Tutor Perini Further Strengthens Balance Sheet with Payoff of its Term Loan B
Tutor Perini (NYSE: TPC) has announced the payoff of its remaining Term Loan B debt of approximately $47 million. This latest prepayment represents significant progress in the company's deleveraging efforts, having reduced total debt by $477 million, or 52%, since December 31, 2023.
CEO Gary Smalley highlighted that strong operating cash flow enabled the company to exceed debt reduction commitments. The company expects to continue generating strong cash flow and explore opportunities to enhance its capital structure while considering value-driving capital allocation strategies. With a record backlog, management believes the company is well-positioned for significant growth and improved profitability in the coming years. The company also does not anticipate significant impacts from federal funding or tariff concerns, citing protective contractual terms and project execution practices.
Tutor Perini (NYSE: TPC) ha annunciato il rimborso del suo rimanente debito del Term Loan B di circa 47 milioni di dollari. Questo ultimo pagamento anticipato rappresenta un progresso significativo negli sforzi di riduzione del debito dell'azienda, avendo ridotto il debito totale di 477 milioni di dollari, ovvero il 52%, dal 31 dicembre 2023.
Il CEO Gary Smalley ha sottolineato che un forte flusso di cassa operativo ha consentito all'azienda di superare gli impegni di riduzione del debito. L'azienda prevede di continuare a generare un forte flusso di cassa ed esplorare opportunità per migliorare la propria struttura di capitale, considerando strategie di allocazione del capitale volte a generare valore. Con un portafoglio ordini record, la direzione ritiene che l'azienda sia ben posizionata per una significativa crescita e un miglioramento della redditività nei prossimi anni. Inoltre, l'azienda non prevede impatti significativi da finanziamenti federali o preoccupazioni tariffarie, citando termini contrattuali protettivi e pratiche di esecuzione dei progetti.
Tutor Perini (NYSE: TPC) ha anunciado el pago de su deuda restante del Préstamo a Plazo B de aproximadamente 47 millones de dólares. Este último prepago representa un progreso significativo en los esfuerzos de reducción de deuda de la empresa, habiendo reducido la deuda total en 477 millones de dólares, o el 52%, desde el 31 de diciembre de 2023.
El CEO Gary Smalley destacó que un fuerte flujo de caja operativo permitió a la empresa superar los compromisos de reducción de deuda. La empresa espera seguir generando un fuerte flujo de caja y explorar oportunidades para mejorar su estructura de capital, considerando estrategias de asignación de capital que generen valor. Con una cartera de pedidos récord, la dirección cree que la empresa está bien posicionada para un crecimiento significativo y una mejora en la rentabilidad en los próximos años. Además, la empresa no anticipa impactos significativos de financiamiento federal o preocupaciones arancelarias, citando términos contractuales protectores y prácticas de ejecución de proyectos.
튜터 페리니 (NYSE: TPC)는 약 4,700만 달러의 남은 기간 대출 B 부채 상환을 발표했습니다. 이번 조기 상환은 2023년 12월 31일 이후 총 부채를 4억 7,700만 달러, 즉 52% 줄이는 데 있어 회사의 부채 축소 노력에 있어 중요한 진전을 나타냅니다.
CEO 게리 스몰리는 강력한 운영 현금 흐름이 회사가 부채 축소 약속을 초과 달성할 수 있게 했다고 강조했습니다. 회사는 앞으로도 강력한 현금 흐름을 생성하고 자본 구조를 개선할 수 있는 기회를 모색할 계획이며, 가치를 창출하는 자본 할당 전략을 고려하고 있습니다. 기록적인 수주 잔고를 보유한 경영진은 회사가 향후 몇 년 간 상당한 성장과 수익성 개선을 위한 좋은 위치에 있다고 믿고 있습니다. 또한, 회사는 연방 자금 지원이나 관세 문제로 인한 중대한 영향을 예상하지 않으며, 보호적인 계약 조건과 프로젝트 실행 관행을 언급했습니다.
Tutor Perini (NYSE: TPC) a annoncé le remboursement de sa dette restante du Prêt à Terme B d'environ 47 millions de dollars. Ce dernier remboursement anticipé représente un progrès significatif dans les efforts de désendettement de l'entreprise, ayant réduit la dette totale de 477 millions de dollars, soit 52%, depuis le 31 décembre 2023.
Le PDG Gary Smalley a souligné qu'un fort flux de trésorerie opérationnel a permis à l'entreprise de dépasser ses engagements de réduction de la dette. L'entreprise s'attend à continuer à générer un fort flux de trésorerie et à explorer des opportunités d'amélioration de sa structure de capital tout en considérant des stratégies d'allocation de capital génératrices de valeur. Avec un carnet de commandes record, la direction estime que l'entreprise est bien positionnée pour une croissance significative et une amélioration de la rentabilité dans les années à venir. L'entreprise ne prévoit également pas d'impact significatif des financements fédéraux ou des préoccupations tarifaires, citant des termes contractuels protecteurs et des pratiques d'exécution de projets.
