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Major civil contractor Tutor Perini said 2026 and 2027 would be “boom” years because of the increase in megaprojects in its portfolio, even if the company did not book more work.
The Los Angeles-based company, which works on portions of massive infrastructure jobs, including New York’s $16 billion Hudson Tunnel project and portions of California’s high-speed rail fought for $231 billion project, said it is also considering how it might gain more exposure to data centers. But he noted that he would be cautious in his approach to the high-flying sector while remaining focused on his core business.
Gary Smalley
Courtesy of Tutor Perini
“We’re actually doing some data center work on the specialized side and we’re exploring ways to expand that right now,” said Gary Smalley, president and CEO. a call to discuss first quarter earnings. “We want to make sure that we don’t give up on the core market because we know that someday, who knows how long down the road, whether it’s five years or 10 years down the road, that the data center at some point probably won’t be there, at least not as strong as it is now.”
The company said it is also currently pursuing numerous additional large-scale projects, including:
- The $7 billion Penn Station transformation project in New York City.
- The $1.4 billion I-535 Latnik Bridge project in Minnesota, for which a contractor is expected to be announced in June.
- An additional multi-billion dollar segment of the California High Speed Rail Project, bidding later this year.
- The roughly $1 billion I-69 ORX Section 2 project over the Ohio River connecting Indiana and Kentucky will also go out to bid later this year.
- The roughly $12 billion Sepulveda Transit Corridor program in Southern California with bidding beginning in 2027 for the first of multiple contracts.
- An additional $4 billion in opportunities in the Indo-Pacific region, including military infrastructure improvements at Naval Base Guam.
However, even without these opportunities, the firm said its track record this year and next would be remarkable.
“If we didn’t book more work, 27 will be an off year, just like 26,” Smalley said.
However, in contrast to the company’s bright outlook, Smalley began the call on a somber note, holding a moment of silence for the six crew members who died when the the cargo ship Mariana capsized in April during super typhoon Sinlaku near Saipan. Two of the crew were Tutor Perini employees.
“It’s an unimaginable loss for all of us,” Smalley said.
Smalley also commented on a nearly $175 million judgment against the company in a dispute over the W and Element hotels in Philadelphia. Tutor Perini won the job in 2015 and the hotel opened in 2021, but its developer sued the company over concrete issues and delays.
“We strongly disagree with the sentence and strongly believe it does not reflect the merits of the case,” Smalley said. He said the firm intended to appeal the decision, a process that could take another two years or more.
By the numbers
Tutor Perini reported revenue of $1.4 billion in the quarter, up 11% from a year earlier. Backlog sales totaled $19.8 billion, driven by approximately $670 million in new awards and contract adjustments during the quarter. That was up slightly from the $19.4 billion portfolio a year ago, but down sequentially from the $20.6 billion at the end of 2025.
The biggest additions to the backlog include:
- $186 million in additional financing for the Eagle Mountain Casino Phase 2 expansion project in Porterville, California.
- $97 million in additional funding for a new healthcare project that entered the construction phase.
- Approximately $66 million for two public transit projects.
The company reported net income of $25.7 million, down 8% from $28 million a year ago, a decline it attributed to stock-based compensation expense.
