Can Civil Segment Growth Power Tutor Perini's Next Phase?

Tutor Perini Corporation TPC delivered one of its strongest quarters in recent history, with the Civil segment taking center stage. In second-quarter 2025, Civil revenues surged 34% year over year to $734 million, while income from operations nearly doubled to $140 million. Margins in this segment reached 19.1%, a level that management now expects to hold in the 12-15% range, well above historical averages.

The Civil business is being fueled by a record $21.1 billion backlog, with transit, rail and infrastructure projects leading the charge. Major awards such as the Midtown Bus Terminal replacement in New York and Midwest civil works contracts are positioning TPC to sustain growth for years. Importantly, management emphasized that new higher-margin projects are still in early phases, meaning revenue and profit contributions should accelerate as execution ramps up.

This momentum is particularly significant given the broader U.S. infrastructure push. With federal and state funding for transit and bridge projects on the rise, Tutor Perini appears well-placed to capture a disproportionate share. Limited competition in large-scale bidding further enhances its outlook.

The key question for investors is whether this Civil-led surge can sustain momentum into the next phase of growth. With margins trending higher and project pipelines robust, Tutor Perini appears well-positioned. However, execution risks and the cyclical nature of large-scale infrastructure remain factors to monitor.

Competing in the Civil Infrastructure Arena

While Tutor Perini’s Civil segment is powering ahead, competition in the large-scale infrastructure space remains significant. Two notable peers are AECOM ACM and Fluor Corporation FLR.

AECOM, a global leader in engineering and project management, has been winning key U.S. infrastructure and transit projects. The company’s integrated design-build model positions it strongly in areas like transportation modernization and federal-funded initiatives. Unlike TPC, which leans heavily on construction execution, AECOM’s consulting and design capabilities give it earlier influence in project lifecycles.

Fluor Corporation, meanwhile, shares TPC’s focus on large, complex civil and industrial projects. Its recent wins in transportation and energy infrastructure mirror the scale of TPC’s mega-projects. Fluor Corporation also benefits from diversified exposure to energy transition and defense-related work, offering some insulation from construction cyclicality.

Together, these competitors highlight the high stakes and opportunities in the civil construction space, where TPC’s execution strength will be tested.

TPC Stock’s Price Performance & Valuation Trend

Shares of this California-based general contracting company have gained 131% in the past year, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

Price Performance

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 13.91.

P/E (F12M)

TPC’s earnings estimates have remained stable in the past 60 days for 2025 and 2026. However, the estimated figures for 2025 and 2026 imply year-over-year growth of a whopping 220.8% and 22.5%, respectively.

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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