TUTOR PERINI CORP

Previous wording

The following discussion and analysis of our financial position as of June 30, 2026 and the results of our operations for the three and six months ended June 30, 2026 should be read in conjunction with other information, including the unaudited Condensed Consolidated Financial Statements and notes included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10‑Q, the audited consolidated financial statements and accompanying notes to our Annual Report on Form 10‑K for the year ended December 31, 2025, and the information contained under the heading “Risk Factors” in our Annual Report on Form 10‑K for the year ended December 31, 2025 and in Part II, Item 1A below.

Current wording

The following discussion and analysis of our financial position as of September 30, 2026 and the results of our operations for the three and nine months ended September 30, 2026 should be read in conjunction with other information, including the unaudited Condensed Consolidated Financial Statements and notes included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10‑Q, the audited consolidated financial statements and accompanying notes to our Annual Report on Form 10‑K for the year ended December 31, 2025, and the information contained under the heading “Risk Factors” in our Annual Report on Form 10‑K for the year ended December 31, 2025 and in Part II, Item 1A below.

Previous wording

•Physical and regulatory risks related to climate change; and

Current wording

•Physical and regulatory risks related to climate change;

Previous wording

•Impairment of goodwill or other indefinite-lived intangible assets;

Current wording

•Impairment of goodwill or other indefinite-lived intangible assets; and

Previous wording

Consolidated revenue for the three and six months ended June 30, 2026 was $1.6 billion and $3.0 billion, up 19.2% and 15.5% respectively, compared to $1.4 billion and $2.6 billion for the same periods in 2025. The Company's revenue for the second quarter of 2026 was the highest of any quarter ever, and revenue for the first six months of 2026 also set a new record for the first half of any year. The Civil segment's revenue also set records for these same periods. The Company experienced strong growth across all three segments in the second quarter and through the first six months of 2026 compared to the same periods last year, primarily driven by increased project execution activities on certain newer, larger and higher-margin projects that have significant scope of work remaining. These projects are in the early stages and are expected to ramp up substantially over the next few years.

Current wording

Consolidated revenue for the three and nine months ended September 30, 2026 was $1.7 billion and $4.7 billion, up 21.5% and 17.6%, respectively, compared to $1.4 billion and $4.0 billion for the same periods in 2025. The Company's revenue for the third quarter of 2026 was the highest of any quarter ever, and revenue for the first nine months of 2026 also set a new record for the first nine months of any year. The Civil segment's revenue also set records for these same periods. The Company experienced strong double-digit growth across all three segments in the third quarter and through the first nine months of 2026 compared to the same periods last year, primarily driven by increased project execution activities on certain newer, larger and higher-margin projects that have significant scope of work remaining.

Previous wording

Income from construction operations for the three months ended June 30, 2026 was a record $117.7 million, up 54.0% compared to $76.4 million for the same period in 2025, and the highest result of any quarter ever. The substantial increase was primarily driven by contributions associated with the increased project execution activities discussed above, as well as a significant decrease of $27.5 million in share-based compensation expense compared to the same period of 2025. The decrease in share-based compensation expense was primarily due to the absence of certain liability-classified awards that vested at the end of 2025.

Current wording

Income from construction operations for the three and nine months ended September 30, 2026 was $125.4 million and $302.3 million, up 212.8% and 66.3%, respectively, compared to $40.1 million and $181.8 million for the same periods in 2025. Income from construction operations for the third quarter of 2026 was the highest result of any quarter in the Company’s history, and the result for the first nine months of 2026 also set a new record for the first nine months of any year. The Civil segment's income from construction operations also set records for these same periods. The substantial increase for both periods of 2026 was primarily driven by contributions associated with the increased project execution activities discussed above. Both periods of 2026 were also positively impacted by a significant decrease in share-based compensation expense of $39.5 million and $43.5 million, respectively, compared to the same periods in 2025. The decrease in share-based compensation expense for both periods of 2026 was primarily due to the absence of certain liability-classified awards that vested at the end of 2025.

Previous wording

Income tax expense was $30.8 million and $47.8 million for the three and six months ended June 30, 2026, respectively, compared to $22.0 million and $34.9 million for the same periods in 2025. See Corporate, Tax and Other Matters below for a discussion of the change in the effective tax rate.

