TPC

Why Did Tutor Perini Stock Drop Today?

Key Points

Leading civil construction firm Tutor Perini (NYSE: TPC) stock slid 7.5% through 10:05 a.m. ET Friday morning despite beating analyst forecasts for both sales and earnings last night.

Heading into the company's Q4 report, analysts forecast Tutor Perini would earn only $0.62 per share on sales of $1.35 billion. In fact, Tutor earned $1.07 per share, and its sales surpassed $1.5 billion.

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Tutor Perini Q4 earnings

Tutor Perini's sales surged 41% year over year in Q4, and earnings flipped from a year-ago loss to a profit this time around. Profit per share wasn't really $1.07 -- that was a non-GAAP number. But Tutor still made tremendous improvement in reporting earnings calculated under generally accepted accounting principles (GAAP) of $0.54 per share.

For the full year, Tutor grew its sales 28% to a new annual record of $5.5 billion. 2025 GAAP earnings were $1.51 per share for the year (again, versus a loss last year). Operating cash flow also set a new record for Turo, and free cash flow came in at $567.3 million, up 22% from $466.1 million a year ago.

Is Tutor Perini stock a sell?

So why is Tutor Perini stock down today? Honestly, I could not tell you.

Turning to guidance, Tutor Perini forecast it will earn between $4.90 and $5.30 per share (non-GAAP) in 2026. Taken at the midpoint, that represents 19% year-over-year growth from 2025. What's more, Tutor's entire earnings guidance range exceeds the $4.82 per share that Wall Street has been anticipating.

Although the stock looks a little expensive at 55x GAAP earnings today, Tutor stock trades for only 16.3 times pro forma profits -- and less than 7.7 times trailing free cash flow.

I think this stock is a buy.

Should you buy stock in Tutor Perini right now?

Before you buy stock in Tutor Perini, consider this:

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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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