Key Highlights

  • Primoris Services surged with no company-specific announcement, part of a broad rally in power and infrastructure contractors.
  • The company builds and maintains infrastructure for utilities, energy companies and industrial customers, including transmission lines and substations.
  • Constellation Energy's 20-year nuclear power deal with Google created work expected to include about 7,200 construction jobs.
  • MYR Group rose after a Jefferies upgrade, part of the same broader power-infrastructure rally.

Primoris Services (NYSE:PRIM) was one of the strongest industrial stocks in the Russell 1000 on Tuesday, October 6, outpacing many of its construction and engineering peers. Primoris was grouped with Curtiss-Wright (NYSE:CW), Tecnoglass (NASDAQ:TGLS), AAON (NASDAQ:AAON) and Albany International (NYSE:AIN) as names that were soaring, tied to the theme of AI infrastructure and defense spending.

There was no company-specific announcement. The stock rose as investors once again rewarded firms seen as essential to building out the energy and infrastructure systems that AI data centers require.

What Primoris Does

Primoris is a specialty contractor that builds and maintains infrastructure for utilities, energy companies and industrial customers. Its work spans power transmission and distribution lines, substations, natural-gas pipelines, renewable energy projects such as solar farms, and industrial facilities. That mix puts it squarely in the path of rising electricity demand: before a Data Center can run, power has to be generated and delivered, and someone has to build the lines and equipment to get it there.

Power Supply constraints have become a central challenge for technology infrastructure, turning industrial suppliers into critical enablers, in that framing. That narrative has helped lift a whole class of contractors over the past year. Because contractors are paid to build rather than to own the assets, investors often see them as a way to benefit from heavy spending without betting on which power producer or data-center owner wins in the end.

The Day's Power Story

Tuesday's headline deal added fuel. Constellation Energy (NASDAQ:CEG) signed a 20-year power purchase agreement with Alphabet's Google (NASDAQ:GOOGL) covering 3,590 megawatts, including 890 megawatts of new capacity from uprates at 11 reactors in Illinois, Pennsylvania and New Jersey. Constellation plans to invest more than $4.3 billion, and the project is expected to create about 7,200 construction jobs.

Constellation chief executive Joe Dominguez said the collaboration could serve as a model for how technology companies and the energy industry can work together to responsibly develop the digital economy.

Other contractors joined the rally. Quanta Services (NYSE:PWR), MasTec (NYSE:MTZ), EMCOR (NYSE:EME), Comfort Systems USA (NYSE:FIX) and Sterling Infrastructure (NASDAQ:STRL) all climbed. MYR Group (NASDAQ:MYRG), a power-line builder, rose after Jefferies upgraded it to Buy from Hold. Utilities were the strongest sector of the day.

Records on Wall Street

The S&P 500 rose 44.98 points to a record 7,818.93, and the Nasdaq Composite closed at a record just under 27,600. The Dow Jones Industrial Average gained 253.38 points to 51,521.28. The Russell 1000, the broad gauge of US large and mid-sized companies, followed the large-cap gains, while small caps lagged, with the Russell 2000 slipping to about 2,830.

Treasury yields eased, with the 10-year ending near 5.28 after touching its highest level since 2002 earlier in the month. The Federal Reserve raised its target range to 3.75 to 4.00 in September, and borrowing costs remain a consideration for project-heavy businesses.

Backlog Will Show Whether Budgets Are Expanding

For Primoris, the question is whether Utility and power customers keep expanding their Capital budgets, which should show up in Backlog and bookings when the company next reports. Investors will also track whether more big-tech power deals follow Constellation's agreements with Google and Amazon.