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TUTOR PERINI CORP (TPC)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 was clean and better than internal expectations, with revenue up 19% YoY to $1.25B, EPS $0.53 (+77% YoY), and record backlog of $19.4B; management raised 2025 EPS guidance to $1.60–$1.95 from $1.50–$1.90 .
  • Material beat vs S&P Global consensus: EPS $0.53 vs $0.09*, revenue $1.25B vs $1.07B*; strength driven by ramping newer, higher‑margin projects and no material dispute adjustments in the quarter .
  • Cash from operations was $22.9M (seasonally low quarter), and total debt fell 24% since YE24 to ~$406M after early payoff of Term Loan B; interest expense declined 26% YoY .
  • Backlog rose to $19.4B (+94% YoY), supported by $2.0B of Q1 awards/adjustments (e.g., $1.18B Manhattan Tunnel); management reiterated expectation that 2026–2027 EPS will be more than double 2025 guidance midpoint .

What Went Well and What Went Wrong

  • What Went Well

    • Clean quarter: “solid project execution and no material project adjustments,” with newer, higher‑margin projects ramping faster than expected .
    • Strong bookings and record backlog; book‑to‑burn ~1.6x in Q1; Indo‑Pacific MACCs add multi‑year pipeline access (>$32B capacity among awardees) .
    • Debt down to ~$406M; interest expense -26% YoY; management discussing future capital returns (dividends/buybacks) once more cash is accumulated .

  • What Went Wrong

    • Specialty Contractors still loss‑making (-$7M) though improved YoY; management targets turning positive margins into late 2025/2026 .
    • Operating cash flow ($22.9M) below prior‑year ($98.3M) due to timing—last year benefited from dispute collections; more collections expected later in 2025 .
    • Building segment operating income fell YoY ($10M vs $16M) due to absence of a small prior‑year favorable legal adjustment; margins expected to improve through 2025 .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$1,048.987 $1,067.649 $1,246.633
Income from Construction Operations ($USD Millions)$48.806 $(86.245) $65.325
Other Income, net ($USD Millions)$5.311 $4.242 $4.688
Interest Expense ($USD Millions)$19.307 $25.519 $14.352
Net Income Attributable to TPC ($USD Millions)$15.760 $(79.431) $27.998
Diluted EPS ($)$0.30 $(1.51) $0.53
Cash from Operations ($USD Millions)$98.274 $329.6 $22.863
  • Estimates vs Actuals (Q1 2025)
    | Metric | Consensus* | Actual | |---|---|---| | Revenue ($USD Billions) | $1.068* | $1.247 | | EPS ($) | $0.09* | $0.53 |

Values with * retrieved from S&P Global.

  • Segment Performance
    | Segment | Q1 2024 External Revenue ($M) | Q1 2025 External Revenue ($M) | Q1 2024 Income from Construction Ops ($M) | Q1 2025 Income from Construction Ops ($M) | |---|---:|---:|---:|---:| | Civil | $472.165 | $610.041 | $70.743 | $79.600 | | Building | $411.942 | $459.784 | $16.120 | $10.459 | | Specialty | $164.880 | $176.808 | $(18.312) | $(7.111) |

  • KPIs and Backlog
    | KPI | Q4 2024 | Q1 2025 | |---|---|---| | Backlog ($USD Billions) | $18.674 | $19.393 | | New Awards in Period ($USD Billions) | $5.716 | $1.966 | | Book-to-Burn (x) | 5.4x | ~1.6x | | Total Debt ($USD Millions) | ~$534 | ~$406 | | Term Loan B | Outstanding (YE24) | Fully repaid in Q1 |

