LOS ANGELES--(BUSINESS WIRE)-- Tutor Perini Corporation (the “Company”) (NYSE: TPC), a leading civil, building and specialty construction company, reported results today for the fourth quarter and year ended December 31, 2025 (see attached tables).

Fourth Consecutive Year of Record Operating Cash Flow

Tutor Perini delivered its fourth consecutive year of record operating cash flow, generating $748.1 million of net cash provided by operating activities in 2025, which was up 49% year-over-year, shattering the previous record of $503.5 million set in 2024. The strong increase in 2025, as compared to 2024, was primarily driven by strong collections on newer and ongoing projects, reflecting a significant increase in project execution and improved working capital management, with additional contributions from the resolution of certain legacy matters.

The Company utilized a portion of its strong cash flow in 2025 to pay down its total debt by $126.8 million, or 24%, since the end of 2024, including the full payoff of its Term Loan B in the first quarter of 2025.

Solid Revenue Growth Across All Segments in 2025

Revenue for 2025 was $5.5 billion, up 28% compared to 2024 and the Company’s highest annual revenue ever. Revenue for the Civil, Building, and Specialty Contractors segments grew 34%, 15%, and 43%, respectively, in 2025, driven by increased project execution activities on certain large, newer projects in the Northeast, Hawaii, and Guam. The Civil segment’s annual revenue was also its highest ever.

Returned to Strong Profitability in 2025

Income from construction operations for 2025 was $232.0 million, up significantly compared to a loss from construction operations of $103.8 million in 2024. The increase was principally due to higher-margin contributions related to the increased project execution activities discussed above, as well as the absence of certain net unfavorable adjustments that impacted results for 2024. The Company's income from construction operations for 2025 reflected a $109.6 million ($2.02 per diluted share, net of associated tax benefit) increase in share-based compensation expense compared to 2024, primarily due to the significant increase in the Company’s stock price, which was up 177% in 2025, affecting the fair value of liability-classified awards. Share-based compensation expense is expected to decrease in 2026 and decline much more significantly in 2027, as some of these awards have recently vested and most of the remaining liability-classified awards will vest by the end of 2026.

Net income attributable to the Company for 2025 was $80.4 million, or EPS of $1.51, up substantially compared to net loss attributable to the Company of $163.7 million, or a $3.13 diluted loss per share, for 2024. Adjusted net income attributable to the Company, which excludes the impact of share-based compensation expense, net of associated tax benefit, for 2025 was $229.1 million, or $4.29 of adjusted EPS, compared to adjusted net loss attributable to the Company, which also excludes the impact of share-based compensation expense, net of associated tax benefit, of $124.0 million, or $2.37 of adjusted diluted loss per share, for 2024. Please refer to the Non-GAAP Financial Measures section below for further information and a reconciliation of the Company's financial results reported under generally accepted accounting principles in the United States (“GAAP”) to the reported adjusted results.

Robust Backlog with Significant Bidding Opportunities Ahead

Consolidated backlog was $20.6 billion as of December 31, 2025, up 10% compared to $18.7 billion as of December 31, 2024. New awards and contract adjustments in 2025 totaled $7.4 billion, and the largest additions included:

• $1.87 billion Midtown Bus Terminal Replacement - Phase 1 project in New York;
• $1.18 billion Manhattan Tunnel project in New York;
• Healthcare facility project in California valued at approximately $1 billion;
• $538 million healthcare project in California;
• $241 million of additional funding for the Apra Harbor Waterfront Repairs project in Guam;
• $182 million military defense project in Guam;
• $155 million education facility project in California;
• $131 million of additional funding for an electrical project in Texas; and
• Another electrical project in Texas valued at more than $100 million.

The Company anticipates booking approximately $1 billion into backlog later this year for the finished trades scope of work for Phase 1 of the Midtown Bus Terminal project in New York City. In addition, Rudolph and Sletten, the Company’s subsidiary, was recently selected for a large new multi-billion-dollar healthcare project in California, which is currently in the preconstruction phase. The Company expects to book significant additional backlog as this and several other Building segment projects also currently in the preconstruction phase advance to the construction phase over the next several years.

The Company continues to have considerable Civil and Building segment bidding opportunities that it expects to pursue over the next 12 to 18 months. These include, among others, the multi-billion-dollar Penn Station Transformation project in New York, Newark-Liberty International Airport Terminal B in New Jersey, the Metro Gold Line Foothill Extension, the Sepulveda Transit Corridor and the Southeast Gateway Line projects in California, the I-535 Blatnik Bridge project in Minnesota, the I-69 ORX Section 2 project connecting Indiana and Kentucky, and several large hospitality and gaming projects. There are also significant opportunities that the Company is pursuing in the Indo-Pacific region, many of which are funded under the U.S. government’s Pacific Deterrence Initiative.

