Tutor Perini Corporation (TPC) research, news, and more from GeoInvesting

Company description

Mon, 18 Jul 2016 15:28:39 GMT

Tutor Perini Corporation, formerly Perini Corporation, is a construction company offering general contracting, construction management and design-build services to private customers and public agencies. The Company operates through three segments. The Civil segment specializes in public works construction and the repair, replacement and reconstruction of infrastructure. The civil contracting services include construction and rehabilitation of highways, bridges and mass-transit systems. The Building segment provides services to a range of building markets for private and public works customers, including the residential, hospitality and gaming, transportation, healthcare, commercial and government offices, education, biotech, pharmaceutical and industrial markets. The Specialty Contractors segment specializes in electrical, mechanical, plumbing and fire protection systems. It also offers a range of civil and building construction projects in the industrial and commercial markets.

Research

Thu, 06 Aug 2026 04:00:00 GMT

Tutor Perini Corporation (NYSE:TPC) ($84.55; 4.45B market cap) announced Q2 2026 results:

Q2 sales of $1.64 billion vs. $1.37 billion in the prior year, ahead of analyst estimates of $1.57 billion
Q2 2026 adjusted EPS: $1.74 vs. $1.41 in the prior year, ahead of analyst estimates of $0.87
Backlog was $19.9 billion at June 30, 2026, supported by approximately $1.7 billion of second-quarter awards and contract adjustments.
The company raised 2026 adjusted EPS guidance to $5.15–$5.45 from $4.90–$5.30.
Management expects 2027 adjusted EPS to substantially exceed the upper end of increased 2026 guidance.
July refinancing is expected to reduce annual senior-note interest expense by approximately $21 million and more than doubled revolving credit capacity.

Management Commentary:

“We delivered outstanding results for the second quarter of 2026, highlighted by record revenue and operating income, record first half operating cash generation and, importantly, meaningfully and sequentially improved operating margins across all segments. Because of these strong results and our favorable outlook, we are raising our full-year 2026 adjusted EPS guidance to $5.15 to $5.45 and increasing our quarterly dividend by 50%,” remarked Gary Smalley, Tutor Perini's Chief Executive Officer and President.

“Tutor Perini's business momentum continues to grow as we advance work on our megaprojects, enabling us to demonstrate the durable growth and earnings power of our near-record backlog,” added Mr. Smalley. “We expect that this backlog, together with our pipeline of prospective opportunities that has never been larger, will continue to translate into significantly higher revenue and earnings in 2026 and beyond. All combined, we strongly believe Tutor Perini today is a more compelling value investment opportunity than at any other point in our storied history.”

Our Quick Take:

This was an operational blowout. Record revenue, and all three segments expanded margins sequentially, with Specialty swinging from a (10%) loss to +2.2% and Civil/Building both stepping up. Considering the debt refinancing, raised guidance, the 50% dividend bump, and the S&P SmallCap 600 inclusion, it is clear TPC is firing on every cylinder. The 2027 EPS anchor also got upgraded to "substantially higher than $5.45."

However, there are some caveats surrounding management. @MicrocapDr spent some time reading the actual Ventana ruling and found that the court held TPC concealed its knowledge of the concrete defects in bad faith and then tried to shift blame to Ventana. Yet across the release, the 10-Q, and the call, management disclosed the favorable item (the July 7 appeal filing) while omitting the adverse $42.4M July 1 judgment entirely.

What makes this more than a one-off is who signed it. Gary Smalley (current CEO) isn't an outsider; he was CFO from 2015 and personally certified every filing that built this position, including the W/Element project's entire life (2015–2021), during which TPC booked its expected recovery as revenue while, per the court, knowing it had caused the defects. The CFO who authored the accounting is now the CEO certifying its omissions.

To be fair to Smalley, since gaining operational control, he has cleaned house: disputes down from 50 to about a dozen, Alaskan Way fully resolved, and a deliberate 2024 decision to take $152M of charges to convert stale disputed balances into $180M of cash.

Our core concern is that even though TPC is firing on all cylinders today, a loss on the W/Element appeal would mean a $217M cash outflow plus a write-off of the recovery still carried as an asset. This would not kill the business; cash flow and backlog are genuinely strong, but the unreserved liability, combined with a management team that recognizes disputed revenue early and adverse rulings late, is exactly what keeps TPC from earning the higher multiple its operations would otherwise deserve.

Tutor Perini Corporation provides general contracting, construction management, and design-build services for civil infrastructure, building, and specialty contracting projects.

Research

Tue, 19 May 2026 15:37:25 GMT

This morning, we’re featuring MS Microcaps’ Cliff Note on Tutor Perini Corporation (NYSE:TPC) (From the Cliff Notes Substack), a timely follow-up to a name we had just added to our Data Center Tracker after management introduced data center work as an emerging specialty opportunity on the Q1 2026 call.

The Cliff Note now gives Pro members a cleaner, deeper look at why Tutor Perini Corporation (NYSE:TPC) remains interesting beyond the headline theme, including its infrastructure backlog, valuation setup, and the possibility that data center exposure becomes a more meaningful part of the story.

