Tutor Perini Corporation TPC, in a joint venture (JV) with its subsidiary Black Construction Corporation, secured a contract worth approximately $113.3 million. The contract, awarded by the Naval Facilities Engineering Systems Command, Pacific, is for the P-541 Missile Integration Test Facility at Naval Base Guam.

Per the contract, the JV will manage the construction of a single-story, 57,664-square-foot concrete facility with a deep pile foundation, according to the Pacific Deterrence Initiative. The building will feature missile processing areas, a missile test cell with a control room, administrative spaces and storage and utility rooms.

The project also includes the demolition of an existing building, site improvements and the installation of systems such as plumbing, air conditioning and ventilation, lighting, electrical power, telecommunications, fire protection and an emergency power generator with a fuel tank.

The project work is set to begin soon, with substantial completion expected by December 2028. The contract value was added to Tutor Perini's backlog in third-quarter 2024.

Following the contract announcement, shares of TPC moved up 2.9% during the trading hours on Wednesday.

Contract Wins Strengthen TPC's Prospects

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 and determines its long-term growth prospects in this everchanging economy.

On Sept. 12, TPC's joint venture with Black Construction Corporation secured a $38.3-million contract from the Naval Facilities Engineering Systems Command. The project at Marine Corps Base in Guam involves constructing low-rise facilities for the 9th Engineering Support Battalion Headquarters, supporting the third Marine Expeditionary Force. (read more: Tutor Perini's JV With Black Construction Wins New Project in Guam)

At the end of June 30, 2024, the company’s backlog was $10.42 billion, up sequentially from $9.98 billion and from $10.16 billion on Dec. 31, 2023. TPC’s new awards and contract adjustments in second-quarter 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.

Tutor Perini remains optimistic about its bidding pipeline as it witnesses several active opportunities on large projects, thanks to substantial government funding and limited competition for many of the larger projects.

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Owing to this robust growth trend, the TPC stock surged 199.9% in the year-to-date period compared with the Zacks Building Products - Heavy Construction industry’s 76.3% growth. Tutor Perini anticipates its backlog to grow notably during the second half of 2024 and in 2025, given the fair share of various large project opportunities.

TPC’s Zacks Rank & Other Key Picks

TPC currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Zacks Construction sector include:

Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank #1 (Strong Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for STRL’s 2024 sales and earnings per share (EPS) indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.

Howmet Aerospace Inc. HWM presently carries a Zacks Rank #2. HWM has a trailing four-quarter earnings surprise of 10.9%, on average.

The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.

M-tron Industries, Inc. MPTI currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.

The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.

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