Tutor Perini Corporation (TPC) has announced that its specialty contracting subsidiary, Five Star Electric, has secured three contracts together, valued at approximately $141 million. These contracts will be included in Tutor Perini’s fourth-quarter backlog.
The first contract includes the South Ferry Subway Station Upgrade project worth around $88 million in Lower Manhattan, subcontracted by Judlau Contracting, Inc. The South Ferry Station’s electrical and mechanical systems, including escalators, turnstiles, and signals had been severely damaged by flooding during Superstorm Sandy in Oct 2012.
Per the contract, Five Star Electric will renovate the entire electrical infrastructure within the station and tunnel area, including lighting, power, fire alarm, security, communications, fiber optics, signaling and traction power work. Construction work started earlier this month and substantial completion is anticipated by Jun 2017.
The second project worth around $32.4 million, subcontracted by Tishman Construction, entails electrical installation work as part of the construction of a new 940,000-square-foot, 42-story high-end residential tower under the Riverside Center Building 5 project.
The scope of work includes the setting up of lighting, fire alarm, normal and emergency building power systems in the residential tower that will include 361 apartments, amenity spaces, a fitness center, parking garage and retail space. Construction started earlier this month and will be completed by Jun 2017.
Finally, a $20.6 million contract was awarded for electrical installation work, subcontracted by Pavarini McGovern, LLC. The scope of work includes all lighting, fire alarm, telecommunications, and normal and emergency building power systems which are part of the construction of a new 320,000-square-foot, 61-story high-end residential tower. Construction started earlier this month and substantial completion is anticipated by Dec 2016.
Tutor Perini’s total backlog as of Sep 30, 2014, was $8.1 billion, up 17% year over year. The significant increase in backlog was primarily the result of two large new mass transit projects in New York as well as a new multi-unit residential tower project in Florida and a new healthcare facility project in California.
Tutor Perini is expected to benefit from its strong backlog and new contracts. The company continues to win contracts and demonstrates prospects of winning future awards, given its significant volume of pending awards.
Based on its current backlog and outlook, Tutor Perini maintained its guidance for fiscal year 2014 with revenues expected to be in the range of $4.5–$4.7 billion and earnings per share in the range of $2.20 to $2.40.
Sylmar, CA-based Tutor Perini is a leading civil and building construction company, offering diversified general contracting and design-build services to private clients and public agencies globally.
Tutor Perini currently carries a Zacks Rank #3 (Hold). Other stocks worth considering in the sector include AECOM Technology Corporation (ACM), CaesarStone Sdot-Yam Ltd. (CSTE) and Graña y Montero SAA (GRAM), all sporting a Zacks Rank #1 (Strong Buy).
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