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Tutor Perini (TPC)
NYSE:TPC
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Tutor Perini
(NYSE:TPC)
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Rating:70Outperform
Price Target:
$83.00
▲(12.60% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by improved financial performance (profitability rebound, strong cash flow, and sharply reduced leverage) and a constructive earnings outlook with strong backlog and 2026–2027 EPS growth guidance. Offsetting these positives are softer near-term technicals (below key short-term moving averages, lower RSI) and a demanding P/E despite the high dividend yield.
Positive Factors
De-risked Balance Sheet
Tutor Perini's materially de‑risked balance sheet—minimal net debt versus ~$1.22B equity—reduces refinancing and liquidity risk, increases bidding capacity on large projects, and enables shareholder actions (dividend, repurchases). The low leverage supports durable operational flexibility while monitoring persistence.
Strong Cash Generation
Sustained, record operating and free cash flow provides durable internal funding for capex, working capital, dispute settlements, and shareholder returns. Robust cash generation materially strengthens execution capacity on large backlog and reduces reliance on external financing over the medium term.
Robust Backlog & Visibility
A $20.6B backlog with a >1x book-to-burn ratio and multiple mega projects provides multi-quarter to multi-year revenue visibility, supporting management's double-digit growth guidance and helping smooth revenue volatility typical of construction, while giving pricing leverage on large, higher‑margin civil work.
Negative Factors
Earnings Volatility
Historical swings from profits to sizeable losses through 2022–2024 highlight underlying cyclicality and execution risk in large projects. This history tempers confidence that 2025 margin recovery is durable, meaning future profitability may remain sensitive to backlog mix, project execution, and dispute outcomes.
Legacy Disputes
Ongoing legacy disputes can produce material one‑time adjustments, delayed cash collections, or surprise liabilities that compress margins and increase working capital needs. The unsettled claim inventory creates episodic earnings and cashflow risk until disputes are fully resolved.
Elevated Corporate Costs
A higher corporate expense run‑rate—driven by a large, noncash surge in share‑based compensation—raises structural SG&A pressure and adds volatility to reported earnings. Combined with elevated interest costs until planned refinancing, these items could constrain margin sustainability and free cash available for reinvestment.
Tutor Perini (TPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.89B
Dividend Yield0.09%
Average Volume (3M)705.03K
Price to Earnings (P/E)43.9
Beta (1Y)2.00
Revenue Growth19.22%
EPS Growth78.83%
CountryUS
Employees7,500
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.54
Shares Outstanding52,791,450
10 Day Avg. Volume882,624
30 Day Avg. Volume705,034
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)2.90
Price to Sales (P/S)0.64
P/FCF Ratio6.23
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit5.33
Enterprise Value/Ebitda11.20
Forecast
1Y Price Target
$109.00Price Target Upside47.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.79
Revenue Forecast (FY)$6.19B
Tutor Perini Business Overview & Revenue Model
Company DescriptionTutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies worldwide. It operates through three segments: Civil, Building, and Specialty Contractors. The Civil segment engages in the public works construction and the replacement and reconstruction of infrastructure, construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities. This segment also provides drilling, foundation, and excavation support for shoring, bridges, piers, roads, and highway projects. The Building segment offers services in various specialized building markets, including hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, and industrial and technology. The Specialty Contractors segment provides electrical, mechanical, plumbing, and fire protection systems, as well as heating, ventilation, and air conditioning services (HVAC) for the industrial, commercial, hospitality and gaming, and mass-transit end markets. It also offers general contracting, pre-construction planning, and project management services, including planning and scheduling of manpower, equipment, materials, and subcontractors; and self-performed construction services, such as site work, concrete forming and placement, steel erection, electrical, plumbing, HVAC, and mechanical. The company was formerly known as Perini Corporation and changed its name to Tutor Perini Corporation in May 2009. Tutor Perini Corporation was founded in 1894 and is headquartered in Sylmar, California.
How the Company Makes MoneyTutor Perini generates revenue primarily through its construction contracts, which can include fixed-price contracts, cost-plus contracts, and unit-price contracts. The company's key revenue streams are derived from project management fees, construction services, and specialized contracting work across its various sectors. Significant partnerships with government entities, municipalities, and private developers also contribute to TPC's earnings by securing long-term contracts for infrastructure projects, commercial developments, and other construction-related services. Additionally, TPC's involvement in large-scale projects often leads to supplemental revenue opportunities through change orders and additional work requested by clients during project execution.
