels.
Fluor Corporation FLR sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 17.6%, on average. FLR stock has climbed 7.3% in the past six months.
The Zacks Consensus Estimate for Fluor’s 2026 sales and EPS indicates growth of 3.4% and 25.6%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. STRL flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 15.7%, on average. STRL stock has gained 15.8% in the past six months.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 24.6% and 25.8%, respectively, from the prior-year levels.
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Primoris Services Corporation (PRIM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).