Tutor Perini Corporation’s TPC 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.
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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).
Here are some better-ranked stocks from the Construction sector.
Advanced Drainage Systems, Inc. WMS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
WMS delivered a trailing four-quarter earnings surprise of 30.5%, on average. The stock has risen 29.9% in the past year. The Zacks Consensus Estimate for WMS’ fiscal 2025 sales and earnings per share (EPS) indicates growth of 5.1% and 12.2%, respectively, from the prior-year reported levels.
Arcosa, Inc. ACA currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 43.9%, on average. Shares of ACA have risen 5.1% in the past year.
The consensus estimate for ACA’s 2024 sales and EPS implies growth of 15.2% and 10.8%, respectively, from the prior-year reported levels.
Louisiana-Pacific Corporation LPX presently carries a Zacks Rank #2 (Buy). LPX delivered a trailing four-quarter earnings surprise of 18.6%, on average. The stock has gained 7.1% in the past year.
The Zacks Consensus Estimate for LPX’s 2024 sales and EPS indicates an improvement of 17% and 79.8%, respectively, from a year ago.
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Free: See Our Top Stock and 4 Runners Up >>Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Tutor Perini Corporation (TPC) : Free Stock Analysis Report
Arcosa, Inc. (ACA) : Free Stock Analysis Report
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