A joint venture ("JV") between Tutor Perini Corporation (TPC) and its subsidiary, Black Construction Corporation, won a $74.4 million Child Development Center contract at Andersen Air Force Base, Guam. The contract was awarded by the U.S. Naval Facilities Engineering Systems Command, Pacific District. Per the terms of the contract, the JV will engage in the construction of a Child Development Center facility with privately owned vehicle parking. The facility will house a single-story, reinforced concrete bu ...

Tutor Perini (TPC) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this construction company have returned +31% over the past month versus the Zacks S&P 500 composite's +3.2% change. The Zacks Building Products - Heavy Construction industry, to which Tutor Perini belongs, has gained 14.5% over this period. Now the key question is: Where could the stock be headed in the near ...

Core Viewpoint - The article emphasizes the effectiveness of value investing as a strategy to identify undervalued stocks, highlighting Tutor Perini (TPC) as a strong candidate for value investors due to its favorable metrics and Zacks Rank [2][4][6]. Company Analysis - Tutor Perini (TPC) has a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock's P/E ratio is 15.02, significantly lower than the industry average of 21.04, suggesting it may be undervalued [4]. - TPC's Forward P/E has fluctuated between a high of 1,306.81 and a low of -10,569.95 over the past 12 months, with a median of 9.93, indicating volatility in earnings expectations [4]. - The P/S ratio for TPC is 0.25, compared to the industry average of 0.71, further supporting the notion that TPC is undervalued [5]. - Overall, TPC's strong earnings outlook and key metrics suggest it is an impressive value stock at the moment [6].

Tutor Perini Corporation (NYSE:TPC) Q1 2024 Earnings Conference Call April 25, 2024 5:00 PM ET Company Participants Jorge Casado - VP, IR Ronald Tutor - Chairman and CEO Gary Smalley - President Ryan Soroka - SVP and CFO Conference Call Participants Alex Rygiel - B. Riley FBR Steven Fisher - UBS Ethan Kalis - Bank of America Operator Good day, ladies and gentlemen, and welcome to the Tutor Perini Corporation First Quarter 2024 Earnings Conference Call. My name is Maria, and I'll be your coordinator for toda ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Tutor Perini Corporation for the quarter ended March 31, 2024, including Statements of Operations, Balance Sheets, and Cash Flows, with detailed notes on accounting policies and financial items [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company achieved a net income of $27.5 million in Q1 2024, a significant turnaround from a $48.9 million loss in Q1 2023, with revenue increasing 35% year-over-year Q1 2024 vs Q1 2023 Statement of Operations Highlights | Metric (in thousands, except per share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenue** | $1,048,987 | $776,300 | | **Gross Profit (Loss)** | $115,251 | $(24,169) | | **Income (Loss) from Construction Operations** | $48,806 | $(81,945) | | **Net Income (Loss) Attributable to Tutor Perini** | $15,760 | $(49,196) | | **Diluted Earnings (Loss) Per Common Share** | $0.30 | $(0.95) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $4.37 billion, total liabilities $3.07 billion, and total equity $1.30 billion, reflecting shifts in working capital and debt Balance Sheet Summary (in thousands) | Metric | As of March 31, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $3,466,714 | $3,521,354 | | **Total Assets** | $4,370,407 | $4,429,856 | | **Total Current Liabilities** | $2,043,207 | $2,124,953 | | **Total Liabilities** | $3,067,173 | $3,145,945 | | **Total Equity** | $1,303,234 | $1,283,911 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated $98.3 million in net cash from operating activities in Q1 2024, driven by net income and working capital, despite a $109.6 million use in financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $98,274 | $21,328 | | **Net Cash Used in Investing Activities** | $(10,321) | $(6,887) | | **Net Cash Provided by (Used in) Financing Activities** | $(109,580) | $14,369 | | **Net Increase (Decrease) in Cash** | $(21,627) | $28,810 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details financial statement line items, covering revenue recognition, contract assets, debt, legal contingencies, segment performance, and subsequent events like new senior note issuance Q1 2024 Revenue by Segment (in thousands) | Segment | Q1 2024 Revenue | Q1 2023 Revenue | | :--- | :--- | :--- | | Civil | $472,165 | $349,870 | | Building | $411,942 | $229,653 | | Specialty Contractors | $164,880 | $196,777 | | **Total** | **$1,048,987** | **$776,300** | - As of March 31, 2024, total contract assets were **$1.81 billion**, including **$519.4 million** in claims and **$558.5 million** in unapproved change orders[28](index=28&type=chunk) - Subsequent to the quarter end, on April 22, 2024, the company issued **$400.0 million** of 11.875% Senior Notes due 2029. The proceeds, along with cash on hand, will