Tutor Perini Reports Strong Second Quarter 2025 Results; Raises 2025 EPS Guidance

• Revenue of $1.37 billion, up 22% Y/Y
• Income from construction operations of $76.4 million, up 89% Y/Y, reflecting strong operating performance and contributions from higher-margin projects
• Diluted earnings per share ("EPS") of $0.38, up substantially compared to $0.02 in Q2 2024
• Adjusted EPS of $1.41, up 315% compared to $0.34 in Q2 2024
• Record second-quarter operating cash flow of $262.4 million for Q2 2025 and record $285.3 million operating cash flow for the first six months of 2025
• Record backlog of $21.1 billion at the end of Q2 2025, up 102% Y/Y and reflecting $3.1 billion of new awards and contract adjustments in Q2 2025
• Company increases 2025 EPS guidance: 2025 GAAP EPS guidance now expected in the range of $1.70 to $2.00 (up from previous guidance of $1.60 to $1.95), with corresponding 2025 Adjusted EPS expected in the range of $3.65 to $3.95 (up from $2.45 to $2.80)
• Company expects both GAAP EPS and Adjusted EPS for 2026 and 2027 to be higher than the upper end of its increased 2025 guidance

Tutor Perini Corporation (the "Company") (NYSE: TPC), a leading civil, building and specialty construction company, today reported strong results for the second quarter of 2025 (see attached tables).

Revenue for the second quarter of 2025 was $1.37 billion, up 22% compared to $1.13 billion for the same period in 2024. The Company experienced solid year-over-year growth across all three segments, primarily driven by increased project execution activities on certain newer, higher-margin projects, all of which have significant scope of work remaining. Civil and Building segment revenues for the second quarter of 2025 were up 34% and 11%, respectively, compared to the same quarter last year. The Civil segment's revenue for both the second quarter and first six months of 2025 were the segment's highest ever for the respective periods.

Income from construction operations for the second quarter of 2025 was $76.4 million, up 89% compared to $40.5 million for the second quarter of 2024. The increase was principally due to higher-margin contributions related to the increased project execution activities discussed above. The Company's income from construction operations for the second quarter of 2025 was negatively impacted by a $38.5 million ($0.71 per diluted share) increase in share-based compensation expense compared to the second quarter of 2024, primarily due to the doubling of the Company’s stock price during the second quarter of 2025, which affected the fair value of certain liability-classified awards. Net income attributable to the Company for the second quarter of 2025 was $20.0 million, or EPS of $0.38, up substantially compared to $0.8 million, or EPS of $0.02, for the second quarter of 2024. Adjusted net income attributable to the Company, which excludes the impact of share-based compensation expense, net of associated tax benefit, for the second quarter of 2025 was $75.1 million, or $1.41 of Adjusted EPS, compared to $17.5 million, or $0.34 of Adjusted EPS, for the second quarter of 2024. Please refer to the Non-GAAP Financial Measures section below for further information and a reconciliation of the Company's financial results reported under generally accepted accounting principles in the United States (“GAAP”) to the reported adjusted results.

The Company generated $262.4 million of cash from operating activities in the second quarter of 2025 and $285.3 million in the first six months of 2025, both of which set new records for each respective period, and both up significantly compared to $53.1 million and $151.4 million for the same periods last year. The Company's operating cash flow result for the second quarter of 2025 was the second-highest result of any quarter. The record operating cash flow for the first half of 2025 was driven largely by collections from newer and ongoing projects and, to a much lesser extent, from collections related to recent dispute resolutions. The Company expects continued strong operating cash flow for the remainder of 2025.

Record Backlog

The Company booked $3.1 billion of new awards and contract adjustments in the second quarter of 2025, reflecting its continued success in capturing significant new project opportunities resulting from a combination of its strategic bidding approach and favorable market dynamics, including limited competition in select markets for some of the larger projects. This environment, which is supported by strong public funding and demand, has allowed the Company to differentiate itself and deliver compelling proposals that align with the customer's goals and expectations. As a result of the strong new awards activity, the Company's backlog grew to a new record of $21.1 billion as of June 30, 2025, up 102% compared to the backlog at the end of the second quarter of 2024 and up 9% compared to the previous record backlog at the end of the first quarter of 2025. Backlog for the Civil and Specialty Contractors segments as of June 30, 2025 also set new records. The most significant new awards and contract adjustments in the second quarter of 2025 included:

• The $1.87 billion Midtown Bus Terminal Replacement - Phase 1 project in New York;
• A $538 million healthcare project in California;
• Two civil works projects in the Midwest collectively valued at $127 million;
• $90 million of additional funding for a mass-transit project in California; and
• $54 million of additional funding for another healthcare project in California.

