- \n
- Record Q1 2026 operating cash flow of $146.9 million, up 542% Y\/Y<\/b><\/li>\n
- Revenue of $1.4 billion in Q1 2026, up 11% Y\/Y<\/b><\/li>\n
- Income from construction operations of $59.2 million, reflecting continued strong operating performance and contributions from higher-margin projects<\/b><\/li>\n
- Diluted earnings per share (“EPS”) of $0.48 compared to $0.53 in Q1 2025<\/b><\/li>\n
- Adjusted EPS of $1.03 compared to $0.65 in Q1 2025<\/b><\/li>\n
- Strong, profitable backlog of $19.8 billion at the end of Q1 2026<\/b><\/li>\n
- Affirming 2026 Adjusted EPS guidance of $4.90 to $5.30<\/b><\/li>\n
- Tutor Perini remains confident that Adjusted EPS for 2027 will be significantly higher than the upper end of the Company’s 2026 guidance due to solid earnings visibility provided by current backlog<\/b><\/li>\n<\/ul>\n
LOS ANGELES–(BUSINESS WIRE<\/a>)–
\nTutor Perini Corporation (the “Company”) (NYSE: TPC), a leading civil, building and specialty construction company, today reported strong results for the first quarter of 2026 (see attached tables).<\/p>\n\nRevenue for the first quarter of 2026 was $1.4 billion, up 11% compared to $1.2 billion for the same period in 2025. The Company delivered year-over-year growth across all three segments through the first three months of 2026, primarily driven by increased project execution activities on certain newer, larger and higher-margin projects, all of which have significant scope of work remaining.<\/p>\n
\nRevenue for the Civil, Building, and Specialty Contractors segments for the first quarter of 2026 was up 14%, 3%, and 24%, respectively, compared to the same quarter last year. The Company’s revenue for the first quarter of 2026 was the highest of any first quarter since 2009, and the Civil segment’s revenue was the highest of any first quarter ever. The Specialty Contractors segment continues to experience strong revenue growth primarily due to its role in supporting the electrical and mechanical components of several of the Company’s newer megaprojects, most of which are in the early stages and ramping up. The Company’s revenue growth was driven by solid execution on existing backlog, including newer large projects entering higher-production phases.<\/p>\n
\nIncome from construction operations for the first quarter of 2026 was $59.2 million, down 9% compared to $65.3 million for the first quarter of 2025. The Civil segment’s income from construction operations was the segment’s highest ever for any first quarter. The first three months of 2026 were positively impacted by higher-margin contributions associated with the increased project execution activities discussed above. These operational contributions were offset by an increase of $23.5 million ($0.43 per diluted share, net of associated tax benefit) in share-based compensation expense in the first quarter of 2026 compared to the first quarter of 2025, primarily due to the Company\u2019s stock price being substantially higher in 2026 compared to the same period of 2025, which affected the fair value of liability-classified awards. Share-based compensation expense is expected to decrease in 2026 as compared to 2025 and decline much more significantly in 2027, as some of these awards have recently vested and most of the remaining liability-classified awards will vest by the end of 2026.<\/p>\n
\nNet income attributable to the Company for the first quarter of 2026 was $25.7 million, or EPS of $0.48, compared to $28.0 million, or EPS of $0.53, reported for the first quarter of 2025. Adjusted net income attributable to the Company, which excludes the impact of share-based compensation expense, net of associated tax benefit, for the first quarter of 2026 was $55.3 million, or $1.03 of Adjusted EPS, compared to $34.4 million, or $0.65 of Adjusted EPS, reported for the first quarter of 2025. The significant increase in the adjusted results reflects the impressive earnings power of the Company’s backlog, which supports the Company’s confidence in its affirmed 2026 guidance. Please refer to the Non-GAAP Financial Measures<\/i> section below for further information and a reconciliation of the Company’s financial results reported under generally accepted accounting principles in the United States (\u201cGAAP\u201d) to the reported adjusted results.<\/p>\n
Record First Quarter Operating Cash Flow<\/b><\/p>\n
\nThe Company generated a record $146.9 million of cash from operating activities in the first quarter of 2026, up significantly compared to $22.9 million for the same period last year. The record operating cash flow for the first three months of 2026 was largely driven by collections from newer and ongoing projects.<\/p>\n
\nThe Company expects solid annual operating cash flow to continue in 2026 and beyond.<\/p>\n
Profitable Backlog at Near-Record Level<\/b><\/p>\n
\nThe Company booked approximately $670 million of new awards and contract adjustments in the first quarter of 2026, which resulted in a backlog of $19.8 billion as of March 31, 2026. As expected, backlog declined modestly compared to the end of 2025 due to award timing and the execution of major projects in backlog, with more significant new award opportunities anticipated in the second half of 2026 and in 2027.<\/p>\n
\nThe largest additions to backlog in the first quarter of 2026 included the following, all of which are in California:<\/p>\n
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- \n$186 million of additional funding for the Eagle Mountain Casino Phase 2 Expansion project;<\/p>\n<\/li>\n
- \n$97 million of additional funding for a new healthcare project that entered the construction phase; and<\/p>\n<\/li>\n
- \napproximately $66 million for two mass-transit projects.<\/p>\n<\/li>\n<\/ul>\n
\nThe Company continues to have significant project bidding opportunities, particularly in the Northeast, the Midwest, the West Coast, and the Indo-Pacific region, and remains well positioned to continue winning its share of new projects later this year and over the next several years. In addition, the Company expects its backlog will remain strong due to significant additional funding anticipated in the second half of 2026 for the Midtown Bus Terminal Replacement project in New York, as well as certain Building segment projects currently in the preconstruction phase that are anticipated to advance to the construction phase this year and next year. Tutor Perini expects to continue bidding selectively on various project opportunities that will drive long-term shareholder value.<\/p>\n