Tutor Perini Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: record revenue, record operating cash flow (+49%), strong adjusted EPS turnaround to $4.29, a healthy backlog ($20.6B, +10%), and substantial segment recoveries (Civil margins 13.7%, Building turned profitable). Key risks noted were elevated 2025 share‑based compensation that inflated G&A, an unfavorable Q4 adjustment tied to a legacy dispute (~$42M), about a dozen remaining legacy disputes, high interest costs pending refinancing, and potential short‑term lumpiness in backlog. Given the magnitude and number of material positive operating and financial improvements and clear forward guidance for continued double‑digit growth and higher earnings in 2026–2027, these positives outweigh the remaining discrete risks and timing uncertainties.Q4-2025 Updates
Positive Updates
Record Revenue
Revenue of $5.5 billion in 2025, up 28% year-over-year, driven by larger, higher‑margin projects across Civil and Building segments.
Record Operating Cash Flow
Operating cash flow reached a record $748 million for 2025, up 49% from $504 million in 2024; fourth consecutive year of record operating cash generation.
Strong Adjusted Earnings and GAAP Turnaround
Adjusted EPS of $4.29 for 2025 (adjusted net income $229 million) versus an adjusted loss in 2024; GAAP net income $80 million or $1.51 per share compared to a net loss of $164 million in 2024.
Robust Backlog and Bookings
Year-end backlog of $20.6 billion, up 10% year-over-year, supported by $7.4 billion of new awards and contract adjustments during 2025 and a book-to-burn ratio of 1.34x.
Civil Segment Outperformance
Civil revenue of $2.8 billion, up 34% YoY (highest annual Civil revenue ever); Civil operating income nearly tripled to $391 million from $138 million, with a 13.7% segment operating margin (within the 12%–15% target range).
Building and Specialty Contractors Improvement
Building revenue $1.9 billion (up 15%) with operating income of $58 million vs. a $24 million loss in 2024 (margin 3.1% vs -1.5%); Specialty Contractors revenue $844 million (up 43%) and returned to profitability in H2 2025, posting a modest $7 million operating loss for the full year vs a $103 million loss in 2024.
Balance Sheet and Capital Actions
Total debt reduced by 24% in 2025; cash and cash equivalents exceeded total debt by $327 million (net cash position) vs net debt of $79 million at end of 2024; Board authorized $0.06 quarterly dividend (paid) and $200 million share repurchase program.
Guidance and Forward Visibility
Management expects double‑digit revenue growth and strong earnings in 2026 with 2026 adjusted EPS guidance of $4.90 to $5.30 and indications that 2027 should be higher; visibility supported by nine mega projects (~$16 billion) and several large bid opportunities.
Operational Momentum Across Quarters
Revenue accelerated sequentially through 2025; Q4 2025 revenue of $1.5 billion, up 41% YoY, with segment Q4 growth: Civil +32%, Building +45%, Specialty +63%; Q4 operating income recovery across segments (Civil $72M, Building $11M, Specialty $11M).
Negative Updates
Share-Based Compensation Pressure
Share-based compensation expense increased by approximately $110 million in 2025 (tied to near tripling in stock price), driving Corporate G&A to $211 million (vs $110 million in 2024) and creating near‑term earnings volatility.
Legacy Disputes and One-Time Adjustments
An unfavorable, mostly noncash Q4 adjustment related to a tunneling dispute in Canada (~$42 million JV impact) and roughly a dozen remaining legacy dispute matters that could still produce write‑ups or write‑downs despite progress and recent settlements.
Specialty Contractors Full‑Year Profitability Lag
Although Specialty Contractors returned to profitability in H2, the segment posted a small full‑year operating loss of $7 million in 2025 (improved from a $103 million loss in 2024) — recovery ongoing but not yet consistently profitable for the year.
Interest Cost and Refinancing Need
High coupon debt (noted ~11.8% coupon) resulted in elevated interest costs; management plans a mid‑year refinancing and expects potential ~500 basis point savings, but current interest expense guidance remains $40–$50 million for 2026.
Backlog Lumpiness and Near‑Term Uncertainty
Management expects some near‑term lumpiness and a modest backlog reduction as significant prospective opportunities bid in mid‑2026 and beyond; backlog growth resumes longer term but timing of awards creates short‑term variability.
Higher Corporate Expense Run‑Rate Guidance
G&A guidance of $400–$410 million for 2026 and elevated noncash costs in 2025 underscore near‑term expense pressure despite anticipated declines in share‑based comp in 2026–2027.
