Primoris Services (PRIM) | News Based Sentiment Analysis

• On August 4, 2025, Primoris Services reported a strong second quarter, exceeding analyst expectations with EPS of $1.68, a $0.58 positive surprise (55.56%), and revenue of $1.89 billion, a 20.9% year-over-year increase. This impressive performance was fueled by robust activity in the Utilities and Energy sectors, particularly renewables.
• Following the strong Q2 results, Primoris raised its 2025 adjusted EPS guidance to $4.90-$5.10, up from $4.20-$4.40, and adjusted EBITDA guidance to $490 million-$510 million from $440 million-$460 million. This increased optimism reflects confidence in capitalizing on growing demand, especially in electrification and data center projects.
• Primoris’s stock reached an all-time high of $135.76 on September 29, 2025, representing a 132.54% increase over the past year and a 133.5% surge in the last six months, demonstrating strong investor enthusiasm.
• GLJ Research initiated coverage on September 22, 2025, with a "Buy" rating and a $160.00 price target, citing the company’s strong position in the utility capital expenditure cycle. Guggenheim also increased its price target to $130.00 on September 29, 2025, following the Q2 results, while KeyCorp raised theirs to $129.00 on September 29, 2025.
• Despite the positive momentum, insider selling emerged as a potential concern. COO Jeremy Kinch sold 3,006 shares for $372,744.00 on September 20, 2025, decreasing his position by 23.88%. Broader trends over the past six months show 12 insider sales and no purchases.
• The company’s project backlog is nearing $11.5 billion, driven by strong performance in Utilities and Energy, with approximately $1.7 billion in potential data center-related work to be contracted by year-end. GLJ Research noted that 65% of 2025 revenues are expected from electrification and data centers.
• Institutional investor activity was mixed in Q2 2025. While some investors increased holdings (Ameritas by 2.2%, Freedom by 4.3%), others significantly reduced positions (NUVEEN decreased by 65.6%, removing 1,274,433 shares).

The Investment Story: September was a continuation of the positive momentum established in August, with Primoris Services benefiting from strong Q2 results, increased guidance, and analyst upgrades, though tempered by notable insider selling activity. The company is strategically positioned to capitalize on growth in the electrification and data center markets.

What It Means for Investors: The strong financial performance and positive outlook suggest continued upside potential, but the insider selling warrants monitoring. The robust backlog and increased guidance provide confidence in future earnings, but investors should carefully weigh the risks associated with valuation and potential dilution from future offerings.

Looking Ahead: Investors should closely monitor the progress of the $1.7 billion data center pipeline and the continued growth in renewables revenue. The next earnings release is expected on November 3, 2025, with an anticipated EPS of $1.37, representing a 12.3% year-over-year increase.

The Bottom Line: Primoris Services delivered a compelling investment story through September 2025, showcasing strong financial performance, a robust backlog, and a positive outlook. While valuation is elevated and insider selling is a concern, the company appears well-positioned for continued growth in key infrastructure sectors.