Tutor Perini (TPC) ended the recent trading session at $72.31, demonstrating a +1.54% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.28%. The construction company's stock has dropped by 12.2% in the past month, falling short of the Construction sector's loss of 11.11% and the S&P 500's loss of 3.59%.Investors will be eagerly watching for the perfor ...

Core Insights - The focus is on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1] - The S&P 500 and Nasdaq saw significant increases of 367% and 685% respectively from 2009 to 2019, following a recommendation to buy at the financial crisis's bottom in March 2009 [1] Investment Strategy - The investment strategy emphasizes long-term investment in quality stocks, utilizing options as part of the approach [1] - The goal is to assist investors in making money through investments in high-quality growth stocks [1]

Core Insights - Tutor Perini's stock fell 7.5% despite beating analyst expectations for Q4 sales and earnings, with actual earnings per share at $1.07 and sales exceeding $1.5 billion [1][2] Financial Performance - In Q4, Tutor Perini's sales increased by 41% year-over-year, and the company transitioned from a loss in the previous year to a profit, reporting GAAP earnings of $0.54 per share [2][3] - For the full year, Tutor Perini achieved a 28% increase in sales, reaching a record $5.5 billion, with GAAP earnings of $1.51 per share and operating cash flow also setting a new record [3] Future Guidance - The company forecasts non-GAAP earnings between $4.90 and $5.30 per share for 2026, indicating a potential 19% year-over-year growth from 2025, surpassing Wall Street's expectation of $4.82 per share [4] Valuation Metrics - Tutor Perini's stock is currently valued at 55 times GAAP earnings, but trades at 16.3 times pro forma profits and less than 7.7 times trailing free cash flow, suggesting it may be a buy [5]

Financial Data and Key Metrics Changes - Tutor Perini achieved record revenue of $5.5 billion in 2025, representing a 28% increase year-over-year [4][20] - Adjusted earnings per share (EPS) reached $4.29, a significant turnaround from an adjusted loss of $2.37 per share in 2024 [28] - Operating cash flow was a record $748 million, up 49% from the previous record of $504 million in 2024 [20][21] Business Line Data and Key Metrics Changes - The Civil segment generated over $2.8 billion in revenue, a 34% increase, marking its highest annual revenue ever [6][22] - The Building segment's revenue was $1.9 billion, up 15%, with the highest annual revenue since 2020 [22] - The Specialty Contractors segment saw revenue of $844 million, a 43% increase, returning to profitability in the second half of 2025 [23][26] Market Data and Key Metrics Changes - The company concluded 2025 with a backlog of $20.6 billion, a 10% increase year-over-year, driven by $7.4 billion in new awards [7][8] - Major projects contributing to backlog growth included the $1.87 billion Midtown Bus Terminal Replacement and the $1.18 billion Manhattan Tunnel project [8][10] Company Strategy and Development Direction - The company aims for double-digit revenue growth and strong earnings in 2026, with adjusted EPS guidance of $4.90-$5.30 [17] - Tutor Perini is focusing on bidding projects with favorable contractual terms and limited competition, which is expected to enhance profitability [13][56] - The company plans to continue generating strong cash flow from organic operations and expects to resolve remaining legacy disputes [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve growth due to favorable macroeconomic conditions and strong market demand for construction services [16][36] - The outlook remains positive, with expectations for continued strong performance in 2026 and beyond, driven by a robust backlog and numerous bidding opportunities [18][36] Other Important Information - The company declared a quarterly cash dividend of six cents per share and initiated a share repurchase program totaling $200 million [16] - Tutor Perini's balance sheet is healthier than ever, ending 2025 with a net cash position exceeding total debt by $327 million [33] Q&A Session Summary Question: Coverage in backlog and expectations for Q1 - Management indicated strong visibility into 2026 results and acknowledged that Q1 is typically light due to seasonality, but contingency plans are in place [41][42] Question: Backlog burn and Civil segment cycle - Management expects some lumpiness in backlog but anticipates growth by year-end, with good visibility on larger civil projects [46][47] Question: Improvement in contract terms - Management noted that limited competition has allowed for better contractual terms, reducing disputes and enhancing profitability [54][55] Question: Canadian project impact - A negative impact of $42 million was noted for a Canadian project in Q4, but management is optimistic about resolving remaining legacy disputes [61][62] Question: 2027 visibility - Management expressed confidence that 2027 will be better than 2026, with ongoing strong performance expected [68] Question: Resource constraints - Management does not foresee resource constraints, as labor is sourced from union halls with agreements in place [72][73] Question: Specialty Contractors segment profitability - Management indicated that improved contractual terms and reduced litigation are expected to enhance margins in the Specialty Contractors segment [76][92]

