Tutor Perini Corporation (NYSE: TPC) announced that its subsidiary, Rudolph & Sletten, has been awarded a $253 million contract to build a new two‑story, 32,000‑square‑foot Central Utility Plant (CUP) Annex at the UC Davis Health campus in Sacramento, California. The award adds $108 million to TPC’s backlog for the fourth quarter of 2025, reinforcing the company’s record backlog of $21.6 billion and its focus on high‑margin public‑works projects.
The CUP Annex will expand existing chilled and hot water systems, reconfigure electrical infrastructure, increase fuel‑oil capacity, upgrade industrial controls, and renovate the control room and administrative spaces. The project is part of UC Davis Health’s $3.75 billion campus expansion, which includes the California Tower and the 48X Complex. By modernizing the utility backbone, the new annex will support the health system’s growing demand for reliable, sustainable power and water services while meeting California’s seismic safety requirements.
Adding this contract to its backlog aligns with Tutor Perini’s strategy of selectively bidding on projects that offer favorable contractual terms and higher margins. CEO Gary Smalley noted that “our backlog continues to enable us to be highly selective as to which opportunities we pursue and to focus on bidding projects that have favourable contractual terms, limited competition and higher margins.” The $253 million award is expected to generate strong cash flow and contribute to the company’s improving operating margin, which approached 15 % in the civil segment during Q2 2025.
The project also dovetails with UC Davis Health’s sustainability goals, including a net‑zero greenhouse‑gas target and the integration of renewable electricity. Rudolph & Sletten’s expertise in healthcare construction positions it to deliver a design‑build solution that meets the complex regulatory and operational requirements of a large medical campus.
Tutor Perini’s track record of delivering large‑scale public‑works projects—such as the recent $1.2 billion expansion of the San Diego County Hospital—underscores its capability to manage the technical and logistical challenges of the CUP Annex. The company’s focus on high‑margin projects and its disciplined cost control have helped it maintain a robust backlog and strong cash‑flow generation, positioning it well for future growth in the public‑sector construction market.
Work on the annex has already begun, with substantial completion targeted for the fall of 2027. The project’s timeline and scope provide Tutor Perini with a predictable revenue stream and reinforce its strategic positioning in the high‑margin public‑works segment, while supporting UC Davis Health’s broader expansion and sustainability objectives.
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