Core Insights - Primoris Services Corporation is enhancing its position in the utility infrastructure market, with power delivery being a significant driver of profitability and long-term growth [1] - The company reported strong performance in Q2 2025, with power delivery contributing notably to margin improvement [2] - Primoris' strategy focuses on disciplined project selection and recurring MSA-based work, leading to improved operational stability and pricing power [3] Financial Performance - In Q2 2025, the Utilities segment's gross margin increased to 14.1% from 10.3% year-over-year, primarily due to power delivery [2] - The MSA backlog rose by $600 million sequentially, indicating strong demand in power delivery operations [3][10] - Earnings estimates for 2025 and 2026 reflect year-over-year growth of 31.3% and 9.3%, respectively [12] Market Position and Competitors - Primoris operates in a competitive landscape with peers like EMCOR Group and Quanta Services, both expanding in power delivery and grid modernization [5] - EMCOR is increasing its role in transmission and distribution, benefiting from rising industrial facility demand [6] - Quanta Services remains a key player in power infrastructure, capitalizing on utility capital spending and federal investment programs [7] Industry Outlook - The utility sector is experiencing multiyear investments aimed at improving reliability and integrating renewables, positioning Primoris favorably for future growth [4] - The competitive environment, highlighted by the expansion of EMCOR and Quanta Services, supports Primoris' long-term growth prospects [8] Stock Performance and Valuation - Primoris shares have increased by 64.4% over the past three months, outperforming the industry growth of 22.9% [9] - The company trades at a forward price-to-earnings ratio of 25.79X, higher than the industry's 23.08X [14]