Five Star Electric Awarded $67 Million Systems Installation and Integration Package

Rhea-AI Summary

Tutor Perini Corporation (NYSE: TPC) announced that its subsidiary, Five Star Electric, has been awarded a $67 million project by the New York Metropolitan Transportation Authority for the Connection-Oriented Ethernet, Phase 3C project. The project involves the replacement of 150,000 feet of fiber optic cable, integrating 360 branch sites into MTA's network, and connecting existing service delivery switches and closed circuit television cameras at 125 stations. The work has commenced and is expected to be completed by late 2028.

Insights

Market Research Analyst

The announcement of Tutor Perini Corporation's subsidiary, Five Star Electric, securing a $67 million contract with the MTA is a significant development that merits attention from the perspective of market dynamics and competitive positioning. The infrastructure sector, particularly related to public transportation, is often influenced by government spending and policy changes. This project aligns with broader trends of infrastructure modernization and increased investment in public transit systems.

For investors, the inclusion of this contract in Tutor Perini's backlog suggests a positive impact on future revenue streams, providing a level of predictability and stability to the company's financial outlook. The contract's duration, with substantial completion expected in late 2028, also indicates sustained engagement and potential for follow-up work, which could further entrench the company within the New York infrastructure market.

Financial Analyst

The financial implications of the Connection-Oriented Ethernet, Phase 3C project for Tutor Perini are multifaceted. A contract of this magnitude can lead to an increase in the company's share price as it reflects the company's ability to secure large-scale projects. The long-term nature of the contract could also mean a steady cash flow, which is crucial for maintaining liquidity and funding ongoing operations.

However, investors should consider the risks associated with long-term projects, such as cost overruns, delays and potential changes in government contracts due to policy shifts. The project's completion timeline extending to 2028 also exposes the company to longer-term market risks, including economic downturns and shifts in the competitive landscape.

Technology Integration Specialist

The technical scope of the MTA project involves complex integration of fiber optic cables and the consolidation of various branch sites into a unified network. This is indicative of the MTA's commitment to leveraging advanced technology to enhance operational efficiency and service delivery. For Tutor Perini and Five Star Electric, it demonstrates their technical expertise and capacity to handle projects that are critical to the infrastructure of one of the world's busiest metropolitan transportation systems.

The project's focus on integrating closed circuit television cameras into existing security systems is particularly relevant in today's heightened security environment. This aspect of the project not only improves safety for commuters but also positions Five Star Electric as a capable provider in the increasingly important field of security and surveillance integration.

NEW YORK--(BUSINESS WIRE)-- Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that its subsidiary, Five Star Electric, has been awarded a systems installation and integration project by the New York Metropolitan Transportation Authority (“MTA”) Construction and Development valued at approximately $67 million for the Connection-Oriented Ethernet, Phase 3C project. The project scope of work includes the replacement of approximately 150,000 feet of fiber optic cable; interconnecting and integrating more than 360 branch sites into MTA’s network; connecting, testing and integrating existing service delivery switches at more than 150 branch sites; and integrating existing closed circuit television cameras at 125 stations to existing video management and physical security information management systems.

Work has recently commenced and substantial completion is anticipated in late 2028. The contract value will be included in the Company’s backlog beginning in the fourth quarter of 2023.

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 clients 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240206064441/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 project has Tutor Perini Corporation's subsidiary, Five Star Electric, been awarded?

Five Star Electric has been awarded the Connection-Oriented Ethernet, Phase 3C project by the New York Metropolitan Transportation Authority.

What is the value of the project awarded to Five Star Electric?

The project is valued at approximately $67 million.

When is the anticipated completion date for the project?

The project is expected to be completed by late 2028.

What is the scope of work for the project?

The scope of work includes the replacement of approximately 150,000 feet of fiber optic cable, integrating 360 branch sites into MTA's network, and connecting existing service delivery switches and closed circuit television cameras at 125 stations.