The following is a summary of the Tutor Perini Corporation (TPC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Tutor Perini reported Q1 revenue of $1.05 billion, marking a 35% increase from the same quarter last year, mainly due to increased project activities.
The firm displayed strong profitability with operating margins of 15% and 3.9% in Civil and Building segments respectively.
The quarterly earnings per share stood at $0.30.
The company recorded operating cash flow of $98 million, which is the second highest since the 2008 merger.
A reduction of $200 million in debt is a noteworthy achievement, and the company plans to persist in lowering this figure with expected strong cash flow.
The company's backlog has grown 26% year-over-year, currently amounting to $10 billion.
Business Progress:
Tutor Perini accomplished a successful debt refinancing by issuing new senior notes and redeeming the due ones.
The corporation expects to resolve the remaining legacy disputes and significant collections this year and the forthcoming one.
The company forecasts a significant increase in backlog later this year and in 2025, with the win of a major volume of available project opportunities.
There's a reconfirmation of the 2024 EPS guidance expecting it to be in the $0.85 to $1.10 range.
Changes in pre-bid discussions with owners are anticipated to maintain a level of about 15% of revenue from owner upfront payment for project mobilization.
The firm is constantly striving to resolve ongoing disputes to maintain a reasonable Contingent Income Expense (CIE) and expects to settle within the stipulated range.
The company strategically eliminated unfavorable legacy projects in its specialty segment, reducing operational sizes of units and replacing poor performers with new yet experienced personnel.
More details: Tutor Perini IR
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