Tutor Perini(US:TPC)2025-11-05 22:04Financial Performance - Consolidated revenue for Q3 2025 was $1.4 billion, up 30.7% from $1.1 billion in Q3 2024, and $4.0 billion for the nine months ended September 30, 2025, up 23.8% from $3.3 billion in the same period last year[145]. - Income from construction operations for Q3 2025 was $40.1 million, a significant improvement from a loss of $106.8 million in Q3 2024, and $181.8 million for the nine months ended September 30, 2025, compared to a loss of $17.5 million in the same period last year[146][147]. - Diluted earnings per share for Q3 2025 was $0.07, compared to a loss of $1.92 in Q3 2024, and $0.97 for the nine months ended September 30, 2025, compared to a loss of $1.61 in the same period last year[150]. - Adjusted net income attributable to Tutor Perini Corporation for the three months ended September 30, 2025, was $61.9 million, compared to a loss of $84.5 million in 2024, and for the nine months ended September 30, 2025, it was $171.4 million, compared to a loss of $45.8 million in 2024[165]. Awards and Backlog - Consolidated new awards for Q3 2025 totaled $2.0 billion, down from $4.7 billion in Q3 2024, while new awards for the nine months ended September 30, 2025 were $7.0 billion, compared to $7.1 billion in the same period last year[152]. - The consolidated backlog as of September 30, 2025, was a record $21.6 billion, up 3% from $21.1 billion at the end of Q2 2025 and up 54% from the backlog at the end of Q3 2024[153]. - New awards in the Civil segment totaled $112.0 million and $3.8 billion for the three and nine months ended September 30, 2025, compared to $3.1 billion and $4.2 billion for the same periods in 2024[173]. - New awards in the Building segment totaled $1.4 billion and $2.2 billion for the three and nine months ended September 30, 2025, consistent with the same periods in 2024[180]. - New awards in the Specialty Contractors segment reached $464.7 million for Q3 2025, up 104% from $227.8 million in Q3 2024[187]. Segment Performance - Revenue for the Civil segment increased by 41.1% to $770.2 million for the three months ended September 30, 2025, compared to $545.8 million in 2024, and by 35.1% to $2,114.5 million for the nine months ended September 30, 2025, compared to $1,564.5 million in 2024[167]. - Revenue for the Building segment decreased by 3.9% to $418.7 million for the three months ended September 30, 2025, but increased by 5.9% to $1,340.5 million for the nine months ended September 30, 2025, compared to $1,265.6 million in 2024[175]. - Revenue for the Specialty Contractors segment increased by 123.8% to $226.5 million for the three months ended September 30, 2025, and by 35.3% to $580.7 million for the nine months ended September 30, 2025, compared to $429.2 million in 2024[184]. Operating Margins - Operating margin for the Civil segment improved to 12.9% for the three months ended September 30, 2025, compared to (2.3)% in 2024, and to 15.1% for the nine months ended September 30, 2025, compared to 8.6% in 2024[172]. - Operating margin for the Building segment was 3.4% for the three months ended September 30, 2025, compared to (0.9)% in 2024, and 3.5% for the nine months ended September 30, 2025, compared to 1.4% in 2024[179]. - Operating margin improved to 2.7% for Q3 2025, compared to a negative margin of (56.2)% in Q3 2024[186]. Cash Flow and Financial Position - Net cash provided by operating activities was $574.4 million for the first nine months of 2025, the largest amount for any first nine months in the company's history[197]. - Cash and cash equivalents increased to $695.7 million as of September 30, 2025, compared to $455.1 million at the end of 2024[195]. - Net cash used in investing activities was $130.9 million for the first nine months of 2025, primarily for capital expenditures of $105.9 million[199]. - Net cash used in financing activities was $149.6 million for the first nine months of 2025, mainly due to a $124.0 million net repayment of debt[200]. - The company had working capital of $1.0 billion as of September 30, 2025, with a current assets to current liabilities ratio of 1.30[201]. Compliance and Risk Management - The company does not foresee significant impacts from potential tariff changes or federal funding scrutiny on its major projects in backlog[154]. - The company expects to maintain its competitive edge due to limited competition for larger project opportunities and strong public funding[152]. - The First Lien Net Leverage ratio as of September 30, 2025, was (0.64) to 1.00, which is below the required maximum of 2.25 to 1.00[211]. - The company was in compliance with the covenants under the 2020 Credit Agreement as of September 30, 2025, and expects to continue compliance[212]. - There have been no material changes in the company's contractual obligations since the last Annual Report on Form 10-K for the year ended December 31, 2024[213]. - There has been no material change in the company's significant accounting policies and estimates since the last Annual Report on Form 10-K for the year ended December 31, 2024[214]. - There has been no material change in the company's exposure to market risk since the last Annual Report on Form 10-K for the year ended December 31, 2024[216]. Corporate Expenses - Share-based compensation expense increased significantly to $42.2 million for Q3 2025 and $81.7 million for the nine months ended September 30, 2025, due to a substantial increase in the company's stock price[148]. - Corporate general and administrative expenses increased to $79.7 million for Q3 2025, up from $32.5 million in Q3 2024, primarily due to higher share-based compensation[189].