be used to redeem the existing **$500.0 million** 6.875% Senior Notes due 2025, resulting in a **$100.0 million** net reduction in principal debt[132](index=132&type=chunk)[135](index=135&type=chunk) Q1 2024 Income (Loss) from Construction Operations by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Civil | $70,743 | $18,012 | | Building | $16,120 | $(70,209) | | Specialty Contractors | $(18,312) | $(12,448) | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting a 35% revenue increase to $1.05 billion, a swing to $48.8 million in construction income, and a strong $10.0 billion backlog, supported by solid liquidity and debt refinancing [Executive Overview](index=34&type=section&id=Executive%20Overview) Q1 2024 performance significantly improved with consolidated revenue reaching $1.05 billion, construction operations turning profitable at $48.8 million, and a strong $10.0 billion backlog Q1 2024 Key Performance Indicators | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $1.05 billion | $776.3 million | | Income (Loss) from Construction Operations | $48.8 million | $(81.9) million | | Diluted EPS | $0.30 | $(0.95) | | New Awards | $872.8 million | $766.7 million | - Consolidated backlog was **$10.0 billion** as of March 31, 2024, slightly down from **$10.2 billion** at year-end 2023. The backlog mix is **41% Civil**, **42% Building**, and **17% Specialty Contractors**[150](index=150&type=chunk) - The outlook remains favorable, supported by long-term capital spending plans, voter-approved measures like Los Angeles County's Measure M, and the federal Bipartisan Infrastructure Law[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) [Results of Segment Operations](index=35&type=section&id=Results%20of%20Segment%20Operations) Civil segment revenue increased 35% with a 293% jump in income, Building segment revenue grew 79% turning profitable, while Specialty Contractors saw a 16% revenue decline and increased operating loss - **Civil Segment:** Revenue grew **35%** to **$472.2 million** and income from operations increased **293%** to **$70.7 million**, primarily due to increased activity on a mass-transit project in California and the absence of a prior-year unfavorable adjustment[157](index=157&type=chunk)[158](index=158&type=chunk) - **Building Segment:** Revenue increased **79%** to **$411.9 million**, swinging to an income of **$16.1 million** from a loss of **$70.2 million** in the prior year. The improvement was principally due to the absence of a prior-year **$72.2 million** non-cash charge from an adverse legal ruling[162](index=162&type=chunk)[163](index=163&type=chunk) - **Specialty Contractors Segment:** Revenue decreased **16%** to **$164.9 million**, with the loss from operations widening to **$18.3 million** from **$12.4 million**. The change was primarily due to a **$12.0 million** unfavorable adjustment from an arbitration ruling on a completed project in New York[167](index=167&type=chunk)[168](index=168&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with $98.3 million in Q1 2024 operating cash flow, $1.4 billion working capital, and recently refinanced debt to reduce outstanding principal by $100 million - Generated **$98.3 million** in net cash from operating activities in Q1 2024, the second-largest first-quarter result since 2008[179](index=179&type=chunk) - Working capital was **$1.4 billion** at March 31, 2024, with a current ratio of **1.70**, compared to **1.66** at December 31, 2023[184](index=184&type=chunk) - In February 2024, made a mandatory principal prepayment of **$91.0 million** on the Term Loan B from annual excess cash flow[191](index=191&type=chunk) - Post-quarter end, issued **$400 million** of 2024 Senior Notes and will redeem **$500 million** of 2017 Senior Notes, resulting in a **$100 million** net debt reduction and extending maturities[194](index=194&type=chunk)[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk exposure since the Annual Report on Form 10-K for the year ended December 31, 2023 - There has been no material change in the company's exposure to market risk since the year-end 2023 report[202](index=202&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[203](index=203&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[204](index=204&type=chunk) [Part II. Other Information](index=42&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 of the Condensed Consolidated Financial Statements for detailed information on pending legal matters, including the Alaskan Way Viaduct case - For information on pending legal matters, the report refers to Note 11 of the Notes to Condensed Consolidated Financial Statements[205](index=205&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the company's risk factors as disclosed in the 2023 Annual Report on Form 10-K[206](index=206&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company provides required mine safety disclosures in Exhibit 95 to Form 10-Q, as its construction services to the mining industry may classify it as a mine operator under the Mine Act - The company provides mine safety disclosures