Executive Summary

Record backlog of $18.7B (+84% YoY) on $12.8B of 2024 new awards; backlog grew 33% sequentially in Q4, positioning for double‑digit revenue growth and a return to profitability in 2025 .
Q4 2024 revenue was $1.068B (+4.5% YoY, -1.4% QoQ); diluted EPS was -$1.51 (vs -$0.91 YoY, better than -$1.92 QoQ), driven by legacy dispute charges and a $26M adjustment in Building; Civil saw a temporary $32M earnings reduction expected to reverse over the project life .
Operating cash flow was $329.6M in Q4 and a record $503.5M for 2024, enabling accelerated deleveraging; Term Loan B was fully paid off in Q1 2025, with total debt reduced by $477M since YE 2023; net debt at year‑end was ~$79M .
2025 guidance: EPS $1.50–$1.90 and double‑digit revenue growth; back‑half weighted earnings (≈two‑thirds of EPS in H2) with interest expense down to ~$55M (≈$0.50 EPS uplift) .
Potential stock catalysts: sustained backlog conversion into revenues (Civil, Building, Specialty ramp), resolution of remaining legacy disputes (~12–14), and contemplated capital returns as balance sheet strengthens .

What Went Well and What Went Wrong

What Went Well

“With an unprecedented $12.8 billion of new awards during the year, we grew our backlog to a new record of $18.7 billion in 2024 and delivered a third consecutive year of record operating cash flow” — CEO Gary Smalley .
Accelerated deleveraging: total debt down $477M (52%) since YE 2023; Term Loan B fully repaid in Q1 2025, improving interest expense trajectory .
Civil and Building segments drove FY revenue growth (+12% overall; Building +24%, Civil +12%); backlog quality and improved contractual terms expected to lift margins prospectively .

What Went Wrong

Q4 earnings burdened by legacy issues: Building segment recorded a $26M unfavorable adjustment (Florida government building) and Civil had a temporary $32M earnings reduction from negotiated change orders; EPS was -$1.51 .
2024 operating income was negatively impacted by net ~$347M from judgments/settlements and changes in estimates, masking otherwise profitable newer projects .
Elevated share‑based compensation in 2024 ($40.4M vs $12.3M in 2023) due to stock price appreciation, adding $0.56 per diluted share drag for the year .

Financial Results

Sequential comparison (last three quarters)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$1,127.5	$1,082.8	$1,067.6
Diluted EPS ($USD)	$0.02	-$1.92	-$1.51
Gross Profit ($USD Millions)	$117.1	-$25.8	-$9.5
Gross Profit Margin %	10.4%	-2.4%	-0.9%
EBIT (Loss from construction operations) ($USD Millions)	$40.5	-$106.8	-$86.2
EBIT Margin %	3.6%	-9.9%	-8.1%
Interest Expense ($USD Millions)	$23.1	$21.2	$25.5

Notes: EBIT approximated by “Loss/Income from construction operations” per company tables .

YoY comparison (Q4 2024 vs Q4 2023)

Metric	Q4 2023	Q4 2024
Revenue ($USD Millions)	$1,021.5	$1,067.6
Diluted EPS ($USD)	-$0.91	-$1.51
Gross Profit ($USD Millions)	$48.9	-$9.5
Gross Profit Margin %	4.8%	-0.9%
EBIT (Loss from construction operations) ($USD Millions)	-$22.5	-$86.2
EBIT Margin %	-2.2%	-8.1%
Interest Expense ($USD Millions)	$21.3	$25.5

Segment breakdown (Q4 2024 vs Q4 2023)

Segment	External Revenue Q4 2023 ($MM)	External Revenue Q4 2024 ($MM)	Income (Loss) from Construction Ops Q4 2023 ($MM)	Income (Loss) from Construction Ops Q4 2024 ($MM)
Civil	$459.4	$554.4	$28.3	$4.5
Building	$376.1	$352.0	-$7.3	-$41.4
Specialty Contractors	$186.0	$161.2	-$24.1	-$20.3
Corporate	—	—	-$19.4	-$29.0
Total (external)	$1,021.5	$1,067.6	-$22.5	-$86.2

KPIs

KPI	Value
Operating Cash Flow Q4 2024 ($USD Millions)	$329.6
Operating Cash Flow FY 2024 ($USD Millions)	$503.5
Backlog at Dec 31, 2024 ($USD Billions)	$18.674
New Awards in Q4 2024 ($USD Billions)	$5.716
Net Debt at Dec 31, 2024 ($USD Millions)	~$79
Cash and Equivalents at Dec 31, 2024 ($USD Millions)	$455.1
Total Debt Reduction since YE 2023 to Feb 27, 2025 ($USD Millions)	$477

