Primoris Services (PRIM)
Infrastructure services including DC site work & electrical.
- Ticker: PRIM
- Sector: construction (epc)
- DC exposure tier: mid
Primoris Services (PRIM) is a moderate-exposure data-center supply-chain name in the construction sector. Data Center Index tracks Primoris Services's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Primoris Services data center thesis
Primoris is a mid-cap utility and industrial EPC that builds solar farms, gas pipelines, and electrical-transmission scope, increasingly the renewables and substation work behind hyperscaler PPAs. Backlog fell to $4.5B in Q1 2026, down 22.4% YoY, and the stock collapsed 42% in the past week from $202 to $104 as Q1 results reset the growth narrative.
Bull case
- Renewables EPC for hyperscaler PPAs is a real growth lane; Microsoft, Google, and Amazon have committed to 50+ GW of clean firm power, and Primoris Renewables is one of a handful of pure-plays that can EPC utility-scale solar plus battery at site.
- Despite the Q1 backlog reset, revenue scaled from $5.7B in 2023 to $7.6B in 2025 with operating margin expanding to 5.4%; book-to-bill above 1.0 on transmission alone supports 12-18 months of visibility even in a renewables pause.
- Utility transmission spend tied to DC interconnects is bleeding into the small-cap EPC tier; Primoris picks up sub-$100M transmission and substation work that PWR is too booked to take, creating an overflow pipeline.
Bear case
- Backlog declined 25.4% YoY in Q3 and 22.4% in Q1 2026; book-to-bill is below 1.0 and the May 6 -50% gap confirms the market priced in continued degradation; small-cap EPC is unforgiving when growth flips.
- Stock is at the 27.3rd percentile of its 52-week range with the violent reset still fresh; even at compressed levels, multiple-compression risk remains because forward EPS gets re-rated on every contract pushout.
- Contract concentration and fixed-price exposure on renewables EPC is the historical kill-switch for this category; one utility cancellation or interconnect delay sterilizes a 20% backlog tranche, and Primoris doesn't have a diversified industrial book to absorb it.
Data center exposure rationale
Utility and energy infrastructure construction with growing DC site-prep work; DC is one of several end-markets the Renewables and Utility segments serve.
Primoris Services revenue and capex
In fiscal 2025, Primoris Services reported revenue of $7.6B, capital spending of $129.9M and operating income of $411.5M.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2025 | $7.6B | $129.9M | $411.5M |
| 2024 | $6.4B | $126.5M | $317.4M |
| 2023 | $5.7B | $103.0M | $253.1M |
Tracked Primoris Services data center projects
- OpenAI Stargate Abilene, 1.2 GW, Abilene, TX · operational
- Crusoe Abilene Expansion, 900 MW, Abilene, TX · under construction