Tutor Perini (NYSE: TPC) hat die Rückzahlung seiner verbleibenden Term Loan B-Schuld von etwa 47 Millionen Dollar angekündigt. Diese letzte Vorabzahlung stellt einen bedeutenden Fortschritt in den Entschuldungsbemühungen des Unternehmens dar, da die Gesamtschuld seit dem 31. Dezember 2023 um 477 Millionen Dollar oder 52% reduziert wurde.
CEO Gary Smalley hob hervor, dass der starke operative Cashflow es dem Unternehmen ermöglicht hat, die Verpflichtungen zur Schuldenreduzierung zu übertreffen. Das Unternehmen erwartet, weiterhin starken Cashflow zu generieren und Möglichkeiten zur Verbesserung seiner Kapitalstruktur zu erkunden, während es wertschöpfende Kapitalallokationsstrategien in Betracht zieht. Mit einem Rekordauftragsbestand ist das Management der Meinung, dass das Unternehmen gut positioniert ist für signifikantes Wachstum und verbesserte Rentabilität in den kommenden Jahren. Das Unternehmen rechnet außerdem nicht mit erheblichen Auswirkungen aus der Bundesfinanzierung oder tariflichen Bedenken, da es schützende vertragliche Bedingungen und Praktiken zur Projektdurchführung anführt.
- Paid off remaining $47 million Term Loan B debt
- Reduced total debt by $477 million (52%) since December 31, 2023
- Strong operating cash flow performance
- Record backlog indicating future growth potential
- Protected from federal funding and tariff risks through contractual terms
- None.
Insights
The accelerated payoff of Tutor Perini's
The rapid deleveraging, achieved through strong operating cash flow, positions TPC advantageously in the competitive construction sector where balance sheet strength often determines project win rates and bonding capacity. This financial flexibility becomes particularly valuable given the company's record backlog, as reduced interest expenses can flow directly to the bottom line, potentially expanding profit margins on future projects.
The company's proactive approach to material procurement - buying out materials and equipment at project inception - represents a sophisticated risk management strategy that effectively hedges against both supply chain disruptions and cost inflation. This practice, combined with carefully structured contractual terms, provides meaningful protection against potential federal funding uncertainties and tariff impacts that currently challenge the construction industry.
The timing of this debt reduction is particularly strategic, as it precedes what management anticipates will be a period of significant growth and improved profitability. With a strengthened balance sheet, TPC can potentially pursue larger, more complex projects that typically offer higher margins, while maintaining competitive pricing advantages from reduced financing costs.
“Our strong operating cash flow has enabled us to exceed our debt reduction commitments, further strengthening our balance sheet,” said Gary Smalley, Chief Executive Officer and President. “Looking ahead, we expect to continue generating strong cash flow, explore opportunities to further enhance our capital structure, and consider capital allocation strategies that will drive shareholder value. With our record backlog, we believe Tutor Perini’s business is well-positioned for significant growth and substantially improved profitability over the next several years. I will also point out that we currently do not anticipate any significant impacts related to recent federal funding or tariff concerns, based on an assessment of our contractual terms and project execution practices that involve buyouts of materials and equipment at the onset of projects.”
About Tutor Perini Corporation
Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private customers and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large, complex projects on time and within budget, while adhering to strict quality control measures. We offer general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of manpower, equipment, materials and subcontractors required for a project. We also offer self-performed construction services including site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing and heating, ventilation and air conditioning (HVAC).
Forward-Looking Statements
The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, statements regarding the Company’s future performance expectations and potential impacts due to changes in federal funding or tariffs. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential impacts on the Company. While the Company’s expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them, there can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: unfavorable outcomes of existing or future litigation or dispute resolution proceedings against us or customers (project owners, developers, general contractors, etc.), subcontractors or suppliers, as well as failure to promptly recover significant working capital invested in projects subject to such matters; revisions of estimates of contract risks, revenue or costs, economic factors such as inflation, the timing of new awards, or the pace of project execution, which has resulted and may continue to result in losses or lower than anticipated profit; contract requirements to perform extra work beyond the initial project scope, which has and in the future could result in disputes or claims and adversely affect our working capital, profits and cash flows; risks and other uncertainties associated with estimates and assumptions used to prepare our financial statements; failure to meet contractual schedule requirements, which could result in higher costs and reduced profits or, in some cases, exposure to financial liability for liquidated damages and/or damages to customers, as well as damage to our reputation; an inability to obtain bonding, which could have a negative impact on our operations and results; possible systems and information technology interruptions and breaches in data security and/or privacy; inability to attract and retain our key officers, and to adequately plan for their succession, and hire and retain personnel required to execute and perform on our contracts; the impact of inclement weather conditions, disasters and other catastrophic events outside of our control on projects; risks related to our international operations, such as uncertainty of
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Tutor Perini Corporation
Jorge Casado, 818-362-8391
Vice President, Investor Relations and Corporate Communications
www.tutorperini.com
Source: Tutor Perini Corporation
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