Tutor Perini (NYSE:TPC) reported record second-quarter revenue and operating income, supported by ramping activity on large projects, improved segment margins and strong operating cash flow. The company also raised its 2026 adjusted earnings outlook, completed a debt refinancing and increased its quarterly cash dividend.
Second-quarter revenue rose 19% year over year to a record $1.6 billion, while operating income increased 54% to $118 million. Net income attributable to Tutor Perini was $66 million, or $1.23 per diluted share, compared with $20 million, or $0.38 per share, a year earlier. Adjusted earnings per share increased 23% to $1.74 from $1.41.
Segment Margins Improve as Major Projects Ramp Up
The Civil segment generated record quarterly revenue of $816 million, up 11% year over year, driven by higher activity on projects including the Midtown Bus Terminal Phase One, Manhattan Tunnel, Kensico-Eastview Connection Tunnel, Honolulu Rail and Apra Harbor Waterfront repairs in Guam. Civil operating income was $125 million, compared with $140 million a year earlier, when results included a $28 million favorable adjustment. The segment’s operating margin was 15.3%, up from 12.6% in the first quarter.
Building segment revenue increased 21% to $560 million, its highest quarterly level since 2011. Growth was driven by work on the Brooklyn and Manhattan jail projects and a healthcare campus in Northern California. Operating income rose 39% to $31 million, while the operating margin improved to 5.6% from 3.5% in the first quarter.
Specialty Contractors revenue rose 47% to $261 million, primarily due to increased electrical and mechanical activity in New York and Texas. The segment recorded $6 million of operating income, compared with an $18 million loss from construction operations a year earlier. Its operating margin improved to 2.2% from 0.3% in the first quarter and negative 10.2% in the second quarter of 2025.
Smalley said the nine mega projects won over the past several years are beginning to ramp up and carry higher margins than older work. He said Tutor Perini continues to expect Civil margins in a 12% to 15% range and Building margins in a 3% to 6% range, with Building expected toward the upper end of that range in the second half.
Backlog Nears $20 Billion; Pipeline Expands
The company booked $1.7 billion in new awards and contract adjustments during the quarter and ended the period with $19.9 billion in backlog. Major additions included a $652 million Naval Base Guam power infrastructure project, $143 million in U.S. Coast Guard projects in Alaska, $130 million in added funding for a Texas pediatric campus electrical project, a $114 million University of Mississippi project and a $106 million Minnesota bridge project.
Tutor Perini said its backlog includes nine mega projects with a combined value of about $16 billion, providing visibility into future revenue and earnings. Management said it sees more than $200 billion in potential project opportunities over the next three to four years, about three times the pipeline it had a few years ago.
The company highlighted more than $4.6 billion of federal Indo-Pacific opportunities over the next 12 to 18 months for its Guam subsidiary, Black Construction. These include port, harbor, airfield, fueling and submarine-pier work. Smalley said the company is looking to add staff in the region and expects Black Construction to grow, citing its established position and capabilities in remote, difficult work.
Other anticipated bidding opportunities include the I-69 ORX Section 2 bridge between Indiana and Kentucky, an Illinois jail project, healthcare and hospitality projects, California High-Speed Rail work, Southern California transit projects and Newark Liberty International Airport Terminal B.
Refinancing Lowers Interest Costs
Executive Vice President and CFO Ryan Soroka said Tutor Perini refinanced its debt in early July, replacing 11.875% senior notes with $400 million of new senior notes carrying a 6.625% coupon and extending the maturity from 2029 to 2033. The company expects annual cash interest savings of $21 million.
The company also amended and restated its revolving credit facility, increasing unused capacity to $350 million from $170 million and extending its maturity to 2031. Soroka said debt extinguishment and refinancing costs incurred in the third quarter will be excluded from adjusted EPS when the company reports third-quarter results.
At the end of the second quarter, total debt was $396 million. Cash and cash equivalents exceeded total debt by $542 million, while cash available for general corporate purposes was $424 million.
Guidance Raised; Shareholder Returns Increased
Tutor Perini raised its 2026 adjusted EPS guidance to $5.15 to $5.45, from a prior range of $4.90 to $5.30. Management continued to expect double-digit revenue growth in 2026 and higher earnings in 2027 as newer large projects enter construction phases.
The board declared a quarterly cash dividend of $0.09 per share, payable Sept. 3, representing a 50% increase from the prior $0.06 dividend. During the second quarter, the company repurchased about 137,000 shares for $10 million at an average price of approximately $73 per share. It has $170 million remaining under its authorized repurchase program.
Smalley said the company was added to the S&P SmallCap 600 Index effective before trading opened July 24, and was also added to other S&P indices including the S&P 1000.
About Tutor Perini (NYSE:TPC)
Tutor Perini Corporation is a leading U.S. construction company that provides diversified general contracting, construction management and design-build services to private clients and public agencies. The company operates through three principal market segments—Civil, Building and Specialty Contractors—serving a broad range of infrastructure and vertical construction needs.
In its Civil segment, Tutor Perini delivers heavy civil infrastructure projects including highways and bridges, water management, dams, tunnels and rail systems.
