Tutor Perini is forecasting major growth in 2026 and 2027 as megaproject activity accelerates across its portfolio and its backlog approaches $20 billion.
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The heavy civil contractor said during its first-quarter earnings call that even without securing additional contracts, the company expects the next two years to deliver exceptional financial performance. The company currently holds major roles on infrastructure developments including the $16 billion Hudson Tunnel project in New York and segments of California’s high-speed rail program.
“We are actually doing some data center work on the specialty side and we are exploring ways to expand that currently,” Gary Smalley, president and CEO, said during the call. “We want to make sure that we don’t give up the core market because we know one day that — who knows how long down the road that will be, whether it’s five years or 10 years down the road — that the data center work at some point in time probably won’t be there, at least not as strong as it is now.”
The company’s comments come as contractors across the United States continue pursuing opportunities tied to artificial intelligence and hyperscale data center development, one of the fastest-growing segments in nonresidential construction.
Tutor Perini said it is actively pursuing several high-profile infrastructure opportunities that could further strengthen its already substantial backlog.
Among the projects the company identified are the $7 billion Penn Station Transformation project in New York City and the $1.4 billion I-535 Blatnik Bridge project in Minnesota, with a contractor selection expected in June. The company is also preparing bids for another multibillion-dollar section of California’s high-speed rail system and the approximately $1 billion I-69 ORX Section 2 bridge project connecting Indiana and Kentucky.
Additional opportunities include the $12 billion Sepulveda Transit Corridor Program in Southern California and roughly $4 billion in military infrastructure improvements across the Indo-Pacific region, including work at Naval Base Guam.
“If we didn’t book any more work, ’27 is going to be a blowout year, as is ’26,” Smalley said.
Despite the optimistic outlook, company executives began the earnings call on a somber note following the deaths of six crew members aboard the cargo vessel Mariana, which capsized in April during Super Typhoon Sinlaku near Saipan. Two of those individuals were Tutor Perini employees.
“It’s an unimaginable loss for all of us,” Smalley said.
The company also addressed a nearly $175 million judgment related to construction issues and delays involving the W and Element hotels project in Philadelphia. Tutor Perini was awarded the project in 2015, and the hotel opened in 2021. The developer later filed suit against the contractor over alleged concrete defects and schedule delays.
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“We strongly disagree with the ruling and firmly believe it does not reflect the merits of the case,” Smalley said, adding that the company plans to appeal the decision, a process that could continue for several years.
Financially, Tutor Perini reported first-quarter revenue of $1.4 billion, an 11% increase compared with the same period a year earlier. Backlog totaled $19.8 billion, supported by approximately $670 million in new awards and contract adjustments during the quarter.
Major additions to backlog included $186 million for the Eagle Mountain Casino Phase 2 Expansion project in California, $97 million for a healthcare project entering construction and roughly $66 million tied to two mass-transit projects.
The company posted net income of $25.7 million for the quarter, down 8% year over year, which executives attributed primarily to share-based compensation expenses.
Originally reported by Joe Bousquin, Senior Editor in Construction Dive.