Current wording

Income tax expense was $11.1 million and $58.9 million for the three and nine months ended September 30, 2026, respectively, compared to $15.2 million and $50.0 million for the same periods in 2025. See Corporate, Tax and Other Matters below for a discussion of the change in the effective tax rate.

Previous wording

Diluted earnings per common share for the three and six months ended June 30, 2026 was $1.23 and $1.71, respectively, compared to $0.38 and $0.90 for the same periods in 2025. Adjusted diluted earnings per common share, which is a non-GAAP financial measure and excludes share-based compensation expense (and the associated tax benefit), for the three and six months ended June 30, 2026 was $1.74 and $2.77, respectively, compared to $1.41 and $2.06 for the same periods in 2025. The strong increase in diluted earnings per common share for both periods was primarily due to the factors discussed above that resulted in the change in income from construction operations. The strong increase in adjusted diluted earnings per common share reflects the same factors discussed above, excluding the impact of share-based compensation expense. Refer to the Non-GAAP Financial Measures section below for further information and a reconciliation of the Company's financial results reported under generally accepted accounting principles in the United States (“GAAP”) to the reported adjusted results.

Current wording

Diluted earnings per common share for the three and nine months ended September 30, 2026 was $0.39 and $2.09, respectively, compared to $0.07 and $0.97 for the same periods in 2025. Adjusted diluted earnings per common share, which is a non-GAAP financial measure and excludes share-based compensation expense, loss on extinguishment of debt and pension settlement charges (and the associated tax benefits of these adjustments), for the three and nine months ended September 30, 2026 was $1.83 and $4.59, respectively, compared to $1.15 and $3.22 for the same periods in 2025. The strong increase in diluted earnings per common share for both periods was primarily due to the factors discussed above that drove the record-setting income from construction operations in 2026. The strong increase in adjusted diluted earnings per common share reflects the same factors discussed above, excluding the impact of share-based compensation expense, loss on extinguishment of debt, and pension settlement charges. Refer to the Non-GAAP Financial Measures section below for further information and a reconciliation of the Company's financial results reported under generally accepted accounting principles in the United States (“GAAP”) to the reported adjusted results.

Previous wording

As discussed further in Liquidity and Capital Resources below, as of July 2, 2026, the Company completed the refinancing of its senior notes and entered into an amendment and restatement of its existing revolving credit facility, which, among other things, extended debt maturities, is expected to significantly reduce future interest expense, more than doubles the size of its available revolving credit facility and provides for meaningfully improved terms.

Current wording

As discussed further in Liquidity and Capital Resources below, as of July 2, 2026, the Company completed the refinancing of its 2024 Senior Notes and entered into an amendment and restatement of its existing revolving credit facility, which, among other things, extended debt maturities, is expected to significantly reduce future interest expense, more than doubled the size of its available revolving credit facility and provided meaningfully improved terms. As a result of this transaction, the Company recognized a one-time loss on extinguishment of debt of $51.4 million ($0.70 per diluted share, after tax) for the three and nine months ended September 30, 2026, which consisted of a $35.6 million cash redemption premium and $15.8 million of non-cash expense related to the acceleration of previously unamortized discounts and deferred financing costs.

Previous wording

Consolidated new awards for the three and six months ended June 30, 2026 totaled $1.7 billion and $2.3 billion, respectively, compared to $3.1 billion and $5.0 billion for the same periods in 2025. The decrease was merely due to the timing of project awards, as the Company continues to see strong customer demand and a robust pipeline of bidding opportunities across its end markets. The Civil segment was the primary contributor to the new awards activity in the second quarter of 2026. The most significant new awards and contract adjustments in the second quarter of 2026 included a $652 million military facilities project in Guam; two military facility projects in Alaska collectively valued at $143 million; $130 million of additional funding for a healthcare facility project in Texas; a $114 million education facility project in Mississippi; and a $106 million bridge project in Minnesota. The Company has been successful in winning its share of major new project opportunities over the past several years due to a combination of its strategic bidding approach and favorable market dynamics, including limited competition in select markets for some of the larger projects. This environment, which is supported by strong public funding and demand, has allowed the Company to differentiate itself and deliver compelling proposals that align with the customer’s goals and expectations. The Company expects that this environment will continue for the foreseeable future.

