Black Construction-Tutor Perini Joint Venture Awarded $38.3 Million P-324 9th Engineering Support Battalion Headquarters Project in Guam

Rhea-AI Summary

Tutor Perini (NYSE: TPC) and its subsidiary, Black Construction , have been awarded a $38.3 million contract for the P-324 9th Engineering Support Battalion Headquarters Project at Marine Corps Base Guam. The project, awarded by the Naval Facilities Engineering Systems Command, Pacific District, involves constructing low-rise facilities to support the 3rd Marine Expeditionary Force.

The scope includes building reinforced concrete structures with shallow foundations, featuring an administration building with offices, meeting rooms, and support spaces. Work is scheduled to begin in Q1 2025, with substantial completion expected by November 2026. The contract value will be added to Tutor Perini's backlog in Q3 2024.

Positive

• Secured a $38.3 million contract for a military construction project
• Project adds to the company's backlog, potentially improving future revenue visibility
• Demonstrates continued trust from military clients, potentially leading to future contracts

Negative

• Project start date is not until Q1 2025, delaying potential revenue recognition
• Contract value won't be added to backlog until Q3 2024, potentially impacting near-term financial metrics

Financial Analyst

The $38.3 million contract award to the Black Construction-Tutor Perini Joint Venture is a positive development for Tutor Perini (NYSE: TPC). This project will bolster the company's backlog, enhancing revenue visibility for 2025-2026. The contract's addition to the backlog in Q3 2024 suggests a healthy pipeline of future work. While the project's size is relatively modest compared to Tutor Perini's overall operations, it demonstrates the company's continued ability to secure government contracts, particularly in strategic locations like Guam. The extended timeline (Q1 2025 to November 2026) provides stable, long-term revenue, which is favorable for construction firms. However, investors should monitor potential risks such as cost overruns or delays, which are common in government projects.

Construction Industry Expert

This contract award showcases Tutor Perini's strength in military infrastructure projects. The scope, involving reinforced concrete structures and specialized facilities, aligns well with the company's expertise. The joint venture with Black Construction, a subsidiary, indicates effective leveraging of internal resources and local market knowledge in Guam. The project's connection to the Marine Corps and the 3rd Marine Expeditionary Force highlights its strategic importance, potentially leading to future opportunities in military construction. The 2025 start date allows ample time for planning and resource allocation, which could contribute to efficient execution. However, the relatively long lead time before project commencement means immediate financial impact will be , with benefits primarily realized in future periods.

Market Research Analyst

This contract win reinforces Tutor Perini's position in the government construction sector, a typically stable market segment. The project in Guam aligns with the U.S. military's ongoing strategic focus on the Indo-Pacific region, suggesting potential for additional contracts in this area. While the $38.3 million value is not transformative for a company of Tutor Perini's size, it contributes to a diversified project portfolio. The timing of the backlog addition in Q3 2024 may provide a modest boost to investor sentiment, as it demonstrates the company's ability to secure future work. However, the construction industry faces challenges such as labor shortages and material cost fluctuations, which could impact profitability. Investors should view this contract as a positive but incremental development in Tutor Perini's overall growth strategy.

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 by the Naval Facilities Engineering Systems Command, Pacific District, for the P-324 9^th Engineering Support Battalion Headquarters Project at Marine Corps Base Guam. The scope of work includes constructing low-rise facilities to support the 3^rd Marine Expeditionary Force, 9^th Engineering Support Battalion. Buildings will feature reinforced concrete structural frame walls, floor, roof and a concrete shallow foundation system. The administration building will include the battalion/squadron headquarters and company/battery headquarters, and will provide private and open offices, meeting rooms and miscellaneous support spaces. Work is expected to begin in the first quarter of 2025 with substantial completion anticipated in November 2026.

The contract value will be 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/20240912609448/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 (TPC) for the Guam project?

Tutor Perini (TPC) and its subsidiary, Black Construction , have been awarded a $38.3 million contract for the P-324 9th Engineering Support Battalion Headquarters Project at Marine Corps Base Guam.

When is the Guam project expected to begin and complete for Tutor Perini (TPC)?

The project is expected to begin in the first quarter of 2025, with substantial completion anticipated in November 2026.

What type of facilities will Tutor Perini (TPC) construct for the Guam project?

Tutor Perini (TPC) will construct low-rise facilities with reinforced concrete structural frame walls, floor, roof, and a concrete shallow foundation system. This includes an administration building with offices, meeting rooms, and support spaces.

When will the contract value be added to Tutor Perini's (TPC) backlog?

The contract value will be added to Tutor Perini's (TPC) backlog in the third quarter of 2024.