Further Balance Sheet Improvements

Total debt as of December 31, 2025 was $407 million, down 24% compared to $534 million at the end of 2024. As a result of the record operating cash flow in 2025, the Company's cash exceeded its total debt by $327 million as of December 31, 2025, positioning the Company with significant financial flexibility to support growth, return capital to shareholders, and further strengthen the balance sheet. In November 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.06 per share and authorized a share repurchase program totaling $200 million.

In addition, the Company's balance of costs and estimated earnings in excess of billings ("CIE") was $819 million as of December 31, 2025, down $123 million, or 13%, compared to the balance at the end of 2024 and at the lowest level it has been since the second quarter of 2016. This reduction in CIE was primarily driven by billings and collections, including those associated with the resolution of various previously disputed matters.

Management Remarks

“Tutor Perini had perhaps its best year ever in 2025, delivering exceptional results that featured our highest-ever annual revenue and operating cash flow, as well as a return to strong profitability. We booked $7.4 billion of new awards during 2025, resulting in double-digit backlog growth that provides strong visibility into future revenue and earnings growth,” said Gary Smalley, Chief Executive Officer and President. “This was our fourth consecutive year of record cash flow, with $748 million of operating cash generated in 2025. We have been and continue to be laser-focused on cash, and the $1.8 billion of operating cash flow generated over the past four years provides significant capital allocation flexibility to create value for our shareholders. We continue to look confidently to the future.”

“With our strong backlog and significant future bidding opportunities, we remain well-positioned to deliver solid, double-digit revenue and earnings growth and higher operating margins in 2026, with further growth and even higher earnings expected in 2027,” added Mr. Smalley.

2026 Outlook and Guidance

The Company’s strong backlog provides excellent visibility and confidence for significant revenue and earnings growth.

The Company continues to experience high demand from customers, supported by substantial funding in place at the local, state and federal levels. Overall, funding levels are anticipated to remain strong for an extended time period, as the Company believes that the United States is still in the early stages of undertaking numerous major infrastructure projects that have long been planned and developed. The Company currently does not anticipate any significant impacts related to federal budget and tariff concerns, based on its assessment of contractual terms and project execution practices that include buyouts of materials and equipment at the onset of projects.

Because of its strong backlog and ample bidding opportunities, the Company remains highly selective when bidding on additional attractive projects that create value for shareholders, prioritizing opportunities that it expects will drive continued growth and margin enhancement. The Company anticipates winning additional significant projects in 2026 and beyond.

Based on its assessment of the current market and business outlook, the Company anticipates double-digit revenue growth and strong earnings in 2026, with even higher earnings expected in 2027, by which time newer large projects should be in the construction phase. For 2026, the Company expects adjusted EPS in the range of $4.90 to $5.30. The Company’s adjusted EPS for 2026 will exclude the impact of share-based compensation expense, net of the associated tax benefit, as well as certain pension settlement, debt extinguishment and refinancing costs, net of tax, that are anticipated in 2026 and which are not reflective of ongoing business operations. The Company is not providing forward-looking guidance for GAAP EPS or a quantitative reconciliation of adjusted EPS guidance to GAAP EPS guidance due to the difficulty in forecasting share-based compensation expense, which fluctuates with future share price movements. Variations in share-based compensation expense could have a material impact on GAAP EPS for the guidance period.

The Company also continues to expect strong operating cash generation in 2026 and beyond, as a result of increased project execution activities and the anticipated resolution of remaining legacy disputes.

Non-GAAP Financial Measures

To supplement our audited Consolidated Financial Statements presented under GAAP, we are presenting certain non-GAAP financial measures. These non-GAAP financial measures are intended to provide additional insights that facilitate the comparison of our past and present performance, and they are among the indicators management uses to assess the Company’s financial performance and to forecast future performance. By presenting these non-GAAP financial measures, we aim to provide investors and stakeholders with a clearer understanding of our operating results and enhance transparency with respect to the key financial metrics used by our management in its financial and operational decision-making.

