PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including statements of income, comprehensive income, balance sheets, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial line items for Tutor Perini Corporation and its subsidiaries for the periods ended June 30, 2025 and December 31, 2024 [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This statement details the company's revenues, gross profit, income from construction operations, and net income for the specified periods | (amounts in millions, except per common share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUE | $ 1,373.7 million | $ 1,127.5 million | $ 2,620.3 million | $ 2,176.5 million | | GROSS PROFIT | 196.0 million | 117.1 million | 330.4 million | 232.3 million | | INCOME FROM CONSTRUCTION OPERATIONS | 76.4 million | 40.5 million | 141.8 million | 89.3 million | | NET INCOME | 47.1 million | 16.0 million | 89.8 million | 43.5 million | | NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION | $ 20.0 million | $ 0.8 million | $ 48.0 million | $ 16.6 million | | BASIC EARNINGS PER COMMON SHARE | $ 0.38 | $ 0.02 | $ 0.91 | $ 0.32 | | DILUTED EARNINGS PER COMMON SHARE | $ 0.38 | $ 0.02 | $ 0.90 | $ 0.31 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents the net income and other comprehensive income components, leading to total comprehensive income for the company and its attributable portion | (amounts in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | NET INCOME | $ 47.1 million | $ 16.0 million | $ 89.8 million | $ 43.5 million | | TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 3.3 million | (0.3) million | 5.5 million | (1.1) million | | COMPREHENSIVE INCOME | 50.3 million | 15.7 million | 95.4 million | 42.4 million | | COMPREHENSIVE INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION | $ 21.9 million | $ 0.7 million | $ 51.7 million | $ 16.1 million | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time, reflecting its financial position Condensed Consolidated Balance Sheets (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :---------------- | :------------------ | :---------------------- | | TOTAL ASSETS | $ 4,870.1 million | $ 4,242.7 million | | TOTAL LIABILITIES | 3,630.3 million | 3,084.1 million | | TOTAL EQUITY | 1,239.8 million | 1,158.6 million | - Total current assets increased to **$3,898.2 million** as of June 30, 2025, from **$3,286.7 million** as of December 31, 2024. Total current liabilities increased to **$2,955.9 million** as of June 30, 2025, from **$2,332.7 million** as of December 31, 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the cash inflows and outflows from operating, investing, and financing activities, showing changes in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (amounts in millions) | Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------------- | :----------------------------- | :----------------------------- | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $ 285.3 million | $ 151.4 million | | NET CASH USED IN INVESTING ACTIVITIES | (67.7) million | (24.0) million | | NET CASH USED IN FINANCING ACTIVITIES | (134.7) million | (242.6) million | | Net increase (decrease) in cash, cash equivalents and restricted cash | 82.9 million | (115.2) million | | Cash, cash equivalents and restricted cash at end of period | $ 547.1 million | $ 279.5 million | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential context and detailed breakdowns for the condensed consolidated financial statements, covering accounting policies, revenue recognition, contract assets and liabilities, cash management, equity changes, debt, leases, and segment performance. They highlight key financial movements and the impact of various operational and strategic factors [ (1) Basis of Presentation](index=8&type=section&id=(1)%20Basis%20of%20Presentation) This note describes the preparation of unaudited interim financial statements in accordance with GAAP and their relation to the annual Form 10-K - The unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP but do not include all annual footnotes and should be read with the 2024 Form 10-K. Interim results may not predict full-year performance[17](index=17&type=chunk) [ (2) Recent Accounting Pronouncements](index=8&type=section&id=(2)%20Recent%20Accounting%20Pronouncements) This note outlines the company's evaluation of new accounting standards related to income taxes and expense disaggregation disclosures - The Company is evaluating the impact of ASU 2023-09 (Income Taxes) effective after December 15, 2024, and ASU 2024-03 (Expense Disaggregation Disclosures) effective after December 15, 2026, on its consolidated financial statements[19](index=19&type=chunk)[20](index=20&type=chunk) [ (3) Revenue](index=8&type=section&id=(3)%20Revenue) This note details revenue by segment, end market, and customer type, along with remaining performance obligations and the impact of prior period adjustments Revenue by Segment and End Market (Three Months Ended June 30) | Segment | End Market | 2025 (amounts in millions) | 2024 (amounts in millions) | | :------ | :-------------------- | :------------------------- | :------------------------- | | Civil | Mass transit | $ 420.7 million | $ 289.6 million | | | Bridges | $ 104.1 million | $ 62.3 million | | Building| Healthcare facilities | $ 233.4 million | $ 136.0 million | | | Detention facilities | $ 75.9 million | $ 26.9 million | | Specialty Contractors | Mass transit | $ 56.2 million | $ 48.8 million | | | Healthcare facilities | $ 23.9 million | $ 14.7 million | Revenue by Customer Type (Six Months Ended June 30) | Customer Type | 2025 (amounts in millions) | 2024 (amounts in millions) | | :--------------------- | :------------------------- | :------------------------- | | State and local agencies | $ 1,603.0 million | $ 1,284.3 million | | Federal agencies | $ 312.4 million | $ 325.7 million | | Private owners | $ 704.9 million | $ 566.4 million | - Revenue was positively impacted by **$20.4 million** and **$2.7 million** during the three and six months ended June 30, 2025, respectively, due to performance obligations satisfied in prior periods. This contrasts with negative impacts of **$9.0 million** and **$15.6 million** for the same periods in 2024[27](index=27&type=chunk) - Remaining performance obligations as of June 30, 2025, were **$9.0 billion** for Civil, **$5.0 billion** for Building, and **$2.2 billion** for Specialty Contractors, significantly higher than **$4.4 billion**, **$2.2 billion**, and **$1.1 billion** respectively, as of June 30, 2024[28](index=28&type=chunk) [ (4) Contract Assets and Liabilities](index=10&type=section&id=(4)%20Contract%20Assets%20and%20Liabilities) This note details the components of contract assets and liabilities, including costs in excess of billings, claims, and unapproved change orders Contract Assets and Liabilities (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :---------------------------------------- | :------------------ | :---------------------- | | **Contract Assets:** | | | | Costs and estimated earnings in excess of billings | $ 856.4 million | $ 942.5 million | | Claims | $ 389.8 million | $ 451.8 million | | Unapproved change orders | $ 403.2 million | $ 393.8 million | | Other unbilled costs and profits | $ 63.4 million | $ 96.9 million | | **Contract Liabilities:** | | | | Billings in excess of costs and estimated earnings | $ 1,684.4 million | $ 1,216.6 million | - Revenue recognized from opening billings in excess of costs and estimated earnings balances totaled **$681.0 million** and **$752.4 million** for the three and six months ended June 30, 2025, respectively, compared to **$483.2 million** and **$726.3 million** for the same periods in 2024[32](index=32&type=chunk) [ (5) Cash, Cash Equivalents and Restricted Cash](index=12&type=section&id=(5)%20Cash,%20Cash%20Equivalents%20and%20Restricted%20Cash) This note provides a breakdown of cash, cash equivalents, and restricted cash, highlighting amounts available for general corporate purposes and joint ventures Cash, Cash Equivalents and Restricted Cash (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------------------------------------- | :------------------ | :---------------------- | | Cash and cash equivalents available for general corporate purposes | $ 231.1 million | $ 265.6 million | | Joint venture cash and cash equivalents | 295.0 million | 189.4 million | | Cash and cash equivalents | 526.1 million | 455.1 million | | Restricted cash | 21.0 million | 9.1 million | | Total cash, cash equivalents and restricted cash | $ 547.1 million | $ 464.2 million | - Restricted cash is primarily held as collateral for insurance-related contingent obligations[35](index=35&type=chunk) [ (6) Other Current Assets](index=12&type=section&id=(6)%20Other%20Current%20Assets) This note details other current assets, primarily capitalized contract costs like prepaid insurance premiums, and their amortization expense Other Current Assets (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :------------------------- | :------------------ | :---------------------- | | Capitalized contract costs | $ 299.5 million | $ 100.6 million | | Other | 70.5 million | 92.3 million | | Total other current assets | $ 370.0 million | $ 192.9 million | - Capitalized contract costs, primarily prepaid insurance premiums, are expensed over the period of anticipated use. Amortization expense for these costs was **$14.5 million** and **$32.4 million** for