Financial Data and Key Metrics Changes - Tutor Perini achieved record revenue of $5.5 billion in 2025, representing a 28% increase year-over-year [4][20] - Adjusted earnings per share (EPS) reached $4.29, a significant turnaround from an adjusted loss of $2.37 per share in 2024 [27] - Operating cash flow was a record $748 million, up 49% from the previous record of $504 million in 2024 [19][20] Business Line Data and Key Metrics Changes - The Civil segment generated over $2.8 billion in revenue, a 34% increase, marking its highest annual revenue ever [6][21] - The Building segment's revenue was $1.9 billion, up 15%, with its highest annual revenue since 2020 [7][21] - The Specialty Contractors segment saw revenue of $844 million, a 43% increase, returning to profitability in the second half of 2025 [7][25] Market Data and Key Metrics Changes - The backlog at the end of 2025 was $20.6 billion, a 10% increase year-over-year, driven by $7.4 billion in new awards [7][8] - Major projects contributing to backlog growth included the $1.87 billion Midtown Bus Terminal Replacement and the $1.18 billion Manhattan Tunnel project [8][9] Company Strategy and Development Direction - The company aims for double-digit revenue growth and strong earnings in 2026, with adjusted EPS guidance of $4.90-$5.30 [16] - Tutor Perini is focusing on bidding projects with favorable contractual terms and higher margins, particularly in the Civil and Building segments [12][14] - The company has authorized a quarterly cash dividend and a share repurchase program, reflecting confidence in its financial position [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained market demand for construction services due to favorable macroeconomic conditions and substantial funding for infrastructure [15][16] - The company anticipates continued strong cash generation and resolution of legacy disputes, contributing to a positive outlook beyond 2026 [17] Other Important Information - The company paid down total debt by 24% in 2025 and ended the year with a net cash position of $327 million [32] - Share-based compensation expenses increased significantly due to a rise in stock price, but are expected to decrease in 2026 and 2027 [23][32] Q&A Session Summary Question: Coverage in backlog and expectations for Q1 - Management indicated strong visibility into 2026 results and acknowledged that Q1 is typically light due to seasonality, but contingency plans are in place [40][41] Question: Backlog stability and Civil segment cycle - Management expects backlog growth despite potential lumpiness and noted good visibility on larger Civil projects [42][44] Question: Improvement in contract terms - Management highlighted better contractual terms due to reduced competition, leading to fewer disputes and improved project margins [53][54] Question: Multi-billion dollar healthcare project - A confidential multi-billion dollar healthcare project is in pre-construction, with a high likelihood of moving to construction [55] Question: Canadian project impact - A negative impact of $42 million was noted for a Canadian project in Q4, but management is optimistic about resolving remaining legacy disputes [60][62] Question: 2027 visibility - Management indicated that 2027 is expected to be better than 2026, with strong project momentum carrying into that year [66] Question: Resource constraints - Management does not foresee resource constraints, as labor is sourced from union halls with agreements in place [71][72] Question: Specialty Contractors segment profitability - Management expects the Specialty Contractors segment to achieve mid-single-digit margins due to improved contract terms and reduced litigation [75][76]

