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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Compare heavy civil construction stocks by business mix, backlog quality, segment margins, cash conversion, financing needs and project risks—not by backlog size alone. Backlog is company-defined work in progress, not a promise of near-term revenue, profit or cash. The figures below come from U.S. company disclosures for fiscal 2025; check each issuer’s latest filings before making a current comparison.
Start by deciding whether the companies are true peers
“Construction stocks” can represent very different businesses. Tutor Perini reports Civil, Building and Specialty Contractors segments; Granite combines civil contracting with construction materials production; Quanta provides infrastructure services across multiple markets. Those differences affect growth, margins and capital requirements. Compare segment-level results where possible rather than treating consolidated figures as interchangeable.
These companies illustrate different profiles; they are not an exhaustive list of investable heavy-civil contractors. Tutor Perini’s filings describe its Civil, Building and Specialty Contractors segments; Granite’s filing describes its construction and materials business (Granite Construction Incorporated, 2025); and Quanta reports infrastructure services across varied markets (Quanta Services, 2025).
Compare backlog definitions and how quickly work converts
Backlog totals are only comparable after checking what each company counts. Record the award threshold, whether low bids or unsigned work are included, funding assumptions, cancellation and change-order risks, end-market mix, project duration and expected margin trend. A larger reported backlog may reflect different inclusion rules rather than more secure or more profitable work.
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Tutor Perini says it includes a project when it has been awarded or it has received written definitive notice, with no major uncertainty remaining, such as adequate funding. At December 31, 2025, it reported $20.56 billion in total backlog, including $10.15 billion in Civil. It estimated about $6 billion, or 29%, of year-end backlog would be recognized as 2026 revenue. The company says Civil projects typically convert to revenue over three to five years. Those are company-reported figures and timing estimates, not sector averages or forecasts of profit or cash (Tutor Perini Corporation, 2025).
Sterling reported $3.01 billion of backlog at December 31, 2025, up from $1.69 billion a year earlier, but excluded approximately $300.7 million of unsigned low-bid awards until formal customer execution. Comparing its total directly with another company’s without accounting for that rule can mislead (Sterling Infrastructure, Inc., 2025).
- Separate awarded, funded work from bids, unsigned awards and projects with unresolved funding.
- Check how much backlog is expected to become revenue in the next year and over what period the rest may convert.
- Look for expected margin changes and project concentration, not just total backlog growth.
- Do not treat backlog recognition timing as a schedule for cash collection.
Compare margins on a like-for-like basis
Use several years of operating margins by comparable segment and contract type. State whether each figure is GAAP or adjusted, consolidated or segment-level, and keep the numerator, denominator and reporting period consistent. A company with a larger share of higher-margin services may report a higher margin without having executed similar projects more effectively. Quanta says its revenue mix affects margins because some industries and services offer higher-margin opportunities (Quanta Services, 2025).
There is no universal “good” margin threshold established for this sector. For each company, examine how margins vary with project mix and whether the business can sustain them through changes in labor, materials, timing and execution.
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Look beyond earnings to cash conversion
Compare operating cash flow with net income across several years, then inspect the factors that can make project cash flow uneven:
- Working-capital changes and contract assets or liabilities.
- Receivables, retainage and collection patterns.
- Project phase and contract structure, including when costs are incurred relative to billing and collection.
A long-duration project may remain in backlog for years and convert into revenue gradually. Tutor Perini’s stated three-to-five-year typical Civil conversion period illustrates why backlog growth alone cannot establish near-term cash generation. Revenue recognition and cash collection are separate measures.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Assess debt, liquidity and capital requirements
Compare net debt, liquidity, debt maturities, interest costs, capital expenditures, acquisition spending and any disclosed bonding or surety constraints. These measures help show whether a contractor can support its project pipeline and absorb disruptions.
Business mix matters here, too. Granite anticipated 2026 capital expenditures of approximately $140 million to $160 million, including about $50 million in strategic materials investments. That is a company-specific plan, not a sector benchmark, and illustrates how materials production can add capital requirements beyond project execution (Granite Construction Incorporated, 2025).
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Map customer, contract and project risks
Identify reliance on public budgets, private customers, utilities, energy, transportation and other end markets. Then review project concentration and contract exposure, including fixed-price or unit-price work, labor and materials costs, delays, claims, weather, permitting and customer funding.
Quanta identifies customer financial condition and capital spending, access to capital, regulation, material and equipment costs, economic and political conditions, and project deferrals or cancellations as sources of demand variability. Use those as prompts, not as a substitute for examining each contractor’s own customer and contract mix (Quanta Services, 2025).
Keep stock valuation separate from business quality
A contractor can have a strong backlog and still face margin, timing or cash-flow risk. Conversely, a business-quality comparison does not reveal whether its shares are attractively priced. To assess valuation, gather dated share prices, valuation multiples and estimates using consistent definitions, then compare them with current filings and normalized multi-year financial results. The 2025 backlog examples alone do not establish which stock is cheaper or more attractive.
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