LOS ANGELES – Tutor Perini Corporation (NYSE: NYSE:TPC), a major player in civil, building, and specialty construction, has secured a $1.66 billion contract from the Honolulu Authority for Rapid Transportation (HART) to work on the City Center Guideway and Stations Project in Honolulu, Hawaii. The deal, which is set to be formalized in mid-September, encompasses the design and build of six rail stations and a stretch of elevated rail guideway spanning about three miles.
The initiative will extend from the existing Middle Street Transit Center Station to the Civic Center Station, located just east of downtown Honolulu. The design phase is scheduled to commence following the contract's execution, with the construction phase projected to begin in the latter half of 2025 and aiming for substantial completion by 2030.
Parsons Corporation (NYSE: NYSE:PSN), another industry heavyweight, has been tapped to serve as the design subcontractor for Tutor Perini on this venture. Ronald Tutor, Chairman and CEO of Tutor Perini, expressed pride in the company's involvement in what he described as a "transformational project" for Honolulu, citing the firm's extensive history in executing large-scale light rail projects across the United States.
This new contract is expected to be incorporated into Tutor Perini's backlog in the third quarter of 2024, providing a significant boost to the company's future revenue projections.
Tutor Perini Corporation has a longstanding presence in the construction industry, dating back to 1894, with a portfolio that includes a variety of general contracting and design-build services for both private and public sector clients globally. The company is known for tackling ambitious projects and delivering them on schedule and within budget, while maintaining high quality standards. Their services range from pre-construction planning to comprehensive project management, including the coordination of manpower, equipment, materials, and subcontractors, as well as self-performed construction services.
This news is based on a press release statement from Tutor Perini Corporation.
In other recent news, Parsons Corporation has reported strong growth in its second-quarter financial performance for 2024, with record revenue of $1.7 billion and adjusted EBITDA of $150 million, marking significant increases from the previous year. This growth is attributed to the company's strategic focus on high-value solutions. Parsons Corporation has also expanded its portfolio through the acquisition of BlackSignal Technologies, a move expected to enhance the company's capabilities in cyber operations and electronic warfare.
Furthermore, Benchmark, a financial analysis firm, has upgraded its price target for Parsons Corporation to $101, up from the previous target of $68, maintaining a "Buy" rating on the stock. The new price target is based on a 16.5 times multiple of the forecasted fiscal year 2025 enterprise value to EBITDA for Parsons Corporation.
In other company news, Parsons' engagement with the Infrastructure Investment & Jobs Act (IIJA) focuses on tangible assets, which is expected to provide more stable long-term support for the company's projects. Also, the company's financial guidance for 2024 has been revised upwards due to strong performance and a robust pipeline. The company's backlog currently stands at $8.8 billion, with $13 billion in recent contract wins.
InvestingPro Insights
As Parsons Corporation (NYSE: PSN) partners with Tutor Perini on the City Center Guideway and Stations Project, investors are closely monitoring PSN's performance metrics. With a market capitalization of approximately $9.87 billion and a revenue growth of 28.35% over the last twelve months as of Q2 2024, the company showcases robust financial health and expansion in its operations. This growth is also reflected in the quarterly revenue increase of 23.15% for Q2 2024, indicating a positive trend in the company's earning potential.
InvestingPro Tips for Parsons Corporation reveal that analysts are optimistic about the company's future, with 9 analysts having revised their earnings projections upwards for the upcoming period. This could signal confidence in the company's strategic direction and its ability to capitalize on new projects like the one with Tutor Perini. The company's stock is also trading near its 52-week high, at 99.3% of this peak value, pointing to strong market sentiment.
However, the company's Price/Earnings (P/E) ratio stands at a high 181.75, suggesting that the stock may be trading at a premium compared to its earnings. For investors seeking detailed analyses, there are over 15 additional InvestingPro Tips available, offering an in-depth understanding of Parsons Corporation's financial position and market performance (https://www.investing.com/pro/PSN).
This financial snapshot is critical for stakeholders considering the significant role of Parsons Corporation in the City Center Guideway and Stations Project, as it not only impacts the company's backlog but also its long-term revenue stream and market valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.