Tutor Perini — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue reached a record $1.7 billion, up 22% year-over-year (YoY) from $1.4 billion in Q3 2025.
• Income from construction operations for Q3 2026 was a record $125.4 million, a 213% increase YoY from $40.1 million.
• Q3 2026 diluted EPS was $0.39, up 457% YoY from $0.07.
• Q3 2026 adjusted EPS was $1.83, up 59% YoY from $1.15.
• Operating cash flow for Q3 2026 was $330.9 million, up 14% YoY; for the first nine months of 2026, it was $665.1 million, up 16% YoY.
• Net income attributable to the Company for Q3 2026 was $20.7 million, compared to $3.6 million in Q3 2025.
• Adjusted net income for Q3 2026 was $97.6 million, compared to $61.9 million in Q3 2025.
• Total debt as of September 30, 2026, was $404 million, down 1% from $407 million at the end of 2025.
• Costs and estimated earnings in excess of billings were $767.4 million as of September 30, 2026, a 9% decline from $847.8 million in September 2025.
• Cash exceeded total debt by $707 million as of September 30, 2026.

Guidance and Future Outlook:

• 2026 adjusted EPS guidance was raised to $5.90 to $6.10, up from the previous range of $5.15 to $5.45.
• The Company anticipates continued strong revenue and adjusted EPS growth in 2027 driven by visibility from its long-duration backlog.
• Management expects continued strong operating cash flow for the remainder of 2026 and beyond.
• Share-based compensation expense is expected to decline significantly in 2027 as most remaining liability-classified awards vest by the end of 2026.
• The Company is not providing forward-looking guidance for GAAP EPS or a quantitative reconciliation to adjusted EPS guidance due to the difficulty in forecasting share-based compensation expense.

Business Segments and Product Lines:

• Q3 2026 revenue growth by segment: Civil up 16%, Building up 29%, and Specialty Contractors up 26% YoY.
• First nine months of 2026 saw solid double-digit YoY growth across all three segments.
• New awards and contract adjustments in Q3 2026 totaled approximately $2.2 billion, resulting in a book-to-burn ratio greater than 1.0x for the second straight quarter.
• Major Q3 2026 backlog additions included:
  • $1.0 billion for a Civil segment project with electrical and mechanical work for Specialty Contractors.
  • $577 million for Building segment federal government projects.
  • $145 million for military facility projects in the Indo-Pacific region.
  • $126 million for Midwest bridge projects.
  • $108 million for an Oklahoma hospitality and gaming project.
  • $89 million for California mass-transit projects.
• The Company's pipeline of potential projects over the next three to four years totals more than $200 billion.

Market and Competitive Landscape:

• Demand remains robust, driven by well-funded state, local, and federal customers with numerous large-scale infrastructure projects.
• Commercial customers continue to advance projects in healthcare, education, and hospitality and gaming.
• The Company intends to remain selective and disciplined in pursuing new projects with favorable margin and risk profiles.
• The Company remains well-positioned to win its share of new projects in the Indo-Pacific region, California, the Midwest, and the Northeast.

Risks and Challenges:

• Forward-looking statements involve risks including revisions of contract estimates, unfavorable litigation outcomes, and failure to recover working capital.
• Risks include contract disputes, economic factors (inflation, tariffs), and slowdowns in government spending.
• Potential risks include failure to meet schedules, labor conditions, international operations risks, and inclement weather.
• Risks also include inability to obtain bonding, failure to meet debt obligations, and potential stock price fluctuations.

Management Commentary and Tone:

• CEO Gary Smalley stated the Company delivered "another quarter of excellent results" with record operating cash flow, revenue, operating income, and earnings.
• Management expressed "strong confidence" in the performance trajectory for the remainder of the year.
• Smalley noted the $20.4 billion backlog and $200 billion-plus bid pipeline provide "substantial visibility" into future revenue and earnings.
• Management believes the Company represents a "very compelling value investment opportunity" given its record performance and current market valuation.

Other Key Points:

• Backlog stood at $20.4 billion as of September 30, 2026.
• The Company completed a debt refinancing in July 2026, resulting in a loss on extinguishment of debt of $51.4 million in Q3 2026.
• The Company terminated its defined benefit pension plan in Q3 2026, incurring a pension settlement charge of $33.8 million.
• Share-based compensation expense decreased by $39.5 million in Q3 2026 compared to Q3 2025 due to the vesting of liability-classified awards at the end of 2025.
• The Company paid $11.2 million in dividends and repurchased $30 million of common stock during the first nine months of 2026.
• A conference call to discuss results was held on November 4, 2026.