Heavy civil contractor Tutor Perini says that even if it takes on no new projects, 2026 and 2027 will be "explosive" growth years, thanks to the continued progress of multiple large projects in its portfolio.

The Los Angeles-based company is currently involved in several large infrastructure projects, includingthe $16 billion Hudson Tunnel Project in New Yorkandportions of California's troubled $231 billion high-speed rail project.The company said it is also considering how to increase its involvement in the data center sector, but emphasized it will approach this hot industry cautiously while maintaining focus on its core business.

Portrait photo of Tutor Perini executive Gary Smalley
Gary Smalley
Image courtesy of Tutor Perini

"We have actually taken on some data center work in specialized areas and are currently exploring ways to expand that business," said Gary Smalley, the company's president and CEO, during aconference call discussing first-quarter earnings. "We want to make sure we don't abandon our core markets, because we know that one day—whether it's five or ten years from now—data center work may not be as strong as it is today, or may even disappear."

The company said it is also actively pursuing several additional large projects, including:

  • The $7 billion Pennsylvania Station redevelopment project in New York City.
  • The $1.4 billion I-535 Latnik Bridge project in Minnesota, with the contractor expected to be announced in June.
  • Another multi-billion-dollar segment of the California high-speed rail project, to be tendered later this year.
  • The I-69 ORX Section 2 project over the Ohio River connecting Indiana and Kentucky, valued at approximately $1 billion, also to be tendered later this year.
  • The Sepulveda Transit Corridor project in Southern California, with a total value of approximately $12 billion, with the first contract to be tendered in 2027.
  • Additional opportunities of approximately $4 billion in the Indo-Pacific region, including military infrastructure improvements at the Guam naval base.

However, even without these opportunities, the company said its performance trajectory for this year and next will be excellent.

"If we don't take on any more work, 2027 will be an explosive growth year, and so will 2026," Smalley said.

In contrast to the company's bright outlook, Smalley opened the call on a somber note, observing a moment of silence for the six crew members who died when the cargo ship "Mariana" capsized near Saipan during Super Typhoon Sinlaku in April. Two of the crew members were Tutor Perini employees.

"This is an unimaginable loss for all of us," Smalley said.

Smalley also commented on a case in which the company was ordered to pay nearly $175 million in a dispute involving the W Philadelphia Hotel and Element Hotel. Tutor Perini won the project in 2015, and the hotel opened in 2021, but the developer sued the company over concrete issues and delays.

"We strongly disagree with this ruling and firmly believe it does not reflect the merits of the case," Smalley said. He said the company intends to appeal, a process that could take another two years or more.

Key figures at a glance

Tutor Perini reported first-quarter revenue of $1.4 billion, up 11% year-over-year. Backlog stood at $19.8 billion, driven mainly by approximately $670 million in new contracts and contract adjustments during the quarter. This was slightly up from $19.4 billion in the same period last year, but down sequentially from $20.6 billion at the end of 2025.

The largest sources of new backlog included:

  • An additional $186 million for the Phase 2 expansion of the Eagle Mountain Casino project in Porterville, California.
  • An additional $97 million for a healthcare project that has newly 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 in the same period last year, which it attributed to stock compensation expenses.