the three and six months ended June 30, 2025, respectively[36](index=36&type=chunk) [ (7) Earnings Per Common Share](index=12&type=section&id=(7)%20Earnings%20Per%20Common%20Share) This note presents the calculation of basic and diluted earnings per common share, based on net income attributable to the corporation and weighted-average shares outstanding Earnings Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Tutor Perini Corporation | $ 20.0 million | $ 0.8 million | $ 48.0 million | $ 16.6 million | | Weighted-average common shares outstanding, basic | 52,724 | 52,327 | 52,631 | 52,210 | | Basic EPS | $ 0.38 | $ 0.02 | $ 0.91 | $ 0.32 | | Diluted EPS | $ 0.38 | $ 0.02 | $ 0.90 | $ 0.31 | [ (8) Income Taxes](index=13&type=section&id=(8)%20Income%20Taxes) This note details income tax expense and effective tax rates, explaining the factors contributing to deviations from the federal statutory rate Income Tax Expense and Effective Tax Rate | Period | Income Tax Expense (amounts in millions) | Effective Income Tax Rate | | :------------------------------------ | :--------------------------------------- | :------------------------ | | Three Months Ended June 30, 2025 | $ 22.0 million | 31.8% | | Six Months Ended June 30, 2025 | $ 34.9 million | 28.0% | | Three Months Ended June 30, 2024 | $ 7.3 million | 31.3% | | Six Months Ended June 30, 2024 | $ 14.6 million | 25.1% | - The effective income tax rates for both 2025 and 2024 periods were higher than the **21.0% federal statutory rate** primarily due to non-deductible expenses and state income taxes, partially offset by earnings attributable to noncontrolling interests and federal income tax credits[40](index=40&type=chunk)[41](index=41&type=chunk) - The recently enacted H.R.1, the One Big Beautiful Bill Act, includes tax reform provisions, but the Company does not expect it to have a material impact on its consolidated financial statements[42](index=42&type=chunk) [ (9) Goodwill and Intangible Assets](index=13&type=section&id=(9)%20Goodwill%20and%20Intangible%20Assets) This note provides information on the carrying amounts of goodwill and intangible assets, including impairment testing results and amortization expenses Goodwill Carrying Amount (amounts in millions) | Segment | As of December 31, 2024 | As of June 30, 2025 | | :-------------------- | :---------------------- | :------------------ | | Civil | $ 205.1 million | $ 205.1 million | | Building | — | — | | Specialty Contractors | — | — | | Total | $ 205.1 million | $ 205.1 million | - The Company performed its annual impairment test in Q4 2024 and concluded goodwill was not impaired. No triggering events or circumstances changed since then to indicate impairment for the Civil reporting unit[45](index=45&type=chunk) Intangible Assets, Net (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :---------------------------- | :------------------ | :---------------------- | | Trade names (non-amortizable) | $ 50.4 million | $ 50.4 million | | Trade names (amortizable) | 14.5 million | 15.7 million | | Total | $ 65.0 million | $ 66.1 million | - Amortization expense for intangible assets was **$0.5 million** and **$1.1 million** for the three and six months ended June 30, 2025, respectively. No impairment of intangible assets occurred in 2025 or 2024[47](index=47&type=chunk)[48](index=48&type=chunk) [ (10) Financial Commitments](index=15&type=section&id=(10)%20Financial%20Commitments) This note details the company's long-term debt, including senior notes, term loans, and other indebtedness, along with interest expense Long-Term Debt (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :---------------------------------- | :------------------ | :---------------------- | | 2024 Senior Notes | $ 380.0 million | $ 378.0 million | | Term Loan B | — | 121.9 million | | Equipment financing and mortgages | 23.9 million | 25.0 million | | Other indebtedness | 15.6 million | 9.2 million | | Total debt | 419.4 million | 534.1 million | | Less: Current maturities | 26.1 million | 24.1 million | | Long-term debt, net | $ 393.3 million | $ 510.0 million | - The Company issued **$400.0 million** in **11.875% Senior Notes** due April 30, 2029, in April 2024, using proceeds to redeem the 2017 Senior Notes[51](index=51&type=chunk)[56](index=56&type=chunk) - The Company voluntarily repaid the remaining **$121.9 million** outstanding balance of the Term Loan B during the first quarter of 2025[59](index=59&type=chunk) Interest Expense (amounts in millions) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total cash interest expense | $ 12.5 million | $ 20.5 million | $ 25.7 million | $ 38.0 million | | Total non-cash interest expense | 1.1 million | 2.6 million | 2.2 million | 4.4 million | | Total interest expense | $ 13.6 million | $ 23.1 million | $ 27.9 million | $ 42.4 million | [ (11) Leases](index=20&type=section&id=(11)%20Leases) This note outlines lease expenses, including operating and short-term leases, and details current and long-term lease liabilities Lease Expense (amounts in millions) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease expense | $ 3.6 million | $ 3.2 million | $ 6.7 million | $ 6.5 million | | Short-term lease expense | 14.6 million | 13.5 million | 28.1 million | 25.9 million | | Total lease expense (net of sublease income) | $ 17.8 million | $ 16.5 million | $ 34.2 million | $ 32.0 million | Operating Lease Liabilities (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------- | :------------------ | :---------------------- | | Current lease liabilities | $ 10.4 million | $ 7.1 million | | Long-term lease liabilities | 49.7 million | 38.6 million | | Total lease liabilities | $ 60.1 million | $ 45.7 million | - The weighted-average remaining lease term is **6.8 years** with a weighted-average discount rate of **9.02%** as of June 30, 2025[71](index=71&type=chunk) [ (12) Commitments and Contingencies](index=21&type=section&id=(12)%20Commitments%20and%20Contingencies) This note discusses the company's involvement in various legal proceedings, including contract disputes and a lawsuit against a design firm - The Company is involved in various legal proceedings, including disputes over contract payment and performance. Management assesses these matters and records expected recoveries as variable consideration[75](index=75&type=chunk) - The lawsuit between Seattle Tunnel Partners (STP) and WSDOT concluded with a jury verdict in favor of WSDOT for **$57.2 million**, which STP paid in October 2022. A confidential settlement was reached in September 2024 resolving the case against the Insurers, with payment received in October 2024[77](index=77&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - STP filed a case against HNTB Corporation, its design firm, in April 2023, seeking damages in excess of **$300 million** for design services that allegedly led to the TBM striking a steel pipe. The trial is scheduled for April 2026[81](index=81&type=chunk) [ (13) Share-Based Compensation](index=22&type=section&id=(13)%20Share-Based%20Compensation) This note details the share-based compensation expense recognized and the unamortized expense, highlighting the impact of stock price fluctuations - The Company recognized share-based compensation expense of **$55.4 million** and **$62.0 million** for the three and six months ended June 30, 2025, respectively, a significant increase from **$16.9 million** and **$22.4 million** for the same periods in 2024[84](index=84&type=chunk) - The increase in expense is primarily due to a substantial increase in the Company's stock price, impacting the fair value of liability-classified awards[144](index=144&type=chunk) - As of June 30, 2025, unamortized share-based compensation expense was **$90.2 million**, expected to be recognized over a weighted-average period of **1.7 years**[84](index=84&type=chunk) [ (14) Employee Pension Plans](index=23&type=section&id=(14)%20Employee%20Pension%20Plans) This note outlines the net periodic benefit cost for employee pension plans, including interest cost, service cost, and expected return on plan assets Net Periodic Benefit Cost (amounts in millions) | Component | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest cost | $ 0.9 million | $ 0.9 million | $ 1.9 million | $ 1.8 million | | Service cost | 0.2 million | 0.2 million | 0.3 million | 0.5 million | | Expected return on plan assets | (0.9) million | (0.9) million | (1.8) million | (1.9) million | | Recognized net actuarial losses | 0.4 million | 0.4 million | 0.8 million | 0.9 million | | Net periodic benefit cost | $ 0.6 million | $ 0.6 million | $ 1.2 million | $ 1.3 million | - The Company contributed **$1.3 million** to its defined benefit pension plan during both the six months ended June 30, 2025 and 2024, and expects to contribute an additional **$1.2 million** by the end of 2025[86](index=86&type=chunk) [ (15) Fair Value Measurements](index=23&type=section&id=(15)%20Fair%20Value%20Measurements) This note presents assets measured at fair value on a recurring basis, including cash, restricted cash, and investments, and discusses valuation inputs Assets Measured at Fair Value on a Recurring Basis (amounts in millions) | Category | As of June 30, 2025 | As of December 31, 2024 | | :---------------------------------------- | :------------------ | :---------------------- | | Cash and cash equivalents | $ 526.1 million | $ 455.1 million | | Restricted cash | 21.0 million | 9.1 million | | Restricted investments | 157.4 