Tutor Perini(US:TPC)2025-08-06 21:06PART 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 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 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 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 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, 202413 Condensed Consolidated Statements of Cash Flows 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 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 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 performance17 (2) Recent Accounting Pronouncements 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 statements1920 (3) Revenue 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 202427 - 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, 202428 (4) Contract Assets and Liabilities 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 202432 (5) Cash, Cash Equivalents and Restricted Cash 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 obligations35 (6) Other Current Assets 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, respectively36 (7) Earnings Per Common Share 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 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 credits4041 - 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 statements42 (9) Goodwill and Intangible Assets 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 unit45 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 20244748 (10) Financial Commitments 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 Notes5156 - The Company voluntarily repaid the remaining $121.9 million outstanding balance of the Term Loan B during the first quarter of 202559 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 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, 202571 (12) Commitments and Contingencies 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 consideration75 - 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 2024777980 - 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 202681 (13) Share-Based Compensation 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 202484 - The increase in expense is primarily due to a substantial increase in the Company's stock price, impacting the fair value of liability-classified awards144 - 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 years84 (14) Employee Pension Plans 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 202586 (15) Fair Value Measurements 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 assets88 - 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, 20259495 (16) Variable Interest Entities (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 sheet102103 - 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 both105106 (17) Changes in Equity 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 interests109 (18) Other Comprehensive Income (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 investments112 (19) Business Segments 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 services121 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, respectively137 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 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 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 bonding142 Executive Overview 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 California143 - 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 billion147150 - 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 Act153156 Non-GAAP Financial Measures 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 earnings158159 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 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 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 project165166 - 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 billion168169170 Building Segment 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 California171172174 - 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 markets176 Specialty Contractors Segment 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 settlements178179 - 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 projects182 Corporate, Tax and Other Matters 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 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 price183 Other Income, Net, Interest Expense and Income Tax Expense 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 B184 - 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 credits185 Liquidity and Capital Resources 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 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 million188 - 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 - 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 0.34193 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 Notes194197 - 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 2025199201 - 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 Revolver203204 Contractual Obligations 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, 2024205 Critical Accounting Policies and Estimates 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, 2024206 Recently Issued Accounting Pronouncements 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 pronouncements207 Item 3. Quantitative and Qualitative Disclosures About Market Risk 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, 2024209 Item 4. Controls and Procedures 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 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 information210 Changes in Internal Control Over Financial Reporting 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 reporting211 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 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-Q212 Item 1A. Risk Factors 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, 2024213 Item 4. Mine Safety Disclosures 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 disclose214 Item 5. Other Information 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, 2025215 Item 6. Exhibits 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 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 Corporation220