Tutor Perini Announces Q4 and Full-Year 2024 Financial Results
Tutor Perini Corporation, a leading construction firm specializing in civil, building, and specialty projects, has announced its financial results for the fourth quarter and full-year 2024. The company achieved record operating cash flow and substantial debt reduction while securing an all-time high backlog, positioning itself for significant revenue growth in the coming years.
Record Operating Cash Flow Drives Debt Reduction
For the third consecutive year, Tutor Perini generated record-breaking operating cash flow, reaching $503.5 million in 2024. This marks a 63% increase from the previous record of $308.5 million set in 2023. The company attributed this strong cash flow performance to improved collection activities, including payments from ongoing and newly secured projects, as well as the resolution of long-standing claims and disputes.
In the fourth quarter alone, Tutor Perini delivered $329.6 million in operating cash flow, with over half stemming from collections on active projects. Leveraging this strong cash generation, the company reduced its total debt by $477 million, or 52%, since the end of 2023. A major milestone was the complete payoff of its Term Loan B in early 2025, exceeding debt reduction targets and strengthening its financial position.
Record Backlog Fueled by Landmark Project Wins
Tutor Perini ended 2024 with a historic backlog of $18.7 billion, an 84% increase from the $10.2 billion reported at the end of 2023. This achievement shattered the company’s previous record of $14.0 billion set in the third quarter of 2024. Each of its three business segments—Civil, Building, and Specialty Contractors—achieved new all-time highs in backlog.
Key projects contributing to this growth included:
- $3.76 billion Manhattan Jail project in New York
- $1.66 billion City Center Guideway and Stations project in Hawaii
- $1.4 billion Healthcare campus project in California
- $1.13 billion Newark AirTrain Replacement project in New Jersey
- $1.1 billion Kensico-Eastview Connection Tunnel project in New York
- $479 million in additional funding for mass-transit projects in California
- $449 million for two healthcare facility projects in California
- $331 million Apra Harbor Waterfront Repairs project in Guam
- $229 million Airport terminal connectors project at Fort Lauderdale-Hollywood International Airport
- $1.3 billion Connecticut River Bridge Replacement project (proportionate share)
Momentum has continued into early 2025, with newly awarded projects including the $1.18 billion Manhattan Tunnel project in New York and $232 million in additional scope options for the Apra Harbor Waterfront Repairs project in Guam. Looking ahead, the company anticipates bidding on major opportunities, such as the multi-billion-dollar Midtown Bus Terminal Replacement project in New York, expected to go out for bid next month.
This unprecedented backlog enables Tutor Perini to be more selective in future bidding, focusing on projects with higher profit margins.
Leadership Commentary
Gary Smalley, Chief Executive Officer and President, expressed confidence in the company’s trajectory, stating:
“With a record $12.8 billion in new awards last year, we achieved an all-time high backlog of $18.7 billion and delivered a third consecutive year of record operating cash flow, exceeding our prior record by $200 million. This allowed us to reduce more than half of our total debt since the end of 2023 and make significant progress in resolving outstanding disputes and strengthening our balance sheet.”
He added, “Our record backlog and strong pipeline of future opportunities will drive double-digit revenue growth and a return to solid profitability in 2025, followed by substantially higher earnings in 2026 and 2027. With our short-term debt reduction goals achieved and strong cash flow expected, we are now shifting our capital allocation focus toward delivering long-term value for shareholders.”
Revenue Growth and Segment Performance
Revenue for 2024 totaled $4.3 billion, representing a 12% increase compared to 2023. Growth was fueled by robust project execution within the Civil and Building segments. Civil segment revenue rose 12%, while Building segment revenue surged 24%, driven by key projects in California, New York, British Columbia, and the Asia-Pacific region.
Impact of Judgments and Settlements
Despite strong revenue growth, Tutor Perini reported an operating loss of $103.8 million in 2024, compared to a $114.6 million loss in 2023. Net loss attributable to the company was $163.7 million ($3.13 per diluted share) in 2024, slightly improved from a $171.2 million loss ($3.30 per diluted share) in 2023. These losses were primarily due to legal judgments and settlements related to disputed claims. However, the resolutions significantly improved the company’s cash flow, which will support future profitability.
Additionally, share-based compensation expenses increased to $40.4 million ($0.56 per diluted share) in 2024, up from $12.3 million ($0.17 per diluted share) in 2023. This rise was linked to a substantial increase in the company’s stock price, impacting payouts for long-term incentive compensation awards.
2025 Outlook: Growth and Profitability on the Horizon
Tutor Perini’s record backlog provides confidence in strong revenue growth and improved profitability over the next several years. For 2025, the company projects:
- Double-digit revenue growth
- Earnings per share (EPS) between $1.50 and $1.90
- Stronger second-half performance due to new project ramp-ups and seasonal factors
Industry Outlook and Strategic Positioning
Despite concerns surrounding federal budget scrutiny and tariffs, demand remains robust, with ample funding secured at state and local levels. The $1.2 trillion Bipartisan Infrastructure Law is expected to further support major infrastructure investments.
Given its strong backlog and financial position, Tutor Perini is well-positioned to selectively pursue high-value projects that align with its profitability goals. Management remains committed to securing additional attractive contracts throughout 2025, reinforcing the company’s long-term growth strategy.