Financial Data and Key Metrics Changes - Tutor Perini achieved record revenue of $5.5 billion in 2025, representing a 28% increase year-over-year, with adjusted earnings per share of $4.29 [4][20] - Operating cash flow reached a record $748 million, up 49% from the previous record of $504 million in 2024 [19][20] - Net income attributable to Tutor Perini was $80 million, or $1.51 per share, compared to a net loss of $164 million, or $3.13 per share, in 2024 [27] Business Line Data and Key Metrics Changes - The Civil segment generated over $2.8 billion in revenue, a 34% increase, marking its highest annual revenue ever [6][21] - The Building segment's revenue was $1.9 billion, up 15%, with the highest annual revenue since 2020 [21] - The Specialty Contractors segment revenue was $844 million, up 43%, driven by increased activities on electrical and mechanical components [22] Market Data and Key Metrics Changes - The backlog at the end of 2025 was $20.6 billion, a 10% increase year-over-year, with a solid book-to-burn ratio of 1.34x [7][35] - New awards and contract adjustments totaled $7.4 billion during the year, including significant projects in New York and California [8][9] Company Strategy and Development Direction - The company aims for double-digit revenue growth and strong earnings in 2026, with adjusted EPS guidance in the range of $4.90-$5.30 [16] - Tutor Perini is focusing on bidding projects with favorable contractual terms and limited competition, particularly in the Civil and Building segments [12][15] - The company has authorized a quarterly cash dividend and a share repurchase program, reflecting confidence in its financial position [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing favorable macroeconomic conditions and strong demand for construction services [15][35] - The company anticipates continued strong cash generation and resolution of legacy disputes, contributing to a positive outlook beyond 2026 [17] Other Important Information - The Civil segment's operating income nearly tripled to $391 million, with an operating margin of 13.7%, the highest ever for the segment [24] - The Specialty Contractors segment returned to profitability in the second half of 2025, with expectations for improved margins moving forward [25] Q&A Session Summary Question: Coverage in backlog and expectations for Q1 - Management indicated strong visibility into 2026 results and acknowledged that Q1 is typically light due to seasonality, but contingency plans are in place [39][41] Question: Backlog stability and Civil segment cycle - Management expects some lumpiness in backlog but remains confident in future growth, citing a rich pipeline of projects [43][46] Question: Improvement in contract terms - Management noted that limited competition has allowed for better contractual terms, reducing disputes and enhancing profitability [55] Question: Canadian project impact - A negative impact of $42 million was noted for a Canadian project in Q4, but management is optimistic about resolving remaining legacy disputes [63][64] Question: 2027 visibility - Management stated that 2027 is expected to be better than 2026, with strong project momentum carrying into the following year [68][69] Question: Resource constraints - Management does not foresee resource constraints, as labor is sourced from union halls, and they are actively recruiting project management staff [73] Question: Specialty Contractors segment profitability - Management highlighted improved margins in the Specialty Contractors segment, with expectations for mid-single digit profitability moving forward [78]

