LOS ANGELES - Tutor Perini Corporation (NYSE:TPC), a prominent civil, building, and specialty construction company, announced a wider-than-expected loss for the fourth quarter.
The company reported a Q4 EPS of -$0.91, significantly below the analyst estimate of $0.13. Revenue for the quarter was $1.06 billion, exceeding the consensus estimate of $988.7 million.
Despite the revenue beat, the company's loss was more pronounced compared to the same quarter last year, when it reported a diluted loss per share of -$1.80. The revenue for the fourth quarter of 2023 reflected a year-over-year (YoY) increase from the $906.6 million reported in the fourth quarter of 2022.
This growth was attributed to a 9% and 5% increase in revenue for the Civil and Building segments, respectively, driven by enhanced project execution activities in select regions.
The company's net loss attributable to Tutor Perini for 2023 was $171.2 million, or a $3.30 diluted loss per share, an improvement from the net loss of $210.0 million, or a $4.09 diluted loss per share, in 2022. The reduced loss in 2023 was primarily due to more favorable settlement activities and litigation outcomes.
Tutor Perini generated a record operating cash flow of $308.5 million in 2023, up 49% from the previous record in 2022. This significant increase was driven by improved collection activity, including collections related to the resolution of certain claims and unapproved change orders.
The company's backlog as of December 31, 2023, grew to $10.2 billion, a 28% increase YoY, providing visibility for strong revenue growth. The backlog growth is expected to continue in 2024 and 2025, with the company tracking more than $32 billion of near-term opportunities over this period.
For the fiscal year 2024, Tutor Perini anticipates double-digit revenue growth and a return to positive earnings, with stronger earnings expected in 2025 and 2026. The initial EPS guidance for 2024 is set at a range of $0.85 to $1.10, below the analyst consensus of $1.76.
The company expects earnings to be weighted more heavily in the second half of the year due to the timing of large project activities and typical business seasonality.
Ronald Tutor, Chairman and CEO, commented on the results, "We delivered a second consecutive year of record operating cash flow and grew our backlog substantially in 2023. We also 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."
Tutor Perini's financial position remains solid, with the company having paid down its Term Loan B by an additional $91 million earlier than required and the Senior Notes refinancing expected to be completed by the end of April 2024. The company's strong cash position is anticipated to be used for further debt reduction in conjunction with the expected refinancing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.