Current wording

Consolidated new awards for the three and nine months ended September 30, 2026 totaled $2.2 billion and $4.5 billion, respectively, compared to $2.0 billion and $7.0 billion for the same periods in 2025. The decrease for the nine-month period of 2026 primarily reflects an unusually strong period of major project lettings and successful awards in the comparable 2025 period, together with fewer significant opportunities reaching the award stage in 2026. Importantly, the Company's overall pipeline of prospective opportunities has continued to expand substantially. The Company expects a significant number of large opportunities to bid in 2027, all of which are well aligned with the Company's disciplined bidding strategy and preferred contractual and margin characteristics. All three segments were significant contributors to the new awards activity in the third quarter of 2026. The most significant new awards and contract adjustments in the third quarter of 2026 included $1.0 billion of additional work for a Civil segment project (which includes a substantial amount of electrical and mechanical scope of work that is expected to be performed by the Specialty Contractors segment); several Building segment federal government projects that totaled $577 million; $145 million of new awards and additional funding for various military facility projects in the Indo-Pacific region; various bridge projects in the Midwest that totaled $126 million; $108 million of additional funding for a hospitality and gaming project in Oklahoma; and $89 million of additional funding for several mass-transit projects in California. The Company has been successful in winning its share of major new project opportunities over the past several years due to a combination of its strategic bidding approach and favorable market dynamics, including limited competition in select markets for some of the larger projects. This environment, which is reflected by a bidding pipeline of more than $200 billion over the next several years and supported by strong public funding and demand, has allowed the Company to differentiate itself and deliver compelling proposals that align with the customer’s goals and expectations. The Company expects that this environment will continue for the foreseeable future.

Previous wording

Consolidated backlog as of June 30, 2026 was $19.9 billion, up slightly compared to $19.8 billion at the end of the first quarter of 2026, and down 6% compared to $21.1 billion at the end of the second quarter of 2025. As of June 30, 2026, the mix of backlog by segment was approximately 50% for Civil, 35% for Building and 15% for Specialty Contractors.

Current wording

Consolidated backlog as of September 30, 2026 was $20.4 billion, up compared to $19.9 billion at the end of the second quarter of 2026, and down 6% compared to $21.6 billion at the end of the third quarter of 2025. As of September 30, 2026, the mix of backlog by segment was approximately 49% for Civil, 35% for Building and 16% for Specialty Contractors. The quality of the Company’s backlog remains exceptional and includes several higher-margin, long-duration projects with favorable contractual terms and substantial scope of work remaining.

Previous wording

The Bipartisan Infrastructure Law was enacted into law in November 2021 and provided for $1.2 trillion of federal infrastructure funding, including $550 billion in new spending for improvements to the country’s surface-transportation network and enhancements to core infrastructure. The Bipartisan Infrastructure Law initiated the largest federal investment in public transit ever, the single largest dedicated bridge investment since the construction of the interstate highway system and the largest federal investment in passenger rail since the creation of Amtrak, all in addition to providing for regular annual spending for numerous infrastructure projects. This significant incremental funding is anticipated to be spent over the 10 years from its enactment through 2031, and much of it is allocated for investment in end markets that are directly aligned with our market focus. Accordingly, we believe that this significant funding has benefited, and will continue to favorably impact, our current work and prospective opportunities over the next several years. While the current funding window for the Bipartisan Infrastructure Law closes on September 30, 2026, we believe that Congress recognizes the long-term nature of infrastructure projects. Congress is currently engaged in the legislative process to secure future funding beyond that date through the BUILD America 250 Act (H.R. 8870), a major $580 billion bipartisan surface transportation reauthorization bill. The final amount and composition of future funding from this bill is yet to be determined. Overall, our major projects are less reliant on federal funding provided by the Bipartisan Infrastructure Law (and its successors) than on the more substantial state and local funding that has historically supported, and is expected to continue supporting, such projects. In addition, various existing projects and future project opportunities in Guam and the Indo-Pacific region are being funded by the U.S. government’s Pacific Deterrence Initiative, which provides substantial multi-year funding to support significant improvements that enhance the U.S. military’s infrastructure and readiness. Finally, there are various large infrastructure projects across the U.S. for which future funding may be provided, in part or entirely, through public-private partnership (P3) arrangements, which would include mostly private capital investments.

