Tutor Perini eyes up $32bn in new work as losses narrow
29 February 2024
Image: Tutor Perini
US-based civil, building and speciality construction company Tutor Perini has unveiled a 28% increase in its backlog to $10.2 billion as of the end of 2023.
The news came as the company published its Q4 2023 and 2023 full-year results.
Meanwhile Tutor Perini said it expected backlog to grow “significantly” in 2024 and 2025, with the company tracking more than $32 billion of near-term opportunities over the period.
Revenue for 2023 was $3.9 billion, up slightly compared to 2022 as a result of a lower amount of unfavourable impacts from settlements, litigation results and other project charges.
Revenue for the civil and building segments grew 9% and 5% in 2023 respectively, driven by increased project execution activities on certain projects in California, New York, and the Asia-Pacific region.
That was offset by a 15% revenue decline for its Specialty Contractors division, due to reduced project executions on the electrical and mechanical components of completed transportation projects in the Northeast.
The business still made a loss from construction operations for 2023 of $114.6 million, compared to $204.8 million for 2022. It said the reduced loss was due to the lower amount of net unfavourable impacts in 2023, resulting from more favourable settlement activities and better litigation outcomes in 2023.
New awards and contract adjustments for 2023 totalled $6.1 billion, with the largest awards including the $2.95 billion Brooklyn jail project in New York, $788 million of additional funding for certain mass-transit projects in California, $287 million of additional funding for two large healthcare projects in California, and a $222 million military facilities project at Tinian International Airport in the Commonwealth of the Northern Mariana Islands.
Ronald Tutor, chairman and chief executive officer said, “We made continued progress in resolving many outstanding disputes and reducing our unbilled receivables, and continue to believe that we will resolve the majority of our remaining disputed matters by the end of 2024. We anticipate double-digit revenue growth and a return to positive earnings in 2024, with substantially stronger earnings expected in 2025 and 2026. We also expect continued solid operating cash flow over the next several years and look forward to capturing our share of the tremendous pipeline of opportunities we see ahead.”