million | 140.0 million | | Investments in lieu of retention | 165.0 million | 145.1 million | | Total | $ 869.4 million | $ 749.3 million | - Restricted investments and investments in lieu of retention primarily consist of available-for-sale (AFS) debt securities, valued using Level 2 inputs (observable market information or broker quotes). Money market funds are classified as Level 1 assets[88](index=88&type=chunk) - Unrealized losses in AFS debt securities are primarily due to market interest rate increases, not credit quality deterioration. No impairment losses were recognized in earnings during the six months ended June 30, 2025[94](index=94&type=chunk)[95](index=95&type=chunk) [ (16) Variable Interest Entities (VIEs)](index=25&type=section&id=(16)%20Variable%20Interest%20Entities%20(VIEs)) This note provides details on the company's unconsolidated and consolidated variable interest entities, including their asset and liability contributions - As of June 30, 2025, the Company had unconsolidated VIE-related current assets of **$45.8 million** and current liabilities of **$53.2 million**. Consolidated VIEs contributed **$798.8 million** in current assets and **$576.3 million** in current liabilities to the balance sheet[102](index=102&type=chunk)[103](index=103&type=chunk) - The Company is the primary beneficiary of joint ventures for the Purple Line Extension Section 2 and 3 mass-transit projects (approx. **$2.8 billion** combined value) and the Manhattan Jail project (**$3.76 billion**), holding a **75% interest** in both[105](index=105&type=chunk)[106](index=106&type=chunk) [ (17) Changes in Equity](index=27&type=section&id=(17)%20Changes%20in%20Equity) This note summarizes the changes in total equity, driven by net income, other comprehensive income, share-based compensation, and noncontrolling interest transactions Changes in Total Equity (amounts in millions) | Period | Balance - December 31, 2024 | Net Income | Other Comprehensive Income | Share-based Compensation | Issuance of Common Stock, Net | Contributions from Noncontrolling Interests | Distributions to Noncontrolling Interests | Balance - June 30, 2025 | | :--------------------- | :-------------------------- | :--------- | :------------------------- | :----------------------- | :---------------------------- | :------------------------------------------ | :---------------------------------------- | :---------------------- | | Six Months Ended June 30, 2025 | $ 1,158.6 million | $ 89.8 million | $ 5.5 million | $ 3.9 million | $ (5.1) million | $ 7.5 million | $ (20.4) million | $ 1,239.8 million | - Total equity increased from **$1,158.6 million** at December 31, 2024, to **$1,239.8 million** at June 30, 2025, driven by net income and other comprehensive income, partially offset by net common stock issuance and distributions to noncontrolling interests[109](index=109&type=chunk) [ (18) Other Comprehensive Income (Loss)](index=28&type=section&id=(18)%20Other%20Comprehensive%20Income%20(Loss)) This note breaks down the components of other comprehensive income (loss), including pension adjustments, foreign currency translation, and investment fair value changes Total Other Comprehensive Income (Loss), Net of Tax (amounts in millions) | Period | Attributable to Tutor Perini Corporation | Attributable to Noncontrolling Interests | | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Three Months Ended June 30, 2025 | $ 1.9 million | $ 1.3 million | | Six Months Ended June 30, 2025 | $ 3.7 million | $ 1.8 million | | Three Months Ended June 30, 2024 | $ (0.1) million | $ (0.2) million | | Six Months Ended June 30, 2024 | $ (0.4) million | $ (0.7) million | - Components of other comprehensive income (loss) include defined benefit pension plan adjustments, foreign currency translation adjustments, and unrealized gain (loss) in fair value of investments[112](index=112&type=chunk) [ (19) Business Segments](index=32&type=section&id=(19)%20Business%20Segments) This note provides detailed financial information for the Civil, Building, and Specialty Contractors segments, including revenue, income from construction operations, and total assets - The Company operates through three segments: Civil, Building, and Specialty Contractors, offering general contracting, pre-construction planning, project management, and self-performed construction services[121](index=121&type=chunk) Segment Revenue and Income from Construction Operations (Three Months Ended June 30, 2025, amounts in millions) | Segment | Total Revenue (amounts in millions) | Revenue from External Customers (amounts in millions) | Income (Loss) from Construction Operations (amounts in millions) | | :-------------------- | :---------------------------------- | :------------------------------------ | :----------------------------------------------- | | Civil | $ 784.6 million | $ 734.2 million | $ 140.1 million | | Building | $ 486.0 million | $ 462.1 million | $ 22.5 million | | Specialty Contractors | $ 177.4 million | $ 177.4 million | $ (18.0) million | Total Assets by Segment (amounts in millions) | Segment | As of June 30, 2025 | As of December 31, 2024 | | :-------------------- | :------------------ | :---------------------- | | Civil | $ 4,063.2 million | $ 3,636.8 million | | Building | $ 1,375.2 million | $ 1,086.0 million | | Specialty Contractors | $ 217.1 million | $ 199.0 million | | Corporate and other | $ (785.4) million | $ (679.1) million | | Total assets | $ 4,870.1 million | $ 4,242.7 million | - Revenue from a single major customer represented **15.3%** and **15.4%** of consolidated revenue for the three and six months ended June 30, 2025, respectively[137](index=137&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and operational results, highlighting key performance drivers, segment-specific contributions, and factors influencing liquidity and capital resources. It also includes forward-looking statements and non-GAAP financial measures to offer a comprehensive view of the Company's performance [Forward-Looking Statements](index=36&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties, including litigation and economic factors - The report contains forward-looking statements subject to risks and uncertainties, including unfavorable litigation outcomes, revisions of contract estimates, economic factors, and inability to obtain bonding[142](index=142&type=chunk) [Executive Overview](index=37&type=section&id=Executive%20Overview) This overview summarizes consolidated operating results, revenue growth drivers, new awards, and future growth expectations based on project pipeline and public funding Consolidated Operating Results Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consolidated Revenue | $ 1.4 billion (Up 21.8%) | $ 1.1 billion | $ 2.6 billion (Up 20.4%) | $ 2.2 billion | | Income from Construction Operations | $ 76.4 million (Up 88.7%) | $ 40.5 million | $ 141.8 million (Up 58.7%) | $ 89.3 million | | Diluted EPS | $ 0.38 | $ 0.02 | $ 0.90 | $ 0.31 | - Revenue growth was driven by increased project execution activities on newer, higher-margin projects, including a detention facility in New York and mass-transit projects in Hawaii and California[143](index=143&type=chunk) - New awards totaled **$3.1 billion** and **$5.0 billion** for the three and six months ended June 30, 2025, respectively, contributing to a record consolidated backlog of **$21.1 billion**[147](index=147&type=chunk)[150](index=150&type=chunk) - The Company expects continued revenue growth due to strong new award bookings, a large pipeline of prospective projects, and significant public funding from initiatives like the Infrastructure Investment and Jobs Act[153](index=153&type=chunk)[156](index=156&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of adjusted net income and adjusted EPS, excluding share-based compensation, to provide insights into core operational efficiency - The Company presents adjusted net income and adjusted EPS, excluding share-based compensation expense and its tax benefit, to provide a clearer view of core operational efficiency and profitability, as stock price fluctuations can significantly impact reported earnings[158](index=158&type=chunk)[159](index=159&type=chunk) Adjusted Financial Measures (in millions, except per common share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Adjusted net income attributable to Tutor Perini Corporation | $ 75.1 | $ 17.5 | $ 109.5 | $ 38.7 | | Adjusted diluted earnings per common share | $ 1.41 | $ 0.34 | $ 2.06 | $ 0.73 | [Results of Segment Operations](index=40&type=section&id=Results%20of%20Segment%20Operations) This section details the financial performance of the Civil, Building, and Specialty Contractors segments, including revenue, income from construction operations, operating margins, and new awards, highlighting the key drivers of their respective results [Civil Segment](index=40&type=section&id=Civil%20Segment%20(MD%26A)) This segment's performance highlights significant revenue and income growth driven by large mass-transit projects and favorable adjustments, leading to a record backlog Civil Segment Performance (amounts in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $ 734.2 (Up 34.3%) | $ 546.5 | $ 1,344.2 (Up 32.0%) | $ 1,018.7 | | Income from construction operations | $ 140.1 (Up 85.4%) | $ 75.6 | $ 219.7 (Up 50.2%) | $ 146.3 | | Operating margin | 19.1% | 13.8% | 16.3% | 14.4% | - Revenue and income growth were primarily due to increased project execution on large