Market Overview - U.S. stock markets have continued to rise in early August despite trade uncertainties and the Federal Reserve's indecision regarding interest rate cuts in 2025 [1][2] - The outcome of the Fed's annual Jackson Hole Symposium, scheduled for August 21-23, is anticipated to be significant [2] Stock Performance - Few stocks have demonstrated price strength, with a focus on those recently experiencing a bull run [3] - Five highlighted stocks include Modine Manufacturing Co. (MOD), Tutor Perini Corp. (TPC), Kiniksa Pharmaceuticals International plc (KNSA), Life360 Inc. (LIF), and Euroseas Ltd. (ESEA) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last twelve weeks [5] - Zacks Rank 1 (Strong Buy) and an average broker rating of 1 are also key indicators of potential performance [6] - Stocks must be trading at a minimum price of $5 and be near their 52-week highs, with a current price/52-week high-low range greater than 85% [7] Individual Stock Highlights - **Modine Manufacturing (MOD)**: Stock price increased by 46.1% in four weeks, with an expected earnings growth rate of 14.3% for the current year [8][10] - **Tutor Perini (TPC)**: Stock price surged 14.3% in four weeks, with an expected earnings growth rate exceeding 100% for the current year [14] - **Kiniksa Pharmaceuticals (KNSA)**: Stock price climbed 13.7% in four weeks, with expected earnings growth over 100% for the current year [15] - **Life360 (LIF)**: Stock price advanced 8.3% in four weeks, with expected earnings growth over 100% for the current year [17] - **Euroseas (ESEA)**: Stock price gained 2.8% in four weeks, with an expected earnings growth rate of 4% for the current year [19]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum by focusing on key metrics [2] Group 2: Tutor Perini (TPC) Performance - Tutor Perini currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [3][4] - TPC shares have increased by 23.57% over the past week, outperforming the Zacks Building Products - Heavy Construction industry, which rose by 5.23% [6] - Over the past quarter, TPC shares have surged by 56.48%, and by 194.79% over the last year, compared to the S&P 500's gains of 13.05% and 20.74% respectively [7] Group 3: Trading Volume and Earnings Outlook - TPC's average 20-day trading volume is 790,686 shares, indicating a bullish trend when combined with rising stock prices [8] - In the past two months, one earnings estimate for TPC has increased, raising the consensus estimate from $1.75 to $2.72 [10] - The positive earnings outlook and price movement contribute to TPC's strong performance and high Momentum Score [9][12]

Core Insights - Tutor Perini Corp. (TPC) reported strong earnings, exceeding expectations and raising full-year guidance due to a record construction backlog [1][2][8] Financial Performance - In Q2 2025, Tutor Perini reported earnings of $1.41, significantly above the Zacks Consensus Estimate of $0.29, representing a 386.2% beat [2] - Revenue increased by 22% year-over-year to $1.37 billion, driven by growth across all segments, particularly in civil and building projects [3] - The Civil segment achieved its highest revenue ever for both Q2 and the first half of 2025 [4] Backlog and New Awards - The company secured $3.1 billion in new awards and contract adjustments in Q2, leading to a record backlog of $21.1 billion, up 102% year-over-year [5] - Significant new projects include the $1.87 billion Midtown Bus Terminal Replacement in New York and a $538 million healthcare project in California [6] Guidance and Analyst Sentiment - Tutor Perini raised its full-year earnings guidance to a range of $3.65 to $3.95, up from $2.45 to $2.80, reflecting confidence in its performance [8] - Analysts have also become more bullish, with the Zacks Consensus estimate increasing to $2.72 from $1.74, although still below the company's guidance [9][10] Stock Performance - Shares of Tutor Perini have reached 5-year highs, outperforming the S&P 500, and are considered attractively valued with a price-to-sales (P/S) ratio of 0.6 [9][11][13]

Core Viewpoint - Investors are encouraged to consider Tutor Perini (TPC) due to solid improvements in earnings estimates and positive short-term price momentum [1][8]. Earnings Estimates - Analysts have shown growing optimism regarding Tutor Perini's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is $0.66 per share, reflecting a significant increase of +134.4% year-over-year. Over the last 30 days, the Zacks Consensus Estimate has risen by 55.29% with no negative revisions [5]. - For the full year, Tutor Perini is projected to earn $2.72 per share, indicating a year-over-year change of +186.9%. The trend in estimate revisions remains positive, with one estimate moving up and no negative revisions [6]. Zacks Rank - Tutor Perini has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors to make informed decisions [7]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [7]. Stock Performance - Tutor Perini shares have increased by 15.2% over the past four weeks, indicating strong investor confidence in the company's earnings growth prospects [8].

