Tutor Perini Corporation announced a $53 million design change order that expands its scope on the City Center Guideway and Stations Project in Honolulu, Hawaii. The order covers the design of a new rail segment that will extend the current terminus from Kaka’ako to Ala Moana, adding two new stations along the alignment.
The award builds on the company’s original $1.66 billion contract for the same project, which was granted in August 2024. By adding the design work for the extension, Tutor Perini increases its total contract value and positions itself to capture additional revenue if the Honolulu Authority for Rapid Transportation (HART) secures further funding for the line’s expansion.
Tutor Perini’s recent quarterly results underscore the significance of the new order. In Q3 2025 the company reported revenue of $1.42 billion, up 31% year‑over‑year, and income from construction operations of $40.1 million, a sharp turnaround from a loss in the same quarter a year earlier. The company also announced a quarterly cash dividend and a $200 million share‑repurchase program, and it reported a record backlog of $21.6 billion.
The design change order adds a new revenue stream that could materialize if HART secures additional federal or state funding for the rail extension. Even if the extension proceeds, the order’s $53 million value represents a sizable portion of the project’s total cost and will likely improve Tutor Perini’s operating margin on the civil‑construction segment, which has historically benefited from the company’s strong project execution and cost‑control discipline.
Investors have responded positively to the announcement, viewing it as a reinforcement of Tutor Perini’s growing backlog and recent earnings beat. The company’s strong Q3 performance, coupled with the new contract, signals confidence in its ability to secure and execute large‑scale infrastructure projects.
The award also highlights the broader context of the Honolulu rail project, which has faced funding challenges and delays. Tutor Perini’s continued involvement and the expansion of its scope suggest that the company is well positioned to capitalize on any future funding decisions by HART, potentially driving further revenue growth in the coming years.
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