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Is Primoris’ Rapid Backlog and Earnings Surge Altering The Investment Case For Primoris Services (PRIM)?

Simply Wall St · 01/05 01:22
  • In recent years, Primoris Services, a North American infrastructure contractor, has seen its order backlog grow very rapidly while earnings per share expanded much faster than peers, reflecting strong demand in utility, energy, and civil construction projects.
  • This combination of a very large backlog expansion and outsized earnings growth highlights how effectively Primoris is converting its robust project pipeline into higher profitability.
  • Next, we’ll examine how this rapid backlog expansion could reshape Primoris’s existing investment narrative around utilities, renewables, and data center growth.

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Primoris Services Investment Narrative Recap

To own Primoris Services, you need to believe its growth in utilities, renewables, and data center related infrastructure can translate a rapidly expanding backlog into sustained, high quality earnings. The recent confirmation of strong backlog growth and faster than peer earnings expansion supports that thesis in the near term, while the biggest immediate risk remains whether Primoris can keep winning enough data center and utility scale renewable work in highly competitive bidding markets. So far, this news does not materially change that core risk.

Among recent announcements, the series of guidance raises through 2025 stands out as most relevant, because it aligns with the robust backlog and earnings momentum highlighted in the latest news. As Primoris lifts its full year net income and EPS expectations, it reinforces the idea that strong bookings in utilities, renewables, and data center related projects are already flowing through to profitability, which many investors may see as a key short term catalyst for the stock.

Yet even with this strong earnings trajectory, the growing reliance on data center and utility scale renewable projects is a risk investors should be aware of...

Read the full narrative on Primoris Services (it's free!)

Primoris Services' narrative projects $8.7 billion revenue and $358.2 million earnings by 2028. This requires 7.7% yearly revenue growth and a $117.2 million earnings increase from $241.0 million today.

Uncover how Primoris Services' forecasts yield a $149.08 fair value, a 14% upside to its current price.

Exploring Other Perspectives

PRIM 1-Year Stock Price Chart
PRIM 1-Year Stock Price Chart

Five fair value estimates from the Simply Wall St Community span roughly US$77.76 to US$149.08, showing how widely individual views on Primoris can differ. You should weigh this spread against the company’s rapid backlog and earnings growth, and consider how dependent that momentum is on winning future data center and renewable awards.

Explore 5 other fair value estimates on Primoris Services - why the stock might be worth as much as 14% more than the current price!

Build Your Own Primoris Services Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.