Tutor Perini Corporation’s (TPC Quick QuoteTPC - Free Report) subsidiary, Perini Management Services, Inc., has won the Alcatraz Island Historic Structures Stabilization and Rehabilitation Project from the National Park Service.

Valued at about $48.6 million, the scope of the project includes mitigating hazardous materials in the exterior walls and interior construction areas, repairing concrete spalls, replacing deteriorated steel reinforcement, strengthening unreinforced concrete foundation walls, repairing and stabilizing exterior windows, and installing storm windows.

The project is located in the San Francisco Bay and expected to offer a safe facility for about 1.4 million annual visitors and staff. The successful execution of the project will help expand the building's ability to resist seismic forces and resolve aging and weather-related impacts on the exterior walls.

This stabilization and rehabilitation project is expected to begin in July 2024 and conclude by the summer of 2027.

Contract Wins Drive Growth

Tutor Perini’s efficient project execution, diversified delivery methods, and services have aided it in bagging new contracts and awards consistently. This is the company's primary growth driver, which adds to its backlog level, thus determining its long-term growth prospects in this everchanging economy.

As of Mar 31, 2024, consolidated new awards to TPC were $872.8 million, up 13.8% from $766.7 million reported a year ago. The uptrend was primarily driven by the increased new award activity in the Building and Civil segments. A few significant new awards and contract adjustments in the first quarter include a $243 million healthcare facility project in California; a $73 million airport hangar project in Florida; $66 million of additional funding for several other healthcare projects in California; $55 million for three U.S. Navy projects in Diego Garcia; and $52 million of additional funding for three mass-transit projects in California.

Image Source: Zacks Investment Research

Shares of this civil, building, and specialty construction company surged 135.8% in the year-to-date period, outperforming the Zacks Building Products - Heavy Construction industry’s 49.3% growth. Tutor Perini remains optimistic about its bidding pipeline as it witnesses several active opportunities on large projects, thanks to substantial government funding and limited competition for many of the larger projects.

Zacks Rank & Key Picks

Tutor Perini currently carries a Zacks Rank #3 (Hold).

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