Does Solid Infrastructure Demand Support TPC's Project Visibility?

Tutor Perini Corporation TPC is capitalizing on the surge in infrastructure demand emerging across various sectors. With a broad portfolio of construction and civil projects, the company is well-aligned with national priorities that emphasize upgrading and expanding critical infrastructure. This solid demand environment not only offers substantial opportunities for large-scale developments but also supports long-term project visibility.

In the first quarter of 2025, the company secured $2 billion in new awards and contract adjustments, highlighting its ongoing success in winning major project opportunities. As a result, the backlog reached a record high of $19.4 billion as of March 31, 2025, representing a 94% increase compared with the prior year. 

The company continues to see strong demand for its services, supported by well-funded state, local and federal customers planning large-scale, high-priority infrastructure projects over the next several years. Additionally, commercial sector demand remains healthy, particularly in areas like healthcare, education, hospitality and gaming, where new construction and renovation projects are actively progressing. Tutor Perini expects the backlog to stay strong in 2025, with more than $500 million in new awards already secured in the second quarter.

Owing to solid year-to-date performance and sustained market demand, the company has raised its 2025 earnings guidance. Looking ahead, as governments and private entities continue to prioritize essential infrastructure improvements, Tutor Perini’s diversified capabilities position it strongly to capture growth and capitalize on upcoming infrastructure and commercial opportunities.

Other Industry Players Poised to Gain From Robust Infrastructure Demand

As infrastructure demand continues to accelerate, companies like EMCOR Group, Inc. EME and Granite Construction Incorporated GVA are well-positioned to capture growth opportunities across critical sectors.

EMCOR is benefiting significantly from rising infrastructure demand, particularly within the network and communications sector, driven by data center growth. This surge is fueled by expanding artificial intelligence applications and accelerating digital transformation efforts. Strong public infrastructure spending in the United States further supports EMCOR’s growth prospects. Backed by sustained demand, the company has provided a positive 2025 outlook, expecting year-over-year growth across both revenues and earnings.

Granite is experiencing opportunities across both public and private markets, thanks to the rising wave of infrastructure demand. This demand backdrop continues to create a steady pipeline of high-quality projects that align with the company’s growth and margin objectives. The company's Committed and Awarded Projects (“CAP”) totaled $5.7 billion in the first quarter of 2025, reflecting 3.6% year-over-year growth from $5.5 billion. Going forward, Granite is focusing on growing a high-quality CAP portfolio on the back of a positive public funding environment and a resilient private market.

TPC’s Price Performance, Valuation & Estimates

Shares of Tutor Perini have gained 63.2% in the past three months compared with the Zacks Building Products - Heavy Construction industry’s growth of 21.6%.

From a valuation standpoint, TPC trades at a forward 12-month price-to-earnings ratio of 18.55X, down from the industry’s 19.23X.

Tutor Perini’s earnings estimates for 2025 and 2026 have trended upward in the past 60 days by 14.4% to $1.75 per share and 10.8% to $3.09, respectively. The estimated figures for 2025 and 2026 indicate 155.9% and 76.6% year-over-year growth, respectively.
 

Tutor Perini 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