mass-transit projects in California and Hawaii, and favorable adjustments from change order settlements and improved performance on a Midwest mass-transit project[165](index=165&type=chunk)[166](index=166&type=chunk) - New awards totaled **$2.2 billion** and **$3.7 billion** for the three and six months ended June 30, 2025, respectively, including the **$1.87 billion** Midtown Bus Terminal Replacement - Phase 1 project in New York. Backlog reached a record **$11.2 billion**[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) [Building Segment](index=42&type=section&id=Building%20Segment%20(MD%26A)) This segment experienced revenue and income increases due to enhanced project execution on key facilities, with strong demand expected across several markets Building Segment Performance (amounts in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $ 462.1 (Up 10.6%) | $ 417.9 | $ 921.9 (Up 11.1%) | $ 829.8 | | Income from construction operations | $ 22.5 (Up 344.8%) | $ 5.0 | $ 32.9 (Up 55.5%) | $ 21.2 | | Operating margin | 4.9% | 1.2% | 3.6% | 2.6% | - Revenue and income increases were driven by heightened project execution on a New York detention facility and a California healthcare facility. New awards included a **$538 million** healthcare project in California[171](index=171&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk) - Backlog for the Building segment was **$6.9 billion** as of June 30, 2025, up **65% year-over-year**. Strong demand is expected in healthcare, education, industrial/manufacturing, and hospitality/gaming markets[176](index=176&type=chunk) [Specialty Contractors Segment](index=42&type=section&id=Specialty%20Contractors%20Segment%20(MD%26A)) This segment saw revenue growth from increased project execution but experienced an increased loss due to unfavorable adjustments from legacy claims settlements Specialty Contractors Segment Performance (amounts in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $ 177.4 (Up 8.8%) | $ 163.1 | $ 354.2 (Up 8.0%) | $ 328.0 | | Loss from construction operations | $ (18.0) | $ (7.8) | $ (25.1) | $ (26.2) | | Operating margin | (10.2)% | (4.8)% | (7.1)% | (8.0)% | - Revenue growth was due to increased project execution on electrical and mechanical components of newer projects in the Northeast, California, and Florida. The increased loss in Q2 2025 was due to unfavorable adjustments from legacy claims settlements[178](index=178&type=chunk)[179](index=179&type=chunk) - Backlog for the Specialty Contractors segment was a record **$3.0 billion** as of June 30, 2025, up **61% year-over-year**, primarily focused on supporting large Civil and Building segment projects[182](index=182&type=chunk) [Corporate, Tax and Other Matters](index=43&type=section&id=Corporate,%20Tax%20and%20Other%20Matters) This section discusses corporate general and administrative expenses, other income, interest expense, and income tax expense, highlighting the impact of share-based compensation and debt repayment on financial results [Corporate General and Administrative Expenses](index=43&type=section&id=Corporate%20General%20and%20Administrative%20Expenses) This note explains the increase in corporate general and administrative expenses, primarily attributed to higher share-based compensation due to stock price appreciation - Corporate general and administrative expenses increased to **$68.1 million** and **$85.7 million** for the three and six months ended June 30, 2025, respectively, from **$31.5 million** and **$51.3 million** in 2024, primarily due to a substantial increase in share-based compensation expense driven by a higher stock price[183](index=183&type=chunk) [Other Income, Net, Interest Expense and Income Tax Expense](index=43&type=section&id=Other%20Income,%20Net,%20Interest%20Expense%20and%20Income%20Tax%20Expense) This note details other income, net, interest expense, and income tax expense, noting the impact of debt repayment on interest costs and factors affecting the effective tax rate Other Income, Net, Interest Expense and Income Tax Expense (amounts in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Other income, net | $ 6.2 million | $ 5.8 million | $ 10.9 million | $ 11.1 million | | Interest expense | $ (13.6) million | $ (23.1) million | $ (27.9) million | $ (42.4) million | | Income tax expense | $ (22.0) million | $ (7.3) million | $ (34.9) million | $ (14.6) million | - Interest expense decreased by **$9.5 million** and **$14.5 million** for the three and six months ended June 30, 2025, respectively, primarily due to lower outstanding debt following the payoff of the Term Loan B[184](index=184&type=chunk) - The effective income tax rate for the three and six months ended June 30, 2025, was **31.8%** and **28.0%**, respectively, higher than the **21.0% federal statutory rate** due to non-deductible expenses and state income taxes, partially offset by noncontrolling interests and federal tax credits[185](index=185&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the Company's liquidity sources, including cash, operating cash flow, and credit facilities. It discusses changes in cash and working capital, debt structure, and compliance with financial covenants, emphasizing the Company's ability to meet future financial obligations [Cash and Working Capital](index=44&type=section&id=Cash%20and%20Working%20Capital) This note discusses the company's cash and cash equivalents, record operating cash flow, and working capital position, highlighting improvements in project working capital - Cash and cash equivalents were **$526.1 million** as of June 30, 2025, up from **$455.1 million** at December 31, 2024. Cash available for general corporate purposes was **$231.1 million**[188](index=188&type=chunk) - Net cash provided by operating activities was a record **$285.3 million** for the first six months of 2025, driven by earnings and a decrease in net project working capital, primarily due to increased billings in excess of costs and estimated earnings (BIE)[189](index=189&type=chunk) - Working capital was **$0.9 billion** at June 30, 2025, with a current assets to current liabilities ratio of **1.32** and a debt to equity ratio of **0.34**[193](index=193&type=chunk) [Debt](index=45&type=section&id=Debt) This note details the company's debt structure, including the issuance of new senior notes, repayment of the Term Loan B, and compliance with credit agreement covenants - The Company issued **$400.0 million** in **11.875% Senior Notes** due April 30, 2029, in April 2024, and fully redeemed the 2017 Senior Notes[194](index=194&type=chunk)[197](index=197&type=chunk) - The 2020 Credit Agreement's Revolver maturity date was extended, and its aggregate commitments were reduced to **$170.0 million**. The Company voluntarily repaid the remaining **$121.9 million** Term Loan B balance in Q1 2025[199](index=199&type=chunk)[201](index=201&type=chunk) - As of June 30, 2025, the Company was in compliance with the First Lien Net Leverage Ratio covenant (actual **(0.78) to 1.00** vs. required **≤ 2.25:1.00**), with **$170.0 million** unused borrowing capacity under the Revolver[203](index=203&type=chunk)[204](index=204&type=chunk) [Contractual Obligations](index=46&type=section&id=Contractual%20Obligations) This note states that there have been no material changes to the company's contractual obligations since the last annual report - There have been no material changes in contractual obligations from those described in the Annual Report on Form 10-K for the year ended December 31, 2024[205](index=205&type=chunk) [Critical Accounting Policies and Estimates](index=46&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This note confirms no material changes in the company's significant accounting policies and estimates since the last annual report - No material changes in significant accounting policies and estimates were disclosed from the Annual Report on Form 10-K for the year ended December 31, 2024[206](index=206&type=chunk) [Recently Issued Accounting Pronouncements](index=46&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This note refers to Note 2 for details on recently issued accounting pronouncements and their potential impact - Refer to Note 2 of the Notes to Condensed Consolidated Financial Statements for details on recently issued accounting pronouncements[207](index=207&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the Company's exposure to market risk since its last Annual Report on Form 10-K - There has been no material change in the Company's exposure to market risk from that described in its Annual Report on Form 10-K for the year ended December 31, 2024[209](index=209&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) This section outlines the effectiveness of the Company's disclosure controls and procedures and confirms no material changes in internal control over financial reporting during the period [Disclosure Controls and Procedures](index=47&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025 - The Company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, ensuring timely and accurate reporting of required information[210](index=210&type=chunk) [Changes in Internal Control Over Financial Reporting](index=47&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports no material changes in internal control over financial reporting during the quarter ended June 30, 2025 - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[211](index=211&type=chunk) PART II. OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, mine safety, and exhibits [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the updated information on pending legal proceedings, noting that the Company is involved in various legal matters in the ordinary course of business - Information on pending legal proceedings is updated by Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q[212](index=212&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the Company's risk factors as disclosed in its Annual Report on Form 10-K - There have been no material changes to the Company's risk factors as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[213](index=213&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section clarifies that the Company does not own or operate mines but may be considered a mine operator for providing construction services. It reports no mine safety violations for the quarter - The Company does not own or operate any mines but may be considered a mine operator under the Mine Act. For the quarter ended June 30, 2025, there are no mine safety violations or regulatory matters to disclose[214](index=214&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) This section reports that no director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[215](index=215&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including the Omnibus Incentive Plan, employment letter agreement, certifications, and XBRL documents Key Exhibits Filed | Exhibit | Description | | :------ | :------------------------------------------------------------------------------------------------------ | | 10.1* | Tutor Perini Corporation Omnibus Incentive Plan, as amended and restated. | | 31.1 | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | | 104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline XBRL. | [Signature](index=49&type=section&id=Signature) This section contains the signature of the registrant, Tutor Perini Corporation, by its Executive Vice President and Chief Financial Officer, Ryan J. Soroka, dated August 6, 2025 - The report was signed on August 6, 2025, by Ryan J. Soroka, Executive Vice President and Chief Financial Officer of Tutor Perini Corporation[220](index=220&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of Tutor Perini's strong second-quarter 2025 financial performance, key achievements, and updated EPS guidance [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Tutor Perini reported strong second-quarter 2025 results with significant year-over-year growth in revenue, income from construction operations, and EPS, driven by increased project execution on higher-margin projects across all segments Financial Performance Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (Y/Y) | % Change (Y/Y) | | :-------------------------------- | :---------- | :---------- | :----------- | :------------- | | Revenue | $1.37 billion | $1.13 billion | +$0.24 billion | +22% | | Income from construction operations | $76.4 million | $40.5 million | +$35.9 million | +89% | | Net income attributable to Company | $20.0 million | $0.8 million | +$19.2 million | Substantial | | Diluted EPS | $0.38 | $0.02 | +$0.36 | Substantial | | Adjusted Net income attributable to Company | $75.1 million | $17.5 million | +$57.6 million | +329% | | Adjusted EPS | $1.41 | $0.34 | +$1.07 | +315% | - Revenue growth was solid across all three segments, with Civil and Building segments up **34%** and **11%** respectively. The Civil segment achieved its highest-ever revenue for both the second quarter and first six months of 2025[4](index=4&type=chunk) - Income from construction operations was negatively impacted by a **$38.5 million** increase in share-based compensation expense due to the doubling of the Company's stock price[5](index=5&type=chunk) [Key Achievements and Records](index=1&type=section&id=Key%20Achievements%20and%20Records) The company achieved record operating cash flow for both Q2 and the first six months of 2025, alongside a record backlog, reflecting strong operational performance and successful project acquisition Key Operational Metrics (Q2 and H1 2025) | Metric | Q2 2025 | H1 2025 | Y/Y Change (Q2) | Y/Y Change (H1) | | :-------------------------- | :---------- | :---------- | :-------------- | :-------------- | | Operating Cash Flow | $262.4 million | $285.3 million | Record | Record | | Backlog (as of Q2 2025 end) | $21.1 billion | N/A | +102% | N/A | - The record backlog includes **$3.1 billion** of new awards and contract adjustments secured in Q2 2025[6](index=6&type=chunk) [2025 EPS Guidance Update](index=1&type=section&id=2025%20EPS%20Guidance%20Update) Tutor Perini raised its 2025 GAAP and Adjusted EPS guidance, reflecting increased confidence in its performance trajectory, and anticipates even higher EPS in 2026 and 2027 Updated 2025 EPS Guidance | Metric | Previous 2025 Guidance | New 2025 Guidance | | :---------------- | :--------------------- | :---------------- | | GAAP EPS | $1.60 to $1.95 | $1.70 to $2.00 | | Adjusted EPS | $2.45 to $2.80 | $3.65 to $3.95 | - The company expects both GAAP EPS and Adjusted EPS for 2026 and 2027 to exceed the upper end of its increased 2025 guidance[6](index=6&type=chunk) [Operational and Financial Review](index=2&type=section&id=Operational%20and%20Financial%20Review) This section details the company's record operating cash flow, substantial backlog growth, and significant balance sheet improvements, highlighting strong financial health and operational efficiency [Operating Cash Flow](index=2&type=section&id=Operating%20Cash%20Flow) Tutor Perini achieved record operating cash flow for both the second quarter and first six months of 2025, significantly increasing year-over-year, primarily due to strong collections from new and ongoing projects Operating Cash Flow (2025 vs 2024) | Period | 2025 Operating Cash Flow | 2024 Operating Cash Flow | Y/Y Change | | :-------------------- | :----------------------- | :----------------------- | :--------- | | Second Quarter | $262.4 million | $53.1 million | Significant increase | | First Six Months | $285.3 million | $151.4 million | Significant increase | - The record operating cash flow was largely driven by collections from newer and ongoing projects, and to a lesser extent, from recent dispute resolutions[7](index=7&type=chunk) - The company anticipates continued strong operating cash flow for the remainder of 2025[7](index=7&type=chunk) [Record Backlog](index=2&type=section&id=Record%20Backlog) The company's backlog reached a new record of **$21.1 billion** as of June 30, 2025, driven by **$3.1 billion** in new awards and contract adjustments during the second quarter, reflecting successful bidding and favorable market conditions Backlog Metrics as of June 30, 2025 | Metric | Value | | :-------------------------------- | :------------ | | Backlog as of June 30, 2025 | $21.1 billion | | Y/Y increase in backlog | 102% | | Q/Q increase in backlog (vs Q1 2025) | 9% | | New awards and contract adjustments in Q2 2025 | $3.1 billion | - The record backlog was achieved due to a strategic bidding approach and favorable market dynamics, including limited competition for larger projects, supported by strong public funding and demand[8](index=8&type=chunk) - Backlog for the Civil and Specialty Contractors segments also set new records[8](index=8&type=chunk) [Significant New Awards](index=2&type=section&id=Significant%20New%20Awards) Key new awards and contract adjustments in Q2 2025 included a **$1.87 billion** Midtown Bus Terminal Replacement and a **$538 million** healthcare project, among others - Key new awards and contract adjustments in Q2 2025 included: * **$1.87 billion** Midtown Bus Terminal Replacement - Phase 1 project in New York * **$538 million** healthcare project in California * Two civil works projects in the Midwest valued at **$127 million** * **$90 million** additional funding for a mass-transit project in California * **$54 million** additional funding for another healthcare project in California[10](index=10&type=chunk) [Significant Balance Sheet Improvements](index=2&type=section&id=Significant%20Balance%20Sheet%20Improvements) Tutor Perini made substantial improvements to its balance sheet, significantly reducing total debt and achieving a cash-exceeding-debt position for the first time since 2010, while also lowering its Costs and Estimated Earnings in Excess of Billings (CIE) Balance Sheet Highlights (June 30, 2025 vs December 31, 2024) | Metric | As of June 30, 2025 | As of December 31, 2024 | Change | | :------------------------------------------------ | :------------------ | :---------------------- | :----- | | Total Debt | $419 million | $534 million | Down 21% | | Cash vs. Total Debt | Cash exceeded debt by $107 million | N/A | First time since 2010 | | Costs and Estimated Earnings in Excess of Billings (CIE) | $856 million | N/A | Down $91 million (10%) vs Q1 2025 | | CIE Level | Lowest since Q2 2017 | N/A | N/A | - The reduction in CIE was primarily driven by the resolution and billing of various previously disputed matters[9](index=9&type=chunk) [Management Remarks](index=3&type=section&id=Management%20Remarks) CEO Gary Smalley highlighted the exceptional second-quarter results, attributing strong revenue growth and profitability to the record backlog, which includes numerous larger, long-duration, and higher-margin projects in early stages. He expressed confidence in continued growth and profitability through 2025 and beyond, supported by record operating cash