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Tutor Perini (TPC) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Industrials· Feb 26, 2026

Source: earnings call transcript

Executive summary

Tutor Perini Q4 FY25 — Record Revenue, Profitability, and Cash Flow with Robust Backlog

Tutor Perini delivered a record-breaking Q4 and FY25, marked by unprecedented revenue, adjusted EPS, and operating cash flow, fueled by large, higher-margin projects. The company's robust $20.6 billion backlog provides strong visibility for double-digit revenue and earnings growth in FY26 and FY27, despite anticipating near-term backlog lumpiness. Strategic focus on favorable contract terms and limited competition continues to drive profitability and a healthier balance sheet.

Highlights

5

  • Record operating cash flow of $748 million for FY25, up 49% YoY.

  • Record revenue of $5.5 billion for FY25, up 28% YoY.

  • Adjusted EPS of $4.29 for FY25, a significant turnaround from a $2.37 loss per share in FY24.

  • Robust backlog of $20.6 billion, up 10% YoY, driven by $7.4 billion in new awards.

  • Civil segment achieved highest ever annual revenue ($2.8 billion) and operating income ($391 million) with a 13.7% margin.

Concerns

3

  • Modest backlog reduction anticipated in the near term due to timing of significant prospective opportunities.

  • Q4 FY25 Civil segment operating income impacted by an unfavorable $42 million non-cash adjustment related to a legacy dispute settlement.

  • Share-based compensation expense increased by $110 million in FY25 due to stock price appreciation, impacting operating income.

Guidance & targets

CategoryTargetConfidence
Adjusted EPS
$4.90 to $5.30
high materiality
High
Revenue Growth
double-digit
high materiality
High
Earnings
even higher earnings expected
high materiality
High
Operating Cash Generation
strong
medium materiality
High
Specialty Contractors Segment Operating Margins
5% to 8% range
medium materiality
Medium
G&A Expense
$400 million and $410 million
low materiality
High
Depreciation and Amortization Expense
approximately $50 million
low materiality
High
Interest Expense
$40 million and $50 million
medium materiality
High
Effective Income Tax Rate
approximately 27% to 30%
low materiality
High
Noncontrolling Interest
$75 million and $85 million
low materiality
High
Weighted Average Diluted Shares Outstanding
approximately 54 million
low materiality
High
Capital Expenditures
approximately $125 million to $135 million
medium materiality
High
Backlog Growth
growth still expected
high materiality
Medium
Backlog Level
a little north of where we are currently
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Civil
Highest ever annual revenue, operating income, and operating margin for the segment. Within the expected range of 12% to 15% margin.
Operating Margin: 13.7%
$2.8 billion34%—$391 million operating income
Building
Highest annual revenue since 2020. Significant turnaround from an operating loss of $24 million in 2024. Anticipated margins in the range of 3% to 6%.
Operating Margin: 3.1%
$1.9 billion15%—$58 million operating income
Specialty Contractors
Returned to profitability in the second half of 2025, ahead of expectations. Significant improvement from a $103 million loss in 2024.
$844 million43%—($7 million) operating loss
Civil
Operating income would have been substantially higher had it not been for an unfavorable adjustment related to a legacy dispute.
$732 million32%—$72 million operating income
Building
Improvement driven by contributions from certain higher-margin projects and the absence of prior year unfavorable adjustments.
$512 million45%—$11 million operating income
Specialty Contractors
Performance has continued to improve significantly as involvement in large civil and building projects grows.
Operating Margin: 4.4%
$263 million63%—$11 million operating income

TPC operating KPIs by quarter

TPC operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Dec 2025 Q4 FY25 Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Backlog
$20.6B We concluded 2025 with a robust backlog of $20.6 billion, up 10% year-over-year and had a solid book-to-burn ratio of 1.34x for the year. Source: earnings call transcript
$19.8B Our backlog remains very strong at $19.8 billion at the end of the first quarter, and we continue to expect that it will fuel much higher revenue and earnings, increased profitability and continued strong cash flow this year and beyond. Source: earnings call transcript
$19.9B We booked $1.7 billion of new awards and contract adjustments, a book-to-burn of just over 1x, and finished the quarter again with a near-record backlog of $19.9 billion, up slightly compared to the prior quarter. Source: earnings call transcript
+0.5%
Orders —
<$700M In the first quarter, we booked nearly $700 million of new awards and contract adjustments. Source: earnings call transcript
$1.7B We booked $1.7 billion of new awards and contract adjustments, a book-to-burn of just over 1x, and finished the quarter again with a near-record backlog of $19.9 billion, up slightly compared to the prior quarter. Source: earnings call transcript
—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total Backlog $20.6 billion FY25 end

up 10% YoY

Driven by $7.4 billion of new awards and contract adjustments.

Book-to-bill ratio 1.34x FY25

For the full year.

New Awards and Contract Adjustments $7.4 billion FY25

Included Midtown bus terminal ($1.87B), Manhattan Tunnel ($1.18B), UCSF Benioff Children's Hospital ($1B), healthcare project ($538M), Apra Harbor ($241M), military defense ($182M), Diego Rivera Performing Art Center ($155M), Texas electrical project ($131M), Cook Children's Medical Center ($100M+).

Mega Projects awarded 9 projects totaling approximately $16 billion Last 3 years

Each valued at approximately $1 billion or more, with healthy margins, favorable terms, and longer durations. All but one awarded since summer 2024.

Midtown Bus Terminal Phase 1 (finished trade scope) approximately $1 billion Later this year

Expected to be booked into backlog

Anticipated booking in FY26.

Eagle Mountain Casino Phase 2 expansion $204 million Early FY26

Funding received

Project originally awarded and announced last summer.

