second quarter of 2026
Filed Aug 5, 2026Tutor Perini Reports Strong Second Quarter 2026 Financial Results; Raises 2026 Adjusted EPS Guidance; Increases Quarterly Dividend 50%
Record revenue and income from construction operations, substantial GAAP and adjusted EPS growth, record first-half operating cash flow, a near-record backlog, higher adjusted EPS guidance, and a 50% dividend increase.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1.6 billion | – | up 19% |
| Income from construction operationsGAAP | $117.7 million | – | up 54% |
| Net income attributable to the CompanyGAAP | $65.7 million | – | up significantly |
| Diluted earnings per shareGAAP | $1.23 | – | up 224% |
| Adjusted net income attributable to the Companynon-GAAP | $93.0 million | – | up significantly |
| Adjusted EPSnon-GAAP | $1.74 | – | up 23% |
| Cash from operating activities, first half of 2026GAAP | $334.1 million | – | up 17% |
| New awards and contract adjustmentsother | approximately $1.7 billion | – | – |
| Backlogother | $19.9 billion | up slightly compared to backlog as of March 31, 2026 | – |
| Total debtother | $396 million | down 3% | – |
| Share-based compensation expense changeGAAP | a significant decrease of $27.5 million | – | compared to the second quarter of 2025 |
2026 outlook
- NoteAdjusted EPS of $5.15 to $5.45
- NoteAdjusted EPS for 2027 will be substantially higher than the upper end of its increased 2026 guidance.
- NoteAdjusted EPS for 2026 will exclude the impact of share-based compensation expense, net of the associated tax benefit, as well as certain pension settlement, debt extinguishment and refinancing costs, net of tax.
Capital returns
- Repurchased 137,374 shares of its common stock on the open market for $10 million at an average price of $72.78 per share.
- As of June 30, 2026, $170 million remained available for repurchases under the Board-authorized $200 million share repurchase program.
- Declared a $0.09 per share quarterly cash dividend, an increase of 50% compared to the previous dividend of $0.06 per share.
- The dividend will be payable on September 3, 2026, to shareholders of record as of the close of business on August 19, 2026.
What drove it
- Revenue for the Civil segment was up 11% compared to the same quarter last year.
- Revenue for the Building segment was up 21% compared to the same quarter last year.
- Revenue for the Specialty Contractors segment was up 47% compared to the same quarter last year.
- Growth across all segments was primarily driven by increased activities on certain newer large high-margin projects in New York, California, Hawaii and the Indo-Pacific region.
- Income from construction operations benefited from higher-margin contributions associated with increased project execution activities and a significant decrease of $27.5 million in share-based compensation expense compared to the second quarter of 2025.
- Record operating cash flow was driven by higher volume and strong execution and collections on profitable projects.
- The Company cited strong demand from well-funded state, local and federal customers and commercial projects in healthcare, education, and hospitality and gaming.
Concerns
- The Company is not providing forward-looking guidance for GAAP EPS or a quantitative reconciliation of adjusted EPS guidance to GAAP EPS guidance because share-based compensation expense is difficult to forecast and fluctuates with future share price movements.
- The Company stated that variations in share-based compensation expense could have a material impact on GAAP EPS for the guidance period.
- 2026 adjusted EPS will exclude share-based compensation expense, pension settlement, debt extinguishment and refinancing costs, net of associated tax impacts.
- Guidance continues to factor in a significant amount of contingency for unknown or unexpected developments.
What to watch
- Execution and margin contribution from newer large high-margin projects in New York, California, Hawaii and the Indo-Pacific region.
- Operating cash flow in the second half of 2026, which the Company expects to remain strong.
- Additional funding anticipated in the second half of 2026 for the Midtown Bus Terminal Replacement project in New York.
- Progression of Building segment projects in preconstruction into the construction phase.
- The expected decline in share-based compensation expense over the remainder of 2026 and more significantly in 2027.
- New awards, contract adjustments, backlog conversion, and selective bidding on the Company's pipeline of potential projects over the next three to four years.
Balance sheet and cash flow
- Generated $334.1 million of cash from operating activities in the first half of 2026, compared to $285.3 million for the same period last year.
- Total debt as of June 30, 2026 was $396 million, down 3% compared to $407 million at the end of 2025.
- Cash exceeded total debt by $542 million as of June 30, 2026.
