After years spent resolving costly disputes tied to legacy megaprojects, Tutor Perini has returned to profitability — and executives say 2025 marked the firm’s strongest performance to date.
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The Los Angeles-based civil construction contractor reported a full-year profit of $80.4 million for 2025, reversing a $163.7 million loss in 2024. The turnaround follows a sustained effort to reduce litigation exposure and negotiate stronger contract terms on high-risk megaprojects.
Executives said during the company’s Feb. 26 fourth-quarter and full-year earnings call that outstanding legal disputes have been reduced from roughly 50 cases to 12.
“We spent a lot of money over the last several years on litigation expense,” said Gary Smalley, the firm’s CEO and president, on an earnings call to discuss results. “Legal expenses are something that, of course, are necessary in business and certainly in this industry. But I think you’ll see less and less legal expenses from us, and that’s only going to drive profit improvement too.”
Fourth-quarter performance also reflected the rebound, with $28.8 million in net income compared to a $79.4 million loss during the same period in 2024.
The company closed 2025 with a record $20.6 billion in backlog, a 10% increase year over year. Revenue climbed 28% to $5.54 billion for the full year, while fourth-quarter revenue surged 41% to $1.51 billion.
“We had our best year ever in 2025,” Smalley said, highlighting the firm’s backlog growth. “With this tremendous backlog, we are confident in our ability to produce double-digit revenue and earnings growth and continued strong annual cash flow in 2026 as our newer projects progress through design and into construction.”
While the company recorded $57.6 million in favorable settlements during 2025, an unfavorable $54.7 million settlement related to a legacy tunneling dispute in Canada offset much of that gain.
Still, executives emphasized that improved risk management and stronger contract negotiations are reshaping the firm’s financial profile.
“What we’ve been able to do with the limited competition is to work with our customers, our owners, in order to drive, you know, better payment terms,” Smalley said. “No damages for delay, especially in New York.”
That leverage stems from a shrinking pool of contractors willing to bid on multibillion-dollar infrastructure projects, which often carry significant complexity and long timelines.
Over the past three years, Tutor Perini has won nine of 11 bids on projects valued at $1 billion or more, totaling $16 billion in awards.
Among 2025’s largest additions to backlog:
Work has also resumed on the Manhattan Tunnel portion of the broader Gateway Program after a temporary funding suspension.
“We’re back working after about a two-week suspension,” Smalley said.
Looking ahead, the contractor is targeting additional high-profile opportunities over the next 12 to 18 months, including:
Smalley credited a renewed federal and state focus on infrastructure funding as a major tailwind.
“Our country has for decades and until recently inadequately funded and prioritized the types of substantial infrastructure investments being made today,” Smalley said.
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Despite the strong pipeline, executives cautioned that backlog growth could experience some “lumpiness” due to award timing in mid-2026 and early 2027.
Even so, the improved financial position allows the company to be more selective in bidding.
“We remain highly selective as to which opportunities we will pursue, with a continued focus on bidding projects with favorable contractual terms, limited competition and higher margins,” Smalley said.
Industry analysts note that Tutor Perini’s rebound reflects broader shifts in megaproject delivery. Owners are increasingly offering more contractor-friendly terms to attract qualified bidders, particularly in complex transit, tunneling and healthcare construction.
If infrastructure spending remains stable and litigation costs continue to fall, Tutor Perini’s 2025 turnaround may mark not only a return to profitability — but a reset in how the firm approaches risk on the nation’s largest construction undertakings.
Originally reported by Joe Bousquin, Senior Editor in Construction Dive.