The Company expects its backlog will remain strong in 2025 due in part to several Building segment projects currently in the preconstruction phase that are anticipated to advance to the construction phase later this year. In addition, Tutor Perini expects to continue bidding selectively on various project opportunities this year that will drive long-term shareholder value. The Company continues to have numerous major project bidding opportunities, particularly on the West Coast, in the Midwest, and in the Indo-Pacific region, and is well positioned to continue winning its share of new projects this year and over the next several years.

Significant Balance Sheet Improvements

The Company has continued to make significant strides in improving its balance sheet. Total debt as of June 30, 2025 was $419 million, down 21% compared to $534 million at the end of 2024. As a result of the very strong cash collections in the second quarter of 2025, the Company's cash exceeded its total debt by $107 million as of June 30, 2025, and it was the first time since 2010 that cash was greater than total debt. In addition, the Company's balance of costs and estimated earnings in excess of billings ("CIE") was $856 million as of June 30, 2025, down $91 million (or 10%) compared to the balance at the end of the first quarter of 2025 and at the lowest level it has been since the second quarter of 2017. This reduction in CIE was primarily driven by the resolution and billing of various previously disputed matters.

Management Remarks

Gary Smalley, Tutor Perini's Chief Executive Officer and President, remarked, "Our second-quarter results were exceptional across all key metrics and reflect our continued outstanding operating performance and significant business momentum. Our strong revenue growth and profitability is being driven by our record backlog, which has continued to grow and includes various larger long-duration and higher-margin projects, most of which are in the early stages. We are confident that our record backlog will continue to drive higher revenue and strong profitability over the rest of 2025 and even more so in 2026 and 2027, as our newer projects advance to construction. Our operating cash flow for the first six months of 2025 was our highest first-half result ever, and we expect strong earnings and cash flow to continue through the rest of this year and beyond. Our earnings to date are considerably higher than expected, raising our confidence in Tutor Perini's outlook, as demonstrated by a second consecutive quarter of increased earnings guidance. We believe that our growth and earnings momentum remains poised to continue over the next several years."

Outlook and Guidance

Tutor Perini's business has performed extremely well through the first half of 2025, and the Company anticipates continued strong operating performance and financial results over the rest of this year, with significantly higher revenue and earnings still expected in 2026 and 2027 as various newer large projects advance to the construction phase.

Based on the Company's outstanding year-to-date results in 2025 and management's increased confidence in its performance trajectory for the remainder of the year, the Company is now providing 2025 GAAP EPS guidance in the range of $1.70 to $2.00, up from $1.60 to $1.95, with corresponding 2025 Adjusted EPS expected in the range of $3.65 to $3.95, a significant increase compared to what would have been the prior Adjusted EPS guidance range of $2.45 to $2.80 had the Company provided Adjusted EPS guidance previously. The Company's increased guidance continues to factor in a significant amount of contingency for various unknown or unexpected outcomes and developments in 2025. Based on its current projections, the Company expects that both GAAP EPS and Adjusted EPS for 2026 and 2027 will be higher than the upper end of its increased 2025 guidance.

The Company continues to see strong demand for its services, driven by well-funded state, local and federal customers that have numerous large-scale, high-priority infrastructure projects planned over the next several years, as well as by certain commercial customers that continue to advance projects for new or renovated buildings in end markets such as healthcare, education, and hospitality and gaming.

Although share-based compensation expense increased substantially in the second quarter of 2025 due to the dramatic increase in the Company's share price, as discussed above, and it is expected to be higher than previously anticipated for the full year of 2025, the Company expects that share-based compensation expense will decrease considerably in 2026 and further in 2027 once certain liability-classified awards have vested. Because of the substantial increase in share-based compensation expense this year and the significant impact that it has had and will continue to have through the end of 2026 on the Company's reported GAAP financial results, the Company is also reporting certain financial results on an adjusted basis, as described below.

Tutor Perini still does not currently anticipate any significant impact from recently imposed tariffs or the curtailment of federal funding programs but continues to closely monitor these issues.

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. These non-GAAP financial measures are intended to provide additional insights that facilitate the comparison of our past and present performance, and they are among the indicators management uses to assess the Company’s financial performance and to forecast future performance. By including these non-GAAP financial measures, we aim to provide investors and stakeholders a clearer understanding of our operating results and enhance transparency with respect to the key financial metrics used by our management in its financial and operational decision-making.