Large new multibillion-dollar health care project (Rudolph and Sletten) closer to $2 billion Preconstruction phase

Expected to book significant additional backlog

Expected to advance to construction over the next several years, mostly in 2027. 90%+ chance of heading to construction.

Deals & partnerships

null Midtown bus terminal replacement Phase 1 project $1.87 billion

Located in New York.

null Manhattan Tunnel project $1.18 billion

Located in New York.

UCSF UCSF Benioff New Children's Hospital approximately $1 billion

Located in California.

null Healthcare project $538 million

Located in California.

null Additional funding for Apra Harbor Waterfront repairs project $241 million

Located in Guam.

null Military defense project $182 million

Located in Guam.

City College of San Francisco Diego Rivera Performing Art Center $155 million

Located at City College of San Francisco.

null Additional funding for an electrical project $131 million

Located in Texas.

Cook Children's Medical Center Electrical project at Cook Children's Medical Center more than $100 million

Located in Texas.

null Large new multibillion-dollar health care project (Rudolph and Sletten) closer to $2 billion

Located in California. Currently in preconstruction phase.

Risks & headwinds

Backlog Lumpiness near term

modest backlog reduction

Mitigation:Driven by timing of significant prospective opportunities; growth still expected over medium to longer term.

Project Delays/Slower Ramp-ups FY26

null

Mitigation:Contingency factored into FY26 guidance for potential project delays or slower ramp-ups for newer projects.

Lower Success Rate for Project Pursuits FY26

null

Mitigation:Contingency factored into FY26 guidance for the possibility of a lower-than-anticipated success rate for future project pursuits.

Legacy Dispute Resolutions FY26

null

Mitigation:Contingency factored into FY26 guidance for unexpected settlements and/or adverse legal decisions. Company has reduced legacy disputes and expects further reductions in legal expenses.

Canadian Tunneling Project Settlement Q4 FY25

$42 million (JV portion)

Mitigation:Unfavorable adjustment, mostly noncash, associated with settlement of a legacy dispute on a tunneling project in Canada. Considered behind them.

What to watch in Q1 FY26

Backlog trajectory

End of FY26
Current $20.6 billion (up 10% YoY)
Target a little north of current levels, despite near-term lumpiness

Why it matters

Backlog health is a key indicator of future revenue and earnings visibility for construction companies.

We think at the end of the year, we should be -- our plan shows us a little north of where we are currently. I want to introduce the lumpiness concept because we've kind of spoiled everyone, I think, to some extent because over the last 2 years, almost every quarter, we've grown backlog.

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Q&A highlights

How strong is backlog coverage for FY26 numbers, and what's the expected Q1 cadence given seasonality and weather?

Management stated strong visibility for FY26 and beyond, with minimal need for new awards to hit targets. Q1 is expected to be light due to seasonality, but weather impacts (e.g., New York snowstorm, Manhattan Tunnel suspension) are accounted for in contingency.

“We've got great visibility into the to the results for 2026 and really beyond. There's not much that has to happen for us to hit the numbers that we've represented.”

asked by Steven Fisher · answered by Gary Smalley

2 min read 6 chapters

Detailed narrative

Record Performance in FY25

Tutor Perini achieved its best year ever in 2025, marked by record revenue of $5.5 billion (up 28% YoY), record operating cash flow of $748 million (up 49% YoY), and adjusted EPS of $4.29. This strong performance was primarily driven by contributions from various larger, higher-margin projects and significantly less negative impact from legacy dispute resolutions compared to 2024.

Robust Backlog and Strategic Project Selection

The company concluded FY25 with a robust backlog of $20.6 billion, representing a 10% increase year-over-year, fueled by $7.4 billion in new awards and contract adjustments. Management emphasized a highly selective approach to bidding, focusing on projects with favorable contractual terms, limited competition, and higher margins. This strategy has led to winning 9 mega projects totaling approximately $16 billion over the past three years, providing excellent visibility into future revenue and earnings.

Improved Contractual Terms and Dispute Resolution

Management highlighted a significant improvement in contractual terms on new awards, including better payment terms and the elimination of 'no damages for delay' clauses. These changes are expected to lead to fewer disputes and less litigation expense, contributing to future profitability. The company has made substantial progress in resolving legacy disputes, reducing the number from approximately 50 to about a dozen, with one major agreement in principle recently reached.

Segment Profitability Turnaround

The Civil segment achieved its highest ever annual revenue ($2.8 billion) and operating income ($391 million) with a 13.7% margin in 2025. The Building segment saw a substantial turnaround, generating $58 million in operating income (3.1% margin) compared to a loss in 2024. The Specialty Contractors segment returned to profitability in the second half of 2025, posting a slight operating loss of $7 million for the full year, with expectations for consistent 5-8% margins in the future as newer projects ramp up.

Capital Allocation and Balance Sheet Health

The Board of Directors authorized the company's first-ever quarterly cash dividend of $0.06 per share and a $200 million share repurchase program. Tutor Perini ended FY25 in a healthy net cash position of $327 million, a significant improvement from a $79 million net debt position at the end of FY24. Total debt was reduced by 24% and contract assets by 13%. Management plans to refinance its 11.8% debt mid-year 2026, aiming for significant interest savings and extended liquidity.

Market Tailwinds and Future Opportunities

Tutor Perini expects to continue benefiting from strong macroeconomic tailwinds, substantial public and private funding for infrastructure, and numerous major bidding opportunities. Key prospective opportunities over the next 12-18 months include the $12 billion Sepulveda Transit Corridor, the $3.8 billion Southeast Gateway Line, and the multibillion-dollar Penn Station transformation project. The company also anticipates booking approximately $1 billion for the Midtown bus terminal finished trade scope later in FY26.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.