as required by the Dodd-Frank Act because it provides construction services to the mining industry, which may classify it as a mine operator[207](index=207&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) During Q1 2024, no directors or Section 16 officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading plans during the first quarter of 2024[208](index=208&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including the indenture for new 2024 Senior Notes, an amendment to the 2020 Credit Agreement, and Sarbanes-Oxley certifications - Key exhibits filed include the Indenture for the 2024 Senior Notes (4.1), the Fifth Amendment to the Credit Agreement (10.2), and Sarbanes-Oxley certifications (31.1, 31.2, 32.1, 32.2)[209](index=209&type=chunk)

News Release Tutor Perini Reports First Quarter 2024 Results LOS ANGELES – (BUSINESS WIRE) – April 25, 2024 – Tutor Perini Corporation (the "Company") (NYSE: TPC), a leading civil, building and specialty construction company, reported results today for the first quarter of 2024. The Company generated $98.3 million of cash from operating activities in the first quarter of 2024, up 361% compared to $21.3 million for the same period of 2023. The operating cash flow for the first quarter of 2024 was the Company ...

Financial Data and Key Metrics Changes - The net loss attributable to Tutor Perini for Q4 2023 was $48 million, or a loss of $0.91 per share, compared to a net loss of $93 million, or a loss of $1.80 per share in Q4 2022 [1] - The net loss for the full year 2023 was $171 million, or a loss of $3.30 per share, compared to a net loss of $210 million, or a loss of $4.09 per share in 2022 [37] - Operating cash flow reached a record $308 million in 2023, nearly 50% higher than the previous record of $207 million in 2022 [11][51] - Consolidated revenue for 2023 was $3.9 billion, slightly up from $3.8 billion in 2022 [52] Business Line Data and Key Metrics Changes - Civil segment revenue was $1.9 billion in 2023, up 9% compared to the previous year, driven by increased project execution activities [25] - Building segment revenue was $1.3 billion, up 5%, primarily due to increased activities on various projects in California [30] - Specialty Contractors segment revenue was $694 million, down 15% due to decreased activities on electrical and mechanical components of a completed transportation project [30] - In Q4 2023, Civil segment revenue was $459 million, up 5% from $440 million in Q4 2022, while Building segment revenue was $376 million, up 15% from $327 million [38] Market Data and Key Metrics Changes - The year-end backlog stood at $10.2 billion, up 28% year-over-year, largely driven by the award of the $2.95 billion Brooklyn Jail project [16] - The company is tracking over $75 billion in project opportunities over the next three to four years, with $32 billion expected in the next two years [18] Company Strategy and Development Direction - The company anticipates significant double-digit revenue growth in 2024, with 80% sourced from existing backlog [21] - The strategic focus includes resolving legacy disputes and capturing a share of the $1.2 trillion Bipartisan Infrastructure Law funding [17] - The company expects to conclude refinancing of its senior notes by the end of April 2024 [46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in earnings due to adverse legal judgments and write-downs but expressed optimism for a return to profitability in 2024 [12][37] - The company expects to resolve most remaining legacy disputes in 2024, leading to substantial cash collections [14][59] - Management highlighted a strong bidding environment and limited competition for upcoming projects, which is expected to enhance margins and working capital requirements [78][124] Other Important Information - Corporate G&A expenses increased to $75 million in 2023 from $62 million in 2022, primarily due to higher compensation-related expenses [34] - Interest expense for 2023 was $85 million, up from $70 million in 2022, driven by higher borrowing rates [35] Q&A Session Summary Question: Can you elaborate on the losses in the Building and Specialty Contractors segments? - Management noted losses in the Building segment were due to an unbonded subcontractor issue and significant write-downs in the Specialty Contractors segment [64][68] Question: What is the expected growth by segment for 2024? - Management indicated strong growth in Civil and Building segments, with expectations for modest profitability in the first quarter [86] Question: How does the EPS guidance account for potential settlements? - Management stated that the EPS guidance includes allowances for potential settlements and adverse judgments, aiming for reasonable profitability [83][84] Question: What is the expected structure of the refinancing? - Management is exploring various options for refinancing, including potential reductions in bond issuance and loans, depending on market conditions [108]

