Tutor Perini initiates dividend and $200 million share repurchase program

LOS ANGELES - Tutor Perini Corporation (NYSE:TPC) announced Tuesday that its Board of Directors has declared a quarterly cash dividend of $0.06 per share and authorized a $200 million share repurchase program. This marks a significant shift for the construction company, which according to InvestingPro data, previously did not pay dividends to shareholders.

The construction company cited strong third quarter and year-to-date 2025 performance as the basis for these shareholder returns. Tutor Perini reported record year-to-date operating cash flow of $574.4 million, with $289.1 million generated in the third quarter alone, alongside record backlog of $21.6 billion. This robust cash generation has contributed to TPC's impressive 25% free cash flow yield and 142.8% year-to-date price return, as shown in InvestingPro data.

The quarterly dividend will be payable on December 23, 2025, to shareholders of record as of December 9, 2025. The company stated it expects to maintain comparable quarterly dividends, representing an annualized dividend of $0.24 per share.

Under the share repurchase program, Tutor Perini plans to purchase outstanding common shares in open market or privately negotiated transactions at the company's discretion, subject to market conditions. The timing appears strategic, as InvestingPro analysis indicates the stock is currently trading below its Fair Value, suggesting management sees the shares as undervalued despite the stock's nearly 98% price increase over the past year.

"Our business is performing exceptionally well this year, and we recently increased our 2025 earnings guidance for the third consecutive quarter," said Gary Smalley, Chief Executive Officer and President, in the press release.

Tutor Perini provides civil, building and specialty construction services, with capabilities in general contracting, pre-construction planning, and project management. The company often self-performs multiple project components including earthwork, concrete placement, steel erection, and various mechanical systems.

The announcement comes as the construction firm positions itself to capitalize on infrastructure investments across the United States.

In other recent news, Tutor Perini Corporation announced its Q3 2025 earnings, which exceeded analyst expectations. The company reported an adjusted earnings per share (EPS) of $1.15, significantly higher than the projected $0.60, marking a 91.67% surprise. Revenue for the quarter reached $1.42 billion, surpassing the anticipated $1.38 billion. These results highlight a robust performance for the company in the recent quarter. Analysts had forecasted lower figures, but Tutor Perini's actual results indicate stronger-than-expected financial health. The company's ability to exceed both earnings and revenue projections has been a notable development. These recent results could influence future analyst ratings and investor perceptions.

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