Can Tutor Perini Capitalize on Federal Transit Spending Surge?

Tutor Perini Corporation TPC is banking on the growing federal transit spending in the United States, which is expected to continue for the next few years. The surge in spending on transit infrastructure is due to growing awareness of the carbon footprint, modernization of construction, efficient conveyance and other related factors.

Owing to these tailwinds and TPC’s efficiency in related service offerings, it is witnessing a boost in its mass transit project wins. During the second-quarter 2025 earnings call, the company highlighted major upcoming project opportunities, including $12 billion Sepulveda Transit Corridor project, $3.8 billion Southeast Gateway line project and the $1.2 billion Valley Link Phase 1 rail project, all of which are situated in California. Besides, it also has project opportunities for a $1.4 billion I-535 Blatnik Bridge project in Minnesota and significant Indo-Pacific opportunities fueled mainly by the U.S. Defense Department's Pacific Deterrence Initiative.

Through the Civil and Building segments, Tutor Perini facilitates the execution of transit and related projects. Moving forward, the company remains optimistic about the possible opportunities for these segments, ensuring a strong bidding pipeline over the next several years. The key markets include the West Coast, the Midwest and the Indo-Pacific region. As of June 30, 2025, TPC’s total backlog grew year over year by 102% to a record high of $21.1 billion, anchored by mega-projects in transit besides healthcare and defense infrastructure.

The company is indeed surrounded by diversified risks in the form of tariffs, inflated expenses and funding uncertainties. However, its strategic bidding approach and focus on higher-margin projects amid favorable market fundamentals are expected to boost its revenue visibility over time.

TPC Stock’s Price Performance vs. Other Market Players

Shares of this California-based general contracting company have surged 158.4% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

Moreover, firms like Fluor Corporation FLR and Granite Construction Incorporated GVA offer substantial competition to Tutor Perini in the public infrastructure field, especially across mission-critical, transit and healthcare infrastructure solutions. In the past six months, shares of Fluor and Granite have gained 14.6% and 41.6%, respectively.

TPC’s Discounted Valuation

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 (P/E) ratio of 14.89. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.

Notably, Fluor and Granite are currently trading at a forward 12-month P/E ratio of 18.4 and 15.96, respectively.

EPS Trend of TPC

For 2025, TPC’s earnings estimates have trended upward in the past 60 days, while those for 2026 have gone up over the past 30 days. The revised estimated figures for 2025 and 2026 imply year-over-year growth of a whopping 220.8% and 22.5%, respectively.

The analysts’ sentiments are likely to have been bullish for TPC, attributable to increased public infrastructure demand and its ability to capitalize on those opportunities, driving its backlog. 

Tutor Perini stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research