Part I [Business](index=3&type=section&id=Item%201.%20Business) Tutor Perini Corporation is a global construction company operating in Civil, Building, and Specialty Contractors segments, with a **$10.2 billion** backlog and **74%** of 2023 revenue from government contracts - The company operates through three primary business segments: Civil, Building, and Specialty Contractors, offering diversified services from large-scale infrastructure to specialized electrical and mechanical systems[18](index=18&type=chunk) - The company estimates that approximately **$4 billion**, or **40%**, of its backlog as of December 31, 2023, will be recognized as revenue in 2024[36](index=36&type=chunk) - Revenue from federal, state, and local government customers constituted **74%**, **68%**, and **66%** of total revenue for the years 2023, 2022, and 2021, respectively[42](index=42&type=chunk) - As of December 31, 2023, the company had approximately **8,200** employees, including **1,900** salaried and **6,300** hourly employees, with about **3,600** union employees[50](index=50&type=chunk)[52](index=52&type=chunk) Backlog by Business Segment as of December 31 | Business Segment | 2023 (in thousands) | % of Total | 2022 (in thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Civil | $4,240,684 | 42% | $4,416,340 | 56% | | Building | $4,177,452 | 41% | $2,223,601 | 28% | | Specialty Contractors | $1,740,311 | 17% | $1,289,172 | 16% | | **Total Backlog** | **$10,158,447** | **100%** | **$7,929,113** | **100%** | Backlog by Customer and Contract Type as of December 31 | Backlog by Customer Type | 2023 | 2022 | | :--- | :--- | :--- | | State and local agencies | 76% | 65% | | Private owners | 13% | 20% | | Federal agencies | 11% | 15% | | **Total** | **100%** | **100%** | | Backlog by Contract Type | 2023 | 2022 | | :--- | :--- | :--- | | Fixed price | 56% | 74% | | Guaranteed maximum price | 36% | 14% | | Unit price | 4% | 4% | | Cost plus fee and other | 4% | 8% | | **Total** | **100%** | **100%** | [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from numerous legal proceedings, contract estimation inaccuracies, intense competition, substantial indebtedness with a 'spring-forward' maturity, and potential cybersecurity breaches - The company is involved in numerous lawsuits, and unfavorable outcomes could materially harm financial results and reputation, as exemplified by an **$83.6 million** non-cash charge from an adverse court decision in April 2023[58](index=58&type=chunk) - Inaccuracies in estimating contract revenue and costs, particularly on fixed-price and guaranteed-maximum-price contracts, can lead to lower profits or losses, with economic factors like inflation also negatively impacting profitability[60](index=60&type=chunk)[61](index=61&type=chunk) - A significant portion of operations are concentrated in New York and California, making the company more susceptible to adverse economic conditions in those states[67](index=67&type=chunk) - The company's long-time Chairman and CEO will transition to Executive Chairman at the end of 2024, introducing a new CEO, and such management changes could adversely affect the business[70](index=70&type=chunk) - A 'spring-forward' maturity provision in the 2020 Credit Agreement could accelerate the maturity of the Term Loan B and Revolver to January and April 2025 if the **$500 million** 2017 Senior Notes are not repaid or refinanced, though the company is working on a refinancing transaction expected by the end of April 2024[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) - The company has substantial debt of **$899.7 million** as of December 31, 2023, with restrictive covenants, and failure to comply with these, such as the First Lien Net Leverage Ratio, could trigger a default and debt acceleration[94](index=94&type=chunk) [Unresolved Staff Comments](index=19&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[98](index=98&type=chunk) [Cybersecurity](index=19&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk is overseen by the Board and Audit Committee, managed by a CIO and CISO, with no material incidents reported - Cybersecurity oversight is managed by the Board of Directors, the Audit Committee, a CIO with over **35** years of experience, and a CISO with over **25** years of experience[99](index=99&type=chunk)[100](index=100&type=chunk) - The company's risk management strategy includes annual cybersecurity risk assessments, an incident response plan aligned with NIST standards, third-party penetration tests, and mandatory employee training[102](index=102&type=chunk) - The company has not experienced any cybersecurity incidents that have had a material adverse impact on its operations or financial results[101](index=101&type=chunk) [Properties](index=20&type=section&id=Item%202.