What the changes say
- Inflation, tariffs, and project execution risks now explicitly threaten profit margins on fixed-price and guaranteed maximum price contracts.
What changed since the prior 10-K
New
- NewRisks Related to Our Business and Operations
Economic factors, such as inflation, tariffs, the timing of new awards, or the pace of project execution, have resulted and may continue to result in losses or lower than anticipated profit
Economic factors like inflation and tariffs, plus the timing of new awards and project execution pace, can cause losses or lower profits.
- NewRisk Related to Our Stock Ownership
We cannot guarantee the timing, amount, or payment of dividends on our common stock or that we will repurchase our common stock pursuant to our stock repurchase program
Future common stock dividends and share repurchases under our buyback program are not guaranteed and depend on board discretion and financial conditions.
Dropped
- DroppedRisks Related to Our Business and Operations
The construction services industry is highly schedule driven, and our failure to meet the schedule requirements of our contracts could adversely affect our reputation and/or expose us to financial liability
Reworded
- 87% rewrittenRisks Related to Our Business and Operations
If we are unable to accurately estimate contract risks, revenue or costs, we may incur a loss or achieve lower than anticipated profit
Added risks regarding involvement in numerous legal proceedings that could harm reputation, cause working capital drains, or preclude future project bidding.
Was: If we are unable to accurately estimate contract risks; revenue or costs; economic factors such as inflation and tariffs; the timing of new awards; or the pace of project execution we may incur a loss or achieve lower than anticipated profit
- 56% rewrittenRisks Related to Our Business and Operations
Our actual results could differ from the estimates and assumptions used to prepare our financial statements
Clarified financial statement estimation areas including revenue recognition, unapproved change orders, warranty costs, and accounts collectability.
- 53% rewrittenRisks Related to Our Business and Operations
Systems and information technology interruption and breaches in data security and/or privacy could adversely impact our ability to operate and negatively impact our operating results
Added a warning that the increased prevalence and use of artificial intelligence may heighten future cybersecurity risks.
- 33% rewrittenRisks Related to Our Business and Operations
A significant slowdown or decline in economic conditions, such as those presented during a recession, could adversely affect our operations
Maintained economic recession and financial market instability risks regarding customer delays, project cancellations, and customer payment default.
- 31% rewrittenRisks Related to Our Business and Operations
We are subject to risks related to government contracts (including government shutdowns and funding considerations) and related procurement regulations
Maintained risks regarding government contracts, procurement regulations, audits, investigations, civil/criminal penalties, and terminations without cause.
Was: We are subject to risks related to government contracts and related procurement regulations
- 28% rewrittenRisks Related to Our Business and Operations
We may not fully realize the revenue value reported in our backlog due to cancellations or reductions in scope, including as a result of government-related mandates
Updated backlog figures, changing the uncompleted construction work value from approximately $18.7 billion in 2024 to $20.6 billion in 2025.
Was: We may not fully realize the revenue value reported in our backlog due to cancellations or reductions in scope
All 22 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business and Operations
- 01If we are unable to accurately estimate contract risks, revenue or costs, we may incur a loss or achieve lower than anticipated profit87% rewritten
- 02Our contracts often require us to perform extra work beyond the initial project scope, which can result in disputes or claims and adversely affect our working capital, profits and cash flows
- 03Economic factors, such as inflation, tariffs, the timing of new awards, or the pace of project execution, have resulted and may continue to result in losses or lower than anticipated profitNew
- 04Our actual results could differ from the estimates and assumptions used to prepare our financial statements56% rewritten
- 05A significant slowdown or decline in economic conditions, such as those presented during a recession, could adversely affect our operations33% rewritten
- 06Decreases or delays in the level of federal, state and local government spending for infrastructure and other public projects could adversely affect the number of projects available to us in the future
- 07Systems and information technology interruption and breaches in data security and/or privacy could adversely impact our ability to operate and negatively impact our operating results53% rewritten
- 08Weather conditions and other events outside our control can significantly affect our revenue and profitability
- 09We are subject to risks related to government contracts (including government shutdowns and funding considerations) and related procurement regulations31% rewritten
- 10Our international operations expose us to economic, political, regulatory and other risks, as well as uncertainty related to U.S. government funding, which could adversely affect our revenue and earnings
- 11Our participation in construction joint ventures exposes us to liability and/or harm to our reputation for failures by our partners
- 12We may not fully realize the revenue value reported in our backlog due to cancellations or reductions in scope, including as a result of government-related mandates28% rewritten
- 13Competition for new project awards is intense, and our failure to compete effectively could reduce our market share and profits
- 14We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws
- 15Public health crises, such as COVID-19, have adversely impacted, and could in the future adversely impact, our business, financial condition and results of operations
- 16Physical and regulatory risks related to climate change could have a material adverse impact on our business, financial condition and results of operations
Risks Related to Our Capital Structure
- 17An inability to obtain bonding could have a negative impact on our operations and results
- 18We have a substantial amount of indebtedness with restrictive covenants which could adversely affect our financial position and prevent us from fulfilling our obligations under our debt agreements
- 19Downgrades in our credit ratings could have a material adverse effect on our business and financial condition
Risk Related to Our Stock Ownership
- 20Our executive chairman could exert influence over the Company due to his position and significant ownership interest
- 21The market price of our common stock may fluctuate significantly, which could result in substantial losses for shareholders and subject us to litigation
- 22We cannot guarantee the timing, amount, or payment of dividends on our common stock or that we will repurchase our common stock pursuant to our stock repurchase programNew
Other Tutor Perini 10-Ks
- FY2024 10-K risk factors21 risks
Tutor Perini's risk profile is dominated by construction contract estimation, execution schedule pressures, and government spending dependence. The company faces significant financial exposure from joint ventures, bonding constraints, and high debt levels with restrictive covenants.
Filed Feb 27, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.