Core Insights - Primoris Services Corporation (PRIM) reported a strong second quarter in 2025, with revenues increasing by 20.9% year-over-year to $1.89 billion, exceeding estimates by 12.3% [1] - Adjusted EPS rose over 60% to $1.68, surpassing expectations by 58.5%, while operating cash flow reached a record $78 million [1] - The company is well-positioned in North America's infrastructure expansion, particularly in high-demand markets such as transmission and utility-scale renewables [2][3] Financial Performance - Revenues from Utilities increased by 11.6%, with margins expanding to 14.1% from 10.3% a year ago, driven by power delivery and gas operations [2] - Energy revenues surged by 27% due to record renewables activity, with solar and storage projects projected to generate $2.5 billion in annual revenues [2] - Primoris has a backlog nearing $11.5 billion, providing multi-year revenue visibility and strong booking momentum anticipated through 2026 [3] Market Opportunities - Management is tracking nearly $1.7 billion in potential data center-related work to be contracted by year-end, indicating growth in one of the fastest-growing infrastructure markets [3] - The raised guidance for 2025 indicates adjusted EPS is now expected to be between $4.90 and $5.10, reflecting confidence in the company's growth trajectory [4] Competitive Landscape - Competitors such as Quanta Services (PWR) and MasTec, Inc. (MTZ) are also heavily involved in the expansion of North America's infrastructure and energy networks, making them relevant benchmarks for Primoris [5][6][7] - Quanta Services has a competitive edge in grid modernization and renewable integration, while MasTec has aggressively expanded in clean energy EPC projects [6][7] Valuation and Estimates - Primoris shares have gained 71.4% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry's growth of 25.5% [8] - The company trades at a forward 12-month price-to-earnings ratio of 23.89, compared to the industry's 21.68 [12] - Earnings estimates for 2025 and 2026 indicate year-over-year growth of 24.8% and 13.9%, respectively [14]