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Tutor Perini Corp. (TPC)
NYSE:TPC
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Tutor Perini
(NYSE:TPC)
58Neutral
Tutor Perini (TPC) vs. S&P 500 (SPY)
Market Cap
$1.27B
Dividend YieldN/A
Average Volume (3M)574.23K
Price to Earnings (P/E)―
Beta (1Y)1.96
Revenue Growth11.51%
EPS Growth5.50%
CountryUS
Employees7,500
SectorIndustrials
Sector Strength67
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-3.12
Shares Outstanding52,485,718
10 Day Avg. Volume446,678
30 Day Avg. Volume574,231
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)1.00
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.00Price Target Upside70.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Tutor Perini Business Overview & Revenue Model
Company DescriptionTutor Perini Corporation (TPC) is a leading civil, building, and specialty construction company offering diversified general contracting and design-build services to private clients and public agencies across the United States and internationally. The company operates through three main segments: Civil, Building, and Specialty Contractors. Its core services include construction and renovation of infrastructure projects such as highways, bridges, tunnels, airports, and rail systems, as well as commercial buildings, healthcare facilities, and educational institutions.
How the Company Makes MoneyTutor Perini makes money through its comprehensive construction and contracting services offered across its three main segments: Civil, Building, and Specialty Contractors. The Civil segment generates revenue from large-scale infrastructure projects for government agencies and transportation authorities. The Building segment focuses on constructing and renovating commercial, institutional, and residential buildings, contributing significantly to the company's revenue through contracts with private developers and public institutions. The Specialty Contractors segment provides electrical, mechanical, plumbing, and fire protection systems, often working as subcontractors on larger projects. Tutor Perini's revenue is primarily driven by competitive bidding on large-scale projects, strategic partnerships with government and private sector clients, and its ability to deliver complex projects on time and within budget, which helps in securing repeat business and long-term contracts.
Tutor Perini Financial Statement Overview
Summary
Tutor Perini is navigating a complex financial landscape with profitability challenges, though revenue growth is improving. The balance sheet shows a stronger position with reduced debt, but historical leverage concerns persist. Positive cash flow indicates effective cash management, but inconsistencies suggest volatility.Income Statement
Tutor Perini's income statement reveals a challenging financial environment. The company shows a negative net profit margin and EBIT margin, indicating inefficiencies in operations and cost management. Despite a positive gross profit margin, consistent net losses highlight profitability concerns. Revenue growth in the most recent year shows signs of improvement, but profitability remains a significant issue.45
Neutral
Balance Sheet
The balance sheet reflects some strengths, such as a decrease in total debt and a positive equity ratio, indicating a relatively strong financial foundation. However, the debt-to-equity ratio has improved but remains a point of concern as it was significantly high in the past, suggesting potential risk in leverage. The return on equity remains negative due to net losses, reflecting challenges in generating returns for shareholders.60
Neutral
Cash Flow
Tutor Perini's cash flow statement presents a positive outlook, with strong operating cash flow and significant improvement in free cash flow, partly due to a reduction in capital expenditures. The company shows a commendable operating cash flow to net income ratio, suggesting effective cash management. However, fluctuations in free cash flow growth indicate potential volatility.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.33B | 3.88B | 3.79B | 4.64B | 5.32B | Gross Profit |
| 197.04M | 140.62M | 29.61M | 466.39M | 486.15M | EBIT |
| -103.75M | -114.60M | -204.76M | 226.80M | 262.34M | EBITDA |
| -34.75M | -52.17M | -133.67M | 347.04M | 357.52M | Net Income Common Stockholders |
| -163.72M | -171.16M | -192.57M | 134.15M | 152.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 455.08M | 380.56M | 259.35M | 202.20M | 374.29M | Total Assets |
| 4.24B | 4.43B | 4.54B | 4.72B | 5.05B | Total Debt |
| 24.11M | 899.75M | 958.44M | 993.65M | 1.03B | Net Debt |
| -430.97M | 519.18M | 699.09M | 791.46M | 651.18M | Total Liabilities |
| 3.08B | 3.15B | 3.10B | 3.05B | 3.50B | Stockholders Equity |
| 1.13B | 1.29B | 1.45B | 1.65B | 1.55B |
| Cash Flow | Free Cash Flow | |||
| 503.54M | 255.52M | 147.19M | -187.05M | 117.99M | Operating Cash Flow |
| 503.54M | 308.47M | 206.97M | -148.45M | 172.77M | Investing Cash Flow |
| -40.69M | -78.25M | -65.64M | -37.34M | -46.36M | Financing Cash Flow |
| -393.35M | -109.38M | -78.90M | -54.66M | 123.34M |
Tutor Perini Technical Analysis
Negative
23.52
Price Trends
24.74
Negative
25.73
Negative
24.67
Negative
Market Momentum
-0.07
Positive
42.87
Neutral
12.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPC, the sentiment is Negative. The current price of 23.52 is below the 20-day moving average (MA) of 25.56, below the 50-day MA of 24.74, and below the 200-day MA of 24.67, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 12.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPC.
