B. Riley has increased its price target for Tutor Perini (TPC, Financial) from $40 to $50, maintaining a Buy rating on the stock. The firm views Tutor Perini as a valuable investment in the heavy civil infrastructure sector, highlighting its substantial backlog and improving financial outlook. The company's operating margins and balance sheet are strengthening, contributing to an optimistic growth trajectory.
Analysts anticipate that Tutor Perini's profitability will enhance through the end of 2025, with continued growth in operating profits expected to persist into 2026. This positive assessment underscores the firm's confidence in Tutor Perini's future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Tutor Perini Corp (TPC, Financial) is $43.50 with a high estimate of $48.00 and a low estimate of $40.00. The average target implies an upside of 11.85% from the current price of $38.89. More detailed estimate data can be found on the Tutor Perini Corp (TPC) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Tutor Perini Corp's (TPC, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tutor Perini Corp (TPC, Financial) in one year is $12.53, suggesting a downside of 67.78% from the current price of $38.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tutor Perini Corp (TPC) Summary page.
TPC Key Business Developments
Release Date: May 07, 2025
- Revenue: $1.25 billion, up 19% year-over-year.
- Operating Income: $65 million, up 34% year-over-year.
- Earnings Per Share (EPS): $0.53, up 77% year-over-year.
- Backlog: $19.4 billion, up 94% year-over-year.
- Operating Cash Flow: $23 million, third-best first-quarter result ever.
- Civil Segment Revenue: $610 million, up 29% year-over-year.
- Building Segment Revenue: $460 million, up 12% year-over-year.
- Specialty Contractors Segment Revenue: $177 million, up 7% year-over-year.
- Segment Operating Margins: Civil: 13%, Building: 2.3%, Specialty: -4%.
- Interest Expense: $14 million, down 26% year-over-year.
- Net Income: $28 million, compared to $16 million last year.
- Total Debt: $406 million, down 24% from the end of 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tutor Perini Corp (TPC, Financial) reported a 19% year-over-year revenue growth in the first quarter of 2025, reaching $1.25 billion.
- The company's backlog grew 94% to a record $19.4 billion, indicating strong future project opportunities.
- Operating income increased by 34% to $65 million, and earnings per share rose 77% to $0.53.
- TPC's operating cash flow was positive at $23 million, marking the third-best first-quarter result in the company's history.
- The company has secured significant new project awards, including a $1.18 billion Manhattan tunnel project and a $500 million healthcare project in California.
Negative Points
- The Building segment's income from construction operations decreased due to the absence of a prior year favorable adjustment.
- The Specialty Contractors segment posted a loss of $7 million, although this was an improvement from the previous year's loss.
- There is a potential risk of project delays or slower ramp-ups on newer projects, which could impact future earnings.
- The company faces ongoing challenges with dispute resolutions, although progress is being made.
- Despite strong performance, there is uncertainty regarding the impact of tariffs and regulatory changes on future projects.