Current wording

The Bipartisan Infrastructure Law was enacted into law in November 2021 and provided for $1.2 trillion of federal infrastructure funding, including $550 billion in new spending for improvements to the country’s surface-transportation network and enhancements to core infrastructure. The Bipartisan Infrastructure Law initiated the largest federal investment in public transit ever, the single largest dedicated bridge investment since the construction of the interstate highway system and the largest federal investment in passenger rail since the creation of Amtrak, all in addition to providing for regular annual spending for numerous infrastructure projects. This significant incremental funding is anticipated to be spent over the 10 years from its enactment through 2031, and much of it is allocated for investment in end markets that are directly aligned with our market focus. Accordingly, we believe that this significant funding has benefited, and will continue to favorably impact, our current work and prospective opportunities over the next several years. Although the funding window for the Bipartisan Infrastructure Law closed on September 30, 2026, Congress has temporarily extended surface transportation program authorizations under the Bipartisan Infrastructure Law through December 11, 2026, to provide additional time to negotiate full-year appropriations. We believe that Congress recognizes the long-term nature of infrastructure projects and is currently engaged in the legislative process to secure future funding through the BUILD America 250 Act (H.R. 8870), a major $580 billion bipartisan surface transportation reauthorization bill. The final amount and composition of future funding from this bill is yet to be determined. Overall, our major projects are less reliant on federal funding provided by the Bipartisan Infrastructure Law (and its successors) than on the more substantial state and local funding that has historically supported, and is expected to continue supporting, such projects. In addition, various existing projects and future project opportunities in Guam and the Indo-Pacific region are being funded by the U.S. government’s Pacific Deterrence Initiative, which provides substantial multi-year funding to support significant improvements that enhance the U.S. military’s infrastructure and readiness. Finally, there are various large infrastructure projects across the U.S. for which future funding may be provided, in part or entirely, through public-private partnership (P3) arrangements, which would include mostly private capital investments.

Previous wording

To supplement our unaudited Condensed Consolidated Financial Statements presented under GAAP, we are presenting certain non-GAAP financial measures. These non-GAAP financial measures exclude items that are not reflective of ongoing business operations, including share-based compensation expense for the three and six months ended June 30, 2026 and 2025 (as well as the associated tax benefit), and for the second half of 2026, adjustments will also include certain pension settlement, debt extinguishment and refinancing costs (as well as the associated tax impacts). These non-GAAP financial measures are intended to provide additional insights that facilitate the comparison of our past and present performance, and they are among the indicators management uses to assess the Company’s financial performance and to forecast future performance. By presenting these non-GAAP financial measures, we aim to provide investors and stakeholders with a clearer understanding of our operating results and enhance transparency with respect to the key financial metrics used by our management in its financial and operational decision-making.

Current wording

To supplement our unaudited Condensed Consolidated Financial Statements presented under GAAP, we are presenting certain non-GAAP financial measures. These non-GAAP financial measures exclude items that are not reflective of ongoing business operations, including share-based compensation expense, loss on extinguishment of debt and pension settlement charges (as well as the associated tax benefits of these adjustments) for the three and nine months ended September 30, 2026 and 2025. These non-GAAP financial measures are intended to provide additional insights that facilitate the comparison of our past and present performance, and they are among the indicators management uses to assess the Company’s financial performance and to forecast future performance. By presenting these non-GAAP financial measures, we aim to provide investors and stakeholders with a clearer understanding of our operating results and enhance transparency with respect to the key financial metrics used by our management in its financial and operational decision-making.

Previous wording

These non-GAAP financial measures consist of adjusted net income attributable to the Company and adjusted diluted earnings per share. We exclude share-based compensation expense because this expense could result in significant volatility in our reported earnings, driven primarily by fluctuations in the expense recognized for certain long-term incentive compensation awards with payouts that are indexed to the Company’s common stock. By adjusting for share-based compensation, our non-GAAP measures present a supplemental depiction of our operational performance and financial health. This approach allows stakeholders to focus on our core operational efficiency and profitability without the variable impact to earnings caused by significant changes in our stock price. Our non-GAAP measures are intended to offer a consistent basis for evaluating the Company’s performance, which management believes is meaningful to stakeholders.

