Tutor Perini Corporation

Tutor Perini Corporation is a U.S. construction contractor serving public agencies and private customers through civil, building and specialty contracting businesses. It works on large transportation, government, healthcare, education and other projects. Shares trade as TPC on the New York Stock Exchange.

Quarterly performance

Income from construction operations is after corporate general and administrative expenses. Share-based compensation in those expenses fell to $19.3 million from $58.7 million. Certain cash-settled awards are linked to the stock price; the absence of awards that vested at the end of 2025 helped reduce the expense.

The $39.5 million reduction represents about 46% of the $85.3 million operating-profit increase. Adjusted EPS excludes stock compensation, the debt-extinguishment loss and pension-settlement expense, with the associated tax effects. Both the original August annual forecast and the November update exclude those items.

The forecast midpoint rose from $5.30 to $6.00. Management also expects continued revenue and adjusted EPS growth in 2027 as its long-duration projects advance.

Segments and the work still to be completed

Q3 external revenue increased 16% in Civil to $893.5 million, 29% in Building to $540.5 million and 26% in Specialty Contractors to $286.2 million. Segment operating profit was $125.2 million, $27.2 million and $10.1 million, respectively, before corporate overhead.

September backlog was $20.35 billion, compared with $19.86 billion in June and $20.56 billion at the previous year-end. Q3 additions of $2.21 billion include new awards and changes to existing contract values. Backlog can also include awards before formal contract execution or a notice to proceed, once major uncertainties about starting the work have been resolved.

Newer, higher-margin projects are supporting profitability, according to management. The company's separate pipeline of potential bids describes prospective opportunities over several years. It is not awarded backlog.

Cash flow and cash available to the company

Nine-month operating cash flow rose to $665.1 million from $574.4 million. Cash spent on property and equipment fell to $91.3 million from $105.9 million, leaving $573.8 million after that spending versus $468.5 million a year earlier. These consolidated flows include joint-venture activity.

Of September's $1.111 billion of cash and equivalents, $504.2 million was immediately available for general corporate purposes and $606.8 million was held for joint-venture uses, including eventual distributions to partners. At the previous year-end, those amounts were $270.7 million and $463.8 million.

Separate restricted cash of $35.5 million and restricted investments of $292.3 million mainly secure insurance-related obligations and deposits. The company also carried $320.0 million of contract claims and $367.9 million of unapproved change-order assets, whose collection depends on resolution with customers.

The July refinancing and pension settlement

On July 2, 2026, Tutor Perini completed a refinancing with $400 million of senior notes due July 15, 2033 at a 6.625% coupon, replacing $400 million of notes carrying an 11.875% coupon. Total September debt had a $403.6 million carrying value after financing costs, compared with $407.4 million at the previous year-end.

The same transaction expanded the revolver to $350 million and extended its maturity to July 2, 2031. All $350 million remained available in September. The $51.4 million debt-extinguishment charge included a $35.6 million cash redemption premium and $15.8 million of noncash write-offs.

The defined-benefit pension plan was settled during Q3. A $33.8 million noncash expense accompanied $7.5 million of additional cash funding. The unfunded supplemental retirement plan remains outstanding.

Capital returns and unresolved claims

Tutor Perini spent $30 million on program share repurchases in the first nine months, with no purchases in Q3. The November 2025 authorization permits $200 million, of which $170 million remained at September 30. Q3 declared dividends were $0.09 a share; nine-month cash dividend payments totaled $11.2 million.

The W/Element Hotel litigation remains material. A trial court awarded the developer approximately $175 million and a separate window-wall subcontractor $42 million. Tutor Perini is appealing both awards and plans to challenge an October ruling against its indemnity claims. The company describes the potential for a material adverse financial impact as neither probable nor remote.