Tutor Perini’s (NYSE:TPC) Q1: Strong Sales, Stock Jumps 18.5%

General contracting company Tutor Perini (NYSE: TPC) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 18.8% year on year to $1.25 billion. Its GAAP profit of $0.53 per share was significantly above analysts’ consensus estimates.

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Company Overview

Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.

Sales Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Tutor Perini struggled to consistently increase demand as its $4.52 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and is a poor baseline for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Tutor Perini’s annualized revenue growth of 11.9% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Tutor Perini reported year-on-year revenue growth of 18.8%, and its $1.25 billion of revenue exceeded Wall Street’s estimates by 16.7%.

Looking ahead, sell-side analysts expect revenue to grow 13.4% over the next 12 months, an improvement versus the last two years. This projection is healthy and suggests its newer products and services will spur better top-line performance.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Tutor Perini was roughly breakeven when averaging the last five years of quarterly operating profits, inadequate for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

Analyzing the trend in its profitability, Tutor Perini’s operating margin decreased by 10 percentage points over the last five years. Tutor Perini’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Although Tutor Perini’s full-year earnings are still negative, it reduced its losses and improved its EPS by 17.1% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Tutor Perini, its two-year annual EPS growth of 14% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q1, Tutor Perini reported EPS at $0.53, up from $0.30 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Tutor Perini’s full-year EPS of negative $2.88 will flip to positive $2.03.

Key Takeaways from Tutor Perini’s Q1 Results

We were impressed by how significantly Tutor Perini blew past analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 18.5% to $28 immediately after reporting.

Indeed, Tutor Perini had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.