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue growth	FY 2025	n/a	Double‑digit revenue growth	New
Diluted EPS	FY 2025	n/a	$1.50–$1.90	New
EPS outlook	FY 2026/2027	n/a	Preliminary EPS more than double 2025 guidance (internal projections)	New
G&A Expense	FY 2025	n/a	$310–$320M	New
Depreciation & Amortization	FY 2025	n/a	~$55M (Depreciation $53M; Amortization $2M)	New
Interest Expense	FY 2025	n/a	~~$55M (~~$5M noncash); ~38% lower YoY	New
Effective Tax Rate	FY 2025	n/a	~21%–23%	New
Noncontrolling Interests	FY 2025	n/a	~$65–$75M	New
Diluted Shares	FY 2025	n/a	~53M	New
Capex	FY 2025	n/a	~~$140–$150M (~~$110–$120M owner‑funded)	New
Capital Return	FY 2025+	n/a	Considering return of capital to shareholders	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Backlog growth	Q2: $10.4B, anticipating significant growth ; Q3: record $14.0B (+35% QoQ)	Record $18.7B (+84% YoY), strong awards continue in early 2025	Accelerating
Legacy disputes	Q2: Adjustments ($12.4M, $12.0M) and settlements ; Q3: ~$152M net charges, ~$180M expected cash	~$347M full‑year operating income impact; ~12–14 disputes remain; progress expected in 2025	Resolving, earnings drag diminishing
Tariffs/macro	Q3: Election commentary; generally neutral impact	Management does not anticipate significant impacts from tariffs/federal funding scrutiny	Stable/managed risk
Technology/AI	Not highlighted in Q2/Q3	Exploring AI to improve planning/execution/productivity	Emerging initiative
Capital allocation/deleveraging	Q2: plan to prepay Term Loan B; affirm 2024 EPS guidance ; Q3: $150–$225M TL‑B paydowns; interest savings $0.21–$0.32 EPS	TL‑B fully repaid; interest ~$55M in 2025; considering shareholder capital returns	Shift from deleveraging to returns
Contract terms/selectivity	Q3: materially improved/fair terms negotiated; fewer bidders	Record backlog enables selectivity; improved terms sustained	Structural margin support

Management Commentary

“Our record backlog and ample future bidding opportunities should serve as the catalyst for significant double‑digit revenue growth and a return to solid profitability in 2025, followed by substantially higher earnings in 2026 and 2027” — Gary Smalley, CEO .
“We have reduced our total debt by $477 million or 52% since the end of 2023… All in all, we believe that our balance sheet is now healthier than it has ever been” — Ryan Soroka, CFO .
“This new work… has better contractual terms than we used to have because now we’re being treated more fairly… we’re already getting the contractual terms that we really want” — Management on contract terms .
“We do not anticipate any significant impacts… related to tariffs [and] federal budget scrutiny” — CEO .

Q&A Highlights

Cadence: EPS is expected to be single‑digit in Q1, stepping up in Q2–Q4; roughly two‑thirds of FY 2025 EPS in H2 — back‑half weighted ramp as mega projects move from design to construction .
Disputes: ~12–14 legacy matters remain; 75–80% expected cleared in 2025; contingencies embedded in guidance .
Capital allocation: Options under evaluation with the Board; shift possible toward shareholder returns as excess cash builds .
Capex funding: ~$140–$150M FY25, but ~$110–$120M owner‑funded (minimal cash impact); equipment purchases billed to projects .
Backlog reliance: FY 2025 revenue/earnings largely driven by contracted backlog; limited dependence on new awards in near‑term projections .

Estimates Context

S&P Global consensus EPS and revenue estimates for Q4 2024, Q3 2024, and Q2 2024 were unavailable due to a data access limit at the time of retrieval; comparisons to Wall Street consensus cannot be provided. Values retrieved from S&P Global.*

Metric	Q2 2024	Q3 2024	Q4 2024
Consensus Revenue ($USD Millions)	N/A*	N/A*	N/A*
Consensus Primary EPS ($USD)	N/A*	N/A*	N/A*

Implication: In absence of published consensus, sell‑side will likely revise models to reflect back‑half weighting, lower interest expense, and segment ramp timing outlined by management .

Key Takeaways for Investors

Backlog conversion is the core driver: expect sequential revenue growth through 2025, with earnings skewed to H2; monitor milestones on Manhattan Jail, Manhattan Tunnel, Newark AirTrain, Honolulu rail, and Apra Harbor .
Earnings normalization underway: legacy dispute drag lessens; watch appeal outcomes and settlement cadence — upside to margins as temporary reductions reverse .
Deleveraging complete on TL‑B; interest expense down ~38% YoY to ~$55M, adding ≈$0.50 to 2025 EPS — a tangible bridge to guidance .
Contract quality improved materially across mega projects; sustained selectivity should support margin enhancement vs historical levels .
Building segment margin recovery is pivotal (Q4 adjustment was project‑specific); healthcare/education pipeline (Rudolph & Sletten) expected to add backlog in 2025 .
Capital returns are increasingly likely as cash generation persists; watch Board actions and potential senior notes refinancing post non‑call period .
Near‑term trading: focus on H1 setup and backlog ramp visibility; medium‑term thesis: multi‑year earnings growth (2026–2027 EPS prelim “>2× 2025”) anchored by record backlog and improved terms .

TUTOR PERINI CORP (TPC)·Q4 2024 Earnings Summary