%20Properties) The company owns and leases various office facilities and equipment yards across the United States, including its corporate headquarters, which are considered suitable for current needs Major Office and Equipment Yard Locations | Location | Owned/Leased | Business Segment(s) | | :--- | :--- | :--- | | Los Angeles (Sylmar), CA | Owned & Leased | Corporate, Civil & Specialty Contractors | | Barrigada, Guam | Owned | Civil | | Black River Falls, WI | Owned | Civil | | Fort Lauderdale, FL | Leased | Building & Specialty Contractors | | Framingham, MA | Owned | Building | | Houston, TX | Owned | Specialty Contractors | | New Rochelle, NY | Owned | Civil | [Legal Proceedings](index=20&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding the company's legal proceedings is incorporated by reference from Note 8 of the Notes to Consolidated Financial Statements - Details on legal proceedings are discussed in Note 8 of the Notes to Consolidated Financial Statements[104](index=104&type=chunk) [Mine Safety Disclosures](index=20&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) While not a mine operator, the company provides required mine safety disclosures in Exhibit 95 when offering construction services to the mining industry - Information regarding mine safety violations and other related matters is provided in Exhibit 95 to this Form 10-K[105](index=105&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=20&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Tutor Perini's common stock trades on the NYSE under 'TPC', with **298** holders of record as of February 22, 2024, and no immediate plans for dividends or repurchases - The company's common stock is traded on the NYSE under the symbol 'TPC'[107](index=107&type=chunk) - The company did not repurchase any of its common stock during Q4 2023 and does not have immediate plans to pay dividends[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, revenue slightly increased to **$3.9 billion**, construction loss narrowed to **$114.6 million**, backlog grew **28%** to **$10.2 billion**, and record operating cash flow of **$308.5 million** was generated, with a key focus on refinancing 2017 Senior Notes [Executive Overview](index=22&type=section&id=Executive%20Overview) The company's 2023 performance saw a slight revenue increase to **$3.9 billion** and a reduced loss from construction operations of **$114.6 million**, driven by **$6.1 billion** in new awards and a **28%** backlog growth to **$10.2 billion** - The reduced loss in 2023 was primarily due to a lower amount of net unfavorable impacts from legal judgments and settlements compared to 2022, with adverse legal decisions having a net unfavorable impact of **$122.2 million** in 2023 versus **$147.8 million** in 2022[119](index=119&type=chunk) - Consolidated new awards were **$6.1 billion** in 2023, a significant increase from **$3.5 billion** in 2022, with major awards including the **$2.95 billion** Brooklyn Jail project[130](index=130&type=chunk)[131](index=131&type=chunk) Consolidated Operating Results (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $3.9 billion | $3.8 billion | | Loss from Construction Operations | ($114.6 million) | ($204.8 million) | | Diluted Loss Per Share | ($3.30) | ($4.09) | Backlog Changes in 2023 (in millions) | Segment | Backlog at Dec 31, 2022 | New Awards in 2023 | Revenue Recognized in 2023 | Backlog at Dec 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | Civil | $4,416.3 | $1,708.2 | $(1,883.9) | $4,240.6 | | Building | $2,223.6 | $3,256.4 | $(1,302.5) | $4,177.5 | | Specialty Contractors | $1,289.2 | $1,144.9 | $(693.8) | $1,740.3 | | **Total** | **$7,929.1** | **$6,109.5** | **$(3,880.2)** | **$10,158.4** | [Results of Segment Operations](index=27&type=section&id=Results%20of%20Segment%20Operations) In 2023, Civil segment income significantly increased, Building segment incurred a loss despite revenue growth and backlog doubling, and Specialty Contractors segment saw revenue decline and continued losses - The Building segment's backlog increased **88%** to **$4.2 billion**, largely driven by the **$2.95 billion** Brooklyn Jail project award[150](index=150&type=chunk) Civil Segment Performance (in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $1,883.9 | $1,734.9 | | Income from construction operations | $198.6 | $21.1 | Building Segment Performance (in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $1,302.5 | $1,242.6 | | Income (loss) from construction operations | ($91.2) | $7.2 | Specialty Contractors Segment Performance (in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $693.8 | $813.3 | | Loss from construction operations | ($144.8) | ($168.0) | [Corporate, Tax and Other Matters](index=30&type=section&id=Corporate%2C%20Tax%20and%20Other%20Matters) Corporate G&A expenses increased to **$75.2 million** in 2023 due to higher compensation, while interest expense rose to **$85.2 million** due to higher rates, and the effective tax rate was **30.1%** - Corporate G&A expenses increased to **$75.2 million** in 2023 from **$62.2 million** in 2022, primarily due to higher compensation-related expenses and professional fees[156](index=156&type=chunk) - Interest expense increased by **$15.6 million** in 2023, substantially due to higher interest rates on the Term Loan B and the Revolver[158](index=158&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated a record **$308.5 million** in operating cash flow in 2023, increasing