Tutor Perini Bets on Large-Scale Projects: Is Execution a Risk?

Tutor Perini Corporation TPC is leaning heavily into mega projects as a core growth driver, banking on multi-billion-dollar civil and building contracts to sustain momentum. The company recently secured landmark awards, including the $1.87 billion Midtown Bus Terminal Replacement in New York and several large-scale California transit initiatives, helping push its backlog to a record $21.1 billion.

This strategy has clear advantages. Larger projects often carry higher margins, greater visibility and limited competition. Management highlighted that fewer bidders are pursuing these massive undertakings, giving Tutor Perini a competitive edge. With civil segment margins now reaching the 12-15% range, the company sees a multi-year runway of profitability.

Yet the reliance on mega projects introduces a key risk, execution. Large, complex infrastructure efforts can face delays, regulatory obstacles and cost overruns. Tutor Perini has made progress in reducing its “costs in excess of billings” to an eight-year low and stresses careful project setup under executive chairman Ron Tutor’s oversight. Still, management’s own guidance reflects contingencies for slower ramp-ups or legal setbacks.

For investors, the story is a balance between scale-driven opportunity and execution risk. With record operating cash flow and improving margins, Tutor Perini appears well-positioned to benefit from the infrastructure build-out. But the true test will be how effectively the company delivers on its ambitious pipeline without stumbling on the complexities that come with such outsized projects.

Competitors in the Mega-Project Arena

Two notable competitors that often cross paths with Tutor Perini in large-scale infrastructure projects are Fluor Corporation FLR and AECOM ACM.

Fluor is a global engineering and construction giant with expertise spanning energy, infrastructure and government contracts. Like Tutor Perini, it targets mega projects, but Fluor has faced execution challenges in recent years, leading to tighter risk management. Its diversified portfolio, however, provides insulation against delays in any one project, a contrast to Tutor Perini’s more concentrated bets on civil infrastructure.

AECOM, meanwhile, positions itself as both a design and construction powerhouse. This gives it an edge in integrated project delivery. The firm’s global scale and emphasis on environmental and sustainable infrastructure projects align with long-term government priorities. Compared with Tutor Perini, AECOM’s broad geographic footprint reduces exposure to regional funding risks.

Both peers highlight that while mega projects offer scale and profitability, execution discipline remains the industry’s defining challenge.

TPC Stock’s Price Performance & Valuation Trend

Shares of this California-based general contracting company have gained 127.3% 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 14.22.

P/E (F12M)

TPC’s earnings estimates have remained stable in the past 30 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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