Goldman Sachs Conference: Argan and Primoris CEOs See '10-15 Year Run' in AI Power Demand

January 7, 2026 · by Fintool Agent

PRIMAGX

From the Goldman Sachs Industrials & Materials Conference 2026

David Watson, President and CEO of Argan, Inc.-6.84% (NYSE: AGX), and Tom McCormick, President and CEO of Primoris Services Corporation-2.65% (NYSE: PRIM), appeared together at the Goldman Sachs Industrials & Materials Conference on January 7, 2026 to deliver a unified message: the surge in electricity demand from AI data centers is creating what they describe as a generational opportunity that could sustain their businesses for the next decade and a half.

"We believe at Argan that we're looking at a 10-15 year run here," Watson told attendees at the Goldman Sachs conference, pointing to the combination of AI-driven demand growth and a looming replacement cycle for aging gas-fired plants, nearly 50% of which were built between 2000 and 2004. 1

Argan-6.84% shares rose 2.9% on the session to close at $340.13, while Primoris-2.65% edged up 0.2% to $129.17. Both stocks have dramatically outperformed over the past year as investors priced in the power infrastructure supercycle.

Record Backlogs Signal Multi-Year Visibility

The numbers underscore the opportunity outlined at the Goldman Sachs presentation. Argan-6.84% reported a record $3.0 billion backlog in its most recent quarter—more than double the $1.4 billion from a year earlier—representing approximately 6 gigawatts of power generation capacity under construction. 2 The company has five major gas-fired projects in the U.S., each averaging over a gigawatt of capacity. 3

Primoris-2.65%, meanwhile, carries total backlog exceeding $11 billion and is actively working on the Stargate project—the $100 billion AI data center buildout in Abilene, Texas backed by OpenAI, Oracle, SoftBank, and MGX. The company is providing engineering services on three phases of Stargate, each valued at $2 billion, as part of a 1.2-gigawatt natural gas power facility designed to supply Nvidia GPUs.

Stock data as of January 7, 2026. Values retrieved from S&P Global.

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Goldman Sachs Conference Highlights: Contrasting Business Models

During the joint Goldman Sachs presentation, both CEOs detailed how their contrasting strategies target the same structural tailwinds.

Argan CEO David Watson highlighted the company's reputation as a combined-cycle specialist through its Gemma Power Systems subsidiary. Watson noted the company has not had a single lost project in over 20 years—a remarkable track record in a business known for execution risk and cost overruns. 1 The company focuses on billion-dollar-plus projects requiring 3.5-4 year construction timelines, creating a natural moat against less experienced competitors. 2

"Unless you really have the comfort and the muscle that you've been flexing over all these years of working on those types of projects, it's something that we've had some really good peers lose a little bit of money on in the past years," Watson cautioned the Goldman Sachs audience. 3

Primoris CEO Tom McCormick outlined a more diversified approach, targeting projects in the $80-400 million range across solar, simple-cycle gas, transmission and distribution, and pipeline services. McCormick emphasized risk management through smaller project sizes. 4

"Primoris in general, unlike your businesses David, we don't do kind of billion-dollar projects typically," McCormick explained at the conference. "We're finding the opportunities with the simple cycle projects that are falling into that category. And so it helps us manage risk." 5

The company's solar EPC business has grown from zero in 2017 to a $3 billion operation today, while gas-fired generation is emerging as a key growth driver at approximately $400 million in revenue. 6

Labor Constraints: A Key Theme at Goldman Sachs

Both executives identified human capital as the primary bottleneck limiting industry growth—a constraint that paradoxically strengthens the competitive position of established players.

"Human capital is our biggest constraint to growth. The biggest bottleneck to more projects is site project leadership teams," Watson stated during the Goldman Sachs fireside chat. 7

McCormick described Primoris's-2.65% approach to the talent shortage: hiring project teams up to a year before they have work, investing in training programs, and transferring workers from adjacent industrial businesses. 8

For linemen specifically—critical for the power delivery business—the constraint is particularly acute. "It takes a number of years for somebody to develop from an apprentice to a full journeyman. So you can't just create them and train them up very quickly," McCormick told Goldman Sachs conference attendees. 9

This labor scarcity has created favorable contract dynamics. Both CEOs described a shift toward "more equitable allocation of risk" in customer contracts—better protection against delivery delays, subsurface conditions, and equipment procurement issues. 10

"We are in the business of pricing risk," Watson explained. "In the event that there is some pricing considerations, well yeah, we are willing to take this risk, this risk, and this risk, put it on your shoulders, not mine. I've de-risked my job." 11

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Financial Strength Enables Growth

Both companies enter this supercycle from positions of financial strength, as detailed in the Goldman Sachs investor presentation.

Argan-6.84% carries zero debt and holds $727 million in cash and investments—providing significant flexibility for project bonding and customer financing. The company has raised its dividend three consecutive years and recently increased the quarterly payout to $0.50 per share. 2

Primoris-2.65% has aggressively deleveraged, with total debt declining from $1.35 billion in Q3 2024 to $962 million in Q3 2025. The company generated $133 million in levered free cash flow last quarter alone.*

Values retrieved from S&P Global.

Capital Allocation: Organic Growth Over M&A

At the Goldman Sachs Industrials & Materials Conference, both CEOs emphasized capital allocation discipline. "First priority for us for capital allocation is organic growth. And that's in people. That's in equipment. And it's a lot less risky way when the market allows it to grow the business," McCormick stated. 3

Watson echoed the sentiment: "I don't have a burning hole in my pocket to go do M&A. There's not a mandate to have to go do M&A, but it's absolutely something that we can consider." 4

What to Watch

The investment thesis for both stocks hinges on execution. With record backlogs providing multi-year revenue visibility, the key questions become:

For Argan: Can the company expand capacity beyond its current 10-12 project limit without sacrificing its pristine execution record? The company's premium valuation—trading at ~40x forward earnings—leaves little room for missteps.

For Primoris: How quickly can gas generation scale from a $400 million business toward management's aspirations? Success on high-profile projects like Stargate could open doors to additional data center-related work.

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The Bottom Line

The message from both executives at the Goldman Sachs conference was clear: structural demand for new power generation—driven by AI data centers, EV adoption, reshoring, and an aging fleet of power plants—has created a multi-year construction supercycle that favors experienced contractors with deep customer relationships and skilled workforces.

The stocks have moved sharply higher to reflect this opportunity, with Argan-6.84% up 137% and Primoris-2.65% up 68% over the past year. Whether current valuations adequately capture a 10-15 year growth runway remains the central debate for investors in both names.

Conference Details

• Event: Goldman Sachs Industrials & Materials Conference 2026
• Date: January 7, 2026
• Speakers: David Watson (CEO, Argan Inc.) and Tom McCormick (CEO, Primoris Services)
• Format: Joint CEO Presentation / Fireside Chat

Related

• Primoris Services Corporation-2.65%
• Argan, Inc.-6.84%
• Goldman Sachs Industrials Conference Transcripts