liquidity, but faces a critical 'spring-forward' maturity provision on its debt requiring refinancing of **$500 million** 2017 Senior Notes - Net cash provided by operating activities was a record **$308.5 million** in 2023, up from **$207.0 million** in 2022, primarily due to improved collection activity[163](index=163&type=chunk) - The 2020 Credit Agreement has a 'spring-forward' maturity provision, where if the 2017 Senior Notes are outstanding on January 30, 2025, the maturity of the Revolver and a portion of the Term Loan B will accelerate to that date; the company is working to refinance the 2017 Senior Notes and anticipates completing a transaction by the end of April 2024[171](index=171&type=chunk)[172](index=172&type=chunk) - The company made a mandatory prepayment of **$91.0 million** on its Term Loan B in February 2024, related to annual excess cash flow from 2023[173](index=173&type=chunk) First Lien Net Leverage Ratio Covenant | Period Ended | Actual Ratio | Required Ratio | | :--- | :--- | :--- | | December 31, 2023 | 2.07 to 1.00 | ≤ 2.25 : 1.00 | [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment in revenue recognition for long-term contracts and annual goodwill impairment testing, with no impairment found for the Civil reporting unit in 2023 - Contract revenue is recognized over time using the cost-to-cost method, which requires significant management judgment and assumptions regarding future events, change orders, claims, and total estimated costs[179](index=179&type=chunk)[181](index=181&type=chunk) - The company tests goodwill for impairment annually on October 1, and the 2023 test performed on the Civil reporting unit, which holds the entire goodwill balance of **$205.1 million**, determined that goodwill was not impaired[188](index=188&type=chunk)[192](index=192&type=chunk)[272](index=272&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its **$373.5 million** variable-rate debt, where a **0.50%** change impacts annual interest expense by approximately **$1.9 million** - The company is exposed to interest rate risk from its variable-rate debt, which totaled approximately **$373.5 million** as of December 31, 2023[194](index=194&type=chunk) - A **0.50%** (**50** basis point) change in floating interest rates would change annual interest expense by approximately **$1.9 million**[194](index=194&type=chunk) [Financial Statements and Supplementary Data](index=36&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The Report of Independent Registered Public Accounting Firm and Consolidated Financial Statements are included in Item 15 of the Annual Report on Form 10-K - The company's audited Consolidated Financial Statements are incorporated by reference from Item 15[195](index=195&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=36&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[196](index=196&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, a conclusion affirmed by Deloitte & Touche LLP's unqualified opinion - Management concluded that as of December 31, 2023, the company's disclosure controls and procedures were effective[197](index=197&type=chunk) - Management concluded that as of December 31, 2023, the company's internal control over financial reporting was effective based on the COSO framework (2013)[199](index=199&type=chunk) - Deloitte & Touche LLP issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2023[204](index=204&type=chunk) [Other Information](index=39&type=section&id=Item%209B.%20Other%20Information) No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q4 2023 - No director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements during the quarter ended December 31, 2023[210](index=210&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=39&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[211](index=211&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=39&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the definitive proxy statement, and the company has adopted a Code of Business Conduct and Ethics - Required information is incorporated by reference from the definitive proxy statement[213](index=213&type=chunk) [Executive Compensation](index=39&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive proxy statement - Required information is incorporated by reference from the definitive proxy statement[215](index=215&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=39&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section provides equity compensation plan information, with **2,682,894** securities to be issued and **987,001** remaining available, and further details incorporated by reference from the proxy statement Equity Compensation Plan Information as of December 31, 2023 | Plan Category | Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price (b) | Securities Remaining for Future Issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 2,682,894 | $23.33 | 987,001 | [Certain Relationships and Related Transactions, and Director Independence](index=39&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's definitive