Tutor Perini updates executive severance agreements

Published 04/04/2025, 21:42
Tutor Perini updates executive severance agreements

Tutor Perini Corporation (NYSE:TPC), a leading construction company currently trading at $20.39, announced on Monday the revision of severance agreements for several top executives. The new terms provide enhanced benefits in cases of termination without cause or resignation for good reason. According to InvestingPro analysis, TPC’s stock has seen significant volatility, declining 8% in the past week despite showing strong potential with analysts setting price targets above $38.

The agreements, effective March 31, 2025, involve Ghassan M. Ariqat, Kristiyan D. Assouri, and Ryan J. Soroka, who hold key roles within the company. Under the updated terms, if any of these executives are terminated without cause or resign with good reason, they are entitled to severance equal to 150% of their annual base salary and target bonus. They would also receive a pro-rata bonus for the year of termination based on actual performance and full vesting of outstanding equity awards. While the company reported losses in the last twelve months, InvestingPro data indicates net income is expected to grow this year, with analysts forecasting a return to profitability.

Furthermore, if termination occurs within two years after or in certain cases six months before a change in control of the company, severance increases to 200% of the sum of base salary and target bonus. The agreements also stipulate that any stock options will remain valid until their maximum expiration date.

In the event of termination due to death or disability, the executives or their estates would receive a pro-rata bonus for the year of termination and full vesting of equity awards. Severance payments and benefits are contingent upon the execution of a general release of claims.

These changes reflect Tutor Perini’s commitment to its leadership team and provide a safety net for executives, aligning their interests with those of the company and its shareholders. The information is based on a press release statement from Tutor Perini Corporation, as filed with the SEC. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued, with multiple additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of TPC and 1,400+ other US stocks.

In other recent news, Tutor Perini Corporation reported a significant earnings per share loss of $1.51 for the fourth quarter of 2024, missing the expected EPS of $0.27. Despite this earnings shortfall, the company saw a 12% increase in full-year revenue, reaching $4.3 billion. The company also achieved a substantial reduction in net debt, which decreased by 85% to $79 million. Moody’s Ratings has revised Tutor Perini’s outlook to positive from stable, citing significant debt repayment and a record $18.7 billion backlog at the end of FY2024. The firm’s liquidity remains strong, with $455 million in cash and an undrawn $170 million revolving credit facility. Analysts from Moody’s estimate that Tutor Perini will generate $160-180 million in adjusted EBITDA in 2025, with leverage improving significantly. The positive outlook reflects expectations for an improvement in EBITDA and credit metrics over the next 12-18 months. Looking ahead, Tutor Perini has issued an EPS guidance for 2025 ranging from $1.50 to $1.90, with expectations of double-digit revenue growth driven by its substantial project backlog.

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