Primoris Services Corporation PRIM is increasingly leaning on natural gas generation as a strategic lever to drive long-term growth, complementing its strong presence in renewables and utilities. The company’s 2025 results underscore this shift, with robust activity in gas operations within the Utilities segment contributing meaningfully to revenue growth.
Primoris delivered a solid performance in 2025, with revenues rising 19% year over year to $7.6 billion and adjusted EBITDA increasing 22% to $531.1 million. Notably, growth in gas-related projects, alongside power delivery work, helped offset some of the margin pressures seen in its renewables business. This diversification is becoming critical as renewables projects face execution challenges, including cost overruns tied to difficult soil conditions and unfavorable weather.
Rising electricity demand, driven by grid modernization and power-hungry data centers, is accelerating the need for reliable baseload energy. Natural gas, with its relative stability and scalability, is emerging as a key bridge fuel, positioning PRIM to capture incremental opportunities. Moreover, its $11.9 billion backlog, supported by a growing mix of Master Service Agreements, provides improved revenue visibility, particularly in gas and utility services. Management’s 2026 guidance, calling for adjusted EBITDA between $560 million and $580 million compared with $531.1 million in 2025, reflects confidence in continued momentum.
However, investors should remain mindful of margin volatility and execution risks across segments. Still, Primoris’ gas generation push appears to be a strategic catalyst that could enhance earnings stability and support long-term value creation.
