Leading civil construction firm Tutor Perini (NYSE: TPC) stock slid 7.5% through 10:05 a.m. ET Friday morning despite beating analyst forecasts for both sales and earnings last night. Heading into the company's Q4 report, analysts forecast Tutor Perini would earn only $0.62 per share on sales of $1.35 billion. In fact, Tutor earned $1.07 per share, and its sales surpassed $1.5 billion. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an ...

Core Insights - Persistent public funding and strong private market demand are driving the U.S. civil construction sector, benefiting companies like Sterling Infrastructure, Inc. (STRL) and Granite Construction Incorporated (GVA) [1][2] - Both companies are focusing on selective bidding, margin growth, and operational efficiency as part of their long-term strategies [1][2] Company Overview: Sterling Infrastructure, Inc. (STRL) - STRL is experiencing robust demand in transportation, utilities, and mission-critical site development, particularly in data centers and industrial expansion [4] - The E-Infrastructure platform is a key growth driver, with data center project revenues increasing over 125% year-over-year and a signed backlog of $2.6 billion, up 64% year-over-year [5] - The company anticipates sustained growth through 2026, supported by a strong pipeline in data centers and manufacturing [7] Company Overview: Granite Construction Incorporated (GVA) - GVA benefits from strong public infrastructure demand, focusing on high-quality projects and best-value contract structures to mitigate risks [8] - The company reported a record $7 billion in CAP, a 31.6% year-over-year increase, with construction segment revenues rising 14% year-over-year to $940 million [9][10] - GVA expects continued revenue growth and margin expansion, supported by its high-quality CAP mix and disciplined capital allocation [12] Stock Performance & Valuation - STRL's share price has outperformed GVA and the broader construction sector over the past six months [13] - STRL is trading at a premium valuation compared to GVA, which is experiencing slower growth [15][17] Earnings Estimates - STRL's 2026 EPS estimate has increased to $12.25, reflecting a 17.2% year-over-year growth expectation [18] - GVA's 2026 EPS estimate has decreased to $6.35, indicating a 16.2% year-over-year growth expectation [19] Investment Comparison - STRL is positioned for higher growth tied to mission-critical developments, while GVA offers stability through public transportation and civil works [20] - STRL shows stronger earnings momentum with upward revisions to EPS estimates, contrasting with GVA's lower estimates [21] - STRL holds a Zacks Rank 2 (Buy), while GVA has a Zacks Rank 4 (Sell), making STRL the more attractive option for investors seeking growth [22]

Q4 2025 Earnings Presentation © 2026 Granite Construction. All Rights Reserved. Safe Harbor Any statements contained in this presentation that are not based on historical facts, including statements regarding future events, occurrences, circumstances, opportunities, targets, activities, performance, growth, demand, strategy, strategic goals, shareholder value, outcomes, outlook, macro-economic uncertainties, Committed and Awarded Projects (CAP), results, our strategic update, including our home market strat ...

February 2026 Investor Presentation © 2026 Granite Construction. All Rights Reserved. Safe Harbor Any statements contained in this presentation that are not based on historical facts, including statements regarding future events, occurrences, circumstances, opportunities, targets, activities, performance, growth, demand, strategy, strategic goals, shareholder value, outcomes, outlook, macro-economic uncertainties, Committed and Awarded Projects (CAP), results, our strategic update, including our home market ...

Core Insights - Granite Construction Incorporated (GVA) is a US-based civil contractor with over a century of experience, serving both public and private sectors, with a significant contribution from public sector projects [1] Company Overview - Granite Construction operates as a vertically integrated civil contractor, indicating a comprehensive approach to construction that encompasses various stages of project development [1]

Core Viewpoint - Sterling Infrastructure (STRL) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, indicating a company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [4][6]. Company Performance and Outlook - Rising earnings estimates for Sterling Infrastructure suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. - For the fiscal year ending December 2025, Sterling Infrastructure is expected to earn $10.43 per share, with a 9.2% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - The upgrade of Sterling Infrastructure to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Granite has been awarded a $24 million contract by the Riverside County Transportation Commission to transform the Perris South Metrolink Station and Layover Facility Project, aimed at improving service reliability and addressing increased commuter demand [1][2] Project Overview - The current single-track terminus of the Perris South station faces operational constraints that limit train movements and create service bottlenecks, necessitating the transformation into a high-capacity hub [2] - The project will enhance rail capacity and reliability, providing a viable alternative to congested freeway corridors, thereby reducing greenhouse gas emissions and supporting sustainable growth in the Inland Empire [3] Strategic Importance - This initiative represents a significant strategic win for Granite, reinforcing its commitment to expanding in the rail end market and the Inland Empire region [3] - The project builds on Granite's successful partnership with RCTC and Metrolink, leveraging the company's strengths in heavy civil construction and rail [3] Key Project Features - The addition of a second passenger platform and approximately 1,100–1,200 feet of new station track will enable two trains to load/unload simultaneously [5] - The existing platform will be extended to accommodate eight-car Metrolink trains, with upgrades to passenger amenities including canopies and electronic displays [5] - New pedestrian safety enhancements will be introduced, including an at-grade crossing with active warning gates and flashing lights [5] - The layover facility will be expanded to add a fourth layover track and new switching infrastructure, improving operational flexibility [5]

Core Insights - Tutor Perini (TPC) has undergone a significant turnaround in the civil construction sector over the past 18 months, transforming from a debt-laden, unprofitable contractor to a more stable entity [1]. Group 1: Company Performance - The company was previously characterized by volatile, low-margin earnings, but has now managed to improve its financial standing [1]. - Tutor Perini's transformation highlights its ability to navigate challenges within the civil construction industry effectively [1]. Group 2: Industry Context - The civil construction sector has been marked by companies facing chronic profitability issues, making Tutor Perini's turnaround particularly noteworthy [1].

Core Insights - Tutor Perini (TPC) has undergone a significant turnaround in the civil construction sector over the past 18 months, transforming from a debt-laden, unprofitable contractor to a more stable entity [1] Company Summary - The company was previously characterized by volatile, low-margin earnings and chronic unprofitability [1] - Tutor Perini has managed to improve its financial standing and operational efficiency, indicating a positive shift in its business model [1]

Q3 2025 Financial Performance - Total revenue increased by $158 million year-over-year to $1433 million[15] - Construction revenue increased by $82 million year-over-year to $1162 million[15] - Materials revenue increased by $76 million year-over-year to $271 million[15] - Adjusted EBITDA margin increased by 330 bps year-over-year to 150%[15,18] - Adjusted net income increased by $33 million year-over-year to $124 million[15] - CAP increased by $718 million year-over-year to $63 billion[15] Materials Segment Performance - Aggregate average selling price increased by 256% year-over-year from $1636 to $2054 per ton in Q3 2025[67] - Asphalt average selling price increased by 68% year-over-year from $7866 to $8400 per ton in Q3 2025[67] - Aggregate sales volume increased by 263% year-over-year from 6366 tons to 8041 tons in Q3 2025[68] - Asphalt sales volume increased by 144% year-over-year from 2801 tons to 3205 tons in Q3 2025[68] Future Outlook - The company expects volume growth in both aggregate and asphalt into 2026, supported by strong demand[11] - Revenue is expected to accelerate in Q4 and into 2026 as projects ramp up[14] - The company is positioned to act on future M&A opportunities[18] - The company expects to outperform its target of 9% of operating cash flow as a percentage of revenue in 2025[23]