Tutor Perini Corporation (TPC Quick QuoteTPC - Free Report) has gained 29% in the past month (since the release of its second-quarter 2025 earnings on Aug. 6), significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

This California-based general contracting company’s second-quarter 2025 adjusted earnings of $1.41 per share and revenues of $1.37 billion topped the Zacks Consensus Estimate by 386.2% and 11.6%, respectively. Year over year, the metrics rose 315% and 22%, respectively, driven by ongoing favorable demand for infrastructure projects, supported by robust federal and state funding initiatives in the United States. 

Moreover, new higher-margin project opportunities, particularly in its Civil and Building segments, alongside selective bidding strategies, are supporting the long-term revenue visibility and profitability structure of the company. Additionally, TPC’s solid liquidity position and clearing out debts are noteworthy aspects, which are not to be missed.

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Let us dive into understanding the factors that are driving Tutor Perini’s momentum.

Solid Market Opportunities

The increased public spending scenario in the United States is driving project wins for Tutor Perini across several infrastructure projects, primarily through its Civil and Building segments. Amid favorable market dynamics, its strategic bidding approach (seeking projects having limited competition, favorable contract terms and higher margins) is what is catalyzing the growth in new project opportunities. As of June 30, 2025, the company’s total backlog grew year over year by 102% to a record high of $21.1 billion.

During the second quarter of 2025, TPC highlighted a few significant new awards and contract adjustments. It included the Midtown Bus Terminal Replacement Phase 1 project in New York, valued at $1.87 billion; a healthcare project in California, at $538 million; and two civil works projects in the Midwest, totaling $127 million. In California, it received additional funding of $90 million and $54 million for two separate projects: a mass-transit project and another healthcare project, respectively. For the long term, TPC remains optimistic about its strong backlog position and expects to execute strategic bidding for various project opportunities in 2025 and beyond, which is anticipated to drive shareholder value.

Raised Bottom-Line View

Driven by increased project execution activities on certain newer, higher-margin projects amid a favorable market scenario, TPC once again raised its 2025 GAAP and adjusted earnings per share (EPS) outlook. It now expects GAAP EPS in the range of $1.70-$2.00 (up from the previous range of $1.60-$1.95), with adjusted EPS expected in the range of $3.65-$3.95 (up from $2.45-$2.80). Additionally, the company is optimistic that its GAAP and adjusted EPS for 2026 and 2027 will exceed the upper end of the revised guidance for 2025.

Strong operating performance and contributions from higher-margin projects in the Civil and Building segments are what boost confidence in the company. Tutor Perini highlights that many new major higher-margin projects across these two segments are currently in the initial stage, which are expected to drive substantial growth, profitability and cash flow in the long term as the project execution activities continue.

Strong Liquidity Position

Owing to the strong leverage from top-line growth and other favorable in-house efforts, Tutor Perini ended the second quarter of 2025 with cash and cash equivalents and restricted cash of $526.1 million and $21 million, respectively. These values indicate growth from $455.1 million and $9.1 million as of the end of 2024. Moreover, as of June 30, 2025, its long-term debt (less current maturities) was $393.3 million, down from $510 million as of 2024-end.

The company currently has sufficient liquidity to meet its short-term obligations of $26.1 million. Since 2024, TPC has been making notable efforts to substantially reduce its debt obligations and use its free cash for business growth and to ensure shareholder value. The chart below showcases the declining rate of long-term debt over the past year.

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Tutor Perini’s Market Competition

Tutor Perini faces strong competition in the U.S. civil and building infrastructure market, particularly from large diversified peers such as Jacobs Solutions, Inc. (J Quick QuoteJ - Free Report) , Fluor Corporation (FLR Quick QuoteFLR - Free Report) and Granite Construction Incorporated (GVA Quick QuoteGVA - Free Report) .

Jacobs Solutions is widely recognized for its engineering and consulting expertise, offering clients a broad spectrum of design, advisory and construction management services across multiple end markets. Fluor, on the other hand, has built its brand as one of the largest engineering, procurement and construction firms globally, with significant exposure to oil and gas, chemicals and energy transition projects. However, their wide-ranging focus sometimes dilutes emphasis on U.S. transportation, transit and large civil works. Notably, Granite Construction focuses heavily on U.S. civil projects, particularly roads, highways, and water-related infrastructure, competing directly with Tutor Perini in the domestic market.

While Jacobs Solutions frequently emphasizes its consulting expertise and Fluor focuses on global energy markets, Tutor Perini’s infrastructure-centric approach has allowed it to secure marquee U.S. projects. Against Granite Construction, Tutor Perini leverages its greater size and broader portfolio, enabling it to take on larger, more technically demanding projects. Although J, FLR and GVA remain formidable competitors, TPC’s specialized expertise and consistent success in project wins provide it with a clear competitive advantage in the civil and infrastructure space.

EPS Estimate Trends of TPC

For 2025 and 2026, TPC’s earnings estimates have trended upward in the past 30 days by 106.6% and 28.9%, respectively. The revised estimated figures for 2025 and 2026 imply year-over-year growth of a whopping 220.8% and 4.9%, respectively.

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The analysts’ sentiments are likely to have been bullish for TPC, attributable to increased public infrastructure demand and its ability to capture new project opportunities, driving its backlog growth.

TPC’s Discounted Valuation

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 15.62. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.

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Is It Still Worth Adding TPC to the Portfolio?

As discussed above, strong backlog growth, thanks to favorable infrastructure spending trends in the United States and its strategic focus on high-value Civil and Building projects, has favorably positioned Tutor Perini to capture long-term revenue streams and ensure project growth. Besides, the firm’s emphasis on higher-margin projects and disciplined bidding strategies has guided it toward the upward revision in 2025 EPS guidance.

Additionally, a robust earnings momentum and a discounted valuation further enhance the attractiveness of TPC.

Analysts’ optimism regarding TPC stock is reflected in all five recommendations, pointing to a "Strong Buy”, representing 100% of all recommendations.

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Overall, strong fundamentals, expanding backlog, improving margins and favorable technical indicators make this current Zacks Rank #1 (Strong Buy) stock an appealing buy for investors seeking exposure to U.S. infrastructure growth. You can see the complete list of today’s Zacks #1 Rank stocks here.