Tutor Perini Corporation Q1 FY2026 earnings call

Discussed tragic incident of offshore cargo vessel capsizing. Highlighted first quarter results with record operating cash flow of $147 million, revenue growth to $1.4 billion. Civil segment had highest ever first quarter operating income. Building segment operating income up 56%. Specialty contractor segment marginally profitable. Booked nearly $700 million of new awards and contract adjustments. Major projects like Brooklyn Jail reached milestones. Mentioned significant bidding opportunities in various regions. Board declared quarterly dividend and share repurchase program.

Civil segment: First quarter operating income was up 10% year over year and delivered a 12.6% operating margin. Revenue was $698 million, up 14%. Building segment: Operating income was up an impressive 56% year over year with an operating margin of 3.5%. Revenue was $473 million, slightly up compared to the first quarter last year. Specialty contractor segment: Marginally profitable for the quarter, with further improvement expected. Revenue was $219 million, up 24%. Total revenue for the first quarter was $1.4 billion, up 11% year over year.

Affirming 2026 adjusted EPS guidance in the range of $4.90 to $5.30 per share. Anticipate double-digit revenue growth and strong earnings in 2026, with even higher earnings expected in 2027. Guidance factors in contingency for unknown outcomes. Expect strong operating cash generation in 2026 and beyond.

Received unfavorable legal ruling on W Element Hotel project in Philadelphia, assessed damages of approximately $175 million, will appeal and pursue legal remedies.

Q: Michael Dudas asked about balancing project opportunities, capacity, and Indo-Pacific work.

A: Gary responded about work in hopper, capacity not a concern, pipeline rich.

Q: Judah Aronowitz asked about 2027 earnings confidence and inflation.

A: Gary said more confident as details come together, and they are conservative with contingency and pass risk on.

Q: Liam Burke asked about balance sheet strength and bidding competition.

A: Gary said balance sheet strength allows doing more work on own, competition less.

Q: Min Cho asked about black construction and data center work.

A: Discussed black construction backlog over a billion, and data center work exploration.

Q: Adam Tallheimer asked about data center work, buyback pacing, refinancing, and specialty segment margin.

A: Answered on data center work, buyback opportunistic, refinancing plans, and specialty segment margin range and business.