AI Data Center Stock Crashes On Earnings, But Two Others Top Views

Why It Matters

The divergent results highlight how exposure to the fast‑growing data‑center construction market can drive outsized earnings, while traditional heavy‑construction segments face margin pressure and weaker guidance.

Key Takeaways

• Primoris EPS fell 40% to $0.59, shares down 31% after outlook miss
• Everus EPS surged 58% to $1.14, raising full-year revenue to $4.3‑$4.4B
• Jacobs EPS up 22%, backlog $27B, 2026 revenue forecast 8‑10.5% growth
• Sterling Q1 sales rose 92% to $826M, EPS jumped 120% to $3.59
• Data‑center construction demand lifts Everus, Jacobs, Sterling, offsetting Primoris weakness

Pulse Analysis

The first quarter revealed a widening gap within the heavy‑construction sector as firms with a clear data‑center focus outperformed peers anchored in traditional infrastructure. Primoris, despite a recent $422 million acquisition of PayneCrest Electric to enter the data‑center services space, missed earnings expectations and warned of lower full‑year profit, reflecting lingering cost pressures on renewable projects and a modest slowdown in its Energy segment. Investors punished the miss sharply, erasing a prior breakout rally and signaling heightened sensitivity to guidance shortfalls.

Conversely, Everus Construction capitalized on surging demand for data‑center build‑outs, posting a 58% EPS increase and expanding its backlog to $3.68 billion. The company’s recent acquisition of a mechanical‑electrical‑plumbing specialist in North Carolina broadened its service footprint, positioning it to capture higher‑margin work in the tech‑driven real‑estate market. Jacobs Solutions and Sterling also rode the data‑center wave, with Jacobs reporting a 22% EPS rise and a $27 billion backlog, while Sterling’s sales exploded 92% year‑over‑year, underscoring the sector’s rapid scaling.

Analysts see the data‑center construction niche as a catalyst for earnings acceleration, but the broader heavy‑construction landscape remains vulnerable to macro‑economic headwinds and project‑specific cost escalations. Companies that successfully integrate specialized services—electrical, mechanical, and plumbing—into their portfolios are likely to sustain higher growth rates. Investors should monitor guidance revisions, acquisition integration progress, and the pace of data‑center capacity expansion as key determinants of future performance.