The joint venture (“JV”) of Tutor Perini Corporation TPC with its subsidiary Black Construction Corporation, has won a $38.3 million contract from the Naval Facilities Engineering Systems Command, Pacific District.

For the P-324 9th Engineering Support Battalion Headquarters Project at Marine Corps Base, GU, the JV’s work scope includes constructing low-rise facilities to support the third Marine Expeditionary Force of the 9th Engineering Support Battalion.

The building construction work will feature reinforced concrete structural frame walls, floor, roof and a concrete shallow foundation system. Furthermore, the administration building will comprise the battalion or squadron headquarters and company or battery headquarters, which will offer private and open offices, meeting rooms and miscellaneous support spaces.

The project work is expected to begin in the first quarter of 2025 and be completed by November 2026. Tutor Perini will consider this contract’s value under its third-quarter 2024 backlog.

Following the contract announcement, shares of TPC gained 2.5% during the trading hours and 1.5% in the after-hours on Thursday.

TPC’s Consistent Contract Wins

Tutor Perini’s efficient project execution, diversified delivery methods and services have aided it in bagging new contracts and awards consistently. This is the company's primary growth driver, which adds to its backlog level, thus determining its long-term growth prospects in this everchanging economy.

At the end of June 30, 2024, the company backlog was $10.42 billion, which was up sequentially from $9.98 billion and from $10.16 billion on Dec. 31, 2023. TPC’s significant new awards and contract adjustments in the second quarter of 2024 included the $1.3 billion Connecticut River replacement bridge project for Amtrak, the $216 million airport terminal connector project at Fort Lauderdale International Airport, $144 million of additional funding for certain mass transit projects in California, and the $136 million I-64 Bridge and Highway Project in the Midwest for Lunda Construction.

Furthermore, the $127 million electrical project in New York at the Hillview Reservoir, the $74 million Child Development Center at Andersen Air Force Base in Guam for Black Construction and $71 million of additional funding for various health care projects in California with Rudolph and Sletten added to the backlog value.

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Given this robust growth trend, the TPC stock surged 156.4% in the year-to-date period, outperforming the Zacks Building Products - Heavy Construction industry’s 59.6% growth. Tutor Perini believes that its backlog is expected to grow notably during the second half of 2024 and in 2025, given the fair share of various large project opportunities on its way.

TPC’s Zacks Rank & Other Key Picks

Tutor Perini currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Zacks Construction sector include Comfort Systems USA, Inc. FIX, M/I Homes, Inc. MHO and Frontdoor, Inc. FTDR, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comfort Systems delivered a trailing four-quarter earnings surprise of 20.6%, on average. The stock has surged 79.7% in the past year. The Zacks Consensus Estimate for FIX’s 2024 sales and earnings per share (EPS) indicates growth of 29.4% and 57.8%, respectively, from the prior-year levels.

M/I Homes has a trailing four-quarter earnings surprise of 4.8%, on average. Shares of MHO have risen 70.2% in the past year. The consensus estimate for MHO’s 2024 sales and EPS implies an increase of 9.6% and 21.9%, respectively, from the prior-year levels.

Frontdoor delivered a trailing four-quarter earnings surprise of 279%, on average. The stock has gained 50.6% in the past year. The Zacks Consensus Estimate for FTDR’s 2024 sales and EPS indicates an increase of 3% and 21.3%, respectively, from a year ago.

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