Primoris Services Retains Buy Rating Despite Renewables Hurdles and Weak Q1

Key Facts

1Primoris' utilities segment saw 12.3% year-over-year revenue growth alongside expanding margins.

2PRIM shares are trading at a significant discount to peers with a 22x next-twelve-months P/E ratio.

3Operational issues in the company's renewables segment are viewed as fixable rather than structural.

Recent reports indicate a maintained positive outlook for Primoris Services Corporation despite a weak first quarter driven by operational hurdles in its renewables segment. The company's utilities division demonstrated strength with a 12.3% year-over-year revenue increase and expanding profit margins. Analysts suggest that the current difficulties in the renewables business are fixable operational issues rather than fundamental structural flaws.

PRIM shares are currently trading at a significant discount to industry peers, carrying a next-twelve-months P/E ratio of 22x. In comparison to competitors like Quanta Services, which often command higher valuation multiples, PRIM is viewed as undervalued per market data. This valuation gap is supported by the company's robust backlog and the continued growth of its long-duration utility contracts.

Investors are monitoring PRIM price levels, which stood at $113.33 at close May 13, 2026, while looking ahead to upcoming economic catalysts. Key events on the calendar include speeches from Federal Reserve officials Cook and Waller later this week, which may provide clarity on interest rate trajectories affecting infrastructure project financing.