LOS ANGELES - Tutor Perini (NYSE:TPC) Corporation, in partnership with Nan, Inc., has secured a $330.6 million contract from the Naval Facilities Engineering Systems Command, Marianas, to undertake repairs and modernization at Apra Harbor, Naval Base Guam. This design-build project aims to restore the Glass Breakwater and waterfront areas damaged by storms, including Typhoon Mawar in May 2023.
The project's initial phase will focus on mending the three most severely damaged sections of the Glass Breakwater to reduce future risks. The contract also contains nine optional tasks, which, if executed, could raise the total value by up to $230 million. These options include additional repairs to the breakwater and restoration of the inner harbor shoreline.
Tutor Perini, the primary partner in this joint venture, will manage the operations through its Guam-based subsidiary, Black Construction Corporation, with Nan, Inc. contributing as a 30% partner.
Design work for the Apra Harbor Waterfront Repairs Project is set to commence immediately, with physical construction expected to start in August 2025 and reach substantial completion by July 2029. The base contract's value will be listed in Tutor Perini's fourth-quarter 2024 backlog, and any subsequent options will be added as they are awarded.
Tutor Perini Corporation is known for delivering large-scale construction projects on time and within budget, with a history dating back to 1894. The company offers a wide range of services, including general contracting and design-build services, to clients around the world.
This news is based on a press release statement.
In other recent news, Tutor Perini Corporation disclosed its expectations of a record operating cash flow for 2024, ranging from $425 million to $575 million. The robust cash position will be utilized to prepay a portion of its Term Loan B debt. Despite forecasting a net loss for the third quarter due to resolved disputes, the company anticipates a return to profitability in 2025. Furthermore, Tutor Perini’s backlog is projected to hit a new high of approximately $14 billion as of September 2024, a 35% increase from the previous quarter.
In other developments, Tutor Perini's subsidiary, Fisk Electric Company, has secured a $29 million phase of a larger $147 million contract for the new Harris Health hospital in Houston, Texas. This project is set to commence in the fourth quarter of 2024 and aims for completion by the fourth quarter of 2028.
On the financial front, Tutor Perini reported a 10% increase in consolidated revenue for the second quarter of 2024, with the company's Civil segment showing robust profitability. However, the company has also been implicated in a hacking case involving British national Robert Westbrook, who allegedly used insider information to trade stocks before earnings were made public. Despite this, Tutor Perini maintains a $10.4 billion backlog and anticipates substantial growth in the latter half of 2024 and into 2025.
InvestingPro Insights
The recent $330.6 million contract win by Tutor Perini Corporation (NYSE:TPC) aligns with the company's strong market position and growth trajectory. According to InvestingPro data, TPC's revenue growth stands at 12.79% for the last twelve months as of Q2 2023, with quarterly revenue growth of 10.35% in Q2 2023. This new contract is likely to contribute positively to future revenue figures.
InvestingPro Tips highlight that TPC's net income is expected to grow this year, which could be bolstered by this significant project. Additionally, the tip indicating that analysts predict the company will be profitable this year suggests a potential turnaround from its current negative earnings per share of -$1.30.
The company's valuation metrics are intriguing, with a price-to-book ratio of 1.06, suggesting the stock might be undervalued relative to its assets. This could be particularly relevant given the substantial contract win, which may enhance the company's book value over time.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for TPC, providing a deeper understanding of the company's financial health and market position.
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