Tutor Perini Corporation

Second-quarter 2026 revenue was a record $1.6 billion, up 19% year over year. Operating income was a record $118 million, up 54%, and adjusted EPS was $1.74, up 23% from $1.41 a year ago. GAAP EPS was $1.23 versus $0.38 last year, and net income attributable to Tutor Perini was $66 million versus $20 million. Segment operating margins improved sequentially, with Civil at 15.3%, Building at 5.6%, and Specialty Contractors at 2.2%. First-half operating cash flow was a record $334 million, up 17%, including $187 million in Q2. Backlog ended at $19.9 billion, and new awards and contract adjustments totaled $1.7 billion. Management raised 2026 adjusted EPS guidance to $5.15-$5.45, from $4.90-$5.30 previously, and still expects double-digit revenue growth in 2026 with higher earnings in 2027. Ryan Soroka also outlined 2026 assumptions including G&A of $380 million-$400 million, D&A of about $45 million, interest expense of $42 million-$44 million, an effective tax rate of about 26%-29%, and capital expenditures of $125 million-$135 million.

Gary Smalley framed the quarter as evidence that the company’s strategy is working: disciplined bidding, favorable terms, higher-margin megaprojects, and conservative revenue recognition. He emphasized that the nine mega projects are ramping up, the backlog provides visibility for years, and the company is seeing strong demand across Civil, Building, Specialty, and Black Construction. His tone was notably confident, repeatedly pointing to margin expansion, cash generation, and a large opportunity set as reasons the outlook remains strong.

Ryan Soroka focused on the financial upside from the balance sheet and operating performance. He highlighted the July refinancing, which replaced 11.875% senior notes with $400 million of notes at 6.625%, cutting the coupon by 525 basis points and saving $21 million of annual cash interest, while also expanding revolver capacity to $350 million. He said cash and cash equivalents exceeded total debt by $542 million at quarter-end, cash available for general corporate purposes was $424 million, and 2026 guidance assumptions now include G&A of $380 million-$400 million, interest expense of $42 million-$44 million, and CapEx of $125 million-$135 million.

Analysts pressed management on why Civil and Building margins ran above expectations, the margin profile of smaller jobs versus mega projects, and whether Black Construction can be scaled up. Management said the higher margins are being driven by newer mega projects ramping up, while smaller jobs are still healthy but generally not as profitable as the largest projects. Questions also focused on the $200 billion pipeline, pre-construction activity, competition on large fixed-price work, and how the company balances dividends, buybacks, and cash needs; management said it is being selective, sees limited competition on major jobs, and is keeping plenty of cash on hand for surety support and flexibility.