TUTOR PERINI CORP Q1 FY2025 earnings call

• Strong first quarter results with revenue up 19% to $1.25 billion, operating income up 34% to $65 million, EPS up 77% to $0.53, and backlog up 94% to $19.4 billion. - Operating cash flow was $23 million, solid for Q1. - Clean quarter with solid project execution, no material project adjustments. - Won new projects, including $1.18 billion Manhattan tunnel, $241 million Apra Harbor Waterfront repairs, etc. - Indo-Pacific region a major area of opportunities, Platt Construction successful in capturing new projects. - Bidding pipeline full of opportunities, record backlog allows selective pursuit of favorable projects.

For the first quarter of 2025, revenue was $1.25 billion, up 19% year-over-year. Civil segment revenue was $610 million, up 29% ($472 million last year); Building segment revenue was $460 million, up 12% ($412 million last year); Specialty Contractors segment revenue was $177 million, up 7% ($165 million last year). Civil segment income from construction operations was $80 million (vs $71 million last year); Building segment income from construction operations was $10 million (vs $16 million last year); Specialty Contractors segment posted a loss of $7 million (vs $18 million last year). Segment operating margins were 13% for Civil, 2.3% for Building, and negative 4% for Specialty Contractors.

• Increased 2025 EPS guidance to $1.60-$1.95 from $1.50-$1.90. - Expect 2026 and 2027 earnings to be more than double 2025's increased guidance. - Anticipate strong operating cash flow for 2025 and beyond.

• Potential impacts from U.S. trade policy, tariffs, and regulatory uncertainty. - Management has strategies in place, including pre-award and post-award strategies to mitigate tariff risks, such as detailed estimating, favorable contract provisions, and transferring risk to subcontractors.

Q: Steven Fisher asked about the clean quarter and Q2 expectations, and preconstruction to construction phase.

A: Gary Smalley said the quarter was clean from dispute resolution impact, progress made on claims with earnings impact neutral, and expected similar or better results in Q2. Ron Tutor commented on costs rising in NY but no tariff impact on existing work.

Q: Adam Thalhimer asked about EPS guidance doubling and segment margins.

A: Gary Smalley said 2025 EPS guidance increase, and discussed segment margins expectations.

Q: Liam Burke asked about tariffs and transit funding.

A: Gary Smalley and Ron Tutor discussed no speed up in project planning due to regulation, and no funding changes in transit.

Q: Michael Dudas asked about Indo-Pacific opportunities and backlog.

A: Ron Tutor and Gary Smalley discussed opportunities in Indo-Pacific and backlog growth expectations.