Company Guidance
The company guided to double-digit revenue growth in 2026 and projected adjusted EPS of $4.90–$5.30 (with even higher earnings expected in 2027), while reiterating continued strong operating cash generation (after a record $748 million in 2025). Key 2026 modeling assumptions include G&A of $400–$410 million, depreciation & amortization of ~$50 million (depreciation $48M / amortization $2M), interest expense of $40–$50 million (≈$3M noncash), an effective tax rate of ~27%–30%, noncontrolling interest of $75–$85 million, ~54 million weighted average diluted shares, and capital expenditures of $125–$135 million (of which ~$75–$85M is owner-funded). The company noted a $20.6 billion year-end backlog (up 10% YoY) with a 1.34x book-to-burn ratio, expects roughly $1 billion of additional backlog later this year for Midtown Phase 1 (and has received $204M for Eagle Mountain Casino Phase 2), and disclosed an anticipated near-term cash collection of ~ $40M from a settled dispute; Board actions include a $0.06 quarterly dividend and a $200M repurchase program. Management emphasized that the guidance includes significant contingency for lower win rates, project delays, slower ramps or unexpected dispute outcomes, and provided segment margin ranges (Civil ~12%–15% realized in 2025, Building 3%–6% expected, and Specialty Contractors targeting eventual margins of ~5%–8%).Tutor Perini Financial Statement Overview
Summary
2025 shows a meaningful turnaround with improved profitability (net income $266M after multi-year losses), strong operating/free cash flow (~$748M), and a materially de-risked balance sheet (debt-to-equity ~0.01). The main constraint is earnings volatility over 2022–2024, which raises questions about durability of the margin recovery.Income Statement
Revenue rebounded strongly in 2025 (up 8.6% to $5.54B) after several years of weaker growth, and profitability improved sharply: gross margin expanded to ~11.7% and net margin to ~4.8% with $266M of net income versus losses in 2022–2024. That said, results have been volatile across the period (profits in 2020–2021, sizable losses in 2022–2024), which tempers confidence in the sustainability of the recent margin recovery.63
Positive
Balance Sheet
The balance sheet strengthened materially in 2025 with total debt dropping to ~$14.6M and very low leverage (debt-to-equity ~0.01) against equity of ~$1.22B and assets of ~$5.16B. Prior years carried meaningfully higher leverage (debt-to-equity roughly 0.47–0.70 in 2022–2024), so while the current position is conservative and reduces financial risk, the sharp shift suggests investors should watch whether this low-debt structure persists.82
Very Positive
Cash Flow
Cash generation is a key positive: operating cash flow rose to ~$748M in 2025 and free cash flow was also ~$748M, remaining solid compared with prior years (and a notable turnaround from negative operating cash flow in 2021). Free cash flow dipped modestly in 2025 (down ~5.2%), but overall cash flow has been resilient and supportive of the improved earnings profile.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.54B | 4.33B | 3.88B | 3.79B | 4.64B |
| Gross Profit | 647.51M | 197.04M | 140.62M | 29.61M | 466.39M |
| EBITDA | 309.29M | -34.75M | -54.03M | -135.28M | 345.50M |
| Net Income | 80.44M | -163.72M | -171.16M | -210.01M | 91.92M |
Balance Sheet | |||||
| Total Assets | 5.16B | 4.24B | 4.43B | 4.54B | 4.72B |
| Cash, Cash Equivalents and Short-Term Investments | 999.15M | 455.08M | 380.56M | 259.35M | 202.20M |
| Total Debt | 470.92M | 534.14M | 899.75M | 958.44M | 993.65M |
| Total Liabilities | 3.90B | 3.08B | 3.15B | 3.10B | 3.05B |
| Stockholders Equity | 1.22B | 1.13B | 1.29B | 1.45B | 1.65B |
Cash Flow | |||||
| Free Cash Flow | 567.21M | 466.13M | 255.52M | 147.19M | -187.05M |
| Operating Cash Flow | 748.07M | 503.54M | 308.47M | 206.97M | -148.45M |
| Investing Cash Flow | -249.69M | -40.69M | -78.25M | -65.64M | -37.34M |
| Financing Cash Flow | -192.36M | -393.35M | -109.38M | -78.90M | -54.66M |
Tutor Perini Technical Analysis
Negative
73.71
Price Trends
76.83
Negative
71.19
Negative
61.44
Positive
Market Momentum
-1.05
Positive
38.63
Neutral
14.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPC, the sentiment is Negative. The current price of 73.71 is below the 20-day moving average (MA) of 81.41, below the 50-day MA of 76.83, and above the 200-day MA of 61.44, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 14.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPC.
Tutor Perini Risk Analysis
Tutor Perini disclosed 25 risk factors in its most recent earnings report. Tutor Perini reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tutor Perini Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.09B | 34.44 | 32.05% | 0.49% | 13.49% | 77.73% | |
76 Outperform | $4.19B | 28.92 | 18.78% | ― | -0.64% | 168.51% | |
70 Outperform | $3.89B | 43.90 | 6.84% | 0.09% | 19.22% | 78.83% | |
70 Outperform | $5.76B | 26.09 | 17.59% | 0.45% | 6.87% | 64.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $565.84M | 44.33 | 6.31% | ― | 16.73% | ― | |
55 Neutral | $7.15B | -131.50 | -1.42% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.