ConDig (10-Nov-23). Civil, building and specialty construction company Tutor Perini said the outlook for continued strong cash generation over the next several quarters was “excellent” as losses at the Los Angeles-based company deepened in the third quarter.
“We expect improved performance in the fourth quarter of 2023 and for next year,” said Ronald Tutor, chairman, and chief executive officer of Tutor Perini, noting the anticipation of significant backlog growth over the next 12 to 18 months.
The comments come as the company reported a net loss of $36.9 million, or a $0.71 diluted loss per common share, for the third quarter compared with a net loss of $32.5 million, or a $0.63 diluted loss per common share, for the same period last year.
Despite challenges in certain segments, the company booked revenue of $1.1 billion, maintaining the level compared to the same quarter last year. Higher revenue in the civil and building divisions offset lower revenue in the specialty contractors division.
The loss from construction operations for the quarter was $12.6 million compared with $6.9 million for the same period in 2022. Net unfavorable adjustments on various projects, primarily due to changes in estimates resulting from recent negotiations, settlements, and legal judgments, impacted the results.
Backlog growth was fueled by new awards and contract adjustments, including additional funding for healthcare and mass-transit projects in California, a new project in Florida, and a mining project in Virginia.
In September, a subsidiary of Tutor Perini secured a $47 million fixed-price contract for a visitor center at the Everglades National Park in Florida.