Tutor Perini surges 4% on Q4 beat, raises 2026 guidance
Construction giant posts record cash flow and 10% backlog growth in dramatic turnaround year
Tutor Perini Corporation shares jumped more than 4% on Thursday after the construction contractor reported fourth-quarter earnings that topped analyst estimates and raised its outlook for 2026, capping a remarkable turnaround year for the company.
The Sylmar, California-based builder reported adjusted earnings per share of $1.07 for the fourth quarter of 2025, well ahead of the $0.89 expected by Wall Street analysts, according to the company's earnings release distributed via Business Wire. Revenue reached $1.51 billion, beating the consensus estimate of $1.38 billion by 8.9%.
The strong performance marked a dramatic recovery for a company that lost $3.13 per share in 2024. Full-year 2025 adjusted EPS came in at $1.51, representing a complete reversal from the prior year's losses. Operating cash flow hit a record $748 million, up 49% year-over-year, while the company reduced its debt burden by 24%.
"Our fourth quarter and full-year results demonstrate the successful execution of our strategic plan," Tutor Perini executives stated in the earnings release. The company's turnaround has been driven by improved project execution, disciplined cost management, and stronger margins across its core construction segments.
Looking ahead, management raised its 2026 guidance for adjusted earnings per share to a range of $4.90 to $5.30, well above current analyst expectations. The company forecast double-digit revenue growth for the year, supported by a robust project pipeline.
The company's backlog, a key indicator of future revenue for construction companies, grew 10% to $20.6 billion at the end of 2025, providing strong visibility for the coming year. Tutor Perini's diversified portfolio includes transportation infrastructure, commercial buildings, and specialty construction projects across public and private sectors.
The stock rally pushed Tutor Perini shares to near their 52-week high of $89.40, with the company now valued at approximately $4.5 billion. The stock has gained significant ground over the past year as investors responded to the operational improvements and strengthening balance sheet.
Analysts have taken notice of the turnaround, with four analysts currently rating the stock as a buy and a consensus price target of $91.50, according to market data. The company's forward price-to-earnings ratio of 12.9 suggests investors are pricing in continued earnings momentum into 2026.
Institutional investors control 79.1% of Tutor Perini's shares, while insiders hold 16.2%, indicating strong conviction from major stakeholders. The company's quarterly earnings growth of 23.4% and revenue growth of 30.7% year-over-year through the most recent quarter underscore the accelerating momentum in the business.
The construction sector has benefited from increased infrastructure spending and government investment programs, though the industry faces ongoing challenges from labor shortages and elevated material costs. Tutor Perini's ability to deliver record cash flow and expand its backlog despite these headwinds has positioned the company as an outperformer in the construction and engineering space.
For 2026, investors will be watching the company's progress on the higher earnings guidance and its ability to convert the $20.6 billion backlog into profitable revenue while maintaining the strong cash generation that characterized the 2025 turnaround.