Additional Q1 award detail: Fisk Electric secured a $99M second phase for Harris Health (added to backlog in Q1), with an additional ~$38M expected later in 2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
EPSFY 2025$1.50 – $1.90 $1.60 – $1.95 Raised
EPS (prelim. view)FY 2026–2027>2x 2025 guidance >2x 2025 guidance (reiterated) Maintained
G&A ExpenseFY 2025$310–$320M Same (assumptions unchanged) Maintained
D&A ExpenseFY 2025~$55M (Dep ~$53M; Amort ~$2M) Same Maintained
Interest ExpenseFY 2025$55M ($5M non-cash) Same Maintained
Tax RateFY 2025~21%–23% Same Maintained
Noncontrolling InterestFY 2025$65–$75M Same Maintained
Diluted SharesFY 2025~53M Same Maintained
CapExFY 2025$140–$150M; ~$110–$120M owner-funded Same Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Backlog momentumRecord $14.0B in Q3; pipeline included major NYC/Hawaii/water projects Record $19.4B; $2.0B Q1 awards; additional >$500M already in Q2 Strengthening
Dispute resolutionsLarge 3Q24 charges; cash inflows expected Q4 Q1 “clean” on earnings; collections skew to later quarters Improving quality
Tariffs/Federal fundingNo expected significant impact; mitigated via buyouts/terms Still no significant impact anticipated; owners accelerating some smaller projects Stable/benign
Capital returnsDebt reduction priority; exploring returns as cash builds Board discussions planned; options are dividends/buybacks (not imminent) Increasing optionality
Indo‑Pacific (Guam)New MACCs and awards; pipeline building 4/4 MACCs; well‑positioned; leadership trip to Guam to scale Expanding
Preconstruction → constructionExpect significant Building projects to convert in 2025 One >$500M moved in Q2; ~$1B expected late Q2/early Q3 Converting
Segment margins outlookCivil improving; Building rising to 3–5%; Specialty negative but improving Similar: Civil > prior ranges; Building 3–5%; Specialty turning 1–2% by late 2025/2026 Normalizing higher

Management Commentary

  • “We’ve delivered an outstanding start to 2025… Our confidence … is demonstrated by our increased EPS guidance for 2025.” — CEO Gary Smalley .
  • “All the assumptions we provided last quarter regarding our guidance remain the same.” — CFO Ryan Soroka .
  • “There has never been a better time to be a Tutor Perini shareholder… we believe we are at the dawn of a new era for the company.” — CEO Gary Smalley .
  • “We’re about to submit our bid for the multibillion dollar Midtown Bus Terminal Replacement project in New York... the newer major projects… are all going extremely well.” — Executive Chairman Ron Tutor .

Q&A Highlights

  • Clean quarter confirmation: Earnings were net‑neutral to slight impacts from three sizable dispute resolutions; cash tied to these to flow mainly in Q2; strength was not timing pull‑forward .
  • Preconstruction conversions: One >$500M Building project already moved into backlog in Q2; another near $1B expected late Q2/early Q3; not seeing cancellations .
  • Tariffs: No felt impact on existing work; contract terms and early buyouts mitigate exposure; pricing stable in key markets like New York .
  • EPS bridge to >$3 in 2026–2027: Driven by ramp of large, higher‑margin projects; margin targets — Civil “north of” prior guide, Building 3–5%, Specialty turning positive ~1–2% into late 2025/2026 .
  • Capital returns: Board to discuss options (dividends/buybacks); company will prioritize sustainable program after building cash .
  • Revenue cadence: Peak revenue anticipated in 2027 as mega‑projects ramp, with significant growth in 2026 .

Estimates Context

  • Q1 2025 beat: EPS $0.53 vs $0.09 consensus*; revenue $1.25B vs $1.07B consensus* — both material beats that reflect faster‑than‑expected ramp on newer, higher‑margin work and a clean quarter without material dispute adjustments .
  • Given the magnitude of the beat and raised FY EPS guidance, Street models for FY25 EPS and segment margins likely require upward revisions, especially for Building and Specialty trajectories and for lower interest expense run‑rate .
    Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • Positive estimate revision setup: Large Q1 beat plus raised EPS guide should drive upward estimate revisions and support multiple expansion if execution remains clean .
  • Backlog‑to‑earnings conversion: Record $19.4B backlog with better terms/margins underpins multi‑year revenue and EPS growth; 2026–2027 EPS targeted at >2x 2025 guidance midpoint .
  • Cash and deleveraging: Debt cut to ~$406M; lower interest expense a direct EPS tailwind; further cash inflections expected as dispute collections occur later in 2025 .
  • Segment margin trajectory: Civil strong; Building moving to 3–5%; Specialty improving toward breakeven/positive — a key upside lever as volumes grow .
  • Macro/tariffs risk contained: Contract structures and early buyouts mitigate tariff risk; funding remains robust at state/local/federal levels .
  • Catalysts: Additional Building projects converting from preconstruction, potential Midtown Bus Terminal win, and clarity on capital returns as cash accumulates .
  • Execution focus: Maintaining “clean” quarters (limited dispute noise) and on‑time ramp of mega‑projects are critical to sustaining the new narrative .