Group 1: Tutor Perini Corporation (TPC) - Tutor Perini Corporation is a construction company with a Zacks Rank 1, and its current year earnings estimate has increased by 55.4% over the last 60 days [1] - The company's shares have gained 60.7% over the last three months, significantly outperforming the S&P 500's advance of 9.4% [1] - Tutor Perini possesses a Momentum Score of A [1] Group 2: Gilat Satellite Networks Ltd. (GILT) - Gilat Satellite Networks Ltd. is a satellite-based broadband communications company with a Zacks Rank 1, and its current year earnings estimate has increased by 78.8% over the last 60 days [2] - The company's shares have gained 33.2% over the last three months, also outperforming the S&P 500's advance of 9.4% [5] - Gilat Satellite possesses a Momentum Score of A [5] Group 3: Watts Water Technologies, Inc. (WTS) - Watts Water Technologies, Inc. is a leading manufacturer of water quality solutions with a Zacks Rank 1, and its current year earnings estimate has increased by 5.8% over the last 60 days [5] - The company's shares have gained 18.6% over the last six months, compared to the S&P 500's advance of 5.6% [9] - Watts Water possesses a Momentum Score of A [9]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that are experiencing recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Tutor Perini (TPC) Analysis - Tutor Perini (TPC) has shown a price increase of 15.2% over the past four weeks, indicating growing investor interest [4] - TPC has gained 53.6% over the past 12 weeks, with a beta of 1.83, suggesting it moves significantly more than the market [5] - TPC has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - TPC has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - TPC is trading at a Price-to-Sales ratio of 0.62, suggesting it is undervalued, as investors pay only 62 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides TPC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]

Core Viewpoint - Tutor Perini (TPC) reported strong quarterly earnings, significantly exceeding expectations, indicating robust performance in the construction sector [1][2]. Financial Performance - The company achieved earnings of $1.41 per share, surpassing the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of +386.21% [1]. - Revenues for the quarter reached $1.37 billion, exceeding the Zacks Consensus Estimate by 11.55%, and up from $1.13 billion in the same quarter last year [2]. - Over the last four quarters, Tutor Perini has surpassed consensus EPS estimates two times and topped revenue estimates twice [2]. Stock Performance - Tutor Perini shares have increased approximately 96.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3]. - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $1.31 billion, and for the current fiscal year, it is $1.74 on revenues of $5.13 billion [7]. - The estimate revisions trend prior to the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]. Industry Context - The Building Products - Heavy Construction industry, to which Tutor Perini belongs, is currently ranked in the top 7% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5].

Financial Data and Key Metrics Changes - The company reported operating cash flow of $262 million for the second quarter, marking it as the second-best cash flow quarter in the company's history [6] - Revenue for the second quarter increased by 22% year-over-year to $1.37 billion, the highest revenue for both the second quarter and first half since February 2009 [6][18] - Operating income rose by 89% to $76 million, reflecting strong performance and contributions from higher-margin projects [7] - GAAP EPS for the second quarter was $0.38, significantly up from $0.02 in the same quarter last year, while adjusted EPS was $1.41 compared to $0.34 for the previous year [9][22] - The backlog reached a record $21.1 billion, up 102% year-over-year and 9% sequentially [6][11] Business Line Data and Key Metrics Changes - Civil segment revenue was $734 million, up 34% from $546 million last year, with construction operations income increasing by 85% to $140 million [18][19] - Building segment revenue increased by 11% to $462 million, with construction operations income rising from $5 million to $22 million [19] - Specialty Contractors segment revenue was $177 million, up 9%, but posted a loss of $18 million compared to a loss of $8 million last year [20] Market Data and Key Metrics Changes - The company noted strong project execution activities in various newer higher-margin projects, contributing to revenue growth [19] - The backlog includes significant projects in California and the Indo-Pacific region, indicating a robust pipeline for future growth [12][14] Company Strategy and Development Direction - The company is focused on being selective in project bidding, targeting opportunities with favorable contractual terms and higher margins [14][52] - Management emphasized the importance of proper project setup for successful execution of major projects, which are expected to drive substantial growth and profitability [14] - The company plans to issue share-settled equity instead of cash-settled awards to limit future earnings volatility [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver substantial growth and profitability, with expectations for strong operating cash flow continuing into 2025 and beyond [15][16] - The outlook remains positive, with anticipated GAAP EPS and adjusted EPS in 2026 and 2027 expected to be significantly higher than the upper end of the increased guidance for 2025 [16] - Management does not foresee significant impacts from tariffs on business operations and confirmed that major projects in backlog are funded and authorized [17][66] Other Important Information - The company has reduced its costs and estimated earnings in excess of billings (CIE) to $856 million, the lowest level in eight years [10][23] - Total debt decreased by 21% to $419 million, with cash exceeding total debt for the first time since 2010 [23] Q&A Session Summary Question: Any major project closeouts expected in 2025? - Management indicated that there are only two significant projects nearing completion, which will be offset by new projects ramping up and generating revenue [32][35] Question: What were the drivers behind better-than-expected first-half results? - The quicker ramp-up of projects, reduced CIE, and fewer write-downs contributed to the better performance [37][38] Question: What is the expected cash flow for the upcoming quarters? - The company anticipates operating cash flow to be between $350 million and $500 million, exceeding previous expectations [40] Question: Is the company seeing less competitive bidding? - Management confirmed minimal competition, with often only one other bidder for large projects [73] Question: How is the project funnel looking? - The company sees significant opportunities in California, the Indo-Pacific region, and the Midwest, while remaining selective in bidding [51][52]