Tutor Perini Risk Analysis
Tutor Perini disclosed 24 risk factors in its most recent earnings report. Tutor Perini reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tutor Perini Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.64B | 18.27 | 26.45% | 1.18% | 11.30% | ― | |
72 Outperform | $6.24B | 3.04 | 72.85% | ― | 5.43% | 2094.12% | |
72 Outperform | $10.20B | 59.72 | 5.80% | ― | 2.56% | ― | |
72 Outperform | $37.77B | 43.22 | 13.32% | 0.14% | 13.36% | 20.00% | |
62 Neutral | $15.13B | 25.54 | 10.92% | 0.96% | -13.76% | -13.39% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% | |
58 Neutral | $1.27B | ― | -13.50% | ― | 11.51% | 5.50% |
* Industrials Sector Average
Performance Comparison
TPC
Tutor Perini
23.52
8.72
58.92%
FLR
Fluor
37.16
-4.63
-11.08%
J
Jacobs Solutions
121.22
-3.97
-3.17%
KBR
KBR
51.18
-11.47
-18.31%
MTZ
MasTec
115.25
21.37
22.76%
PWR
Quanta Services
254.29
-4.63
-1.79%
Tutor Perini Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 7.54% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with significant achievements in cash generation, debt reduction, and backlog growth. However, these positives were offset by the negative impact of legacy dispute resolutions, operating losses, and increased G&A expenses. The company shows promise for future profitability and growth, but current challenges are still impacting financial performance.Highlights
Record Cash Generation
Generated $330 million of cash in Q4 alone and $504 million for the full year of 2024, shattering the prior year's record by approximately $200 million.
Debt Reduction
Reduced total debt by $477 million or 52% since the end of 2023, including the full payoff of the Term Loan B.
Record Backlog
Finished 2024 with a new all-time record backlog of $18.7 billion, which grew by 84% year-over-year, driven by $12.8 billion of new awards and contract adjustments.
Double-Digit Revenue Growth
Achieved 12% revenue growth in 2024, with expectations for more significant growth in the coming years.
Lowlights
Legacy Dispute Resolutions Impact
Operating income in 2024 was negatively impacted by a net total of $347 million due to various adverse legal judgments and decisions.
Operating Loss
Reported a loss from construction operations of $104 million in 2024 compared to a $115 million loss in 2023, with net loss attributable to Tutor Perini for 2024 being $164 million.
Higher G&A Expense
Corporate G&A expense was $110 million in 2024, up from $75 million in 2023, primarily due to higher compensation-related expenses.
Company Guidance
During the Tutor Perini Corporation Fourth Quarter 2024 Earnings Conference Call, the company provided guidance indicating a return to profitability in 2025 with an expected EPS range of $1.50 to $1.90 and double-digit revenue growth. They emphasized their record backlog of $18.7 billion, which represents an 84% year-over-year increase, suggesting a solid foundation for future revenue and earnings from 2025 onwards. The company also achieved significant financial milestones in 2024, including generating a record operating cash flow of $504 million, reducing total debt by 52% since the end of 2023, and achieving a book-to-burn ratio of 5.4x for the fourth quarter. Additionally, they highlighted their focus on resolving a dozen or so legacy disputes by 2025, which had previously impacted profitability, and anticipated continued strong cash flow driven by ongoing project operations and dispute resolutions.Tutor Perini Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Tutor Perini Announces New CEO Appointment
Positive
Jan 2, 2025
Tutor Perini Corporation announced the appointment of Gary G. Smalley as its new Chief Executive Officer, effective January 1, 2025. This transition, part of a planned leadership succession, sees Smalley succeed Ronald N. Tutor, who becomes Executive Chairman. Smalley, previously President and CFO, is recognized for his significant contributions to the company’s growth, leveraging increased infrastructure spending and a strong balance sheet. The Board expresses confidence in Smalley’s leadership to continue advancing the company’s strategic objectives and enhance shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.