Tutor Perini (NYSE:TPC) Reports Bullish Q2, Stock Jumps 22.5%

General contracting company Tutor Perini (NYSE:TPC) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 21.8% year on year to $1.37 billion. Its non-GAAP profit of $1.41 per share was significantly above analysts’ consensus estimates.

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Company Overview

Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Tutor Perini struggled to consistently increase demand as its $4.77 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and is a sign of poor business quality.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Tutor Perini’s annualized revenue growth of 12.4% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Tutor Perini reported robust year-on-year revenue growth of 21.8%, and its $1.37 billion of revenue topped Wall Street estimates by 8.5%.

Looking ahead, sell-side analysts expect revenue to grow 18.9% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance.

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Operating Margin

Tutor Perini was roughly breakeven when averaging the last five years of quarterly operating profits, inadequate for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

Analyzing the trend in its profitability, Tutor Perini’s operating margin decreased by 6.4 percentage points over the last five years. Tutor Perini’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

This quarter, Tutor Perini generated an operating margin profit margin of 5.6%, up 1.9 percentage points year on year. Since its gross margin expanded more than its operating margin, we can infer that leverage on its cost of sales was the primary driver behind the recently higher efficiency.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Tutor Perini, its EPS declined by 26.4% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.

We can take a deeper look into Tutor Perini’s earnings to better understand the drivers of its performance. As we mentioned earlier, Tutor Perini’s operating margin expanded this quarter but declined by 6.4 percentage points over the last five years. Its share count also grew by 4.4%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Tutor Perini, its two-year annual EPS declines of 41.6% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q2, Tutor Perini reported adjusted EPS at $1.41, up from $0.02 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Tutor Perini’s full-year EPS of negative $1.49 will flip to positive $2.56.

Key Takeaways from Tutor Perini’s Q2 Results

We were impressed by how significantly Tutor Perini blew past analysts’ revenue and EPS expectations this quarter. Looking ahead, EPS guidance also outperformed Wall Street’s estimates by a wide margin. The magnitude of the beats is the most impressive aspect of the quarter, which featured many important positives. The stock traded up 22.5% to $57.89 immediately following the results.

Sure, Tutor Perini had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.