We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Tutor Perini Capitalize on Federal Transit Spending Surge?
Read MoreHide Full Article
Key Takeaways
TPC backlog hit $21.1B in June 2025, up 102% year over year, led by major transit and defense projects.
Key project bids include the $12B Sepulveda Corridor and $3.8B Southeast Gateway transit lines.
Tutor Perini's earnings estimates rose, with 2025 growth projected at 220.8% and 2026 growth at 22.5%.
Tutor Perini Corporation (TPC - Free Report) is banking on the growing federal transit spending in the United States, which is expected to continue for the next few years. The surge in spending on transit infrastructure is due to growing awareness of the carbon footprint, modernization of construction, efficient conveyance and other related factors.
Owing to these tailwinds and TPC’s efficiency in related service offerings, it is witnessing a boost in its mass transit project wins. During the second-quarter 2025 earnings call, the company highlighted major upcoming project opportunities, including $12 billion Sepulveda Transit Corridor project, $3.8 billion Southeast Gateway line project and the $1.2 billion Valley Link Phase 1 rail project, all of which are situated in California. Besides, it also has project opportunities for a $1.4 billion I-535 Blatnik Bridge project in Minnesota and significant Indo-Pacific opportunities fueled mainly by the U.S. Defense Department's Pacific Deterrence Initiative.
Through the Civil and Building segments, Tutor Perini facilitates the execution of transit and related projects. Moving forward, the company remains optimistic about the possible opportunities for these segments, ensuring a strong bidding pipeline over the next several years. The key markets include the West Coast, the Midwest and the Indo-Pacific region. As of June 30, 2025, TPC’s total backlog grew year over year by 102% to a record high of $21.1 billion, anchored by mega-projects in transit besides healthcare and defense infrastructure.
The company is indeed surrounded by diversified risks in the form of tariffs, inflated expenses and funding uncertainties. However, its strategic bidding approach and focus on higher-margin projects amid favorable market fundamentals are expected to boost its revenue visibility over time.
TPC Stock’s Price Performance vs. Other Market Players
Shares of this California-based general contracting company have surged 158.4% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
Moreover, firms like Fluor Corporation (FLR - Free Report) and Granite Construction Incorporated (GVA - Free Report) offer substantial competition to Tutor Perini in the public infrastructure field, especially across mission-critical, transit and healthcare infrastructure solutions. In the past six months, shares of Fluor and Granite have gained 14.6% and 41.6%, respectively.
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 14.89. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.
Image Source: Zacks Investment Research
Notably, Fluor and Granite are currently trading at a forward 12-month P/E ratio of 18.4 and 15.96, respectively.
EPS Trend of TPC
For 2025, TPC’s earnings estimates have trended upward in the past 60 days, while those for 2026 have gone up over the past 30 days. The revised estimated figures for 2025 and 2026 imply year-over-year growth of a whopping 220.8% and 22.5%, respectively.
Image Source: Zacks Investment Research
The analysts’ sentiments are likely to have been bullish for TPC, attributable to increased public infrastructure demand and its ability to capitalize on those opportunities, driving its backlog.
Image: Bigstock
Can Tutor Perini Capitalize on Federal Transit Spending Surge?
Key Takeaways
Tutor Perini Corporation (TPC - Free Report) is banking on the growing federal transit spending in the United States, which is expected to continue for the next few years. The surge in spending on transit infrastructure is due to growing awareness of the carbon footprint, modernization of construction, efficient conveyance and other related factors.
Owing to these tailwinds and TPC’s efficiency in related service offerings, it is witnessing a boost in its mass transit project wins. During the second-quarter 2025 earnings call, the company highlighted major upcoming project opportunities, including $12 billion Sepulveda Transit Corridor project, $3.8 billion Southeast Gateway line project and the $1.2 billion Valley Link Phase 1 rail project, all of which are situated in California. Besides, it also has project opportunities for a $1.4 billion I-535 Blatnik Bridge project in Minnesota and significant Indo-Pacific opportunities fueled mainly by the U.S. Defense Department's Pacific Deterrence Initiative.
Through the Civil and Building segments, Tutor Perini facilitates the execution of transit and related projects. Moving forward, the company remains optimistic about the possible opportunities for these segments, ensuring a strong bidding pipeline over the next several years. The key markets include the West Coast, the Midwest and the Indo-Pacific region. As of June 30, 2025, TPC’s total backlog grew year over year by 102% to a record high of $21.1 billion, anchored by mega-projects in transit besides healthcare and defense infrastructure.
The company is indeed surrounded by diversified risks in the form of tariffs, inflated expenses and funding uncertainties. However, its strategic bidding approach and focus on higher-margin projects amid favorable market fundamentals are expected to boost its revenue visibility over time.
TPC Stock’s Price Performance vs. Other Market Players
Shares of this California-based general contracting company have surged 158.4% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
Moreover, firms like Fluor Corporation (FLR - Free Report) and Granite Construction Incorporated (GVA - Free Report) offer substantial competition to Tutor Perini in the public infrastructure field, especially across mission-critical, transit and healthcare infrastructure solutions. In the past six months, shares of Fluor and Granite have gained 14.6% and 41.6%, respectively.
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 14.89. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.
Image Source: Zacks Investment Research
Notably, Fluor and Granite are currently trading at a forward 12-month P/E ratio of 18.4 and 15.96, respectively.
EPS Trend of TPC
For 2025, TPC’s earnings estimates have trended upward in the past 60 days, while those for 2026 have gone up over the past 30 days. The revised estimated figures for 2025 and 2026 imply year-over-year growth of a whopping 220.8% and 22.5%, respectively.
Image Source: Zacks Investment Research
The analysts’ sentiments are likely to have been bullish for TPC, attributable to increased public infrastructure demand and its ability to capitalize on those opportunities, driving its backlog.
Tutor Perini stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.