Primoris Services Corporation PRIM is increasingly leaning on natural gas generation as a strategic lever to drive long-term growth, complementing its strong presence in renewables and utilities. The company’s 2025 results underscore this shift, with robust activity in gas operations within the Utilities segment contributing meaningfully to revenue growth.
Primoris delivered a solid performance in 2025, with revenues rising 19% year over year to $7.6 billion and adjusted EBITDA increasing 22% to $531.1 million. Notably, growth in gas-related projects, alongside power delivery work, helped offset some of the margin pressures seen in its renewables business. This diversification is becoming critical as renewables projects face execution challenges, including cost overruns tied to difficult soil conditions and unfavorable weather.
Rising electricity demand, driven by grid modernization and power-hungry data centers, is accelerating the need for reliable baseload energy. Natural gas, with its relative stability and scalability, is emerging as a key bridge fuel, positioning PRIM to capture incremental opportunities. Moreover, its $11.9 billion backlog, supported by a growing mix of Master Service Agreements, provides improved revenue visibility, particularly in gas and utility services. Management’s 2026 guidance, calling for adjusted EBITDA between $560 million and $580 million compared with $531.1 million in 2025, reflects confidence in continued momentum.
However, investors should remain mindful of margin volatility and execution risks across segments. Still, Primoris’ gas generation push appears to be a strategic catalyst that could enhance earnings stability and support long-term value creation.
Primoris vs Quanta vs MasTec: Who Powers Demand Growth?
Primoris is increasingly positioning itself as a key beneficiary of rising gas and electricity demand, but how it stacks up against Quanta Services, Inc. PWR and MasTec, Inc. MTZ reveals a more nuanced competitive picture.
Quanta remains the clear industry leader, benefiting from unmatched scale, deep utility relationships and a dominant presence in electric transmission, grid modernization and renewable integration. Its strong execution track record and end-to-end capabilities give it a structural edge, especially in large, complex projects tied to electrification and energy transition. Meanwhile, MasTec offers a balanced portfolio across oil & gas pipelines, clean energy and communications infrastructure. Its exposure to both traditional energy and renewables provides flexibility, though earnings can be more volatile due to project mix and execution variability.
Primoris does hold a niche advantage in steadily growing gas generation and MSA-driven utility work, which supports margin stability and cash flow. However, it lacks the scale, breadth and execution consistency of Quanta and, to some extent, MasTec. Overall, PRIM is a strong mid-tier contender with improving positioning, but it does not yet possess a clear competitive edge over its larger, more diversified peers like Quanta and MasTec.
PRIM Stock’s Price Performance & Valuation Trend
Shares of this Texas-based specialty construction and infrastructure company have moved up 26.1% year to date, underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the broader Zacks Construction sector and the S&P 500 index.
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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 25.3, as evidenced by the chart below.
Image Source: Zacks Investment Research
EPS Estimate Trend of PRIM
The Zacks Consensus Estimate for 2026 and 2027 earnings has moved upward over the past 30 days to $6.02 and $6.66 per share, respectively. The estimates indicate year-over-year growth of 7.1% and 10.7%, respectively.
Image Source: Zacks Investment Research
Primoris stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).