Tutor Perini Reports Strong Operating Cash Flow

By Bobby Samwell • Monday, October 21 15:30 • Permanent Link

Tutor Perini Corporation (NYSE: TPC) has reported strong operating cash flow of approximately $175 million year-to-date through Q3 2024 and anticipates a new record operating cash flow in the range of $425 million to $575 million for full-year 2024. The company plans to utilize this anticipated strong 2024 cash to prepay $100 million to $150 million of term loan B debt by December 31, 2024, with further prepayments of $50 million to $75 million expected in Q1 2025.

The company also expects to achieve a record backlog of approximately $14 billion as of September 30, 2024, representing a 35% increase compared to the backlog at June 30, 2024. This growth is attributed to significant new project awards, with two projects yet to be announced. Additionally, the company anticipates further growth in the backlog by year-end 2024 due to potential awards for other significant new projects.

Despite making considerable progress in resolving seven of its largest disputed matters, the company anticipates a net charge to earnings and a net loss for Q3 2024. However, management expects a return to profitability in 2025.

The company expects to report operating cash flow of approximately $175 million for the nine months ended September 30, 2024, and anticipates operating cash flow for the full year of 2024 to be in the range of $425 million to $575 million. This range significantly surpasses the company’s previous all-time record operating cash flow of $308 million in 2023.

As of September 30, 2024, the company's backlog is expected to be approximately $14 billion, a 35% increase over backlog as of June 30, 2024. This substantial growth is attributed to the award of the $1.66 billion city center guideway and stations project in Honolulu, Hawaii, and other significant new awards booked in the third quarter of 2024.

The company expects to return to profitability in 2025 and will provide guidance for 2025 in February when it reports its full-year 2024 results. Following these announcements, the company's shares moved 13.3%, and are now trading at a price of $30.89. If you want to know more, read the company's complete 8-K report here.

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