flow and increased earnings guidance - The strong revenue growth and profitability are being driven by the record backlog, which includes various larger, long-duration, and higher-margin projects, most of which are in early stages[11](index=11&type=chunk) - Management is confident that the record backlog will continue to drive higher revenue and strong profitability over the rest of 2025 and even more so in 2026 and 2027 as newer projects advance to construction[11](index=11&type=chunk) - The first six months of 2025 saw the highest first-half operating cash flow ever, reinforcing expectations for strong earnings and cash flow to continue[11](index=11&type=chunk) [Outlook and Guidance](index=3&type=section&id=Outlook%20and%20Guidance) This section outlines Tutor Perini's updated 2025 EPS guidance, long-term financial projections, and assessment of market demand and external factors influencing future performance [Updated 2025 EPS Guidance](index=3&type=section&id=Updated%202025%20EPS%20Guidance) Based on strong year-to-date results and increased confidence, Tutor Perini has raised its 2025 GAAP and Adjusted EPS guidance, incorporating a significant contingency for potential unknown outcomes Revised 2025 EPS Guidance | Metric | Previous 2025 Guidance | New 2025 Guidance | | :---------------- | :--------------------- | :---------------- | | GAAP EPS | $1.60 to $1.95 | $1.70 to $2.00 | | Adjusted EPS | $2.45 to $2.80 | $3.65 to $3.95 | - The increased guidance for 2025 continues to factor in a significant amount of contingency for various unknown or unexpected outcomes and developments[13](index=13&type=chunk) [Long-Term Outlook](index=3&type=section&id=Long-Term%20Outlook) The company anticipates continued strong operating performance and financial results through 2025, with significantly higher revenue and earnings projected for 2026 and 2027 as large projects advance - Significantly higher revenue and earnings are expected in 2026 and 2027 as various newer large projects advance to the construction phase[12](index=12&type=chunk) - Both GAAP EPS and Adjusted EPS for 2026 and 2027 are projected to be higher than the upper end of the increased 2025 guidance[13](index=13&type=chunk) [Market Demand and External Factors](index=3&type=section&id=Market%20Demand%20and%20External%20Factors) Tutor Perini observes strong demand for its services from both public and commercial sectors, driven by infrastructure projects and new building developments, while monitoring external factors like tariffs - Strong demand for services is driven by well-funded state, local, and federal customers with large-scale, high-priority infrastructure projects, as well as commercial customers advancing projects in healthcare, education, hospitality, and gaming[14](index=14&type=chunk) - The company does not currently anticipate significant impact from recently imposed tariffs or federal funding curtailment but continues to monitor these issues[16](index=16&type=chunk) - Share-based compensation expense, while substantially increased in Q2 2025 due to stock price, is expected to decrease considerably in 2026 and further in 2027 once certain liability-classified awards vest[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the purpose and definition of non-GAAP financial measures, primarily adjusted net income and EPS, and provides detailed reconciliations to their GAAP equivalents [Purpose and Definition](index=3&type=section&id=Purpose%20and%20Definition) Tutor Perini presents non-GAAP financial measures, specifically adjusted net income and adjusted EPS, to provide additional insights into its core operational performance by excluding the volatile impact of share-based compensation expense - Non-GAAP measures are intended to facilitate comparison of past and present performance, assess financial performance, forecast future performance, and enhance transparency for investors[17](index=17&type=chunk) - Share-based compensation expense is excluded because it can cause significant volatility in reported earnings, primarily due to fluctuations in the fair value of liability-classified awards indexed to the Company's common stock[19](index=19&type=chunk) - These non-GAAP measures are not necessarily comparable to similarly titled measures reported by other companies and should not be considered in isolation from or as a substitute for GAAP measures[20](index=20&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=5&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides a reconciliation of GAAP net income and EPS to adjusted net income and adjusted EPS for the three and six months ended June 30, 2025 and 2024, detailing the impact of share-based compensation expense Reconciliation of Net Income and EPS (Q2 and H1 2025 vs 2024) | (in millions, except per common share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Tutor Perini Corporation, as reported | $20.0 | $0.8 | $48.0 | $16.6 | | Plus: Share-based compensation expense | 55.4 | 16.9 | 62.0 | 22.4 | | Less: Tax benefit provided on share-based compensation expense | (0.3) | (0.2) | (0.5) | (0.3) | | **Adjusted net income attributable to Tutor Perini Corporation** | **$75.1** | **$17.5** | **$109.5** | **$38.7** | | EPS, as reported | $0.38 | $0.02 | $0.90 | $0.31 | | Plus: Share-based compensation expense impact per diluted share | 1.04 | 0.32 | 1.17 | 0.43 | | Less: Tax benefit provided on share-based compensation expense per diluted share | (0.01) | (0.00) | (0.01) | (0.01) | | **Adjusted EPS** | **$1.41** | **$0.34** | **$2.06** | **$0.73** | - The substantial increase in share-based compensation expense for the three and six months ended June 30, 2025, compared to prior-year periods, was driven by the significant increase in the Company's stock price[23](index=23&type=chunk) [Reconciliation of Non-GAAP Guidance](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Guidance) A reconciliation is provided for the full year 2025 GAAP EPS guidance to Adjusted EPS guidance, detailing the estimated impact of share-based compensation expense Reconciliation of Full Year 2025 EPS Guidance | (in common share amounts) | Full Year 2025 | | :---------------------------------------------------------- | :------------- | | GAAP EPS guidance | $1.70 to $2.00 | | Plus: Share-based compensation expense impact per diluted share (estimated) | $1.97 | | Less: Tax benefit provided on share-based compensation expense per diluted share (estimated) | $(0.02) | | **Adjusted EPS guidance** | **$3.65 to $3.95** | [Company Information](index=6&type=section&id=Company%20Information) This section provides details on Tutor Perini's upcoming Q2 2025 conference call and an overview of the company's extensive experience and diversified construction services [Second Quarter 2025 Conference Call](index=6&type=section&id=Second%20Quarter%202025%20Conference%20Call) Tutor Perini will host a conference call on August 6, 2025, to discuss its second-quarter 2025 results, with details provided for participation and webcast access - The conference call is scheduled for **2:00 PM Pacific Time** on Wednesday, August 6, 2025[27](index=27&type=chunk) - Access details include dial-in numbers for domestic and international callers, and a live webcast available on www.tutorperini.com, with replay options[27](index=27&type=chunk)[28](index=28&type=chunk) [About Tutor Perini Corporation](index=6&type=section&id=About%20Tutor%20Perini%20Corporation) Tutor Perini Corporation is a leading civil, building, and specialty construction company with over a century of experience, offering diversified general contracting and design-build services globally, known for executing large, complex projects - The company provides general contracting, pre-construction planning, and comprehensive project management services, with expertise in design-bid-build, design-build, construction management, and public-private partnership (P3) projects[29](index=29&type=chunk) - Tutor Perini often self-performs multiple project components, including earthwork, excavation, concrete forming and placement, steel erection, electrical, mechanical, plumbing, HVAC, and fire protection[29](index=29&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section outlines the forward-looking nature of certain statements in the release, emphasizing that actual results may differ materially due to various risks and uncertainties, including litigation outcomes, economic factors, contract risks, and operational challenges. The company disclaims any obligation to update these statements unless required by law - Forward-looking statements are based on current expectations and beliefs, but there is no assurance that future developments will align with anticipations[30](index=30&type=chunk) - Key risks and uncertainties include unfavorable litigation outcomes, revisions of contract estimates, economic factors (inflation, tariffs), contract requirements for extra work, inability to obtain bonding, economic slowdowns, failure to meet schedule requirements, and inability to attract/retain key personnel[30](index=30&type=chunk)[31](index=31&type=chunk) - Other risks involve decreases in government spending, IT interruptions, inclement weather, international operations risks, client cancellations, increased competition, government contract regulations, joint venture partner failures, and fluctuations in common stock price[31](index=31&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, cash flows, and detailed segment and backlog information for Tutor