Core Insights - Primoris Services Corporation (PRIM) is experiencing strong backlog growth due to its diversified service offerings and capitalizing on market opportunities in various sectors, particularly in Renewables, power, grid, and data centers [1][2] - The company’s total backlog reached $11.49 billion as of June 30, 2025, an increase from $10.45 billion a year earlier, with a next 12-month backlog of $5.14 billion compared to $4.26 billion in the previous year [2][9] - The positive economic sentiment following the Federal Reserve's rate cut is expected to benefit PRIM as it builds its project pipeline across diversified business offerings [3] Business Performance - The Renewables segment is thriving, driven by strong demand in utility-scale solar, EPC work, and battery storage projects, alongside increased activity in power-related projects [2][4] - Primoris is evaluating approximately $1.7 billion in data center work, with contracts anticipated by the end of 2025, which includes early-stage site preparation and utility infrastructure [4][9] - The company expects robust bookings in renewables and energy sectors, maintaining a solid backlog position through 2026 [4] Competitive Landscape - Primoris is positioned as an agile competitor in North America's infrastructure space, particularly in renewables and data center markets, despite facing competition from larger players like MasTec and Quanta Services [5][6][7] - While MasTec and Quanta have greater scale, Primoris has the potential for higher returns in niche or mid-sized contracts, especially with rising demand in data centers and clean energy [7] Stock Performance and Valuation - PRIM shares have surged 68.1% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry and the broader S&P 500 index [8] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 25.02, indicating strong market potential despite being at a premium compared to industry peers [11] - Earnings estimates for PRIM have increased to $4.83 for 2025 and $5.50 for 2026, reflecting year-over-year growth of 24.8% and 13.9%, respectively [13][14]