Tutor Perini Corporation (TPC) is seeing growing traction in the healthcare construction space, a trend that is likely to support its record backlog and growth prospects. As of March 31, 2025, the company’s backlog was $19.4 billion, representing a 94% increase compared with the prior-year period. Recent healthcare-related awards and preconstruction activity indicate that the segment is poised to play a larger role in sustaining this momentum.
In the first quarter of 2025, Tutor Perini secured $111 million in additional funding for certain healthcare facility projects in California. Tutor Perini expects strong backlog visibility for the year, supported by healthy new award activity continuing into the second quarter. In the second quarter, the company secured funding for a $500 million healthcare project in California. The project was in preconstruction for the past year and now has advanced to the construction phase.
Another $1 billion healthcare project, currently in preconstruction, is expected to move forward in the near term. These developments highlight the ongoing momentum in healthcare bookings, including recent project wins and continued preconstruction activity in the segment.
The company noted that many building segment projects, including healthcare, are progressing steadily through preconstruction. The projects are expected to enter backlog over the coming quarters. The segment continues to benefit from a strong pipeline of large public and institutional work, reinforcing the potential for additional healthcare-related awards. As healthcare clients continue to fund major upgrades and new facilities, the company’s positioning in this sector is set to serve as a durable growth engine for backlog expansion.
Other Industry Players Tapping Healthcare Construction Demand
As Tutor Perini strengthens its position in healthcare construction, companies like EMCOR Group, Inc. (EME) and Comfort Systems USA (FIX) are also advancing in this growing segment.
EMCOR continues to see growing opportunity in healthcare construction through its mechanical and electrical services offerings. In the first quarter of 2025, the company saw revenue growth of 10.2% and 42.3% year over year in its mechanical and electrical construction segments, respectively. This performance was supported by increased activity in several markets, including healthcare.
As of March 31, 2025, EMCOR’s healthcare-related remaining performance obligations were $1.5 billion, up 38% year over year, indicating growing demand from hospitals and medical systems. With a diversified project pipeline and expanding geographic reach, EMCOR is well-positioned to support both new construction and upgrades in healthcare facilities.
Comfort Systems is also expanding its footprint in healthcare construction, aligning with sector trends that support steady, long-term demand. In the first quarter of 2025, the company noted that healthcare now represents approximately 10% of business, with the dollar value of activity rising alongside it. Institutional markets, including healthcare, education and government, contributed 24% of total revenues during the period, backed by stable demand and large, complex bookings. Comfort Systems’ depth of skilled labor and national scale position it well to capture healthcare-related mechanical and electrical contracts that require experienced teams and strong balance sheet capabilities.
TPC Stock’s Price Performance, Valuation & Estimate Trend
Shares of this California-based general contracting company have soared 98.6% so far this year, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
TPC Share Price Performance
Image Source: Zacks Investment Research
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 ratio of 19.62.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Tutor Perini’s 2025 and 2026 earnings implies a year-over-year uptick of 155.9% and 76.6%, respectively. The estimate for 2025 has remained unchanged in the past 30 days.
Image Source: Zacks Investment Research
Tutor Perini currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
