Why Tutor Perini's Pipeline Remains Resilient Despite Tariff Threats

While tariff headlines have reignited fears across the construction sector, Tutor Perini Corporation TPC appears well-insulated from near-term shocks. On its first-quarter 2025 earnings call, management addressed the potential impact of rising material costs tied to tariff risk, mainly in steel and equipment-heavy projects, and made it clear that the company’s bidding and procurement strategies are built for volatility.

Tutor Perini relies on a two-pronged approach. Before contracts are awarded, the bids include inflation contingencies and pricing buffers. Once a project is secured, Tutor Perini aggressively locks in fixed-price subcontracts and bulk material buyouts to shield margins. These practices have so far kept the company insulated from commodity price escalations, even in tariff-sensitive regions like New York.

Equally important is the company’s funding base. Most major projects in the backlog—now at a record $19.4 billion—are backed by state and local governments or are tied to long-committed federal infrastructure dollars. This includes multibillion-dollar transit and civil infrastructure initiatives across California and the Indo-Pacific, including Guam.

Rather than delay, Tutor Perini has seen an acceleration in some smaller projects as clients race to get ahead of potential cost increases. Backlog growth and continued project awards—such as the $1.18 billion Manhattan tunnel and a $500 million California healthcare facility—suggest no signs of pullback.

With a robust pipeline, sound project selection, and strong execution discipline, Tutor Perini appears well-positioned to weather tariff-related turbulence and continue building momentum through 2026 and beyond.

How TPC’s Peers Are Navigating Trade Pressures

Two key competitors—Granite Construction GVA and Fluor Corporation FLR—also face similar tariff-related headwinds but are responding with distinct strategies.

Granite Construction, like Tutor Perini, is heavily involved in civil infrastructure and public works. The company has emphasized fixed-price contract discipline and strategic sourcing to manage cost inflation. However, Granite has a greater concentration in materials-intensive operations, such as aggregates and asphalt, which could leave it more exposed to steel and fuel price volatility if tariffs escalate.

Fluor, a global EPC player, has diversified its risk through international operations and the use of modular construction techniques. While this gives it flexibility, Fluor’s global footprint could make it more vulnerable to shifting geopolitical and trade dynamics. In contrast, Tutor Perini’s U.S.-focused, federally backed pipeline offers greater visibility and protection.

Ultimately, while all three firms are navigating the same macro uncertainty, Tutor Perini’s selective backlog strategy and funding stability set it apart as the most tariff-resilient of the group.

TPC Stock’s Price Performance, Valuation & Estimate Trend

Shares of this California-based general contracting company have soared 99.1% so far this year, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

TPC Share Price Performance

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TPC’s current valuation looks promising for investors. The stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 19.88.

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Tutor Perini’s earnings estimates for 2025 and 2026 have trended upward in the past 60 days by 14.4% to $1.75 per share and 10.8% to $3.09, respectively. The estimated figures for 2025 and 2026 indicate 155.9% and 76.6% year-over-year growth, respectively.

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Tutor Perini currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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