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A builder of large, complex infrastructure and building projects, this company works on mass transit, bridges, hospitals, and other major structures through three divisions: Civil, Building, and Specialty Contractors. Much of its work comes from state and local public agencies, and its family of subsidiaries includes Black Construction, Lunda Construction, and Five Star Electric.
Tutor Perini posts record Q2 operating income of $117.7M as share-based compensation drops $27.5M and Specialty Contractors returns to profitability.
Specialty Contractors turned profitable — the first time in over three years. rose 19.2% to a record $1.64 billion and climbed 54.0% to $117.7 million, driven by a $27.5 million drop in expense and higher project volume. The company refinanced its debt after the quarter, expecting $21 million in annual interest savings.
Key takeaways
Income from construction operations rose 54.0% to a record $117.7 million, as a $27.5 million decrease in expense and higher project volume more than offset the absence of a $28.0 million prior-year favorable change-order settlement in the Civil .
The Specialty Contractors swung to an of $2.0 million from a loss of $18.0 million a year ago, when it absorbed $14.6 million in unfavorable legacy claim settlements in the Northeast.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 19.2% to a record $1.6B, driven by early-stage megaproject execution and a $27.5M drop in share-based compensation.
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Consolidated grew 19.2% to $1.6B in Q2 and 15.5% to $3.0B in H1, with all three segments posting strong growth from ramping newer, larger projects.
reached a record $1.64 billion, up 19.2% , with growth across all three segments as newer, larger projects ramped up.
was 12.9%, down 1.4 percentage points from 14.3% a year ago, when the prior-year period benefited from $28 million in favorable change-order settlements.
was $187.3 million for the quarter, bringing the first-half total to a record $334.1 million, driven by strong collections and improved management.
After the quarter ended, the company refinanced its 11.875% Senior Notes and expanded its to $350 million, stating it expects approximately $21 million in annual interest savings.
What changed
The Specialty Contractors reached profitability in Q2 2026, posting $2.0 million in , after the Q1 2026 filing flagged whether its near-breakeven result that quarter was a one-time event or the start of a sustained recovery.
expense, which had been rising sharply and widening the gap between operating and , decreased by $27.5 million in Q2 2026, reversing the trend flagged in Q1 2026.
The company completed the debt refinancing it had stated in Q1 2026 it expected to pursue in 2026, addressing the elevated from the 11.875% Senior Notes that had been a watch item since their issuance in 2024.
of 12.9% settled between the 14.3% peak in Q2 2025 — which included $28 million in one-time favorable settlements — and the 11.1% level in Q1 2026, consistent with the 11-12% range the company has established on its newer project mix.
What to watch
Whether the Specialty Contractors sustains profitability in Q3 2026, confirming that the return to profit in Q2 was not a one-quarter event but the start of a sustained recovery after a multi-year cycle of close-out losses.
The trajectory of expense, which decreased by $27.5 million in Q2 2026 but remains a material non-cash item that can swing reported as the stock price moves.
The pace of conversion from the $19.9 billion , particularly as the $1.87 billion Midtown Bus Terminal, $1.18 billion Manhattan Tunnel, and $2.95 billion Brooklyn Jail projects ramp up simultaneously.
Whether stabilizes near the 12-13% range or continues to fluctuate as the mix of projects in the becomes the primary profit driver, now that the one-time benefits from prior-year change-order settlements have faded.
Income from construction operations surged 54.0% to a record $117.7M in Q2, helped by higher project volume and a $27.5M decrease in expense.
Civil rose 11.2% but fell due to the absence of a $28.0M prior-year favorable change order settlement; H1 also included a $16.4M unfavorable adjustment on a California mass-transit project.
Building and Specialty Contractors segments both swung to higher profitability, with Building income up 39.3% on higher-margin work and Specialty Contractors returning to a profit after prior-year legacy claim losses.
Record H1 of $334.1M strengthened liquidity; post-quarter, the company refinanced senior notes and expanded its to $350M, expecting $21M in annual interest savings.
stood at $19.9B, down 6% but supported by a $200B+ multi-year project pipeline; management sees no material impact from federal funding reviews or tariffs.
Quantitative and Qualitative Disclosures About Market Risk
There has been no material change in our exposure to market risk from that described in Part II, Item 7A of our Annual Report on Form 10‑K for the year ended December 31, 2025.
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There has been no material change in our exposure to market risk from that described in Part II, Item 7A of our Annual Report on Form 10‑K for the year ended December 31, 2025.
In the ordinary course of our business, we are involved in various legal proceedings. We disclose information about certain pending legal proceedings pursuant to SEC rules and as we otherwise determine to be appropriate. For information on such pending matters, see Part I, Item…
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In the ordinary course of our business, we are involved in various legal proceedings. We disclose information about certain pending legal proceedings pursuant to SEC rules and as we otherwise determine to be appropriate. For information on such pending matters, see Part I, Item 3 of our Annual Report on Form 10‑K for the year ended December 31, 2025, updated by Note 12 of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10‑Q.