Tutor Perini Corporation has recently released its 10-K report, providing an in-depth look at its operations. The company, founded in 1894 and headquartered in Sylmar, California, operates in three segments: Civil, Building, and Specialty Contractors. It offers a wide range of construction services to both private and public clients globally, including infrastructure replacement and construction, building services in various specialized markets, and electrical, mechanical, plumbing, and fire protection systems.
In the 10-K report for the year ended December 31, 2022, Tutor Perini addressed the impact of COVID-19 on its operations. The pandemic caused significant disruptions in the resolution of disputes related to unapproved work, leading the company to temporarily fund certain project costs that would have been promptly negotiated under normal circumstances. The bidding and awarding of large prospective civil projects were also delayed due to the pandemic, resulting in a substantial reduction in the company's backlog, revenue, and income from construction operations over the past three years.
In 2023, Tutor Perini reported consolidated revenue of $3.9 billion, a slight increase compared to $3.8 billion in 2022. Despite the increase in revenue, the company incurred a loss from construction operations of $114.6 million, an improvement from the $204.8 million loss in 2022. This improvement was attributed to lower net unfavorable impacts, including adverse legal judgments, and various settlements. The company's effective income tax rate for 2023 was 30.1% compared to 28.1% for 2022.
The company's consolidated backlog saw a strong growth to $10.2 billion as of December 31, 2023, primarily due to new awards in 2023, including the largest project, the $2.95 billion Brooklyn Jail project. However, the delayed project bids and large contract awards continued to have a negative impact on revenue and profitability.
The 10-K report also highlighted the impact of changes in estimates for project charges, net of positive impacts from improved productivity and efficiencies on certain projects. Tutor Perini emphasized its focus on expediting settlements to accelerate cash collections and reduce the risk and uncertainty associated with lengthy and costly litigation, arbitration proceedings, and settlement negotiations.
Today the company's shares have moved 2.0% to a price of $9.24. For the full picture, make sure to review Tutor Perini's 10-K report.
