Mass transit projects push Tutor Perini’s Q2 revenue over $1 billion

Image: Tutor Perini

US-based civil, building and specialist construction company Tutor Perini recorded a 19% year-on-year jump in its revenue for the second quarter of 2022, rising to just over $1 billion.

The company said that the increase was largely due to contributions from civil segment mass transit projects in California that have “significant work remaining”.

The company is also recovering from the effects of the covid-19 pandemic, which saw customer budgetary constraints result in the company not being awarded projects totalling more than $10 billion over the last few years, despite having been the low or preferred bidder.

That helped Tutor Perini to reduce the $105.7 million pre-tax loss it made in Q2 of last year. However, it still made a pre-tax loss in Q2 of 2023 of $16.6 million.

Meanwhile, its order backlog grew to $10.9 billion as of 30 June 2023, up 27% on the $8.5 billion it recorded during the same period last year.

The building segment was the main contributor to new award activitry, with new awards including:

• the $3 billion Brooklyn Jail design-build project in New York;
• a $222 million military facilities project at Tinian International Airport in the Northern Mariana Islands;
• $206 million of additional funding for a mass-transit project in California;
• $103 million of additional funding for a healthcare project in California;
• $87 million of additional funding for a mass-transit project in Minnesota;
• and a $54 million bridge project in Minnesota.

However, the company decided not to provide forward guidance on its performance for the rest of 2023, citing “continued uncertainties” that could cause a wide range of results in the second half of the year.

Ronald Tutor, chairman and chief executive officer, said, “We delivered 19% revenue growth and solid operating cash flow for the second quarter of 2023. It is noteworthy that our year-to-date operating cash flow of $77.7 million was the second-highest result for the first six months of any year since the merger in 2008.

“We continue to anticipate that our operating cash flow for 2023 will exceed the record $207 million we generated last year and are confident that this should enable us to facilitate a successful refinancing by early next year.”