Tutor Perini (TPC) Q3 2024 earnings summary

Executive summary

• Achieved record backlog of $14.0 billion at Q3 2024, up 35–38% sequentially, driven by major new project awards in Honolulu, New York, California, and Guam.

• Year-to-date operating cash flow reached $174 million, with full-year 2024 expected at $425–$575 million, far surpassing prior records.

• Third quarter results were mixed: strong cash flow and backlog growth offset by $152 million in charges from dispute resolutions, resulting in a net loss of $100.9 million ($1.92 per share).

• Significant progress made in resolving legacy disputes, with only about a dozen significant matters remaining.

• Expecting to return to profitability in 2025, with stronger earnings anticipated in 2026 and beyond.

Financial highlights

• Q3 2024 revenue was $1.1 billion, up slightly year-over-year, driven by building and civil segment growth.

• Civil segment revenue rose 5% to $545.8 million; building segment revenue up 19% to $435.8 million; specialty contractor revenue fell to $101.2 million.

• Net loss attributable to shareholders was $100.9 million, or $1.92 per share, compared to a $36.9 million loss last year.

• Q3 loss from construction operations was $106.8 million, mainly due to dispute-related charges.

• Q3 2024 cash and cash equivalents: $287.4 million; working capital: $1.2 billion; current ratio: 1.55.

Outlook and guidance

• Withdrew 2024 EPS guidance due to dispute-related charges; will provide 2025 guidance in February.

• Expects significant return to profitability in 2025 and strong revenue and earnings growth in 2026 and beyond as new projects ramp up.

• Major construction on new awards expected to begin between June and September 2025, with peak revenue and profitability in 2026–2028.

• Full-year 2024 operating cash flow expected between $425 million and $575 million, with $250–$400 million anticipated in Q4.

• Anticipates continued strong operating cash flow in 2025.