Tutor Perini-Nan Joint Venture Awarded $330.6 Million Apra Harbor Waterfront Repairs Project in Guam

Rhea-AI Summary

Tutor Perini (NYSE: TPC) and Nan, Inc. have been awarded a $330.6 million base contract by Naval Facilities Engineering Systems Command for the Apra Harbor Waterfront Repairs Project in Guam. The design-build project aims to repair Glass Breakwater and restore waterfront areas damaged by storms, including Typhoon Mawar in May 2023. The contract includes nine additional options worth up to $230 million. Tutor Perini is the managing partner with 70% stake, while Nan, Inc. holds 30%. Design work begins immediately, with construction starting August 2025 and completion expected July 2029.

Positive

• Secured major $330.6 million base contract for Apra Harbor repairs
• Potential additional revenue of $230 million through nine contract options
• 70% controlling stake in the joint venture
• Project adds to company's backlog in Q4 2024

Negative

• Extended project timeline with construction not starting until August 2025
• Completion date set for July 2029 indicates long capital commitment

Insights

Financial Analyst

This $330.6 million contract win represents a significant boost to Tutor Perini's backlog, with potential upside of an additional $230 million through nine optional scopes. As the managing partner with 70% stake in the joint venture, TPC stands to recognize approximately $231.4 million in revenue from the base contract. The project's four-year timeline provides stable long-term revenue visibility.

The contract strengthens TPC's position in federal infrastructure projects and expands its presence in the strategic Pacific region. With the base contract value representing about 24% of the company's current market cap, this award materially improves TPC's growth outlook. The involvement of Black Construction , their Guam subsidiary, leverages existing regional expertise and infrastructure.

Infrastructure Expert

The Apra Harbor project addresses critical infrastructure needs following typhoon damage, focusing on essential maritime defense facilities. The Glass Breakwater repairs are strategically important for protecting naval assets and maintaining operational readiness in the Indo-Pacific region. The phased approach, starting with three critically failed portions, demonstrates careful prioritization of structural integrity.

The design-build format allows for optimal integration of engineering solutions with construction methodology, potentially improving project efficiency and risk management. The extended timeline through 2029 accounts for the complex nature of marine infrastructure work and environmental considerations in a typhoon-prone region.

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 Nan, Inc., has been awarded a contract with a base value of approximately $330.6 million by the Naval Facilities Engineering Systems Command, Marianas, for the Apra Harbor Waterfront Repairs Project. This is a design-build construction project to repair Guam Harbor’s Glass Breakwater and restore and modernize waterfront areas that have been physically eroded and damaged from storms, including the recent Typhoon Mawar in May 2023 at Apra Harbor, Naval Base Guam. The scope of work for the base contract includes repairs to the three most critically failed portions of the Glass Breakwater to minimize future breaching potential of the breakwater. The contract includes nine options for additional anticipated scopes of work that, if exercised, could increase the total contract value by up to an additional $230 million. Six of these options are to repair additional sections of the Glass Breakwater, while three options are associated with shoreline repairs to the inner harbor. Tutor Perini is the managing partner in the joint venture, with Nan, Inc. serving as a 30% partner. The Company’s Guam-based subsidiary, Black Construction Corporation, will be managing the execution of the work on this project.

Design work is expected to begin immediately with in-water construction anticipated to commence in August 2025 and substantial completion expected in July 2029. The $330.6 million base contract value will be added to the Company’s backlog in the fourth quarter of 2024 and the value of any future options will be added to backlog as they are awarded.

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/20241031146136/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 Tutor Perini's (TPC) Apra Harbor contract in Guam?

The base contract value is $330.6 million, with potential additional options worth up to $230 million if exercised.

When will Tutor Perini (TPC) begin construction on the Apra Harbor project?

In-water construction is anticipated to commence in August 2025, with substantial completion expected in July 2029.

What is Tutor Perini's (TPC) ownership stake in the Apra Harbor project?

Tutor Perini is the managing partner with a 70% stake, while Nan, Inc. holds a 30% stake in the joint venture.

What damage is Tutor Perini (TPC) repairing at Apra Harbor?

The project involves repairing Glass Breakwater and restoring waterfront areas damaged by storms, including damage from Typhoon Mawar in May 2023.