Perini [Condensed Consolidated Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income show the company's financial performance for the three and six months ended June 30, 2025 and 2024, highlighting significant increases in revenue, gross profit, and net income attributable to Tutor Perini Corporation Condensed Consolidated Statements of Income (Q2 and H1 2025 vs 2024) | (in thousands, except per common share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUE | $1,373,681 | $1,127,470 | $2,620,314 | $2,176,457 | | GROSS PROFIT | 195,995 | 117,078 | 330,396 | 232,328 | | INCOME FROM CONSTRUCTION OPERATIONS | 76,430 | 40,493 | 141,755 | 89,299 | | NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION | $19,974 | $812 | $47,972 | $16,572 | | DILUTED EARNINGS PER COMMON SHARE | $0.38 | $0.02 | $0.90 | $0.31 | [Segment Information](index=10&type=section&id=Segment%20Information) Segment-level financial data reveals the performance of Civil, Building, and Specialty Contractors segments, detailing revenue, cost of operations, general and administrative expenses, and income (loss) from construction operations for both quarterly and year-to-date periods [Three Months Ended June 30, 2025](index=10&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the three months ended June 30, 2025 Segment Performance (Q2 2025) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :------ | :------- | :-------------------- | :------ | | Revenue from external customers | $734,187 | $462,082 | $177,412 | $1,373,681 | | Income (loss) from construction operations | $140,115 | $22,450 | $(18,016) | $144,549 | [Three Months Ended June 30, 2024](index=10&type=section&id=Three%20Months%20Ended%20June%2030%2C%202024) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the three months ended June 30, 2024 Segment Performance (Q2 2024) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :------ | :------- | :-------------------- | :------ | | Revenue from external customers | $546,488 | $417,866 | $163,116 | $1,127,470 | | Income (loss) from construction operations | $75,587 | $5,047 | $(7,846) | $72,788 | [Six Months Ended June 30, 2025](index=11&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the six months ended June 30, 2025 Segment Performance (H1 2025) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :-------- | :------- | :-------------------- | :-------- | | Revenue from external customers | $1,344,228 | $921,866 | $354,220 | $2,620,314 | | Income (loss) from construction operations | $219,715 | $32,909 | $(25,127) | $227,497 | [Six Months Ended June 30, 2024](index=11&type=section&id=Six%20Months%20Ended%20June%2030%2C%202024) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the six months ended June 30, 2024 Segment Performance (H1 2024) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :-------- | :------- | :-------------------- | :-------- | | Revenue from external customers | $1,018,653 | $829,808 | $327,996 | $2,176,457 | | Income (loss) from construction operations | $146,330 | $21,167 | $(26,158) | $141,339 | [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show the company's financial position as of June 30, 2025, compared to December 31, 2024, indicating growth in total assets and equity, alongside a reduction in long-term debt Condensed Consolidated Balance Sheets (June 30, 2025 vs December 31, 2024) | (in thousands) | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------------------ | :------------------ | :---------------------- | | Total current assets | $3,898,222 | $3,286,667 | | Total assets | $4,870,077 | $4,242,710 | | Total current liabilities | $2,955,930 | $2,332,700 | | Long-term debt, less current maturities | $393,298 | $510,025 | | Total liabilities | $3,630,258 | $3,084,104 | | Total equity | $1,239,819 | $1,158,606 | - Cash and cash equivalents increased to **$526,090 thousand** as of June 30, 2025, from **$455,084 thousand** at year-end 2024[43](index=43&type=chunk) - Costs and estimated earnings in excess of billings (CIE) decreased to **$856,379 thousand** from **$942,522 thousand**[43](index=43&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows show a significant increase in net cash provided by operating activities for the six months ended June 30, 2025, compared to the prior year, while cash used in investing and financing activities also changed Condensed Consolidated Statements of Cash Flows (H1 2025 vs 2024) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net income | $89,835 | $43,471 | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $285,275 | $151,413 | | NET CASH USED IN INVESTING ACTIVITIES | $(67,681) | $(24,012) | | NET CASH USED IN FINANCING ACTIVITIES | $(134,702) | $(242,592) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $82,892 | $(115,191) | | Cash, cash equivalents and restricted cash at end of period | $547,080 | $279,489 | - The increase in operating cash flow was significantly influenced by higher net income and changes in working capital components[45](index=45&type=chunk) - Financing activities saw a reduction in net cash used, primarily due to lower debt repayments compared to the prior year[45](index=45&type=chunk) [Backlog Information](index=14&type=section&id=Backlog%20Information) The backlog information details the company's project pipeline, showing a substantial increase in total backlog as of June 30, 2025, driven by new awards across all segments [Backlog for Three Months Ended June 30, 2025](index=14&type=section&id=Backlog%20for%20Three%20Months%20Ended%20June%2030%2C%202025) This section details the backlog at the beginning and end of Q2 2025, including new awards and revenue recognized across Civil, Building, and Specialty Contractors segments Backlog Movement (Q2 2025) | (in millions) | Backlog at March 31, 2025 | New Awards in the Three Months Ended June 30, 2025 | Revenue Recognized in the Three Months Ended June 30, 2025 | Backlog at June 30, 2025 | | :-------------------- | :------------------------ | :------------------------------------------------- | :------------------------------------------------------- | :----------------------- | | Civil | $9,682.7 | $2,218.8 | $(734.2) | $11,167.3 | | Building | $6,709.2 | $664.0 | $(462.1) | $6,911.1 | | Specialty Contractors | $3,001.3 | $181.0 | $(177.4) | $3,004.9 | | **Total** | **$19,393.2** | **$3,063.8** | **$(1,373.7)** | **$21,083.3** | [Backlog for Six Months Ended June 30, 2025](index=14&type=section&id=Backlog%20for%20Six%20Months%20Ended%20June%2030%2C%202025) This section details the backlog at the beginning and end of H1 2025, including new awards and revenue recognized across Civil, Building, and Specialty Contractors segments Backlog Movement (H1 2025) | (in millions) | Backlog at December 31, 2024 | New Awards in the Six Months Ended June 30, 2025 | Revenue Recognized in the Six Months Ended June 30, 2025 | Backlog at June 30, 2025 | | :-------------------- | :------------------------- | :----------------------------------------------- | :----------------------------------------------------- | :----------------------- | | Civil | $8,835.6 | $3,675.9 | $(1,344.2) | $11,167.3 | | Building | $7,026.9 | $806.1 | $(921.9) | $6,911.1 | | Specialty Contractors | $2,811.4 | $547.7 | $(354.2) | $3,004.9 | | **Total** | **$18,673.9** | **$5,029.7** | **$(2,620.3)** | **$21,083.3** |

Core Viewpoint - Tutor Perini Corporation (TPC) is expected to report strong second-quarter results, driven by robust public infrastructure spending and increased project execution activities, despite facing challenges in its Building segment and macroeconomic uncertainties [2][10][20]. Financial Performance - In Q1 2025, TPC reported earnings per share (EPS) of $0.29, exceeding the Zacks Consensus Estimate by 783.3%, with revenues of $1.07 billion, surpassing estimates by 15.1% [2]. - The Zacks Consensus Estimate for Q2 2025 EPS is $0.29, reflecting a 52.6% increase from $0.19 in the previous year, while revenues are projected to reach $1.23 billion, indicating a 9.2% year-over-year growth [3][4]. Revenue Segments - The Civil and Specialty segments are expected to lead revenue growth, with estimates of $615 million and $168 million, respectively, while the Building segment is anticipated to decline by 4.4% to $415 million due to reduced project execution activities [13]. - TPC's collaboration with its Guam-based subsidiary, Platt Construction, is expected to enhance revenue visibility, with a combined contract capacity of over $32 billion from recent opportunities [11]. Margin Analysis - The bottom line is expected to benefit from increased project execution in high-margin Civil segment projects, contributing to overall margin improvement [14][15]. - The focus on high-margin and long-term projects is anticipated to support margin growth despite challenges in the Building segment [15]. Stock Performance and Valuation - TPC's stock has increased by 100.6% over the past three months, outperforming industry benchmarks [16]. - The current forward P/E ratio of 18.14X suggests a discounted valuation compared to industry peers, presenting an attractive entry point for investors [19]. Challenges and Risks - The company faces challenges in its Building segment due to reduced activities on a mass-transit project in California and ongoing macroeconomic uncertainties [20]. - Rising material costs and inflationary pressures are expected to impact long-term margins, with general and administrative expenses increasing by 4% year-over-year in Q1 2025 [21].

