Rudolph and Sletten Awarded Healthcare Campus Project in California Valued at More Than $1 Billion

Rhea-AI Summary

Tutor Perini (NYSE: TPC) announced that its subsidiary, Rudolph and Sletten, has secured a contract worth over $1 billion for a healthcare campus project in California. The project encompasses the construction of a new hospital, energy center, and parking garage. Construction is scheduled to commence in late 2024, with substantial completion expected by 2029. The contract value has been incorporated into the company's third-quarter 2024 backlog.

Positive

• Secured major contract worth over $1 billion
• Significant addition to company's backlog in Q3 2024
• Long-term project visibility through 2029

Negative

• None.

Insights

Financial Analyst

This $1 billion contract win represents a significant milestone for Tutor Perini, substantially bolstering their backlog and providing long-term revenue visibility through 2029. The healthcare sector project, encompassing multiple facilities, demonstrates the company's strong positioning in complex, large-scale construction projects. With a market cap of $1.39 billion, this single contract nearly matches the company's entire market value, highlighting its magnitude. The project's five-year duration ensures steady revenue streams and operational stability.

The timing of the backlog addition in Q3 2024 will positively impact financial metrics and investor confidence. Healthcare construction projects typically offer better margins compared to standard commercial projects due to their technical complexity and specialized requirements. The energy center component also adds diversification to the project scope, potentially providing additional margin opportunities.

LOS ANGELES--(BUSINESS WIRE)-- Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that its subsidiary, Rudolph and Sletten, has been awarded a contract valued at more than $1 billion for a healthcare campus project in California. The project scope of work includes the construction of a new hospital, an energy center and a parking garage. Work is expected to begin in late 2024 with substantial completion anticipated in 2029.

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/20241028752145/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 Rudolph and Sletten's new healthcare campus contract in California?

The contract is valued at more than $1 billion.

When will construction begin on TPC's new California healthcare campus project?

Construction is expected to begin in late 2024.

What is the expected completion date for TPC's California healthcare campus project?

Substantial completion is anticipated in 2029.

What facilities will be built in TPC's new healthcare campus project?

The project includes construction of a new hospital, an energy center, and a parking garage.