Tutor Perini's Q4 2024: Diverging Views on Revenue Growth, Backlog, and Legacy Claims

These are the key contradictions discussed in Tutor Perini's latest 2024Q4 earnings call, specifically including: Revenue Growth and Backlog Consistency, Cadence of Revenue Growth, and Corporate Initiatives & Legacy Claims:



Record Backlog and Cash Generation:
- Tutor Perini Corporation reported a record backlog of $18.7 billion, growing 84% year-over-year, and generated a record $504 million in operating cash flow for 2024.
- This growth was driven by $12.8 billion in new awards and contract adjustments, including major projects like the Manhattan Jail project and improved cash collections.

Debt Reduction and Balance Sheet Strength:
- The company reduced its total debt by $477 million or 52% since the end of 2023, and achieved a net debt position of $79 million by early 2025.
- These improvements were due to strong cash generation and debt payoff, enhancing the company's financial health.

Legacy Dispute Resolution:
- Tutor Perini made significant progress in resolving legacy disputes, with about a dozen remaining significant disputes.
- The resolution of these disputes helped drive record cash flow and is expected to contribute positively to future earnings.

Return to Profitability and Revenue Growth:
- Tutor Perini is projecting a return to profitability with EPS for 2025 in the range of $1.50 to $1.90, along with double-digit revenue growth.
- This positive outlook is supported by a strong backlog, improved contractual terms, and enhanced cash generation from ongoing projects.