Can PRIM Capitalize on $1.7B Data Center Infrastructure Opportunity?

Core Insights - Primoris Services Corporation (PRIM) is focusing on large-scale infrastructure opportunities, particularly in data centers, as a significant growth avenue [1][2] - The company is actively pursuing over $1.7 billion in data center projects, leveraging its expertise in mission-critical infrastructure [2][10] - PRIM's revenue for Q2 2025 reached $1.89 billion, a 20.9% increase year-over-year, driven by growth in the Energy and Utilities segments [3][10] - The company's backlog improved to $11.5 billion, indicating strong future activity and confidence in addressing evolving infrastructure needs [3][4] Financial Performance - Revenues for Q2 2025 were $1.89 billion, up 20.9% year-over-year, primarily due to strong performance in Energy and Utilities [3][10] - The backlog at the end of Q2 2025 was $11.5 billion, supporting ongoing and future projects [3][10] - Earnings estimates for 2025 and 2026 have increased by 4.2% and 2.3%, respectively, indicating expected growth of 20.7% and 12.1% year-over-year [14] Market Position and Valuation - PRIM's shares have increased by 66.3% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry's growth of 29.7% [9] - The company trades at a forward price-to-earnings ratio of 23.72X, slightly above the industry's 22.18X [12] - PRIM currently holds a Zacks Rank 1 (Strong Buy), reflecting positive market sentiment [15] Industry Trends - Rising demand for data centers is creating opportunities across the infrastructure sector, benefiting companies like EMCOR Group and MasTec [6] - EMCOR reported a 55.2% year-over-year revenue growth in its U.S. Electrical Construction segment, driven by data center construction [7] - MasTec experienced a 42% year-over-year increase in Communications revenues, supported by data center-related projects [8]