Tutor Perini’s Earnings Call: Record Growth and Optimism

Tutor Perini ((TPC)) has held its Q3 earnings call. Read on for the main highlights of the call.

Tutor Perini Corporation’s recent earnings call painted a picture of robust financial health, marked by record-breaking cash flow, substantial backlog growth, and improved revenue and profitability metrics. Despite these achievements, the company faced challenges with increased share-based compensation expenses and a higher effective tax rate, which tempered the overall positive sentiment.

Record Operating Cash Flow

Tutor Perini reported an exceptionally strong operating cash flow of $289 million for the third quarter and $574 million for the first nine months of 2025. These figures set new records for both periods, underscoring the company’s effective cash management and operational efficiency.

Significant Backlog Growth

The company’s backlog surged to a new record of $21.6 billion, marking a 54% increase year-over-year. This growth was supported by a book-to-burn ratio of 1.4x, indicating a healthy pipeline of future projects and sustained business momentum.

Strong Revenue and Profitability

Tutor Perini’s third-quarter revenue rose by 31% year-over-year, with a notable increase in operating income. This growth came despite the challenge of higher share-based compensation expenses, highlighting the company’s strong operational performance.

Improved Earnings Per Share

The company reported an adjusted earnings per share of $1.15 for the third quarter, a significant improvement from an adjusted loss per share of $1.61 in the previous year. This turnaround reflects the company’s enhanced profitability and strategic financial management.

Strategic New Project Awards

Tutor Perini secured $2 billion in new project awards, including the UCSF Benioff New Children’s Hospital project in California, valued at $1 billion. These strategic wins are expected to bolster the company’s future revenue streams and market position.

Increased Share-Based Compensation Expense

The substantial increase in share-based compensation expenses impacted the company’s GAAP EPS, resulting in a lower-than-expected $0.07 per share. This expense remains a significant consideration for the company’s financial planning.

Higher Effective Tax Rate

The projected effective tax rate for 2025 has increased to 30%-32%, primarily due to the high nondeductible share-based compensation expenses. This higher tax rate poses a challenge to the company’s net profitability.

Forward-Looking Guidance

Tutor Perini provided strong forward-looking guidance, anticipating double-digit revenue growth, increased profitability, and solid cash generation in the coming years. The company raised its adjusted EPS guidance for 2025 to $4 to $4.20, reflecting strong core operating performance and contributions from higher-margin projects. With a robust pipeline of upcoming projects and favorable macroeconomic conditions, the company remains optimistic about its growth trajectory.

In summary, Tutor Perini’s earnings call highlighted a period of significant financial achievements, with record cash flow and backlog growth leading the way. Despite challenges from increased compensation expenses and a higher tax rate, the company’s forward-looking guidance suggests continued optimism for future growth and profitability.