Tutor Perini(US:TPC) ZACKSยท2025-05-23 11:16Core Viewpoint - Tutor Perini Corp. has exceeded earnings expectations for Q1 2025 and raised its full-year earnings guidance, driven by a record-high construction backlog and strong project execution [1][10]. Financial Performance - In Q1 2025, Tutor Perini reported earnings of $0.53, surpassing the Zacks Consensus Estimate by 783%, which was only $0.06 [3]. - Revenue increased by 19% to $1.25 billion from $1.05 billion in the same period last year, primarily due to higher-margin projects [4]. - The company repaid $121.9 million of its Term Loan B, resulting in a 24% reduction in total debt compared to the end of 2024 [5]. Backlog and New Contracts - Tutor Perini's backlog reached a record $19.4 billion as of March 31, 2025, up 94% from the end of Q1 2024, following $2 billion in new awards and contract adjustments [6][7]. - Significant new contracts include the $1.18 billion Manhattan Tunnel project and additional funding for various projects in Texas, Guam, and California [7]. Future Outlook - The company raised its full-year earnings guidance to a range of $1.60 to $1.95, up from $1.50 to $1.90 [10]. - Earnings for 2026 and 2027 are expected to more than double compared to 2025, with the Zacks Consensus for 2026 rising to $2.87, indicating further growth of 56% [11]. Market Performance - Tutor Perini's shares have reached new 5-year highs, outperforming the Russell 2000 small cap index year-to-date [12]. - The company is attractively priced with a forward P/E ratio of 19.3, a P/S ratio of 0.4, and a P/B ratio of 1.6, indicating potential value [14].