These non-GAAP financial measures, which exclude share-based compensation expense for the three and six months ended June 30, 2025 and 2024 (as well as the tax benefit associated with the expense), include adjusted net income attributable to the Company and adjusted earnings per share. We exclude share-based compensation expense because this expense could result in significant volatility in our reported earnings, driven primarily by fluctuations in the expense recognized for certain long-term incentive compensation awards with payouts that are indexed to the Company’s common stock. By adjusting for share-based compensation, our non-GAAP measures present a supplemental depiction of our operational performance and financial health. This approach allows stakeholders to focus on our core operational efficiency and profitability without the variable impact to earnings caused by significant changes in our stock price. Our non-GAAP measures are intended to offer a consistent basis for evaluating the Company’s performance, which management believes is meaningful to stakeholders.

The non-GAAP financial measures included in this earnings release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the most directly comparable measures prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis.

Reconciliations of these non-GAAP financial measures and guidance are found in the tables below:

Second Quarter 2025 Conference Call

The Company will host a conference call at 2:00 PM Pacific Time on Wednesday, August 6, 2025, to discuss the second quarter 2025 results. To participate in the conference call, please dial 877-407-8293 five to ten minutes prior to the scheduled time. International callers should dial +1-201-689-8349.

The conference call will be webcast live over the Internet and can be accessed by all interested parties on Tutor Perini's website at www.tutorperini.com. For those unable to participate during the live call, the webcast will be available for replay on the website shortly after the call.

About Tutor Perini Corporation

Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private customers and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large, complex projects on time and within budget while adhering to strict safety and quality control measures. We offer general contracting, pre-construction planning and comprehensive project management services, and have strong expertise in delivering design-bid-build, design-build, construction management, and public-private partnership (P3) projects. We often self-perform multiple project components, including earthwork, excavation, concrete forming and placement, steel erection, electrical, mechanical, plumbing, heating, ventilation and air conditioning (HVAC), and fire protection.

Forward-Looking Statements

The statements contained in this release, including those set forth in the section “Outlook and Guidance,” that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, statements regarding the Company’s expectations, hopes, beliefs, intentions or strategies regarding the future and statements regarding future guidance or estimates and non-historical performance. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential impacts on the Company. While the Company’s expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them, there can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: unfavorable outcomes of existing or future litigation or dispute resolution proceedings against us or customers (project owners, developers, general contractors, etc.), subcontractors or suppliers, as well as failure to promptly recover significant working capital invested in projects subject to such matters; revisions of estimates of contract risks, revenue or costs; economic factors such as inflation, tariffs, the timing of new awards, or the pace of project execution, which have resulted and may continue to result in losses or lower than anticipated profit; contract requirements to perform extra work beyond the initial project scope, which has and in the future could result in disputes or claims and adversely affect our working capital, profits and cash flows; risks and other uncertainties associated with estimates and assumptions used to prepare our financial statements; an inability to obtain bonding could have a negative impact on our operations and results; a significant slowdown or decline in economic conditions, such as those presented during a recession; failure to meet contractual schedule requirements, which could result in higher costs and reduced profits or, in some cases, exposure to financial liability for liquidated damages and/or damages to customers, as well as damage to our reputation; inability to attract and retain our key officers, and to adequately plan for their succession, and hire and retain personnel required to execute and perform on our contracts; decreases in the level of federal, state and local government spending for infrastructure and other public projects; possible systems and information technology interruptions and breaches in data security and/or privacy; the impact of inclement weather conditions, disasters and other catastrophic events outside of our control on projects; risks related to our international operations, such as uncertainty of U.S. government funding, as well as economic, political, regulatory and other risks, including risks of loss due to acts of war, labor conditions, and other unforeseeable events in countries where we do business, which could adversely affect our revenue and earnings; client cancellations of, delays in, or reductions in scope under contracts reported in our backlog, as well as prospective project opportunities, including as a result of potential impacts from recently implemented tariffs or other government-related mandates; increased competition and failure to secure new contracts; risks related to government contracts and related procurement regulations; failure of our joint venture partners to perform their venture obligations, which could impose additional financial and performance obligations on us, resulting in reduced profits or losses and/or reputational harm; violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws; significant fluctuations in the market price of our common stock, which could result in substantial losses for stockholders and potentially subject us to securities litigation; failure to meet our obligations under our debt agreements (especially in a high interest rate environment); downgrades in our credit ratings; public health crises, such as COVID-19, have adversely impacted, and could in the future adversely impact, our business, financial condition and results of operations by, among other things, delaying the timing of project bids and/or awards and the timing of dispute resolutions and associated collections; physical and regulatory risks related to climate change; impairment of our goodwill or other indefinite-lived intangible assets; the exertion of influence over the Company by our executive chairman due to his position and significant ownership interests; and other risks and uncertainties discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 27, 2025 and in other reports that we file with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250806384714/en/

"We are confident that our record backlog will continue to drive higher revenue and strong profitability over the rest of 2025 and even more so in 2026 and 2027, as our newer projects advance to construction."