Financial Performance - Consolidated revenue for 2025 was $5.5 billion, up 28% from $4.3 billion in 2024[112] - Income from construction operations improved to $232.0 million in 2025, compared to a loss of $103.8 million in 2024, driven by a net increase in project execution activities totaling $172.1 million[113] - Diluted earnings per common share for 2025 was $1.51, a significant recovery from a diluted loss of $3.13 per share in 2024[116] - Net income attributable to Tutor Perini Corporation for 2025 was $80.4 million, a significant improvement from a loss of $163.7 million in 2024[130] - Adjusted net income for 2025 was $229.1 million, compared to a loss of $124.0 million in 2024[130] Revenue and Backlog - Consolidated new awards in 2025 totaled $7.4 billion, down from $12.8 billion in 2024, with significant projects including the $1.87 billion Midtown Bus Terminal Replacement project[118] - Consolidated backlog as of December 31, 2025, was $20.6 billion, a 10% increase from $18.7 billion in 2024[119] - Approximately $6 billion, or 29% of the backlog, is expected to be recognized as revenue in 2026[120] - Revenue for the Civil segment increased by 34% to $2,846.8 million in 2025, setting a new record for the segment[131] - New awards in the Civil segment totaled $4.2 billion in 2025, down from $6.7 billion in 2024[135] - Backlog for the Civil segment increased by 15% to $10.2 billion as of December 31, 2025[137] - Revenue for the Building segment increased by 15% to $1,852.2 million in 2025, with income from construction operations at $58.2 million[138] - New awards in the Building segment totaled $2.2 billion in 2025, compared to $4.5 billion in 2024[141] - Revenue for the Specialty Contractors segment increased by 43% to $844.0 million in 2025, with a loss from construction operations reduced to $7.5 million[144] - Backlog for the Specialty Contractors segment rose by 9% to $3.1 billion as of December 31, 2025[149] Cash Flow and Investments - The Company generated record cash flow from operations of $748.1 million in 2025, which included a voluntary prepayment of $121.9 million on Term Loan B debt[117] - Net cash provided by operating activities increased by $244.6 million, or 49%, to $748.1 million in 2025 from $503.5 million in 2024, marking the largest operating cash flow since the 2008 merger[156] - Net cash used in investing activities was $257.3 million in 2025, primarily due to capital expenditures of $180.9 million and investment transactions of $85.3 million, compared to $40.7 million in 2024[158] - Net cash used in financing activities decreased to $184.8 million in 2025 from $393.3 million in 2024, driven by a $130.8 million net repayment of debt[159] Debt and Equity - As of December 31, 2025, working capital was $0.9 billion, with a current assets to current liabilities ratio of 1.27 and a debt to equity ratio of 0.32, compared to $1.0 billion, 1.41, and 0.46 respectively in 2024[160] - The average borrowing rates for the Term Loan B and the Revolver were approximately 9.2% and 10.8% respectively for the year ended December 31, 2025[170] - Total dividends declared in 2025 amounted to $3.4 million, including $0.3 million of accrued dividends related to unvested share-based awards[175] - The Company authorized a $200 million share repurchase program in November 2025, with no repurchases made in 2025[176] - As of December 31, 2025, the outstanding balance of the 2024 Senior Notes was $400.0 million, with unused available borrowing capacity of $170.0 million under the Revolver[169] - Debt obligations totaled $425.4 million as of December 31, 2025, with $14.6 million due in 2026[179] Goodwill and Impairment - The Company conducted its annual goodwill impairment test in Q4 2025 and determined that goodwill was not impaired, as the estimated fair value of the Civil reporting unit exceeded its net book value by a significant amount[189] - The Company tests goodwill for impairment annually as of October 1, requiring an estimate of fair value using income and market approaches, comparing it to the carrying value[186] - The impairment evaluation process involves assumptions such as revenue growth rates and discount rates, which are subject to a high degree of judgment and can impact impairment test results[187] - The Company has not identified any triggering events or circumstances since the last annual goodwill impairment test that would likely reduce the fair value of the Civil reporting unit below its carrying amount[190] Risk Management - The Company expects to continue to comply with the covenants under the 2020 Credit Agreement[172] - As of December 31, 2025, the Company had no significant outstanding borrowings with variable interest rates, mitigating exposure to interest rate risk[191] - The Company does not engage in derivative financial instruments for trading or speculation, limiting exposure to market risk[191] - The Company continuously reassesses whether it is the primary beneficiary of variable interest entities (VIEs) based on its power to direct significant activities and obligations to absorb losses[183] - The Company considers contractual agreements in determining the primary beneficiary status of VIEs, including ownership structure and distribution of profits and losses[183] - The Company accounts for joint ventures qualifying for the equity method using the proportionate consolidation method, including its share of assets, liabilities, revenue, and costs in consolidated financial statements[184] - The Company evaluates macroeconomic conditions and financial performance to determine if goodwill impairment is likely, potentially triggering a quantitative impairment test before the annual date[188]

