Primoris vs. MasTec: Which Infrastructure Stock Is the Better Buy Now?

Primoris (PRIM) and MasTec (MTZ), prominent infrastructure contractors, are both poised for growth from increased investment in utilities, energy, and communications, but are pursuing different strategies. Primoris, rated Zacks #1, is positioned as the stronger investment due to its 27% year-over-year renewables revenue growth in Q2 2025, expansion into data centers, recent share price outperformance, and a more compelling valuation. Conversely, MasTec (Zacks #2), while reporting a record $16.45 billion backlog and raising 2025 guidance, faces higher cost pressures and trades at a premium valuation, contributing to its recent stock underperformance.

Analysis

Primoris Services (PRIM) and MasTec (MTZ) are both capitalizing on strong secular demand in the infrastructure construction sector, driven by investments in grid modernization, renewable energy, and broadband. However, their strategic approaches and recent performance metrics diverge. Primoris is executing a focused growth strategy, evidenced by a 27% year-over-year revenue increase in its renewables segment in Q2 2025 and a successful expansion into high-growth data center and communications infrastructure. Its backlog stood at $11.5 billion at the end of Q2 2025, with upward revisions to its 2025 EPS estimates projecting 24.8% growth. Crucially, PRIM's stock has significantly outperformed MTZ in the last three months while trading at a more favorable forward P/E valuation. In comparison, MasTec is pursuing a broader scaling strategy, which has yielded a record backlog of $16.45 billion (up 23.3% YoY) and a raised 2025 revenue forecast of $13.9-$14 billion. MTZ boasts a higher projected 2025 EPS growth of 58%, but this is accompanied by noted cost pressures, a premium valuation, and recent stock price underperformance relative to its peer.

Key Decisions for Investors

• Given Primoris's recent share price outperformance, more compelling valuation relative to MasTec, and strategic expansion into data centers, investors may find it presents a more attractive opportunity for near-term momentum.
• While MasTec's stock has lagged, its record $16.45 billion backlog and superior 58% projected 2025 EPS growth suggest significant underlying strength, making it a consideration for long-term investors who can tolerate its premium valuation and near-term cost pressures.
• For positions in either company, it is essential to monitor for margin compression stemming from tariff uncertainties and project execution challenges, as these are cited as key sector-wide risks that could impact profitability.