Is Tutor Perini Well-Positioned to Capitalize on Rail Megaprojects?

Tutor Perini Corporation TPC is aiming to strengthen its position in large-scale rail and transit infrastructure, backed by a record backlog and a growing pipeline of major civil opportunities. The company continues to leverage deep expertise in underground and complex transit systems, which has supported wins across major transportation corridors. As of March 31, 2025, the company’s total backlog reached an all-time high of $19.4 billion, up 94% year over year. The Civil segment played a central role in this growth, representing $9.7 billion of the total, underscoring the scale of rail and transit work ahead.

In the first quarter, Tutor Perini secured a $1.18 billion contract for the Manhattan tunnel project in New York, which forms part of the broader Gateway initiative to modernize critical rail infrastructure between Newark and New York Penn Station. This project, along with others like the Honolulu Rail Transit line and Newark AirTrain, is contributing to strong execution and revenue visibility.

Looking ahead, the company referenced several significant upcoming project opportunities, including the $12 billion California transit project, the $3.8 billion Southeast Gateway line, the $1 billion North Valley Rail project, the $900 million Foothill Gold Line and the $1.8 billion South Jersey Glassboro-to-Camden line. Tutor Perini noted that funding for public transportation projects remains robust, supporting a favorable outlook for new awards. 

With execution on existing megaprojects continuing and new opportunities on the horizon, Tutor Perini appears well-positioned to sustain momentum in the rail and transit construction sector.

TPC Stock’s Price Performance & Valuation Trend

Shares of this California-based general contracting company have soared 140.4% in the past three months, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

Other renowned firms that share the market space with TPC include EMCOR Group, Inc. EME and MasTec, Inc. MTZ. In the past three months, shares of EMCOR and MasTec have gained 46% and 49.8%, respectively.
    
TPC’s current valuation looks promising for investors. The stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings ratio of 20.54.

Notably, EMCOR and MasTec are currently trading at a forward 12-month P/E ratio of 22.48 and 26.14, respectively.

EPS Trend of Tutor Perini

The Zacks Consensus Estimate for Tutor Perini’s 2025 and 2026 earnings implies a year-over-year uptick of 155.9% and 76.6%, respectively. The estimate for 2025 has remained unchanged in the past 30 days.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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