Tutor Perini (TPC), Black Construction JV Wins $74M Contract

A joint venture (“JV”) between Tutor Perini Corporation TPC and its subsidiary, Black Construction Corporation, won a $74.4 million Child Development Center contract at Andersen Air Force Base, Guam. The contract was awarded by the U.S. Naval Facilities Engineering Systems Command, Pacific District.

Per the terms of the contract, the JV will engage in the construction of a Child Development Center facility with privately owned vehicle parking. The facility will house a single-story, reinforced concrete building, consisting of child development spaces, core administration, staff support, facility support spaces, outdoor storage, activity spaces and incidental related work.

The construction work for the facility is expected to begin this summer and end by 2026. Furthermore, this contract’s value will be considered under Tutor Perini’s backlog from the second quarter of 2024.

Consistent Contract Wins Bode Well

Tutor Perini’s efficient project execution, diversified delivery methods and services have aided it in bagging new contracts and awards consistently. This is the primary growth driver of the company that adds to its backlog level, thereby determining the 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 an additional $52 million funding for three mass-transit projects in California.

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.

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Owing to the growing demand for its services, shares of this civil, building and specialty construction company rose 141.3% in the year-to-date period, outperforming the Zacks Building Products - Heavy Construction industry’s 61.2% growth.

Zacks Rank & Other Key Picks

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

Here are a few other top-ranked stocks from the Construction sector.

Owens Corning OC currently sports a Zacks Rank of 1. OC delivered a trailing four-quarter earnings surprise of 17.4%, on average. The stock has risen 63.8% in the past year.

The Zacks Consensus Estimate for OC’s 2024 sales and earnings per share (EPS) indicates growth of 16% and 7.4%, respectively, from the prior-year reported levels.

PulteGroup, Inc. PHM currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 12.5%, on average. PHM's shares have surged 70.3% in the past year.

The consensus estimate for PHM’s 2024 sales and EPS indicates an improvement of 7.9% and 10%, respectively, from the prior-year reported levels.

Dycom Industries, Inc. DY presently sports a Zacks Rank of 1. DY delivered a trailing four-quarter earnings surprise of 30.2%, on average. The stock has risen 77.9% in the past year.

The Zacks Consensus Estimate for DY’s fiscal 2024 sales and EPS indicates an improvement of 9.3% and 3.4%, respectively, from the year-ago levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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