Tutor Perini, the Los Angeles-based heavy civil construction company, is finally making money doing construction again.
After several quarters of disappointing results plagued by payouts for legal disputes on legacy projects, the company reported it is collecting cash and profits from newer, ongoing jobs while building up a massive backlog.
First-quarter net income was $28 million, up 77% from a year earlier. It was the first time Tutor Perini was profitable since the second quarter of 2024.
That money, executives were careful to stress, wasn’t the result of cannibalizing future earnings to beef up the current quarter. Instead, it came from new jobs that are now active and were bid with better terms and higher margins.
“The progress that we made in the first quarter is not from an acceleration of the profits later in the year, bringing them forward, the quarter really was strong on its own,” said Gary Smalley, CEO, on a May 7 call with financial analysts to discuss first quarter 2025 results. “Much of the improvement over the budget is really due to large projects that are cranking up, you know, ramping up a lot faster than we expected.”
Those newer projects, which have all been won in the last two years, include the $3.8 billion Manhattan and $2.95 billion Brooklyn jails and the $1.18 billion Manhattan Tunnel in New York City; the $1.66 billion third phase of the Honolulu Authority for Rapid Transportation’s Skyline project in Hawaii; the $1.1 billion Kensico-Eastview Connection Tunnel in New York and the $1.18 billion Newark AirTrain in New Jersey.
Increased outlook
Progress during the quarter was so good, in fact, the company actually raised its financial guidance — the only time it’s done so — and hinted at more profits ahead.
“Look, this is the first time we've ever raised guidance at Tutor Perini,” said Smalley. “It’s the first time ever, and we hope it's not the last time this year.”
The firm said it now expects earnings of $1.60 to $1.95 per share for all of 2025, up from a range of $1.50 to $1.90 previously.
That raised expectation is based partly on a burgeoning backlog, which now stands at $19.4 billion — Tutor Perini’s highest ever — and a 94% increase from a year earlier. Revenue also grew to $1.25 billion, 19% more than the company reported for Q1 2024.
That backlog included $2 billion in new awards and contract adjustments during the first quarter.
Those included:
- The $1.18 billion Manhattan Tunnel project.
- $241 million in additional funding for the APRA Harbor Waterfront Repairs in Guam, bringing the overall project to $570 million.
- $111 million in additional funds for healthcare projects in California.
- $99 million in additional funding for an electrical project in Texas.
Still pursuing bids
After building its backlog to $14 billion during the third quarter of 2024, former CEO Ron Tutor, who now serves as executive chairman, told investors the company might pull back on bidding. On the most recent call, however, Smalley was bullish on how the high backlog positions the firm.
“Our record backlog enables us to be even more selective than before as to which of the opportunities we will pursue and to focus on bidding projects that have favorable contractual terms, limited competition and higher margins,” Smalley said.
Indeed, Tutor told investors on the call that the firm was pursuing several multi-billion dollar jobs. Those include:
- The $12 billion Sepulveda Transit Corridor light-rail project in Los Angeles.
- The $10 billion Midtown Bus Terminal replacement project in New York City.
- The $3.8 billion Southeast Gateway light rail project in Los Angeles County, California. The $1.8 billion South Jersey Light Rail project between Glassboro and Camden, New Jersey.
- The $1 billion North Valley Rail passenger rail project between Sacramento and Chico, California.
- The $900 million Foothill Gold Line light rail project to connect Los Angeles and San Bernardino County.
Tariff impacts
Though other major infrastructure contractors, including WSP and AECOM, have said they have started to see impacts from the Trump administration’s tariff policies, Tutor Perini said it had yet to see policy consequences to its business.
“With respect to potential concerns regarding U.S. trade policy and various federal spending programs, I will reiterate that we do not currently anticipate any significant impacts to our business related to these factors from a project funding perspective,” Smalley said. “We do not currently foresee the risk of any of our major projects and backlog being canceled, delayed or defunded.”
That said, when analysts pressed about potential fallout going forward, Ron Tutor hedged the company’s bets.
“Costs are constantly rising, particularly in New York, which is one of our biggest markets,” Tutor said. “There’s nothing to do with tariffs that has affected us as of yet, other than threats.”
That said, Tutor added, “I can't predict what impact, if any, it will have on future work.