Current wording

These non-GAAP financial measures consist of adjusted net income attributable to the Company and adjusted diluted earnings per share. We exclude share-based compensation expense because this expense could result in significant volatility in our reported earnings, driven primarily by fluctuations in the expense recognized for certain long-term incentive compensation awards with payouts that are indexed to the Company’s common stock. This approach allows stakeholders to focus on our core operational efficiency and profitability without the variable impact to earnings caused by significant changes in our stock price. We also exclude the loss on extinguishment of debt and the pension settlement charge, as these represent one-time charges that are not reflective of the Company’s operational performance. By adjusting for these expenses, our non-GAAP measures present a supplemental depiction of our operational performance and financial health. Our non-GAAP measures are intended to offer a consistent basis for evaluating the Company’s performance, which management believes is meaningful to stakeholders.

Previous wording

(a)The amount represents share-based compensation expense recorded during the three and six months ended June 30, 2026 and 2025. This includes expense associated with certain long-term incentive compensation awards that have payouts indexed to the Company’s common stock. As such, significant fluctuations in the price of the Company’s common stock during any reporting period have caused and could continue to cause significant fluctuations in the reported expense.

Current wording

(a)The amount represents share-based compensation expense recorded during the three and nine months ended September 30, 2026 and 2025. This includes expense associated with certain long-term incentive compensation awards that have payouts indexed to the Company’s common stock. As such, significant fluctuations in the price of the Company’s common stock during any reporting period have caused and could continue to cause significant fluctuations in the reported expense.

Previous wording

Revenue for the three and six months ended June 30, 2026 set all-time records for each respective period and increased 11.2% and 12.6%, respectively, compared to the same periods in 2025. For both periods of 2026, the growth was primarily due to increased project execution activities on two large mass-transit projects and a tunneling project in the Northeast, all of which have substantial scope of work remaining.

Current wording

Revenue for the three and nine months ended September 30, 2026 increased 16.0% and 13.9%, respectively, compared to the same periods in 2025. Revenue for the third quarter of 2026 set a record as the highest result of any quarter ever, and revenue for the first nine months of 2026 also set a record as the highest result of any comparable period. For both periods of 2026, the growth was primarily due to increased project execution activities on several large projects in the Northeast and the Indo-Pacific region, all of which have substantial scope of work remaining.

Previous wording

Income from construction operations for the three months ended June 30, 2026 was $124.5 million compared to $140.1 million for the same period in 2025. The decrease for the second quarter of 2026 was primarily due to the absence of a prior-year favorable adjustment of $28.0 million related to the settlement of certain change orders, as well as changes in estimates due to improved performance on a mass-transit project in the Midwest. The decrease was mostly offset by contributions associated with the increased current-year project execution activities discussed above.

Current wording

Income from construction operations for the three months ended September 30, 2026 was $125.2 million, the highest result of any third quarter ever, compared to $99.2 million for the same period in 2025. The increase for the third quarter of 2026 was primarily due to contributions associated with the increased current-year project execution activities discussed above.

Previous wording

Income from construction operations for the six months ended June 30, 2026 was $212.3 million compared to $219.7 million for the same period in 2025. The six-month period of 2026 was impacted by the same factors discussed above for the second quarter of 2026, including strong contributions associated with the aforementioned increased project execution activities. The first six months of 2026 was also impacted by an unfavorable adjustment of $16.4 million in the first quarter of 2026 on a mass-transit project in California, primarily due to changes in estimates resulting from ongoing negotiations of change orders with the owner and subcontractors, as well as other temporary impacts related to unapproved change orders.

Current wording

Income from construction operations for the nine months ended September 30, 2026 was $337.5 million, the highest result of the first nine-month period of any year, compared to $318.9 million for the same period in 2025. The increase for the nine-month period of 2026 was primarily due to strong contributions associated with the aforementioned increased project execution activities. The improvement for the first nine months of 2026 was partially offset by an unfavorable adjustment of $16.4 million in the first quarter of 2026 on a mass-transit project in California, primarily due to changes in estimates resulting from ongoing negotiations of change orders with the owner and subcontractors, as well as other temporary impacts related to unapproved change orders. Subsequently, the change orders with the owner were successfully negotiated and are expected to result in significant future cash collections in the near term. The increase was also partially offset by the absence of a prior-year favorable adjustment of $28.0 million related to the settlement of certain change orders, as well as changes in estimates due to improved performance on a mass-transit project in the Midwest.

Previous wording

Operating margin was 15.3% and 14.0%, respectively, for the three and six months ended June 30, 2026 compared to 19.1% and 16.3% for the same periods in 2025. The change in operating margins was principally due to the above-mentioned factors that drove the changes in revenue and income from construction operations.