Strong Balance Sheet<\/b><\/p>\n
\nTotal debt as of March 31, 2026 was $399 million, down 2% compared to $407 million at the end of 2025. As a result of the record operating cash flow in the first quarter of 2026, the Company’s cash exceeded its total debt by $404 million as of March 31, 2026, continuing the Company’s strong net cash position.<\/p>\n
\nThe Company expects to refinance its outstanding debt over the next few months to secure a more favorable interest rate and extend its debt maturities, which should result in a substantially reduced interest expense going forward.<\/p>\n
\nDuring the first quarter of 2026, the Company repurchased 277,578 shares of its common stock on the open market for $20 million at an average price of $72.03 per share, marking its initial buyback under the Board-authorized $200 million share repurchase program. The Company expects to make further occasional opportunistic share buybacks in the future to return excess cash to shareholders.<\/p>\n
Management Remarks<\/b><\/p>\n
\n“We are off to a great start in 2026, with strong first quarter results highlighted by record operating cash flow and adjusted earnings per share that was up 58% year-over-year,” remarked Gary Smalley, Tutor Perini’s Chief Executive Officer and President. “We are focused on consistent, solid execution, and our business momentum continues as we advance work on our newer megaprojects. Customer demand remains strong with numerous major bidding opportunities ahead beginning in mid-2026 and continuing well throughout 2027 and beyond. We continue to expect the long-duration and higher-margin nature of our existing and future projects to translate into resilient operations that produce significantly higher revenue and earnings over the next several years.”<\/p>\n
Outlook and Affirmed Guidance<\/b><\/p>\n
\nBased on the Company’s results through the first quarter of 2026 and management’s sustained confidence in its performance trajectory for the remainder of the year, the Company is affirming its 2026 Adjusted EPS guidance in the range of $4.90 to $5.30. The Company\u2019s adjusted EPS for 2026 will exclude the impact of share-based compensation expense, net of the associated tax benefit, as well as certain pension settlement, debt extinguishment and refinancing costs, net of tax, that are anticipated in 2026 and which are not reflective of ongoing business operations. The Company is not providing forward-looking guidance for GAAP EPS or a quantitative reconciliation of adjusted EPS guidance to GAAP EPS guidance due to the difficulty in forecasting share-based compensation expense, which fluctuates with future share price movements. Variations in share-based compensation expense could have a material impact on GAAP EPS for the guidance period. The Company’s guidance continues to factor in a significant amount of contingency for various unknown or unexpected developments.<\/p>\n
\nThe Company continues to experience strong demand for its services, driven by well-funded state, local and federal customers that have numerous large-scale, high-priority infrastructure projects planned over the next several years, as well as by certain commercial customers that continue to advance projects for new or renovated buildings in vibrant end markets, such as healthcare, education, and hospitality and gaming.<\/p>\n
\nGiven the visibility provided by its current backlog, Tutor Perini continues to expect significantly higher revenue and earnings in both 2026 and 2027 as various newer large projects advance to the construction phase.<\/p>\n
Non-GAAP Financial Measures<\/b><\/p>\n
\nTo supplement our unaudited Condensed Consolidated Financial Statements presented under GAAP, we are presenting certain non-GAAP financial measures. These non-GAAP financial measures are intended to provide additional insights that facilitate the comparison of our past and present performance, and they are among the indicators management uses to assess the Company\u2019s financial performance and to forecast future performance. By presenting these non-GAAP financial measures, we aim to provide investors and stakeholders with a clearer understanding of our operating results and enhance transparency with respect to the key financial metrics used by our management in its financial and operational decision-making.<\/p>\n
\nThese non-GAAP financial measures, which exclude share-based compensation expense (as well as the associated tax benefit), consist of adjusted net income attributable to the Company and adjusted earnings per share. We exclude share-based compensation expense because this expense could result in significant volatility in our reported earnings, driven primarily by fluctuations in the expense recognized for certain long-term incentive compensation awards with payouts that are indexed to the Company\u2019s common stock. By adjusting for share-based compensation, our non-GAAP measures present a supplemental depiction of our operational performance and financial health. This approach allows stakeholders to focus on our core operational efficiency and profitability without the variable impact to earnings caused by significant changes in our stock price. Our non-GAAP measures are intended to offer a consistent basis for evaluating the Company\u2019s performance, which management believes is meaningful to stakeholders.<\/p>\n
\nThe non-GAAP financial measures included in this earnings release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the most directly comparable measures prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis.<\/p>\n
\nReconciliations of these non-GAAP financial measures are found in the table below:<\/p>\n
- Revenue of $1.4 billion in Q1 2026, up 11% Y\/Y<\/b><\/li>\n
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