Will Tutor Perini be Able to Sustain Its 77% EPS Growth in 2025?

Tutor Perini Corporation TPC is benefiting from increased project execution activities backed by the robust public infrastructure spending market in the United States. Owing to this robust backlog trend, the company has been able to focus on bidding for projects that have favorable contract terms, limited competition and higher margins. In the first quarter of 2025, its earnings per share (EPS) grew 77% year over year to 53 cents, with revenues up 19% to $1.25 billion.

Together with Platt Construction, its Guam-based subsidiary, TPC managed to capture four recent multiple-award construction contract opportunities, with a combined contract capacity of more than $32 billion over the next eight years. The company ended the quarter with a backlog of $19.4 billion, up 94% year over year, reflecting $2 billion of new awards and contract adjustments made during the quarter. During its first quarter of 2025 earnings call, Tutor Perini highlighted that, unlike last year's quarter, it had minimal to no collections related to dispute resolutions, which runs in favor of its revenue visibility and cash flow growth in 2025 and beyond.

With the market remaining in its favor and a record backlog position, TPC raised its 2025 EPS guidance to the range of $1.60-$1.95 (up from the previous range of $1.50- $1.90), reflecting significant growth from a loss per share of $3.13 reported in 2024. Besides, the company is optimistic that its EPS will more than double in 2026 and 2027 compared with the 2025 renewed guidance, backed by the favorable market fundamentals.

EPS Trend Favors Tutor Perini

The analysts’ sentiments are bullish for Tutor Perini, attributable to increased public infrastructure demand and its ability to capture those opportunities in its favor, driving its backlog. For 2025 and 2026, TPC’s earnings estimates have trended upward in the past 60 days to $1.75 per share and $3.09, respectively. The estimated figures reflect 155.9% and 76.6% year-over-year growth, respectively.

Moreover, per our model, EPS estimates for the second, third and fourth quarters indicate 52.6%, 122.4% and 133.8% year-over-year growth, respectively. The robust trend indicates that the company will be able to maintain or rather outperform its EPS growth streak for the remainder of 2025.

EPS Trends for Other Market Players

TPC shares space with renowned market players, including AECOM ACM and KBR, Inc. KBR, which seem to be benefiting from the market backdrop of strong public infrastructural demand.

AECOM is a Texas-based company, offering integrated services for planning, construction and maintenance of infrastructures across end markets like transportation, facilities, government, as well as those in environmental, energy and water businesses. For fiscal 2025 and 2026, AECOM’s EPS estimates trended upward in the past 60 days by 2% to $5.15 and $5.73, indicating 13.9% and 11.2% year-over-year growth, respectively.

KBR is a global engineering, construction and services firm supporting the market segments of global energy and international government services. For 2025 and 2026, KBR’s EPS estimates trended downward in the past seven days by 0.3% to $3.86 and 0.7% to $4.28, respectively. However, the estimated figures indicate 15.6% and 10.9% year-over-year growth, respectively.

TPC Stock’s Price Performance & Valuation Trend

Shares of this California-based general contracting company have soared 79% so far this year, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

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 18.14X. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors. That said, in the long term, the valuation could move toward a premium, given the strong market fundamentals backing the company’s revenue visibility and profitability.

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

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

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