Tutor Perini Corporation Q4 FY2025 earnings call

• Won large projects over the past three years totaling ~$16 billion, with healthy margins and favorable terms. • Anticipate booking ~$1 billion into backlog for Midtown Bus Terminal phase one. • Received funding for Eagle Mountain Casino Phase II Expansion Project. • Subsidiary Rudolph & Sletten selected for a large healthcare project in pre-construction. • Significant bidding opportunities in civil and building segments, including large projects in California and other states. • 2025 had record operating cash flow of $748 million, up 49% from 2024. • Revenue growth driven by project execution on large civil and building projects. • Operating income boosted by higher margin projects and absence of prior unfavorable adjustments. • Balance sheet healthier with net cash position, having paid down debt and reduced CIE.

In 2025, revenue was $5.5 billion, up 28%. Civil segment revenue was $2.8 billion, up 34%, with operating income nearly tripling to $391 million and an operating margin of 13.7%. Building segment revenue was $1.9 billion, up 15%, with operating income turning to $58 million from a loss in 2024 and a margin of 3.1%. Specialty contractor segment revenue was $844 million, up 43%, with a slight operating loss of $7 million in 2025. In Q4 2025, revenue was $1.5 billion, up 41%. Civil segment operating income was $72 million, building segment operating income was $11 million, and specialty contractor segment operating income was $11 million with a margin of 4.4%.

• Anticipate double-digit revenue growth and strong earnings in 2026, with even higher earnings in 2027. • 2026 adjusted EPS expected in range of $4.90 to $5.30. • G&A expense for 2026 expected between $400 million and $410 million. • Depreciation and amortization expense ~$50 million in 2026. • Interest expense for 2026 expected between $40 million and $50 million. • Effective income tax rate for 2026 expected ~27% to 30%. • Non-controlling interest expected between $75 million and $85 million. • Weighted average diluted shares outstanding expected ~54 million in 2026. • Capital expenditures anticipated ~$125 million to $135 million.

• Possibility of lower than anticipated success rate for future project pursuits. • Potential for project delays, slower ramp-ups for newer projects. • Unexpected settlements and or adverse legal decisions associated with resolution of disputes. • Uncertainty regarding legacy disputes resolution impacting cash flow and earnings.

Q: Steven Fisher asked about coverage in backlog on outlook, seasonality, and backlog lumpiness and civil project cycle.

A: Gary responded about good visibility, Q1 seasonality with contingency, backlog could be lumpier but growth expected.

Q: Alex Regal asked about improvement in contract terms on new awards and Rudolph & Sletten project, and opportunities in high-tech manufacturing.

A: Gary talked about better payment terms, no damage for delay, Rudolph & Sletten project in pre-construction, focus on healthcare, education, etc.

Q: Adam Thalheimer asked about Canadian project impact on civil in Q4 and number of legacy jobs left.

A: Gary mentioned Q4 negative impact, around a dozen legacy jobs left with progress.

Q: Liam Burke asked about risk of resource constraint and specialty margins.

A: Ryan said labor from union halls not constrained, specialty margins moving to mid-single-digit range.

Q: Michael Dudas asked about revenue conversion and margin expectations, and Ryan talked about balance sheet helping business, debt refinancing plans.