Black Construction-Tutor Perini Joint Venture Awarded $113.3 Million P-541 Missile Integration Test Facility in Guam

Rhea-AI Summary

Tutor Perini (NYSE: TPC) has announced that its joint venture with subsidiary Black Construction has been awarded a $113.3 million contract by the Naval Facilities Engineering Systems Command, Pacific. The project involves constructing the P-541 Missile Integration Test Facility at Naval Base Guam, part of the Pacific Deterrence Initiative.

The scope includes building a 57,664 square-foot concrete structure with missile processing spaces, a test cell, administration area, and storage rooms. The project also entails demolishing an existing building and implementing site improvements. The facility will be equipped with modern systems including air conditioning, telecommunications, and fire protection.

Work is set to begin soon, with completion expected in December 2028. The contract value has been added to Tutor Perini's backlog in the third quarter of 2024.

Positive

• Secured a $113.3 million contract for a strategic military project
• Project added to company's backlog in Q3 2024, boosting future revenue visibility
• Long-term project with completion expected in 2028, providing steady work flow

Negative

• None.

Insights

Construction Industry Analyst

This $113.3 million contract award for the P-541 Missile Integration Test Facility in Guam is a significant win for Tutor Perini and its joint venture partner. The project's scope, including a 57,664 square-foot structure with specialized missile processing spaces, demonstrates the company's capability to handle complex military infrastructure projects. The contract's addition to TPC's backlog in Q3 2024 strengthens its future revenue stream, with work expected to span until December 2028. This long-term project provides stable cash flow and showcases TPC's expertise in high-security government contracts. The Pacific Deterrence Initiative context suggests potential for similar future projects, which could benefit TPC's long-term growth prospects in the defense sector. Investors should note the project's strategic importance and its potential to enhance TPC's reputation for handling sensitive military construction projects.

Defense Sector Analyst

The award of this $113.3 million contract to Tutor Perini underscores the ongoing investment in the Pacific Deterrence Initiative, reflecting the U.S. military's focus on strengthening capabilities in the Indo-Pacific region. The Missile Integration Test Facility's construction at Naval Base Guam is a critical component of this strategy. For investors, this project signals potential growth in defense-related construction contracts, particularly in strategic Pacific locations. The facility's advanced features, including missile test cells and specialized processing spaces, indicate a long-term commitment to missile defense systems in the region. This contract not only benefits TPC but also points to a broader trend of increased defense spending that could create opportunities for companies in the construction and defense sectors. The project's 5-year timeline suggests a stable, long-term revenue source for TPC, potentially improving investor confidence in the company's future earnings stability.

LOS ANGELES--(BUSINESS WIRE)-- Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that the Company, in a joint venture with its subsidiary, Black Construction Corporation, has been awarded a contract valued at approximately $113.3 million by the Naval Facilities Engineering Systems Command, Pacific, for the P-541 Missile Integration Test Facility at Naval Base Guam. The scope of work for this project, under the Pacific Deterrence Initiative, includes construction of the test facility, comprised of a single-story concrete 57,664 square-foot structure on a deep pile foundation. The test facility will support missile processing spaces, a missile test cell with test control room, an administration area and storage and utility rooms. The scope of work also includes demolition of an existing building, associated site improvements and all other necessary supporting facilities. The new facility will include complete plumbing, air conditioning and ventilation, lighting and electrical power, telecommunications, life safety and fire protection systems, emergency power generator and associated fuel tank.

Work is expected to begin shortly with substantial completion anticipated in December 2028. The contract value was added to the Company’s backlog in the third quarter of 2024.

About Tutor Perini Corporation

Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private customers and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large, complex projects on time and within budget, while adhering to strict quality control measures. We offer general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of manpower, equipment, materials and subcontractors required for a project. We also offer self-performed construction services including site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing and heating, ventilation and air conditioning (HVAC).

View source version on businesswire.com: https://www.businesswire.com/news/home/20241002435954/en/

Tutor Perini Corporation

Jorge Casado, 818-362-8391

Vice President, Investor Relations and Corporate Communications

www.tutorperini.com

Source: Tutor Perini Corporation

FAQ

What is the value of the contract awarded to Tutor Perini's joint venture for the Guam missile facility?

The contract awarded to the Black Construction-Tutor Perini Joint Venture for the P-541 Missile Integration Test Facility in Guam is valued at approximately $113.3 million.

When is the P-541 Missile Integration Test Facility project in Guam expected to be completed?

The project is expected to have substantial completion in December 2028.

What is the size of the new missile test facility being built by Tutor Perini (TPC) in Guam?

The new missile test facility will be a single-story concrete structure measuring 57,664 square feet.

In which quarter was the Guam missile facility contract added to Tutor Perini's (TPC) backlog?

The contract value was added to Tutor Perini's backlog in the third quarter of 2024.