Current wording

Operating margin was 14.0% and 14.0%, respectively, for the three and nine months ended September 30, 2026 compared to 12.9% and 15.1% for the same periods in 2025. The modest change in operating margins was principally due to the above-mentioned factors that drove the changes in revenue and income from construction operations.

Previous wording

New awards and contract adjustments in the Civil segment totaled $1.0 billion and $1.2 billion for the three and six months ended June 30, 2026, respectively, compared to $2.2 billion and $3.7 billion for the same periods in 2025. The most significant new awards and contract adjustments in the second quarter of 2026 included a $652 million military facilities project in Guam and a $106 million bridge project in Minnesota. The most significant new awards and contract adjustments in the second quarter of 2025 included the $1.87 billion Midtown Bus Terminal Replacement - Phase 1 project in New York; two civil works projects in the Midwest collectively valued at $127 million; and $90 million of additional funding for a mass-transit project in California.

Current wording

New awards and contract adjustments in the Civil segment totaled $1.1 billion and $2.3 billion for the three and nine months ended September 30, 2026, respectively, compared to $112.0 million and $3.8 billion for the same periods in 2025. The most significant new awards and contract adjustments in the third quarter of 2026 included the Civil segment’s portion of the $1.0 billion of additional work for an existing project (which includes a substantial amount of electrical and mechanical scope of work that is expected to be performed by the Specialty Contractors segment); $145 million of new awards and additional funding for various military facility projects in the Indo-Pacific region; various bridge projects in the Midwest that totaled $126 million; and $89 million of additional funding for several mass-transit projects in California. Notably, the nine-month period of 2025 included two major new awards, both in New York: the $1.87 billion Midtown Bus Terminal Replacement - Phase 1 project and the $1.18 billion Manhattan Tunnel project.

Previous wording

Backlog for the Civil segment was $9.8 billion as of June 30, 2026, down 11.9% compared to$11.2 billion as of June 30, 2025. The segment continues to experience strong demand reflected in a large, multi-year pipeline of prospective projects, and supported by substantial anticipated funding from various voter-approved state and local transportation measures, the Bipartisan Infrastructure Law, and by public agencies’ long-term spending plans. We believe that the Civil segment is well-positioned to continue capturing its share of these prospective projects later this year and over the next several years, with the majority of near-term opportunities in the Indo-Pacific region, as well as in California, the Midwest, and the Northeast.

Current wording

Backlog for the Civil segment was$10.0 billion as of September 30, 2026 compared to$10.5 billion as of September 30, 2025. The segment continues to experience strong demand reflected in a large, multi-year pipeline of prospective projects, and supported by substantial anticipated funding from various voter-approved state and local transportation measures, the Bipartisan Infrastructure Law, and by public agencies’ long-term capital spending plans. We believe that the Civil segment is well-positioned to continue capturing its share of these prospective projects over the next several years, with the majority of near-term opportunities in the Indo-Pacific region, as well as in California, the Midwest, and the Northeast.

Previous wording

Revenue for the three and six months ended June 30, 2026 increased 21.1% and 12.0%, respectively, compared to the same periods in 2025. For both periods of 2026, the growth was primarily due to increased project execution activities on two large detention facility projects in New York and a large healthcare facility project in California, all of which have significant scope of work remaining.

Current wording

Revenue for the three and nine months ended September 30, 2026 increased 29.1% and 17.3%, respectively, compared to the same periods in 2025. For both periods of 2026, the growth was primarily due to increased project execution activities on two large detention facility projects in New York and various healthcare facility and hospitality and gaming projects in California, all of which have significant scope of work remaining.

Previous wording

Income from construction operations for the three and six months ended June 30, 2026 was $31.3 million and $47.6 million, up 39.3% and 44.7% respectively, compared to $22.5 million and $32.9 million for the same periods in 2025. The strong increase for both periods of 2026 was primarily due to higher-margin contributions related to the increased project execution activities discussed above.

Current wording

Income from construction operations for the three and nine months ended September 30, 2026 was $27.2 million and $74.8 million, up 88.0% and 57.9% respectively, compared to $14.4 million and $47.4 million for the same periods in 2025. The strong increase for both periods of 2026 was primarily due to higher-margin contributions related to the increased project execution activities discussed above.

