On February 27, 2025, Tutor Perini Corp (TPC, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. Tutor Perini Corp, a prominent player in the construction industry, provides general contracting, construction management, and design-build services. The company operates through three segments: civil, building, and specialty contractors, with a significant portion of its revenue derived from the civil segment. The majority of its operations are based in the United States.
Performance and Challenges
Tutor Perini Corp reported a revenue of $4.3 billion for 2024, marking a 12% increase year-over-year, slightly below the annual revenue estimate of $4.34 billion. However, the company faced challenges with a net loss of $163.7 million, translating to a diluted loss of $3.13 per share, which is significantly below the estimated annual earnings per share (EPS) of -$1.43. This loss was primarily due to net charges from resolving legacy disputes, which, while enhancing cash flow, negatively impacted earnings.
Financial Achievements
The company achieved a record operating cash flow of $503.5 million in 2024, a 63% increase from the previous year. This robust cash flow enabled Tutor Perini to reduce its total debt by $477 million, or 52%, since the end of 2023. The company also reported a record backlog of $18.7 billion as of December 31, 2024, driven by $12.8 billion in new awards and contract adjustments.
Key Financial Metrics
Despite the challenges, Tutor Perini's revenue growth was driven by increased project execution in the civil and building segments, which grew by 12% and 24%, respectively. The company's gross profit for 2024 was $197 million, up from $140.6 million in 2023. However, the loss from construction operations was $103.8 million, slightly improved from a loss of $114.6 million in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $4.3 billion | $3.88 billion |
| Net Loss | -$163.7 million | -$171.2 million |
| Operating Cash Flow | $503.5 million | $308.5 million |
| Backlog | $18.7 billion | $10.2 billion |
Analysis and Outlook
Tutor Perini's financial performance highlights the company's ability to generate strong cash flow and secure substantial new contracts, despite facing significant net losses. The record backlog positions the company well for future growth, allowing it to be selective in bidding for new projects. The company anticipates double-digit revenue growth in 2025, with EPS expected to range between $1.50 and $1.90, indicating a potential return to profitability.
With an unprecedented $12.8 billion of new awards during the year, we grew our backlog to a new record of $18.7 billion in 2024 and delivered a third consecutive year of record operating cash flow," said Gary Smalley, Chief Executive Officer and President.
Overall, while Tutor Perini Corp faces challenges in terms of profitability, its strong cash flow and record backlog provide a solid foundation for future growth and improved financial performance.
Explore the complete 8-K earnings release (here) from Tutor Perini Corp for further details.