proxy statement - Required information is incorporated by reference from the definitive proxy statement[217](index=217&type=chunk) [Principal Accountant Fees and Services](index=40&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to the company's principal accountant is incorporated by reference from the company's definitive proxy statement - Required information is incorporated by reference from the definitive proxy statement[218](index=218&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=41&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Form 10-K, including Consolidated Financial Statements, the Independent Registered Public Accounting Firm's Report, and an index of all exhibits - The Consolidated Financial Statements for the three years ended December 31, 2023, and the Report of Independent Registered Public Accounting Firm are filed as part of this report[221](index=221&type=chunk) - An index of exhibits is provided, including material contracts such as the 2020 Credit Agreement and its amendments, and various employment and lease agreements[225](index=225&type=chunk)[226](index=226&type=chunk) [Form 10-K Summary](index=43&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[228](index=228&type=chunk)

News Release Tutor Perini Reports Fourth Quarter and Full Year 2023 Results LOS ANGELES – (BUSINESS WIRE) – February 28, 2024 – Tutor Perini Corporation (the "Company") (NYSE: TPC), a leading civil, building and specialty construction company, reported results today for the fourth quarter and year ended December 31, 2023 (see attached tables). Revenue for 2023 was $3.9 billion, up slightly compared to 2022, primarily due to a lower amount of net unfavorable impacts from settlements, litigation results and o ...

Financial Data and Key Metrics Changes - The company reported a consolidated pre-tax loss of $26 million for Q3 2023, resulting in a loss of $0.71 per diluted share, compared to a loss of $32 million or $0.63 per share in Q3 2022 [9][31] - Operating cash flow for Q3 2023 was $103 million, bringing year-to-date operating cash flow to $181 million, which is just $26 million short of the record $207 million achieved last year [16][48] - The company expects full-year operating cash flow for 2023 to significantly exceed last year's record due to ongoing dispute resolutions and cash collections [60] Business Line Data and Key Metrics Changes - Civil segment revenue was $520 million, showing a modest increase compared to Q3 2022, while building segment revenue was $365 million, up 15% primarily due to increased project execution activities in California [25] - Specialty contractors segment revenue was $175 million, down 31% year-over-year, attributed to decreased activities on nearing completion projects in the Northeast [50] - Building segment income from construction operations was $47 million, more than double the $23 million reported in Q3 2022, due to an improved project mix [51] Market Data and Key Metrics Changes - The company's backlog stood at $10.6 billion, steady compared to Q2 2023 and up 28% from $8.4 billion in Q3 2022, driven by significant project awards [19] - The bidding pipeline remains strong, with several large projects anticipated, including the $500 million Amtrak Connecticut River Bridge replacement and the $1.5 billion Inglewood Automated People Mover Project [10][11] Company Strategy and Development Direction - The company plans to use excess cash generated to de-lever its balance sheet as part of a refinancing strategy expected to commence early next year [8][32] - Management expressed confidence in winning a share of upcoming projects due to diminished competition and strong market demand, particularly from the bipartisan infrastructure law [21] Management's Comments on Operating Environment and Future Outlook - Management noted mixed results for Q3 2023, highlighting strong cash generation and backlog growth but challenged earnings due to write-downs from disputed matters [16][34] - The company anticipates improved performance in Q4 2023 and expects significantly improved EPS in 2024 and beyond [35][47] Other Important Information - Corporate G&A expense for Q3 2023 was $21 million, up from $17 million in the same quarter last year [30] - Interest expense for Q3 2023 was $20 million, compared to $17 million in Q3 2022, driven by higher borrowing rates [55] Q&A Session Summary Question: Can you clarify the underlying operations from the charges related to settlement? - Management indicated that charges were a mix of ongoing and completed projects, with significant charges related to a completed tunnel project in Los Angeles [63][64] Question: What are the expected margins in backlog? - Management provided a conservative estimate of 10-12% for civil, 2-3% for building, and 4-5% for specialty contractors, with expectations of stabilization in margins moving forward [71][90] Question: When will the dispute settlements be resolved? - Management expressed confidence that most disputes would be resolved by the end of 2024, with ongoing collections expected to follow [75][86]