General contracting company Tutor Perini (NYSE: TPC) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 41.2% year on year to $1.51 billion. Its non-GAAP profit of $1.07 per share was 16.3% above analysts’ consensus estimates.

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Company Overview

Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Tutor Perini struggled to consistently increase demand as its $5.54 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result, but there are still things to like about Tutor Perini.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Tutor Perini’s annualized revenue growth of 19.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

We can better understand the company’s revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Tutor Perini’s backlog reached $20.56 billion in the latest quarter and averaged 32.3% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Tutor Perini’s products and services but raises concerns about capacity constraints.

This quarter, Tutor Perini reported magnificent year-on-year revenue growth of 41.2%, and its $1.51 billion of revenue beat Wall Street’s estimates by 11.4%.

Looking ahead, sell-side analysts expect revenue to grow 11.3% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is noteworthy and indicates the market is baking in success for its products and services.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Tutor Perini’s operating margin has been trending up over the last 12 months, leading to break even profits over the last five years. However, its large expense base and inefficient cost structure mean it still sports inadequate profitability for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

Analyzing the trend in its profitability, Tutor Perini’s operating margin might fluctuated slightly but has generally stayed the same over the last five years, meaning it will take a fundamental shift in the business model to change.

In Q4, Tutor Perini generated an operating margin profit margin of 3.3%, up 11.4 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Tutor Perini’s EPS grew at a decent 8.1% compounded annual growth rate over the last five years, higher than its flat revenue. However, we take this with a grain of salt because its operating margin didn’t improve and it didn’t repurchase its shares, meaning the delta came from reduced interest expenses or taxes.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Tutor Perini, its two-year annual EPS growth of 83.6% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history.

In Q4, Tutor Perini reported adjusted EPS of $1.07, up from negative $1.51 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Tutor Perini’s full-year EPS of $3.13 to grow 53.4%.

Key Takeaways from Tutor Perini’s Q4 Results

We were impressed by how significantly Tutor Perini blew past analysts’ revenue expectations this quarter. We were also glad its full-year EPS guidance trumped Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $89.96 immediately following the results.

Tutor Perini may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).