Tutor Perini Corporation (TPC): A Bull Case Theory 

We came across a bullish thesis on Tutor Perini Corporation on Monte Independent Investment Research’s Substack by Monte Investments. In this article, we will summarize the bulls’ thesis on TPC. Tutor Perini Corporation’s share was trading at $64.22 as of September 15th. TPC’s forward P/E was 13.33 according to Yahoo Finance.

Tutor Perini Corporation (NYSE: TPC) has faced a tumultuous history, grappling with legal disputes, cost overruns, supply chain issues, and near-bankruptcy in 2008. However, the company has successfully turned operations around, posting two consecutive quarters of positive net earnings, supported by a growing backlog and robust project pipeline. TPC is a leading engineering, procurement, and construction (EPC) firm based in Sylmar, California, formed from the 2008 merger of A.G. Tutor Company and Perini Corporation, and has expanded its capabilities and geographic reach through acquisitions such as Fisk Electric, Superior Gunite, and Lunda Construction.

The company offers end-to-end construction services, including general contracting, pre-construction planning, project management, and self-performing work in earthwork, concrete, steel erection, electrical, mechanical, plumbing, HVAC, and fire protection. Operations are organized into three segments: Civil, Building, and Specialty Contractors, with Civil accounting for 51% of revenue and delivering a trailing EBITDA margin of 10%.

As of Q2 2025, TPC reported a $21.1 billion backlog, up 102% year-over-year, driven by $5.1 billion in contract awards during the first half, including major projects such as the Midtown Bus Terminal in New York, Sepulveda Transit Corridor, Valley Link Phase 1, and multiple light rail and bridge projects across the U.S. This robust pipeline has enabled management to raise FY25 guidance from $2.45–$2.80 per share to $3.65–$3.95 per share, reflecting a 45% increase. TPC has strengthened its balance sheet with a net cash position of $107 million, reduced debt by 21% year-over-year, and implemented equity-settled awards to improve long-term profitability. Additionally, potential benefits from the One Big Beautiful Bill Act may further enhance margins through bonus depreciation on tangible assets.

Despite risks including tariff uncertainty, interest rates, and project execution challenges, TPC is significantly undervalued at 0.68x price-to-sales versus peer averages of 1.87x. With margin-accretive revenue growth, continued backlog conversion, and operational improvements, the stock presents a compelling investment opportunity, with potential upside toward $91 per share under conservative multiple assumptions and even higher if margin expansion continues.

Previously we covered a bullish thesis on Everus Construction Group, Inc. (ECG) by Unemployed Value Degen in April 2025, which highlighted the company’s strong tailwinds in power grid expansion, growing backlog, attractive valuation, and potential for strategic acquisitions. The company’s stock price has appreciated approximately by 111.37% since our coverage. The thesis still stands as ECG continues to benefit from infrastructure growth. Monte Investments shares a similar focus but emphasizes TPC’s large-scale backlog and operational turnaround.

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Disclosure: None.