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    TPC
    Earnings call· Dec 2025(Q4 FY25)

    TUTOR PERINI Q4 FY25 earnings call TPC

    Feb 26, 2026 Source

    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

    14
    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

    6
    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

    Operational metrics

    20
    Revenue
    $5.5 billionup 28% YoY
    FY25

    Record annual revenue primarily due to increased project execution activities on certain large newer civil and building segment projects.

    Share-based compensation expense
    $110 millionincrease YoY
    FY25

    Tied to the near tripling of stock price in 2025, affecting the fair value of liability classified awards. Expected to decrease in 2026 and significantly in 2027.

    Corporate G&A expense
    $211 millioncompared to $110 million in FY24
    FY25

    Increase primarily due to the substantially higher share-based compensation expense.

    Income tax expense
    $61 million
    FY25

    Effective tax rate of 30% for the year.

    Net income attributable to Tutor Perini (GAAP)
    $80 millioncompared to a net loss of $164 million in FY24
    FY25

    Represents GAAP net income.

    Adjusted Net Income attributable to Tutor Perini
    $229 millioncompared to an adjusted net loss of $124 million in FY24
    FY25

    Excludes the impact of share-based compensation expense, net of associated tax benefit.

    Revenue
    $1.5 billionup 41% compared to $1.1 billion for Q4 FY24
    Q4 FY25

    Strong growth due to increased project activity on various ramping projects.

    Net income attributable to Tutor Perini (GAAP)
    $29 millioncompared to a net loss of $79 million for Q4 FY24
    Q4 FY25

    Represents GAAP net income for the quarter.

    Adjusted Net Income attributable to Tutor Perini
    $58 millioncompared to an adjusted net loss of $78 million for Q4 FY24
    Q4 FY25

    Excludes the impact of share-based compensation expense, net of associated tax benefit.

    Total debt
    24%reduced
    FY25

    Total debt paid down by 24% in 2025.

    Contract assets (CIE)
    13%reduced
    FY25

    CIE reduction mostly driven by billings and collections, including dispute resolutions. Expected to continue decreasing.

    Net cash position
    $327 millioncompared to $79 million net debt position at FY24 end
    FY25 end

    Cash and cash equivalents exceeding total debt.

    Cash available for general corporate purposes
    $271 million
    FY25 end

    Cash available at the end of 2025.

    Legacy dispute settlement impact (Canadian project)
    $42 millionunfavorable adjustment
    Q4 FY25

    Mostly noncash unfavorable adjustment associated with the settlement of a legacy dispute on a tunneling project in Canada. This was the JV portion.

    Legacy dispute settlement (unnamed project)
    $40 millionexpected collection
    Near term

    Agreement in principle reached, expected to result in cash collection for Tutor Perini in the near term, with no material impact on earnings.

    Specialty Contractors segment operating margin
    2.7%
    Q3 FY25

    Operating segment margin for the third quarter of 2025.

    GAAP EPS
    $3.13loss
    FY24

    GAAP loss per share for the full year 2024.

    Adjusted EPS
    $2.37adjusted loss
    FY24

    Adjusted loss per share for the full year 2024.

    GAAP EPS
    $1.51GAAP loss
    Q4 FY24

    GAAP loss per share for the fourth quarter 2024.

    Adjusted EPS
    $1.49adjusted loss
    Q4 FY24

    Adjusted loss per share for the fourth quarter 2024.

    Industry KPIs

    4
    MetricValueDetails
    Total backlog$20.6 billionUSD
    Book to bill ratio1.34xx
    End market pipelinenumerous major bidding opportunities
    Craft skilled labor headcount capacitywell equipped

    Orderbook & backlog

    7
    Total Backlog$20.6 billionFY25 end

    up 10% YoY

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

    Book-to-bill ratio1.34xFY25

    For the full year.

    New Awards and Contract Adjustments$7.4 billionFY25

    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 awarded9 projects totaling approximately $16 billionLast 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 billionLater this year

    Expected to be booked into backlog

    Anticipated booking in FY26.

    Eagle Mountain Casino Phase 2 expansion$204 millionEarly FY26

    Funding received

    Project originally awarded and announced last summer.

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

    10
    nullMidtown bus terminal replacement Phase 1 project$1.87 billion

    Located in New York.

    nullManhattan Tunnel project$1.18 billion

    Located in New York.

    UCSFUCSF Benioff New Children's Hospitalapproximately $1 billion

    Located in California.

    nullHealthcare project$538 million

    Located in California.

    nullAdditional funding for Apra Harbor Waterfront repairs project$241 million

    Located in Guam.

    nullMilitary defense project$182 million

    Located in Guam.

    City College of San FranciscoDiego Rivera Performing Art Center$155 million

    Located at City College of San Francisco.

    nullAdditional funding for an electrical project$131 million

    Located in Texas.

    Cook Children's Medical CenterElectrical project at Cook Children's Medical Centermore than $100 million

    Located in Texas.

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

    Located in California. Currently in preconstruction phase.

    Risks & headwinds

    5
    Backlog Lumpinessnear term

    modest backlog reduction

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

    Project Delays/Slower Ramp-upsFY26

    null

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

    Lower Success Rate for Project PursuitsFY26

    null

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

    Legacy Dispute ResolutionsFY26

    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 SettlementQ4 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

    5

    Backlog trajectory

    End of FY26
    Current$20.6 billion (up 10% YoY)
    Targeta 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.

    Q&A highlights

    7

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.