- Completed a refinancing of outstanding debt on July 2, 2026 that is expected to reduce annual interest expense on senior notes by approximately $21 million and more than doubled the size of its revolving credit facility.
Analysis
Tutor Perini reported a record second quarter, with revenue of $1.6 billion, up 19% from $1.4 billion, and income from construction operations of $117.7 million, up 54% from $76.4 million. GAAP net income attributable to the Company rose to $65.7 million from $20.0 million, while diluted EPS increased to $1.23 from $0.38. Adjusted net income attributable to the Company was $93.0 million and adjusted EPS was $1.74, compared with $75.1 million and $1.41, respectively.
The reported growth was broad across the operating segments. Civil, Building, and Specialty Contractors revenue increased 11%, 21%, and 47%, respectively, compared with the same quarter last year. Management attributed the expansion to increased activity on newer large high-margin projects in New York, California, Hawaii and the Indo-Pacific region. Construction-operations income also benefited from higher-margin project execution and a significant decrease of $27.5 million in share-based compensation expense compared with the second quarter of 2025.
Cash generation and backlog support the operating performance. The Company generated $334.1 million of cash from operating activities in the first half of 2026, up 17% from $285.3 million in the prior-year period, citing higher volume, project execution and collections. Second-quarter new awards and contract adjustments were approximately $1.7 billion, resulting in backlog of $19.9 billion as of June 30, 2026, up slightly from March 31, 2026. The Company also reported that cash exceeded total debt by $542 million, while total debt declined to $396 million from $407 million at the end of 2025.
Capital allocation included $10 million of open-market repurchases, representing 137,374 shares at an average price of $72.78 per share, and a 50% increase in the quarterly cash dividend to $0.09 per share. The July 2, 2026 refinancing is expected to reduce annual interest expense on senior notes by approximately $21 million and more than doubled the revolving credit facility. The Company raised 2026 adjusted EPS guidance to $5.15 to $5.45 from the prior range cited in the release, but it does not provide GAAP EPS guidance because projected share-based compensation expense is difficult to forecast.
The key forward issues are conversion of the $19.9 billion backlog into revenue and profit, continuing execution on the higher-margin projects, and the expected reduction in share-based compensation expense. Management expects backlog to remain strong, supported by near-term pursuits, anticipated Midtown Bus Terminal Replacement funding in the second half of 2026, and Building projects advancing from preconstruction. It also stated that adjusted EPS for 2027 should be substantially higher than the upper end of the increased 2026 guidance, based on earnings visibility from current backlog.
Management, verbatim
We delivered outstanding results for the second quarter of 2026, highlighted by record revenue and operating income, record first half operating cash generation and, importantly, meaningfully and sequentially improved operating margins across all segments. Because of these strong results and our favorable outlook, we are raising our full-year 2026 adjusted EPS guidance to $5.15 to $5.45 and increasing our quarterly dividend by 50%.
Gary Smalley, Chief Executive Officer and President
Tutor Perini's business momentum continues to grow as we advance work on our megaprojects, enabling us to demonstrate the durable growth and earnings power of our near-record backlog.
Gary Smalley, Chief Executive Officer and President
We expect that this backlog, together with our pipeline of prospective opportunities that has never been larger, will continue to translate into significantly higher revenue and earnings in 2026 and beyond.
Gary Smalley, Chief Executive Officer and President
Not in the filing
stated, not guessed- Segment revenue in dollars for Civil, Building, and Specialty Contractors was not included in the provided filing text.
- Segment operating income, segment margins, and segment gross profit were not included in the provided filing text.
- GAAP gross profit, gross margin, operating income, operating expenses, interest expense, income tax expense, and effective tax rate were not included in the provided filing text.
- Free cash flow was not included in the provided filing text.
- Quarterly operating cash flow was not included in the provided filing text.
- Cash and cash equivalents balance was not reported directly in the provided filing text.
- Total debt as of March 31, 2026 was not included in the provided filing text.
- GAAP EPS guidance and a quantitative reconciliation of adjusted EPS guidance to GAAP EPS guidance were not provided.
- Revenue, gross-margin, operating-expense, and tax-rate guidance were not included in the provided filing text.
- The previous outlook section was not provided; therefore, no formal comparison of reported results with prior guidance is included.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.