Core Insights - The article emphasizes the focus on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1] - It highlights a significant investment opportunity, noting that the S&P 500 increased by 367% and the Nasdaq by 685% from March 2009 to 2019, indicating a strong recovery and growth potential in the market [1] Investment Strategy - The investment strategy involves long-term investment in quality stocks, with the use of options to enhance returns [1] - The article suggests that investors should consider high-quality growth stocks as a means to generate wealth [1]

Core Insights - Tutor Perini (TPC) is strategically positioning itself in the Indo-Pacific region, particularly in Guam, to capitalize on opportunities arising from the U.S. military's Pacific Deterrence Initiative [1][4] Group 1: Business Opportunities - TPC and its subsidiary, Black Construction, have secured four multiple-award construction contracts (MACCs) with a total capacity exceeding $32 billion over the next eight years, placing the company on a shortlist for military-funded projects across Guam and other Pacific islands [2][11] - The company is currently executing over $570 million in waterfront repairs in Guam and is targeting new project opportunities that may exceed $800 million each [3][11] - TPC's expansion in the Indo-Pacific aligns with its record backlog of $19.4 billion and its strategy to pursue higher-margin, well-funded projects, benefiting from limited competition and strong geopolitical support [4][5] Group 2: Competitive Landscape - AECOM (ACM) and Fluor (FLR) are also competing for dominance in the Indo-Pacific, with AECOM having a strong presence in defense-related infrastructure and Fluor having a diversified global military footprint [6][7] - Despite the competition, TPC's focused presence and recent contract wins suggest it may outperform AECOM and Fluor in this growth corridor [8] Group 3: Financial Performance - TPC's stock has increased by 126.6% over the past three months, outperforming the broader construction sector and the S&P 500 index [9][11] - The company is currently trading at a forward P/E ratio of 19.35, indicating a promising valuation compared to industry peers [13][11] - The Zacks Consensus Estimate for TPC's earnings indicates a year-over-year increase of 155.9% for 2025 and 76.6% for 2026, although the estimate for 2025 has seen a slight decline recently [15]

Group 1 - Tutor Perini's stock closed at $48.29, down 1.79% from the previous session, underperforming the S&P 500's gain of 0.07% [1] - Prior to the recent trading day, Tutor Perini's shares had increased by 11.55%, surpassing the Construction sector's gain of 8.29% and the S&P 500's gain of 5.71% [1] Group 2 - The upcoming earnings report for Tutor Perini is expected to show an EPS of $0.29, representing a 52.63% increase from the same quarter last year, with projected revenue of $1.23 billion, reflecting a 9.22% rise [2] - For the annual period, earnings are anticipated to be $1.74 per share and revenue at $5.13 billion, indicating increases of 155.59% and 18.65% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for Tutor Perini are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Tutor Perini at 4 (Sell), with a 0.29% decrease in the consensus EPS estimate over the last 30 days [5] Group 4 - Tutor Perini is trading at a Forward P/E ratio of 28.26, which is higher than the industry average Forward P/E of 24.32 [6] - The Building Products - Heavy Construction industry, part of the Construction sector, holds a Zacks Industry Rank of 6, placing it in the top 3% of over 250 industries [6]

Core Insights - Tutor Perini Corporation (TPC) is focused on enhancing its position in large-scale rail and transit infrastructure, supported by a record backlog and a growing pipeline of civil opportunities [1][4] - The company's total backlog reached an all-time high of $19.4 billion as of March 31, 2025, reflecting a 94% year-over-year increase, with the Civil segment contributing $9.7 billion [1][8] Project Highlights - In Q1, Tutor Perini secured a $1.18 billion contract for the Manhattan tunnel project, part of the Gateway initiative to modernize rail infrastructure between Newark and New York Penn Station [2] - Upcoming significant projects include the $12 billion California transit project, the $3.8 billion Southeast Gateway line, the $1 billion North Valley Rail project, the $900 million Foothill Gold Line, and the $1.8 billion South Jersey Glassboro-to-Camden line [3] Market Performance - TPC's stock has increased by 140.4% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector, and the S&P 500 index [5] - The current valuation of TPC appears attractive, with a forward 12-month price-to-earnings ratio of 20.54, which is lower than peers EMCOR Group, Inc. and MasTec, Inc. [9][11] Earnings Outlook - The Zacks Consensus Estimate for Tutor Perini's earnings indicates a year-over-year increase of 155.9% for 2025 and 76.6% for 2026, with the estimate for 2025 remaining unchanged over the past 30 days [12]

Core Insights - Sterling Infrastructure, Inc. and Tutor Perini Corporation are capitalizing on a strong infrastructure cycle, focusing on large-scale public and civil projects, supported by federal and state spending programs like the Infrastructure Investment and Jobs Act (IIJA) [1][2][23] - Both companies have healthy backlogs and are experiencing consistent award wins, which are crucial for sustaining long-term earnings momentum [2][23] Sterling Infrastructure, Inc. (STRL) - Sterling is enhancing its position as a diversified infrastructure provider, focusing on high-margin design-build and e-infrastructure solutions in growth-heavy regions [2][4] - In Q1 2025, Sterling's E-Infrastructure Solutions segment saw revenues increase by 18% year-over-year, with adjusted operating income rising by 61% and segment margins exceeding 23% [5] - The total backlog for Sterling reached $2.1 billion, with the E-Infrastructure portion at $1.2 billion, reflecting a 27% year-over-year increase [6] - The Transportation Solutions segment's backlog stood at $861 million, up 11% year-over-year, indicating strong revenue visibility [7] - Management anticipates mid-single-digit revenue growth and mid-teen operating profit growth for 2025, supported by robust pipelines in specific markets [8] - Ongoing federal investment under the IIJA enhances Sterling's long-term growth prospects, with a book-to-burn ratio above 2X [9][10] Tutor Perini Corporation (TPC) - Tutor Perini is expanding its portfolio of civil and specialty construction projects, aligning with national funding priorities to benefit from multi-year government investments [11][12] - In Q1 2025, Tutor Perini secured approximately $2 billion in new awards, pushing its backlog to a record $19.4 billion, nearly doubling from the previous year [12] - The company is experiencing steady commercial demand across various sectors, including healthcare and education, which adds balance to its backlog [13] - Tutor Perini raised its 2025 earnings guidance, emphasizing disciplined bidding and execution efficiency [14] - The company is well-positioned to pursue profitable growth in 2026 and beyond due to its solid pipeline and sustained market demand [14] Share Price Performance - Year-to-date, Tutor Perini's share price has increased by 102.4%, significantly outperforming Sterling's 43.5% gain and the broader Construction sector's 2.7% rise [15] Valuation and Earnings Estimates - Tutor Perini is trading at a lower forward 12-month price-to-earnings (P/E) ratio compared to Sterling [17] - The Zacks Consensus Estimate for 2025 earnings per share indicates a 41.2% improvement for Sterling and a 155.9% increase for Tutor Perini [19] Conclusion - Both companies are well-positioned to benefit from strong infrastructure spending and expanding project pipelines, making them attractive options for investors seeking durable growth in the construction sector [23][24] - Tutor Perini's more attractive valuation and stronger projected EPS growth for 2025 suggest it may be the more compelling investment choice [25]

Core Insights - Tutor Perini Corporation (TPC) is experiencing significant growth in the healthcare construction sector, with a record backlog of $19.4 billion as of March 31, 2025, reflecting a 94% year-over-year increase [1][10] - The company secured $111 million in additional funding for healthcare projects in California in Q1 2025, and a $500 million healthcare project has advanced to the construction phase [2][10] - Ongoing preconstruction activities and new project awards indicate a strong pipeline for future growth in healthcare construction [3][4] Company Developments - TPC's backlog is supported by a robust pipeline of large public and institutional projects, particularly in healthcare, which is expected to drive further backlog expansion [4][10] - The company is well-positioned to benefit from healthcare clients investing in major upgrades and new facilities, reinforcing its growth potential [4][10] Industry Trends - Other companies, such as EMCOR Group and Comfort Systems USA, are also capitalizing on the growing demand in healthcare construction [5] - EMCOR reported a 10.2% revenue growth in Q1 2025, with healthcare-related obligations increasing by 38% year-over-year to $1.5 billion [6][7] - Comfort Systems noted that healthcare now constitutes approximately 10% of its business, with institutional markets contributing 24% of total revenues [8] Stock Performance and Valuation - TPC's stock has surged 98.6% year-to-date, outperforming industry peers and major indices [9] - The company's current valuation is attractive, trading at a forward price-to-earnings ratio of 19.62, which is lower than industry averages [12] - The Zacks Consensus Estimate indicates a significant earnings growth of 155.9% for 2025 and 76.6% for 2026 [14]

Core Insights - Tutor Perini Corporation (TPC) is well-insulated from near-term shocks related to tariff risks, particularly in the construction sector, due to its strategic bidding and procurement practices [1][2][5] Group 1: Company Strategies - TPC employs a two-pronged approach in its bidding process, incorporating inflation contingencies and pricing buffers before contracts are awarded [2] - After securing projects, TPC locks in fixed-price subcontracts and bulk material buyouts to protect its margins from commodity price escalations [2] - The company has a record backlog of $19.4 billion, primarily supported by state and local governments and long-committed federal infrastructure funding [3] Group 2: Project Activity - TPC has experienced an acceleration in smaller projects as clients aim to mitigate potential cost increases, indicating strong demand and no signs of pullback [4] - Recent project awards include a $1.18 billion Manhattan tunnel and a $500 million California healthcare facility, contributing to backlog growth [4] Group 3: Competitive Landscape - Competitors like Granite Construction and Fluor Corporation face similar tariff-related challenges but have different strategies; Granite is more exposed to material price volatility, while Fluor's global operations may increase its vulnerability to geopolitical shifts [6][7][8] - TPC's U.S.-focused, federally backed pipeline provides greater visibility and protection compared to its peers [8][9] Group 4: Financial Performance - TPC's stock has surged 99.1% year-to-date, outperforming the broader construction sector and the S&P 500 index [10][12] - Earnings estimates for 2025 and 2026 have increased by 14.4% to $1.75 per share and 10.8% to $3.09 per share, respectively, indicating significant year-over-year growth [13] - The current valuation of TPC appears attractive, with a forward 12-month price-to-earnings (P/E) ratio of 19.88, suggesting potential for investors [15]