Tutor Perini highlights massive year-over-year construction income growth for Q2

Construction project in Los Angeles, California, US. (Image: Adobe Stock)

The 1,900% increase was driven by execution of large projects in the quarter, specifically civil infrastructure, healthcare and educational facility projects in California, a Brooklyn jail project in New York, and schemes in British Columbia, Canada, said Tutor Perini senior vice president and chief financial officer Ryan Soroka.

Soroka added “the absence of certain prior-year net unfavourable adjustments” also helped boost 2024’s Q2 results.

Overall, revenues for the firm were up 10% from the same period last year to $1.13 billion. The civil segment reported revenue of $546 million, which Soroka noted was roughly flat compared to last year.

“However, it’s important to note that year-to-date civil segment first-half revenue was up 13% compared to the first half of 2023,” he added.

Building-segment revenue rose 26% year-over-year to $418 million, and specialty contractor segment revenue was $163 million, a 20% rise compared to Q2 in 2023. Still, the firm reported in loss in the specialty contractor segment of $8 million, though it’s a reduction from last year when Tutor Perini lost $70 million in the department.

A digital representation of the new Connecticut River Bridge. (Image courtesy of Amtrak)

In all, the firm recorded more than $117 million in gross profit against about $76 million in general and administrative expenses.

Tutor Perini reported a $10.4-billion backlog at the end of the quarter, which was just shy of its 2019 first-quarter record of $11.6 billion, said CEO Ron Tutor. The company also reported cash flows of $53.1 million for the quarter and $151.4 million through the year’s first half.

Driving the gains, Tutor said, were major infrastructure projects such as the Connecticut River Bridge replacement for commuter train corporation Amtrak worth $1.3 billion, the $216-million Fort Lauderdale, Florida, airport project and $144 million for multiple mass-transit builds in California, US.

Outlook for Tutor Perini

Looking ahead, the company expects activity levels to remain high going forward.

“We continue to anticipate double digit revenue growth and solid earnings for the full year of 2024 with substantially stronger earnings expected in 2025 and 2026,” said Soroka. “We are optimistic about our prospects for substantial backlog growth over the next several quarters and strong revenue growth and earnings in the coming years.

“Our total debt as of [June’s end] was $676 million, down $223 million – or 25% – compared to $900 million as of 31 December, 2023, mostly because of our $91 million pay down on the term loan B and our recent refinancing in which we replaced $500 million of 2017 senior notes with $400 million of new 2024 senior notes.”