Tutor Perini vs. AECOM: Which Construction Stock is the Better Buy?

Sraddha Singha September 28, 2026

ACM TPC

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Key Takeaways

Tutor Perini's backlog stands at $19.9B, with a project pipeline exceeding $200B.
TPC raised 2026 adjusted EPS guidance to $5.15-$5.45 as margins and execution improve.
AECOM cut fiscal 2026 free-cash-flow guidance to about $300M from $400M amid project pressures.

Tutor Perini Corporation (TPC - Free Report) and AECOM (ACM - Free Report) are two major U.S. construction and infrastructure companies competing for large-scale civil and building projects. The market is currently benefiting from multi-year public infrastructure spending trends, creating opportunities for the future, but near-term risks persist.

Tutor Perini offers diversified general contracting, construction management and design-build services to private clients and public agencies globally. Meanwhile, AECOM is a solutions provider offering professional, technical and management services across diverse industries and end markets.

Let’s compare the fundamentals of the two construction stocks to determine which is the better investment now.

The Case for Tutor Perini Stock

Tutor Perini is currently witnessing numerous growth opportunities across civil infrastructure, buildings and specialty contracting projects. Its near-record $19.9 billion backlog provides substantial revenue visibility and positions it to benefit from sustained infrastructure spending. The company also benefits from large-scale projects tied to grid modernization, transportation, defense infrastructure and data centers. Its pipeline has expanded to more than $200 billion, offering significant opportunities for future backlog replenishment. The nine mega-projects secured in recent years, worth approximately $16 billion collectively, should support growth as execution ramps up.

TPC is demonstrating meaningful margin improvement as higher-margin mega-projects ramp up and execution strengthens. The Civil segment generated a 15.3% operating margin in the second quarter of 2026, above the company’s 12-15% target range, while Building margin improved to 5.6%, near the upper end of its 3-6% target. Most notably, the Specialty Contractors segment recovered to a 2.2% margin from a negative 10.2% margin a year ago, reflecting improving execution in New York and Texas electrical and mechanical projects. Lower corporate expenses, reduced interest costs and potential contingency releases from mega-projects could provide additional earnings leverage.

Owing to the growing contributions from newer, higher-margin mega-projects, improved operating margins and expectations for continued strong cash generation, TPC raised its 2026 earnings outlook. The company now expects adjusted EPS to be $5.15-$5.45, from $4.90-$5.30, with management expecting 2027 adjusted EPS to be substantially above the upper end of the revised 2026 range, supported by the nearly $20 billion backlog and increasing project activity.

Although execution and backlog-conversion risks remain key concerns for Tutor Perini, robust market trends and its stronger balance sheet are enhancing financial flexibility while creating opportunities to return capital to shareholders. During the second quarter of 2026, TPC repurchased approximately 137,000 shares for $10 million and raised its quarterly dividend by 50% to nine cents.

The Case for AECOM Stock

AECOM is benefiting from the Infrastructure Investment and Jobs Act (IIJA), the One Big Beautiful Bill and ongoing "resharing" initiatives, which are creating new opportunities with several years of visibility ahead. However, the near-term risks are creating growth hurdles for the company. The company is facing substantial near-term cash-flow pressure from its troubled Construction Management projects, which had slower-than-anticipated project starts primarily because subcontractor productivity fell below expectations. The project’s expected completion moved from the first quarter to the second quarter of fiscal 2027, highlighting execution and cost-control risks in complex projects. Management specifically cited slower ramp-up of new Construction Management wins and a delayed convention-center project in Texas. Americas NSR declined 29% year over year in the third quarter of fiscal 2026, mainly due to the construction-management charge.

ACM also has another design-build P3 project outstanding, although its completion schedule remains unchanged. The company has since tightened risk controls and exited this type of P3 work, but the existing projects remain a near-term drag. Additionally, the Middle East conflict continues to weigh on activity, particularly tourism and hospitality-related markets, with management expecting the impact to persist into the fourth quarter of fiscal 2026.

Owing to these underlying pressures, AECOM reduced its fiscal 2026 NSR guidance to $7.30-$7.35 billion, while guidance excluding the charge implies flat year-over-year growth, indicating limited near-term top-line momentum. The company also lowered its free-cash-flow guidance from $400 million to approximately $300 million in fiscal 2026, while estimating roughly $500 million of additional cash impact during the first two quarters of fiscal 2027.

As ACM derives roughly 50% of its revenues from government entities, alterations in regulations and procurement policies, alongside geopolitical risks, make its revenue visibility vulnerable. Government agencies can modify, curtail or terminate contracts, and tariffs, trade policies, inflation, currencies and interest rates can affect project economics. Slower appropriations or procurement decisions could delay awards and revenue conversion despite the company’s record backlog.

Stock Performance & Valuation

As witnessed from the chart below, in the year-to-date period, Tutor Perini’s share price performance has outperformed AECOM’s share price performance and the broader Construction sector.