A US-based general contractor and property manager that recently returned to profitability following a multi-year turnaround, offering building solutions across residential and commercial sectors.
Investors should consider TPC as a turnaround play that has finally achieved sustained profitability after four years of losses, positioning it for potential valuation re-rating. The company's strong operating cash flow and substantial cash reserves provide flexibility to deleverage its $392.8 million long-term debt or pursue opportunistic acquisitions in the growing infrastructure market. With revenue growth accelerating from $3.79 billion in 2022 to over $5.5 billion in 2025, TPC demonstrates clear momentum and operational scaling.
Despite recent profitability, the company carries a heavy debt load with total liabilities exceeding $3.9 billion, which poses risks if credit conditions tighten or project pipelines dry up. The historical pattern of operating losses for three consecutive years prior to 2025 indicates lingering structural inefficiencies or market headwinds that could recur. Investors must weigh the current profit against the high leverage and the cyclical nature of the construction sector which often faces margin compression.
TUTOR PERINI CORP (TPC) is a diversified construction services provider operating primarily in the United States through its Building Solutions segment. The company delivers general contracting, specialized trades like plumbing and electrical work, and property management services to residential, commercial, and public sector clients. With revenue reaching $5.54 billion in 2025 after years of loss, TPC has recently transitioned to profitability with a net income of $143.1 million.
Management has successfully executed a turnaround strategy, transforming the company from a consistent loser to a profitable entity in 2025 with net income of $143.1 million. This performance is underscored by a healthy operating cash flow of $748.1 million and a strong balance sheet ending with $770.2 million in cash, despite investing heavily in fixed assets. The return to profitability coincides with a significant jump in revenue from $4.33 billion in 2024 to $5.54 billion, suggesting successful market expansion or pricing power.
The US construction services industry is characterized by a fragmented landscape dominated by regional general contractors competing on price, speed, and quality. This sector is currently navigating significant challenges including supply chain volatility, rising material costs, and a chronic shortage of skilled tradespeople. Companies like TPC that can manage complex project portfolios while maintaining labor discipline are well-positioned to capture market share from less efficient competitors.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.79B | $3.88B | $4.33B | $5.54B |
| Cost of Revenue | $3.76B | $3.74B | $4.13B | $4.90B |
| Gross Profit | $29.6M | $140.6M | $197.0M | $647.5M |
| Operating Expenses | $234.4M | $255.2M | $300.8M | $415.6M |
| Operating Income | $-204.8M | $-114.6M | $-103.8M | $232.0M |
| G&A | $234.4M | $255.2M | $300.8M | $415.6M |
| Stock-Based Comp | $9.1M | $12.3M | $40.4M | $150.0M |
| D&A | $64.4M | $45.2M | $53.8M | $49.8M |
| Depreciation | $49.8M | $43.0M | $51.6M | $47.6M |
| Amortization | $14.5M | $2.2M | $2.2M | $2.2M |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $-62.9M | $-68.0M | $-69.3M | $-27.5M |
| Interest Expense | $69.6M | $85.2M | — | — |
| Pre-Tax Income | $-267.7M | $-182.6M | $-173.0M | $204.5M |
| Income Tax | $-75.1M | $-55.0M | $-50.7M | $61.4M |
| Continuing Ops | $-192.6M | $-127.6M | $-122.3M | $143.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-192.6M | $-127.6M | $-122.3M | $143.1M |
| Minority Interest | $17.4M | $43.6M | $41.4M | $62.6M |
| Net to Common | $-210.0M | $-171.2M | $-163.7M | $80.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.68B | $3.52B | $3.29B | $4.12B |
| Cash & Equivalents | $259.4M | $380.6M | $455.1M | $734.6M |
| Other Current Assets | $3.42B | $3.14B | $2.83B | $3.38B |
| Long-Term Assets | $864.0M | $908.5M | $956.0M | $1.04B |
| PP&E (Net) | $435.1M | $441.3M | $423.0M | $548.0M |
| Intangibles | $70.5M | $68.3M | $66.1M | $63.8M |
| Goodwill | $205.1M | $205.1M | $205.1M | $205.1M |
| Operating Leases | $50.8M | $48.9M | $41.7M | $58.6M |
| Other LT Assets | $102.4M | $144.9M | $220.1M | $168.0M |
| Total Assets | $4.54B | $4.43B | $4.24B | $5.16B |
| Current Liabilities | $1.97B | $2.12B | $2.33B | $3.24B |
| Accounts Payable | $495.3M | $466.5M | $631.5M | $724.9M |
| Current Leases | $6.7M | $6.3M | $7.1M | $11.8M |
| Deferred Revenue | $975.8M | $1.10B | $1.22B | $1.84B |
| Other Current Liab | $310.1M | $334.3M | $258.0M | $268.1M |
| Long-Term Liabilities | $1.13B | $1.02B | $751.4M | $658.3M |
| Long-Term Debt | $888.2M | $782.3M | $510.0M | $392.8M |
| LT Operating Leases | $49.2M | $47.8M | $38.6M | $51.8M |
| Other LT Liab | $196.0M | $190.9M | $202.7M | $213.7M |
| Total Liabilities | $3.10B | $3.15B | $3.08B | $3.90B |
| Shareholders' Equity | $1.44B | $1.28B | $1.16B | $1.26B |
| Retained Earnings | $304.3M | $133.1M | $-30.6M | $46.4M |
| AOCI | $-47.0M | $-39.8M | $-34.0M | $-29.2M |
| Total L&E | $4.54B | $4.43B | $4.24B | $5.16B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-192.6M | $-127.6M | $-122.3M | $143.1M |
| Non-Cash Adjustments | $791.8M | $974.8M | $1.16B | $-99.7M |
| Working Capital Changes | $-392.2M | $-538.7M | $-530.5M | $704.6M |
| Cash from Operations | $207.0M | $308.5M | $503.5M | $748.1M |
| Capital Expenditures | $59.8M | $53.0M | $37.4M | $180.9M |
| Cash from Investing | $-65.6M | $-78.2M | $-40.7M | $-257.3M |
| Dividends Paid | — | — | — | $3.2M |
| Cash from Financing | $-78.9M | $-109.4M | $-393.3M | $-184.8M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $62.4M | $120.8M | $69.5M | $306.0M |
| Beginning Cash | $211.4M | $273.8M | $394.7M | $464.2M |
| Ending Cash | $273.8M | $394.7M | $464.2M | $770.2M |
The company's revenue is driven primarily by its Building Solutions segment, which encompasses general contracting, masonry, concrete work, roofing, plumbing, electrical services, and carpentry. A secondary stream comes from Property Management Services, which generates steady recurring revenue by managing assets for institutional owners. The financials also reflect significant current deferred revenue of $1.84 billion, indicating a robust backlog of contracts and ongoing service agreements.
The construction industry is highly sensitive to interest rate fluctuations and inflation, which can impact project margins and financing costs for clients. TPC faces significant labor shortages and wage pressures common across the general contracting sector, potentially eroding gross profit if not managed effectively. As a company with $3.90 billion in total liabilities against $5.16 billion in assets, leverage management remains a critical factor during economic downturns or project delays.
TPC benefits from an extensive network of local operating companies that provide deep regional market penetration and agility in securing government and municipal contracts. The company's diverse portfolio across multiple trade specialties reduces reliance on any single line of business, providing operational resilience against sector-specific downturns. Strong cash generation, evidenced by a $748.1 million operating cash flow, allows for strategic reinvestment in capital expenditures totaling $180.9 million to maintain its workforce and equipment.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.