Tutor Perini (TPC, Financial) recently revealed that its subsidiary, Perini Management Services, is executing two significant projects awarded earlier this year. One involves repairing the barrier system at RAF Lakenheath in the UK for the U.S. Air Force, valued at approximately $28.4 million. This project, part of the USAF's Worldwide Engineering & Construction contract, entails the design and construction of security features such as fencing, gates for aircraft, vehicles, and pedestrians, surveillance infrastructure, and patrol roads. The project commenced in February 2025 and is expected to be substantially completed by fall 2026.
The second project involves enhancing the Rio Bayamon Housing infrastructure in Puerto Rico for the U.S. Coast Guard, with a contract value of around $20.5 million. The design-build project focuses on boosting the resilience of electrical and water systems. It includes building new access roads, installing security fencing and gates, updating roadways for new electrical distribution, and constructing a new utility building and water storage tank. The work started in January 2025, with a targeted substantial completion by spring 2027.
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 $53.50 with a high estimate of $60.00 and a low estimate of $45.00. The average target implies an upside of 10.81% from the current price of $48.28. 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 $12.68, suggesting a downside of 73.74% from the current price of $48.28. 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.
