TUTOR PERINI CORP Q4 FY2024 earnings call

Gary thanked those who reached out during LA wildfires and recognized Ron Tutor's career. Priorities include attracting/retaining talent, returning to profitability, cash generation, optimal capital allocation, and leveraging technology. Market concerns: no significant impact from federal spending scrutiny or tariffs anticipated. Ron discussed bidding pipeline, project setup for major projects, and potential U.S. involvement in Ukraine rebuilding.

In 2024, the Civil segment generated revenue of $2.1 billion, a 12% increase from 2023. The Building segment saw revenue rise to $1.6 billion, a 24% jump. The Specialty Contractors segment reported a loss. The Civil segment's growth was driven by projects in California, New York, British Columbia, and the Asia-Pacific region. The Building segment's growth was due to health care and educational projects in California and the Brooklyn Jail project in New York.

Tutor Perini expects to return to profitability in 2025 with EPS in the range of $1.50 to $1.90 and double-digit revenue growth, with earnings weighted to the second half. Internally, projections for 2026 and 2027 are more than double 2025's guidance. Guidance includes contingencies for project delays, legal decisions, and tariffs.

Potential project and new award delays. Settlements or adverse legal decisions related to legacy disputes. Impact from tariffs, though currently not expecting significant impact.

Q: Adam Thalhimer asked about revenue cadence and legacy claims.

A: Gary said revenue grows quarter-over-quarter, EPS lower in Q1, higher in later quarters; Ron said ~12-14 legacy claims left, ~75-80% cleared in 2025.

Q: Michael Dudas asked about backlog and project terms.

A: Gary said backlog is large, new work has better terms, selective in bidding; Ron clarified backlog reliance on contracted work.