Financial Performance - Tutor Perini reported record operating cash flow of $748.1 million in 2025, up 49% year-over-year from $503.5 million in 2024[4]. - The company achieved record revenue of $5.5 billion in 2025, a 28% increase compared to 2024, with growth across all segments: Civil (34%), Building (15%), and Specialty Contractors (43%)[6]. - Income from construction operations was $232.0 million in 2025, a significant recovery from a loss of $103.8 million in 2024, driven by higher-margin projects[7]. - Diluted earnings per share (EPS) rose to $1.51 in 2025, compared to a diluted loss per share of $3.13 in 2024[8]. - Total revenue for the year ended December 31, 2025, reached $5,861,772, an increase from $4,506,343 in 2024, representing a growth of approximately 30%[42]. - Revenue from external customers for 2025 was $5,543,039, compared to $4,326,922 in 2024, indicating a year-over-year increase of about 28%[42]. - The company reported a net income of $143,081 for 2025, a significant recovery from a net loss of $122,339 in 2024[48]. - Fourth quarter 2025 revenue reached $1,507,365, a 41.1% increase from $1,067,649 in Q4 2024[37]. - Full year 2025 revenue totaled $5,543,039, up 28.2% from $4,326,922 in 2024[37]. - Gross profit for Q4 2025 was $147,724, compared to a loss of $9,462 in Q4 2024[37]. - Net income for Q4 2025 was $34,398, a significant recovery from a loss of $76,208 in Q4 2024[37]. - Basic earnings per share for Q4 2025 was $0.55, compared to a loss of $1.51 in Q4 2024[37]. - The construction operations segment reported an income of $50,112 in Q4 2025, recovering from a loss of $86,245 in Q4 2024[37]. Debt and Assets - The company reduced total debt by $126.8 million, or 24%, ending 2025 with total debt of $407 million[5][14]. - Total current assets increased to $4,116,885 in 2025 from $3,286,667 in 2024, reflecting a growth of approximately 25%[45]. - Total liabilities increased to $3,897,760 in 2025 from $3,084,104 in 2024, marking a rise of about 27%[45]. - The company’s total assets reached $5,160,422 in 2025, compared to $4,242,710 in 2024, indicating a growth of approximately 22%[45]. Backlog and Future Outlook - Consolidated backlog reached $20.6 billion as of December 31, 2025, up 10% year-over-year, supported by $7.4 billion in new awards[12]. - The company expects to book approximately $1 billion into backlog for the Midtown Bus Terminal project in New York City later this year[12]. - Significant bidding opportunities are anticipated in the next 12 to 18 months, including major infrastructure projects funded by the U.S. government[13][20]. - The company anticipates continued growth in 2026, although specific guidance figures were not disclosed[33]. - For 2026, the company anticipates double-digit revenue growth and adjusted EPS in the range of $4.90 to $5.30[22]. Capital Expenditures - Total capital expenditures for Q4 2025 amounted to $74,963, compared to $9,143 in Q4 2024[39]. - Capital expenditures for 2025 totaled $180,854, a substantial increase from $37,409 in 2024, highlighting a focus on investment in property and equipment[48]. Risks and Challenges - The company faces various risks including economic factors, competition, and potential impacts from public health crises[34].

Company Overview - Tutor Perini Corporation is a leading civil, building, and specialty construction company that provides diversified general contracting and design-build services globally [2] - The company has been in operation since 1894 and has built a strong reputation for executing large, complex projects on time and within budget while maintaining strict safety and quality control measures [2] - Tutor Perini offers a range of services including general contracting, pre-construction planning, and comprehensive project management, with expertise in design-bid-build, design-build, construction management, and public-private partnership (P3) projects [2] - The company often self-performs multiple project components such as earthwork, excavation, concrete forming and placement, steel erection, electrical, mechanical, plumbing, HVAC, and fire protection [2] Recent Financial Announcement - The Board of Directors of Tutor Perini Corporation has declared a quarterly cash dividend of $0.06 per share of common stock [1] - This dividend is payable on March 26, 2026, to shareholders of record as of the close of business on March 10, 2026 [1]

Company Performance - Tutor Perini (TPC) closed at $81.10, reflecting a -1.39% change from the previous day, underperforming the S&P 500 which gained 0.56% [1] - Over the past month, Tutor Perini's shares increased by 10.94%, outperforming the Construction sector's gain of 6.35% and the S&P 500's loss of 1.27% [1] Upcoming Earnings - The upcoming earnings disclosure is anticipated, with projected earnings per share (EPS) of $0.92, representing a 160.93% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $1.28 billion, indicating a 19.85% increase from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $4.01 per share and revenue at $5.32 billion, reflecting increases of +228.12% and +22.84% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Tutor Perini are important as they reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Tutor Perini at 3 (Hold) [6] Valuation Metrics - Tutor Perini is trading at a Forward P/E ratio of 17.42, which is a discount compared to its industry's Forward P/E of 27.62 [7] - The Building Products - Heavy Construction industry, part of the Construction sector, has a Zacks Industry Rank of 149, placing it in the bottom 40% of over 250 industries [7]