You can read that here.

As previously mentioned, we will be on average featuring at least one new Cliff Note from the Substack to GeoInvesting every month, especially if we are actively covering the stock on our Model Portfolios and Screens.

Research

Wed, 13 May 2026 18:23:32 GMT

We are adding Tutor Perini Corporation (NYSE:TPC) to our Data Center Tracker after an InfoArb Tear Sheet review of the company surfaced a potentially underappreciated data center angle that was discussed on the call but absent from the press release.

Management introduced data center work as an emerging specialty opportunity, giving TPC possible indirect exposure to AI/data center infrastructure that investors may not currently associate with the company.

The broader call also strengthened the setup, with the Midtown Bus Terminal opportunity representing roughly $1 billion of additional finished-trades backlog potential and management framing 2027 as a potential “blowout year,” suggesting a more meaningful growth narrative than the headline results alone captured. The Midtown Bus Terminal is a Port Authority Bus Terminal replacement project in Midtown Manhattan, a major New York infrastructure redevelopment of the aging bus terminal near Times Square.

Tutor Perini is a large civil, building, and specialty construction contractor focused on complex infrastructure, transportation, public works, gaming, healthcare, military, and large commercial projects. Its revenue is driven by long-duration construction contracts, especially “megaprojects” that can run for several years and generate revenue as work progresses.

Research

Mon, 24 Oct 2016 15:25:55 GMT

TPC ($19.20) announced a senior note offering via a press release this morning. At the same time the company reported preliminary results for its upcoming quarter in an 8-K filed with the SEC; we are still awaiting the release. TPC missed estimates on both and top and bottom lines. The 8-K says

Revenue. Management estimates revenue for the three months ended September 30, 2016 to be approximately $1.33 billion, consistent with revenue of $1.34 billion for the third quarter of 2015.
Net Income. Management estimates net income for the three months ended September 30, 2016 to be approximately $28.8 million, an increase of 46.2% compared to net income of $19.7 million for the third quarter of 2015. Net income for the third quarter of 2015 was impacted by a non-cash, pre-tax charge of $23.9 million ($13.8 million after tax), which the Company recorded for an adverse legal decision related to a long-standing litigation matter.

We had initial concerns about our TPC position due to the Glasshouse short article on the company. With Muddy Waters Research coming out critical of the company recently and poor preliminary results, we have decided to unwind the small position in the company that we owned.

Research

Wed, 03 Aug 2016 14:42:09 GMT

TPC ($24.71) On July 26, 2016 we stated we were taking a small position in TPC when the stock was trading at $24.52. While we stated we hate taking positions without having a chance to speak with management, we nibbled a small pre earnings position. While the Company missed both top and bottom lines, it maintained full year guidance . We may look to add on pullback if market overreacts to this earnings report. Hopefully now that the company’s quiet period is over we will have more success in securing a management interview.

Yesterday, after the close, TPC reported Q2 2016results:

Sales of $1.3 billion vs $1.3 billion in the prior year and below analyst estimates of $1.4 billion
Non-GAAP EPS of $0.45 vs $0.24 in the prior year but below analyst estimates of $0.51
Maintained full year guidance of sales to be $5.1 to $5.6 billion and EPS of $1.90 to $2.20, analyst estimate for full year 2016 sales are $5.3 billion and $2.08 in EPS.

Quotes from management:

“Our second quarter results reflect improved profitability in our Civil and Building segments, strong revenue growth in our Building segment and reduced corporate overhead expenses,” remarked Ronald Tutor, Chairman and Chief Executive Officer. “We expect even stronger operating performance in the second half of this year as several large, complex civil and building projects progress and contribute more of their respective profits. We have made good progress to date in reducing our unbilled costs and look forward to continuing to collect the substantial cash we are owed during the balance of the year.”

Investors should note, that a short thesis report was published by GlassHouse Research on 3/17/2016. The stock was trading at $15 at the time of the report, and has since rallied to new highs. We will look into the allegations of this report.

Research

Tue, 26 Jul 2016 14:55:22 GMT

Taking Small Long Position in TPC

Although we hate buying stock in a company without interviewing management pre-earnings, we plan on taking a chance with TPC due to strong commentary in press releases and conference call. Furthermore, we love that the company’s main driver of profit is coming from the “Rebuilding the U.S.” infrastructure theme that we’re familiar with and have followed for months now.

We are taking a very small position into earnings as we continue to try and secure an interview with management and construct valuation scenarios.

TPC ($24.52) - On July 13, 2016, wealerted you via premium tweet that we are in the early stages of our due diligence process on TPC and added it to ourinfrastructure screen. We have still been unsuccessful in securing an interview with management but here is our initial take on the story.

