Tutor Perini Turns Profit on Record Backlog Growth

After several challenging quarters marked by costly legal disputes and underperforming legacy projects, Los Angeles-based construction giant Tutor Perini has finally returned to profitability — and with renewed confidence. The firm reported first-quarter net income of $28 million, marking a 77% increase from the same period last year and its first profitable quarter since Q2 2024.

Executives attributed the earnings rebound to strong performance from newer contracts, many of which were won in the last two years. These projects were structured under more favorable contract terms and higher margins than the firm’s older, dispute-laden legacy work.

“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 CEO Gary Smalley during a May 7 call with financial analysts. “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.”

Key Projects Fueling Growth

Among the significant new projects driving the company's performance are several multi-billion dollar infrastructure jobs in major urban markets. These include:

• The $3.8 billion Manhattan jail project
• The $2.95 billion Brooklyn jail
• 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
• The $1.1 billion Kensico-Eastview Connection Tunnel in New York
• The $1.18 billion Newark AirTrain project in New Jersey

These high-profile assignments have helped Tutor Perini amass a record backlog of $19.4 billion — a 94% increase year-over-year and the highest in the company's history.

A Historic First: Raised Financial Guidance

Buoyed by its performance and expanding project pipeline, the company also took an unprecedented step by raising its financial forecast for the year.

“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 company now anticipates full-year 2025 earnings of $1.60 to $1.95 per share, up from its previous forecast of $1.50 to $1.90. Revenue for Q1 2025 climbed to $1.25 billion — a 19% increase from the same period in 2024.

The first quarter alone brought in $2 billion in new contract awards and adjustments, including:

• $1.18 billion for the Manhattan Tunnel
• $241 million in additional funding for the APRA Harbor Waterfront Repairs in Guam, now totaling $570 million
• $111 million in healthcare projects in California
• $99 million for an electrical project in Texas

Targeted Bidding Strategy and Future Opportunities

Tutor Perini leadership said the company’s enormous backlog is giving them the freedom to be selective with future bidding. While former CEO Ron Tutor had suggested a slowdown in bid activity after Q3 2024, current sentiment points to a more assertive stance, albeit focused on strategic opportunities.

“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.

Tutor confirmed the firm is actively pursuing several major new projects, including:

• The $12 billion Sepulveda Transit Corridor light rail in Los Angeles
• The $10 billion Midtown Bus Terminal replacement in New York City
• The $3.8 billion Southeast Gateway light rail in Los Angeles County
• The $1.8 billion South Jersey Light Rail project between Glassboro and Camden
• The $1 billion North Valley Rail project between Sacramento and Chico
• The $900 million Foothill Gold Line extension connecting Los Angeles and San Bernardino County

Limited Impact from Tariffs — For Now

While other major contractors like WSP and AECOM have noted the effects of the Trump administration’s renewed tariffs, Tutor Perini executives said they haven't seen a major impact yet.

“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.”

Ron Tutor echoed that sentiment while acknowledging the potential for future disruptions.

“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.” Still, he added, “I can’t predict what impact, if any, it will have on future work.”

A New Chapter for Tutor Perini

After years of struggling to overcome cost overruns and legal entanglements, Tutor Perini appears to have turned a corner, supported by a fresh wave of mega-projects and better contract terms. The company is now positioning itself for sustainable growth with an eye on high-margin opportunities and improved operational discipline.

As the firm capitalizes on record backlog and ramps up projects nationwide, both investors and the construction industry will be watching closely to see if this momentum continues through 2025 and beyond.

Originally reported by Joe Bousquin in Construction Dive.