Tutor Perini (TPC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.25 billion, up 19% year-over-year, with growth across all segments driven by robust project execution and new high-margin awards, including the $1.18 billion Manhattan Tunnel project and major funding for Guam, California, and Texas projects.

• Net income attributable to the company was $28 million, up from $15.8 million in Q1 2024; diluted EPS rose 77% to $0.53, the second-best Q1 result in company history.

• Backlog reached a record $19.4 billion at March 31, 2025, up 94% year-over-year, with $2 billion in new awards and significant contract adjustments.

• Operating cash flow was $22.9 million, among the best Q1 results historically.

• Total debt was reduced by 24% since year-end 2024, with the voluntary early repayment of $121.9 million Term Loan B.

Financial highlights

• Operating income increased 34% to $65.3 million; gross profit was $134.4 million, up from $115.3 million in Q1 2024.

• Net income was $28 million, up from $16 million in Q1 2024.

• Interest expense fell 26% to $14.4 million due to substantial debt reduction.

• Cash and cash equivalents at March 31, 2025, were $276.5 million.

• Working capital was $0.9 billion, with a current ratio of 1.33 and debt-to-equity ratio improved to 0.34.

Outlook and guidance

• 2025 EPS guidance raised to $1.60–$1.95, up from $1.50–$1.90, reflecting strong Q1 and continued confidence.

• Preliminary EPS estimates for 2026 and 2027 are projected to be more than double the 2025 guidance midpoint.

• Strong operating cash flow and robust backlog expected to support multi-year growth.

• More than half of 2025 earnings expected in the second half of the year.

• Interest expense is expected to decrease further in 2025 and beyond due to lower outstanding debt.