Tutor Perini (TPC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 10% year-over-year to $1.13 billion, driven by strong project execution in Building and Civil segments, especially in healthcare, education, mass transit, California, and New York.

• Net income for Q2 was $0.8 million ($0.02 per share), a turnaround from a $37.5 million loss in Q2 2023; YTD net income was $16.6 million ($0.31 per share).

• Operating cash flow was $53 million for Q2 and $151.4 million year-to-date, the second highest six-month result since 2008.

• Backlog reached $10.4 billion as of June 30, 2024, with a balanced mix across Civil, Building, and Specialty Contractors, and a 4% sequential increase.

• Earnings were negatively impacted by $0.19/share from increased share-based compensation and $0.17/share from a project settlement.

Financial highlights

• Q2 2024 revenue was $1,127.5 million, up from $1,021.8 million in Q2 2023; income from construction operations was $40.5 million, up from $2.4 million last year.

• Civil segment operating margin was 13.8% in Q2; Building segment margin improved to 1.2%; specialty contractor segment loss narrowed significantly.

• Gross profit for Q2 was $117.1 million (vs. $65.0 million in 2023); Q2 gross margin was approximately 10.4%.

• Corporate G&A expense rose to $32 million due to higher share-based compensation.

• Cash and cash equivalents at June 30, 2024 were $267.1 million; working capital stood at $1.3 billion with a current ratio of 1.65.

Outlook and guidance

• 2024 EPS guidance reaffirmed at $0.85–$1.10, with strong earnings and cash flow expected in H2 2024 and even stronger results anticipated in 2025 and 2026.

• Double-digit revenue growth and substantial backlog growth expected over the next several quarters.

• Revenue growth outlook remains favorable, supported by robust backlog and strong end-market demand in infrastructure, healthcare, and public projects.

• G&A expense for 2024 expected at $280–$300 million; capex at $35–$40 million.

• Lower interest rates could further support infrastructure spending, but delays in project awards or economic headwinds could impact growth.