TPC is a general contracting, construction management and design-build services business that is well- diversified and has worldwide reach. The company operates in three segments:

Civil – public works construction and repair, replacement, and reconstruction of infrastructure including highways, bridges, mass transit systems, and water treatment and wastewater treatment facilities.
Building – serves specialized building markets including hospitality and gaming, transportation, healthcare, offices, sports and entertainment venues, educational, correctional facilities, etc.
Specialty Contractors – provides electrical, mechanical, plumbing, HVAC, fire protection systems, etc., services to industrial, commercial, hospitality and other markets.

Reasons for tracking:

Riding the rebuilding of the U.S. infrastructure theme: The Civil segment is what has piqued our interest. During the three year period 2013 -2015, Civil generated only 37% of total revenue but 78% of operating income. In 2015, Civil accounted for 38% of TPC’s $4.9 billion revenue and 92% of operating income. Civil is therefore the segment that drives TPC’s profitability. Not only does the Civil segment generate the majority of TPC’s operating income, but it also has the strongest tailwinds behind its business. The recently passed $305B 5-year federal highway bill will greatly boost the already robust opportunities for the Civil segment. Further, both political parties in the ongoing U.S. presidential campaign have stressed the need to aggressively address the country’s crumbling infrastructure.

All Segments are contributing to the topline: It is not just the Civil segment that has strong prospects, an investorpresentation in May 2016 gives an upbeat outlook for TPC’s business segments with a $36 billion bid pipeline over the next 12-18 months including Civil, $21 billion, Building, $13 billion and Specialty Contracting, $3 billion. Demonstrating management ability to close on opportunities, the company wasawarded a $100 Million Contract for Expansion Project at The Cordish Companies’ Maryland Live! Casino in June 2016.
Volatility in margins are being addressed: Also of note, the company is addressing a key factor that has contributed to its historically volatile margins and profits and, therefore, a relatively low P/E ratio. Management emphasized in theQ1 2016 CC that they are, “intensely focused on resolving numerous claims and unapproved change orders as well as billing and collecting other unbilled amounts which will allow us to convert these unbilled costs to cash.” Those efforts are paying dividends and should lead to improved cash flow and more stable and predictable margins in the future. Comments from Q1 2016 TPC conference call:

“We’re starting to see considerable traction in our efforts as we have made very good progress in the first quarter of 2016. Our cost in estimated earnings and excess of billings declined by nearly $50 million during the quarter, the largest quarterly reduction we’ve had in more than eight years. In addition and certainly influenced by the reduction in our unbilled cost balance, we generated $60 million of operating cash for the quarter, our strongest operating cash flow for any first quarter in the last eight years.”

Analyst estimates are strong: After a prolonged period of inconsistent quarterly growth in EPS analyst estimates have the company growing YoY on a quarterly basis for the next 6 quarters.

Comments from Q1 2016 conference call were decidedly strong

“Our civil business just remains very strong and without naming any specific projects, because I don’t want any of our owners to think we might getting unjustly enrich. Our civil business is from a margin standpoint as well as the backlog doing better than we’ve ever done, it’s going remarkably well and I think we’re going to see ramped up revenue and the profit that goes with it.

I think it’s safe to say without divulging too much to our competitors that there is no question we have increased our margins. Competition in the very large work is limited to say the least. We’re getting ready to propose on a $1.5 billion tunnel and subway job in Los Angeles, there is only two other bidders. We think we have an excellent opportunity. We are quoting on $1 billion job that seems all over the country. And very candidly in the civil business as I’ve said before, there are very, very few contracts in the U.S. that can both financially and physically take on these very large projects.

I think with that highway bill we’re looking about a year before it hits us in the significant opportunity and then usually months thereafter you see backlog increase for all of us that do that type of work.

As a result of the large new awards mentioned as well as various others, our backlog increased 9% sequentially to a new record of $8.2 billion. The largest it has been since the third quarter of 2008. Our book-to-burn ratio was strong at 1.6% and our backlog composition now stands at 41% civil, 35% building and 24% specialty. So nearly two thirds of our backlog continues to be comprised of higher margin civil and specialty work. Strong backlog and large volume of perspective work continues to support a favorable long-term outlook for growth in profitability.

Valuation:

We think that TPC should currently trade at a minimum PE of 15X its forward earnings estimates, or $32.85. However, we think there is a good chance that shares can command a PE of 20X to 25X on 2016 earnings by the time year end numbers are released. This would translate into price targets ranging from $41.60 to $52.

Caveat:

Volatility in margins
Estimates are highly contingent upon the company winning its share of contracts
Again, we have yet to interview management, a key part of our due diligence process

Research

Wed, 13 Jul 2016 14:51:30 GMT

TPC ($25.12) - Yesterday, via premium tweet we stated:

“On the heels of strong performance of $NVEE pick, we are adding $TPC to our infrastructure screen as we begin our due diligence.”

We are in the early stages of our diligence process, but have added TPC to our infrastructure screen due to analyst estimates calling for solid revenue and EPS gains for the next 7 quarters. The Company has been crushing estimates the last several quarters. With $5 billion in revenue, TPC is similar to a large cap version of NVEE in that one of the company's segments (40%) is benefiting from the rebuild of the U.S. infrastructure.