Primoris has gotten torched over the last six months - since January 2026, its stock price has dropped 39.3% to $89.91 per share. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.
Following the pullback, is now a good time to buy PRIM? Find out in our full research report, it’s free.
Why Does PRIM Stock Spark Debate?
Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Two Things to Like:
1. Surging Backlog Locks In Future Sales
Investors interested in Construction and Maintenance Services companies should track backlog in addition to reported revenue. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Primoris’s future revenue streams.
Primoris’s backlog punched in at $11.6 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 86.5%. This performance was fantastic and shows the company has a robust sales pipeline because it is accumulating more orders than it can fulfill. Its growth also suggests that customers are committing to Primoris for the long term, enhancing the business’s predictability. 
2. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.
Primoris’s spectacular 16.8% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
One Reason to Be Careful:
Low Gross Margin Reveals Weak Structural Profitability
All else equal, we prefer higher gross margins because they usually indicate that a company sells more differentiated products and commands stronger pricing power.
Primoris has bad unit economics for an industrials business, signaling it operates in a competitive market. As you can see below, it averaged a 10.7% gross margin over the last five years. That means Primoris paid its suppliers a lot of money ($89.29 for every $100 in revenue) to run its business.
Final Judgment
Primoris’s positive characteristics outweigh the negatives. With the recent decline, the stock trades at 36.8× forward P/E (or $89.91 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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