These non-GAAP financial measures, which exclude share-based compensation expense (as well as the tax benefit associated with the expense), consist of adjusted net income (loss) attributable to the Company and adjusted earnings (loss) per share. We exclude share-based compensation expense because this expense could result in significant volatility in our reported earnings, driven primarily by fluctuations in the expense recognized for certain long-term incentive compensation awards with payouts that are indexed to the Company’s common stock. By adjusting for share-based compensation, our non-GAAP measures present a supplemental depiction of our operational performance and financial health. This approach allows stakeholders to focus on our core operational efficiency and profitability without the variable impact to earnings caused by significant changes in our stock price. Our non-GAAP measures are intended to offer a consistent basis for evaluating the Company’s performance, which management believes is meaningful to stakeholders.

The non-GAAP financial measures included in this earnings release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the most directly comparable measures prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis.

Reconciliations of these non-GAAP financial measures are found in the table below:

Fourth Quarter 2025 Conference Call

The Company will host a conference call at 2:00 PM Pacific Time on Thursday, February 26, 2026, to discuss the fourth quarter and full year 2025 results. To participate in the conference call, please dial 877-407-8293 five to ten minutes prior to the scheduled time. International callers should dial +1-201-689-8349.

The conference call will be webcast live over the Internet and can be accessed by all interested parties on Tutor Perini's website at www.tutorperini.com. For those unable to participate during the live call, the webcast will be available for replay shortly after the call on the website.

About Tutor Perini Corporation

Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private customers and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large, complex projects on time and within budget while adhering to strict safety and quality control measures. We offer general contracting, pre-construction planning and comprehensive project management services, and have strong expertise in delivering design-bid-build, design-build, construction management, and public-private partnership (P3) projects. We often self-perform multiple project components, including earthwork, excavation, concrete forming and placement, steel erection, electrical, mechanical, plumbing, heating, ventilation and air conditioning (HVAC), and fire protection.

Forward-Looking Statements

The statements contained in this release, including those set forth in the section “2026 Outlook and Guidance,” that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, statements regarding the Company’s expectations, hopes, beliefs, intentions or strategies regarding the future and statements regarding future guidance or estimates and non-historical performance. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. While the Company’s expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them, there can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: revisions of estimates of contract risks, revenue or costs; unfavorable outcomes of existing or future litigation or dispute resolution proceedings against us or customers (project owners, developers, general contractors, etc.), subcontractors or suppliers, as well as failure to promptly recover significant working capital invested in projects subject to such matters; contract requirements to perform extra work beyond the initial project scope, which has and in the future could result in disputes or claims and adversely affect our working capital, profits and cash flows; economic factors, such as inflation, tariffs, the timing of new awards, or the pace of project execution, which have resulted and may continue to result in losses or lower than anticipated profit; risks and other uncertainties associated with estimates and assumptions used to prepare our financial statements; a significant slowdown or decline in economic conditions, such as those presented during a recession; failure to meet contractual schedule requirements, which could result in higher costs and reduced profits or, in some cases, exposure to financial liability for liquidated damages and/or damages to customers, as well as damage to our reputation; decreases or delays in the level of federal, state and local government spending for infrastructure and other public projects; possible systems and information technology interruptions and breaches in data security and/or privacy; inability to attract and retain our key officers, and to adequately plan for their succession, and hire and retain personnel required to execute and perform on our contracts; the impact of inclement weather conditions, disasters and other catastrophic events outside of our control on projects; risks related to government contracts (including government shutdowns and funding considerations) and related procurement regulations; risks related to our international operations, such as uncertainty of U.S. government funding, as well as economic, political, regulatory and other risks, including risks of loss due to acts of war, labor conditions, and other unforeseeable events in countries where we do business, which could adversely affect our revenue and earnings; failure of our joint venture partners to perform their venture obligations, which could impose additional financial and performance obligations on us, resulting in reduced profits or losses and/or reputational harm; client cancellations of, delays in, or reductions in scope under contracts reported in our backlog, as well as prospective project opportunities, including as a result of government-related mandates; increased competition and failure to secure new contracts; violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws; public health crises, such as COVID-19, have adversely impacted, and could in the future adversely impact, our business, financial condition and results of operations by, among other things, delaying the timing of project bids and/or awards and the timing of dispute resolutions and associated collections; physical and regulatory risks related to climate change; impairment of our goodwill or other indefinite-lived intangible assets; an inability to obtain bonding could have a negative impact on our operations and results; failure to meet our obligations under our debt agreements; downgrades in our credit ratings; the exertion of influence over the Company by our executive chairman due to his position and significant ownership interests; significant fluctuations in the market price of our common stock, which could result in substantial losses for shareholders and potentially subject us to securities litigation; we cannot guarantee the timing, amount, or payment of dividends on our common stock or that we will repurchase our common stock pursuant to our stock repurchase program; and other risks and uncertainties discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed on February 26, 2026 and in subsequent reports that we file with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.