Tutor Perini's JV Secures $113M Contract in Guam, Stock Gains
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Tutor Perini Corporation TPC, in a joint venture (JV) with its subsidiary Black Construction Corporation, secured a contract worth approximately $113.3 million. The contract, awarded by the Naval Facilities Engineering Systems Command, Pacific, is for the P-541 Missile Integration Test Facility at Naval Base Guam.
Per the contract, the JV will manage the construction of a single-story, 57,664-square-foot concrete facility with a deep pile foundation, according to the Pacific Deterrence Initiative. The building will feature missile processing areas, a missile test cell with a control room, administrative spaces and storage and utility rooms.
The project also includes the demolition of an existing building, site improvements and the installation of systems such as plumbing, air conditioning and ventilation, lighting, electrical power, telecommunications, fire protection and an emergency power generator with a fuel tank.
The project work is set to begin soon, with substantial completion expected by December 2028. The contract value was added to Tutor Perini's backlog in third-quarter 2024.
Following the contract announcement, shares of TPC moved up 2.9% during the trading hours on Wednesday.
Contract Wins Strengthen TPC's Prospects
Tutor Perini’s efficient project execution, diversified delivery methods and services have aided it in bagging new contracts and awards consistently. This is the company's primary growth driver, which adds to its backlog level and determines its long-term growth prospects in this everchanging economy.
On Sept. 12, TPC's joint venture with Black Construction Corporation secured a $38.3-million contract from the Naval Facilities Engineering Systems Command. The project at Marine Corps Base in Guam involves constructing low-rise facilities for the 9th Engineering Support Battalion Headquarters, supporting the third Marine Expeditionary Force. (read more: Tutor Perini's JV With Black Construction Wins New Project in Guam)
At the end of June 30, 2024, the company’s backlog was $10.42 billion, up sequentially from $9.98 billion and from $10.16 billion on Dec. 31, 2023. TPC’s new awards and contract adjustments in second-quarter 2024 included the $1.3-billion Connecticut River replacement bridge project for Amtrak, the $216-million airport terminal connector project at Fort Lauderdale International Airport, $144 million of additional funding for certain mass transit projects in California and the $136-million I-64 Bridge and Highway Project in the Midwest for Lunda Construction.
Tutor Perini remains optimistic about its bidding pipeline as it witnesses several active opportunities on large projects, thanks to substantial government funding and limited competition for many of the larger projects.
