Tutor Perini Corporation

What they do

Tutor Perini performs construction work through three reporting segments: Civil, Building, and Specialty Contractors. The company executes large, long-duration projects such as infrastructure, buildings and specialty trade scopes, principally in New York, California, Hawaii and the Indo-Pacific region. Revenue is recognized on a percentage-of-completion basis as work is performed, with profits dependent on estimates at completion for each project.

Revenue drivers

• Civil segment — Second-quarter 2026 Civil revenue rose 11% year over year, part of the three-segment growth that lifted consolidated revenue 19% to a record $1.6 billion; growth was tied to newer large high-margin projects in New York, California, Hawaii and the Indo-Pacific.
• Building segment — Second-quarter 2026 Building revenue grew 21% year over year and the segment is one of three that delivered double-digit growth over the first six months of 2026.
• Specialty Contractors segment — Second-quarter 2026 Specialty Contractors revenue was up 47% year over year, the fastest-growing segment in the quarter, driven by increased activity on newer large projects.
• Backlog / large long-duration projects — Backlog was $19.9 billion at June 30, 2026, with roughly $1.7 billion of new awards and contract adjustments booked in the second quarter; the company says these projects are in early stages and have significant scope of work remaining.

Recent performance

Second-quarter 2026 revenue was a record $1.64 billion, up 19% from $1.37 billion a year earlier, and income from construction operations was a record $117.7 million, up 54% from $76.4 million. Net income attributable to Tutor Perini was $65.7 million, or $1.23 diluted EPS, versus $20.0 million and $0.38 in the prior-year quarter; adjusted EPS was $1.74 versus $1.41. First-half 2026 operating cash flow was a record $334.1 million, up 17% year over year. Full-year 2025 revenue was $5.54 billion with net income of $80.4 million and diluted EPS of $1.51, a reversal from 2024's $163.7 million net loss.

Strategy

Management is focused on executing a large backlog of newer, higher-margin projects and converting that work into revenue and cash flow. It reduced earnings volatility in 2025 by voluntarily prepaying $121.9 million of Term Loan B debt with operating cash flow, cutting long-term debt to $391.3 million at June 30, 2026. After shareholders approved additional shares in May 2025, the company stopped issuing liability-classified long-term incentive awards, which are expected to mostly vest by the end of 2026 and reduce share-based compensation expense. The board raised the quarterly dividend 50% to $0.09 per share and management raised 2026 adjusted EPS guidance to $5.15–$5.45. Capital is being directed to project execution and backlog conversion rather than new leverage.

Risks

• Contract estimating and cost overruns — Revenue and costs are accounted for using significant estimates that can change over a project's life, and past cost overruns on fixed-price and guaranteed maximum price contracts have produced losses.
• Legal proceedings — The company is involved in numerous lawsuits, including those in Note 8, and 2025 income included $32.5 million of net unfavorable legal judgments or decisions; unfavorable outcomes could require charges or reduce previously recorded revenue.
• Share-based compensation volatility — Liability-classified awards are remeasured at fair value each period, and a 176.9% rise in the stock price in 2025 drove share-based compensation to $150.0 million versus $40.4 million in 2024.
• Project adjustments and unapproved change orders — Temporary negative project adjustments totaled $78.7 million in 2025, driven partly by increases in unapproved work whose earnings impact is expected to reverse over the remaining project lives but may not.

Outlook

Management raised 2026 adjusted EPS guidance to $5.15–$5.45 from $4.90–$5.30 and said adjusted EPS in 2027 should be substantially higher than the upper end of that increased range. It expects share-based compensation expense to decline in 2026 and fall much more significantly in 2027 as liability-classified awards vest. The company also expects continued strong operating cash flow in the second half of 2026 and beyond, supported by earnings visibility from the $19.9 billion backlog.