Financial Data and Key Metrics Changes - The company reported a record operating cash flow of $262 million for the second quarter, marking the second-best cash flow in the company's history [6][24] - Revenue for the second quarter increased by 22% year-over-year to $1.37 billion, the highest revenue for both the second quarter and first half since February 2009 [6][19] - Operating income surged by 89% to $76 million, driven by strong performance and contributions from higher-margin projects [7][24] - GAAP EPS for the second quarter was $0.38, significantly up from $0.02 in the same quarter last year, while adjusted EPS was $1.41 compared to $0.34 [10][24] - The backlog reached an all-time high of $21.1 billion, up 102% year-over-year and 9% sequentially, driven by $3.1 billion in new awards during the quarter [6][12] Business Line Data and Key Metrics Changes - Civil segment revenue was $734 million, up 34% from $546 million last year, with construction operations income increasing by 85% to $140 million [19][20] - Building segment revenue rose by 11% to $462 million, with construction operations income increasing from $5 million to $22 million [20][24] - Specialty Contractors segment revenue increased by 9% to $177 million, but posted a loss of $18 million, up from a loss of $8 million last year [21][24] Market Data and Key Metrics Changes - The company noted strong bidding opportunities primarily in the West Coast, Midwest, and Indo-Pacific regions, with several major projects expected to advance to construction [13][14] - The book-to-burn ratio for the second quarter was an impressive 2.2x, indicating strong demand for new projects [12] Company Strategy and Development Direction - The company is focused on pursuing projects with favorable contractual terms, limited competition, and higher margins, leveraging its record backlog to be selective in bidding [14][15] - Management emphasized the importance of proper project setup for successful execution of major projects, which are expected to drive substantial growth and profitability [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong cash flow and profitability, with expectations for continued growth in GAAP and adjusted EPS for 2026 and 2027 [17][18] - The company does not foresee significant impacts from tariffs or cancellations of major projects in backlog, including the California high-speed rail project [17][18] Other Important Information - The company plans to issue share-settled equity awards to limit future earnings volatility and reduce share-based compensation expenses [9] - Total debt decreased by 21% to $419 million, with cash exceeding total debt for the first time since 2010, standing at $526 million [25][26] Q&A Session Summary Question: Any major project closeouts expected in 2025? - Management indicated that there are no significant projects winding down in the near term, with new projects ramping up to generate more revenue and profit [35][36] Question: How does the company view its win expectation rate on new business? - Management feels confident about winning one or two major projects, which will help offset any revenue reductions from projects winding down [39] Question: What were the drivers behind better-than-expected first-half results? - Key drivers included quicker project execution ramp-ups, reduced costs in excess of billings, and fewer write-downs than anticipated [40][41] Question: What is the outlook for the Specialty Contractors segment? - The expectation is for the Specialty segment to reach breakeven or better as they ramp up production on new projects, with margins projected to improve [58] Question: Is there less competitive bidding for larger projects? - Management confirmed that competition remains minimal, with often only one other bidder for large projects [75][76]

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)