Tutor Perini’s first quarter results were met with a negative market reaction, as revenue growth of 11.5% fell short of Wall Street’s expectations. Management attributed the top-line shortfall mainly to project timing and seasonality, with CEO Gary Smalley highlighting “increased project execution activities on certain large, newer and higher-margin Civil and Building segment projects.” Operating margins declined year over year, which management explained was primarily due to higher share-based compensation costs linked to the company’s elevated stock price. Notably, record operating cash flow was driven by collections from new and ongoing projects, signaling continued strong execution across major segments.
Is now the time to buy TPC? Find out in our full research report (it’s free for active Edge members).
Tutor Perini (TPC) Q1 CY2026 Highlights:
- Revenue: $1.39 billion vs analyst estimates of $1.43 billion (11.5% year-on-year growth, 3.1% miss)
- Adjusted EPS: $1.03 vs analyst estimates of $0.96 (7.8% beat)
- Adjusted EBITDA: $100.6 million vs analyst estimates of $66.53 million (7.2% margin, 51.2% beat)
- Management reiterated its full-year Adjusted EPS guidance of $5.10 at the midpoint
- Operating Margin: 4.3%, in line with the same quarter last year
- Backlog: $19.84 billion at quarter end, up 2.3% year on year
- Market Capitalization: $4.35 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Tutor Perini’s Q1 Earnings Call
- Michael Dudas (Vertical Research Partners): Asked about capacity for new project awards versus project roll-offs. CEO Gary Smalley explained that resources from winding-down projects will be redeployed and described the project pipeline as “rich,” emphasizing readiness for upcoming opportunities.
- Judah Aronovitz (UBS): Questioned increased confidence in 2027 earnings potential despite no change in guidance. Smalley cited ongoing strong project execution and backlog quality, noting increased optimism as projects progress and settlements advance.
- Liam Burke (B. Riley Securities): Inquired if liquidity enables solo project bids versus joint ventures. Smalley stated strong cash allows Tutor Perini to consider solo bids, reducing the need to share margins with partners.
- Min Cho (Texas Capital Securities): Sought details on Black Construction’s growth and MATOC contract scope. Smalley pointed to over $1 billion in backlog and described diverse opportunities for expansion, particularly in the Indo-Pacific.
- Adam Thalhimer (Thompson, Davis): Asked about the pace of share buybacks and refinancing. CFO Ryan Soroka explained buybacks will be opportunistic, and refinancing is expected to yield 400–500 basis points in interest savings, with a target rate in the “6 handle.”
Catalysts in Upcoming Quarters
In coming quarters, our analysts will be watching (1) the pace at which mega projects in the Civil and Building segments transition from early stages to peak execution, (2) progress in securing and integrating new large project awards across key U.S. and Indo-Pacific markets, and (3) the impact of debt refinancing and share repurchases on cash flow and capital structure. Resolution of ongoing legal disputes and their effect on margins will also be critical signposts.
Tutor Perini currently trades at $82.67, down from $96.98 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
