Tutor Perini Corporation's TPC subsidiary, Fisk Electric Company, secured the initial phase of a $147 million electrical contract for a new Harris Health hospital at the Lyndon B. Johnson Hospital campus in Houston, TX. The initial phase, valued at around $29 million, is awarded by McCarthy Building Companies, Inc.

Per the contract, Fisk Electric’s work involves electrical and fire alarm installations for the core and shell, along with tenant finish-out for the new hospital tower and podium. The 12-story facility, part of Harris Health’s project, is expected to open by late 2028 and will include 390 private rooms. It will have the potential to expand with 60 additional rooms if required.

The project work is set to begin in fourth-quarter 2024, with the electrical contract expected to reach substantial completion by fourth-quarter 2028. The initial portion of the contract was added to Tutor Perini’s backlog in third-quarter 2024, with future phases to be added as they are awarded.

Contract Wins Strengthen TPC's Prospects

Owing to this robust growth trend, the TPC stock has surged 196.9% in the year-to-date period compared with the Zacks Building Products - Heavy Construction industry’s 77.7% growth. Tutor Perini’s efficient project execution, diversified delivery methods and services have aided it in bagging new contracts and awards consistently. This is the company's primary growth driver, which adds to its backlog level and determines its long-term growth prospects in this everchanging economy.

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At the end of June 30, 2024, the company’s backlog was $10.42 billion, up sequentially from $9.98 billion and from $10.16 billion on Dec. 31, 2023. TPC’s new awards and contract adjustments in second-quarter 2024 included the $1.3-billion Connecticut River replacement bridge project for Amtrak, the $216-million airport terminal connector project at Fort Lauderdale International Airport, $144 million of additional funding for certain mass transit projects in California and the $136-million I-64 Bridge and Highway Project in the Midwest for Lunda Construction.

TPC is optimistic about its bidding pipeline as it witnesses several active opportunities on large projects, thanks to substantial government funding and limited competition for many larger projects. The company anticipates its backlog to grow notably during the second half of 2024 and in 2025, given the fair share of various large project opportunities.

TPC’s Zacks Rank & Other Key Picks

TPC currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Zacks Construction sector include:

Sterling Infrastructure, Inc. STRL sports a Zacks Rank #1 (Strong Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for STRL’s 2024 sales and earnings per share (EPS) indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.

Howmet Aerospace Inc. HWM presently carries a Zacks Rank #2. HWM has a trailing four-quarter earnings surprise of 10.9%, on average.

The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.

M-tron Industries, Inc. MPTI currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.

The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.