Previous wording

Operating margin was 5.6% and 4.6% for the three and six months ended June 30, 2026, respectively, compared to 4.9% and 3.6% for the same periods in 2025. The increased operating margins were principally due to the above-mentioned factors that drove the increase in income from construction operations.

Current wording

Operating margin was 5.0% and 4.8% for the three and nine months ended September 30, 2026, respectively, compared to 3.4% and 3.5% for the same periods in 2025. The increased operating margins were principally due to the above-mentioned factors that drove the increase in income from construction operations.

Previous wording

Backlog for the Building segment was $7.0 billion as of June 30, 2026 compared to $6.9 billion as of June 30, 2025. The Building segment continues to experience strong customer demand as reflected by a large volume of prospective projects across various end markets, including healthcare, education, transportation, industrial/manufacturing, and hospitality and gaming. In addition, there are certain healthcare, education, and hospitality and gaming projects underway that are in the preconstruction phase, with only a small portion of their full anticipated value included in our reported backlog. These projects are expected to transition from preconstruction to construction over the next few years, and they include a large, multi-billion-dollar healthcare project in California that is anticipated to be incrementally added to backlog over the next two years.

Current wording

Backlog for the Building segment was $7.2 billion as of September 30, 2026 compared to $7.9 billion as of September 30, 2025. The Building segment continues to experience strong customer demand as reflected by a large volume of prospective projects across various end markets, including healthcare, education, transportation, industrial/manufacturing, and hospitality and gaming. In addition, there are certain healthcare, education, and hospitality and gaming projects underway that are in the preconstruction phase, with only a small portion of their full anticipated value included in our reported backlog. These projects are expected to transition from preconstruction to construction over the next few years, and they include a large, multi-billion-dollar healthcare project in California that is anticipated to be incrementally added to backlog over the next two years.

Previous wording

Revenue for the three and six months ended June 30, 2026 increased 47.3% and 35.5%, respectively, compared to the same periods in 2025. The strong growth for both periods of 2026 was primarily due to increased project execution activities on various newer projects across diverse end markets, including the segment’s role in supporting the electrical and mechanical components of several of the Company's newer megaprojects and a healthcare facility in Texas. Many of these projects are in the early stages and are expected to ramp up substantially over the next few years.

Current wording

Revenue for the three and nine months ended September 30, 2026 increased 26.4% and 32.0%, respectively, compared to the same periods in 2025. The strong double-digit growth for both periods of 2026 was primarily due to increased project execution activities on various newer projects across diverse end markets, including the segment’s role in supporting the electrical and mechanical components of certain of the Company's newer megaprojects in New York, as well as healthcare facility and data center infrastructure projects in Texas.

Previous wording

Income from construction operations for the three and six months ended June 30, 2026 was $5.7 million and $6.3 million, respectively, compared to a loss from construction operations of $18.0 million and $25.1 million for the same periods of 2025. The significant improvement for both periods of 2026 was primarily due to contributions related to the increased project execution activities discussed above, as well as the absence of certain prior-year unfavorable adjustments totaling $14.6 million related to the settlement of certain legacy claims in the Northeast in the second quarter of 2025, none of which were individually material.

Current wording

Income from construction operations for the three and nine months ended September 30, 2026 was $10.1 million and $16.4 million, respectively, compared to income from construction operations of $6.2 million and loss from construction operations of $19.0 million for the same periods of 2025. The significant improvement for both periods of 2026 was primarily due to contributions related to the increased project execution activities discussed above.

Previous wording

Operating margin was 2.2% and 1.3% for the three and six months ended June 30, 2026, respectively, compared to (10.2)% and (7.1)% for the same periods in 2025. The operating margin improvements were principally due to the aforementioned factors that drove the increases in revenue and income (loss) from construction operations.

Current wording

Operating margin was 3.5% and 2.1% for the three and nine months ended September 30, 2026, respectively, compared to 2.7% and (3.3)% for the same periods in 2025. The operating margin improvements were principally due to the aforementioned factors that drove the increases in revenue and income (loss) from construction operations.

Previous wording

Backlog for the Specialty Contractors segment was $3.0 billion as of June 30, 2026, level with $3.0 billion as of June 30, 2025. The Specialty Contractors segment continues to be primarily focused on servicing the Company’s current and prospective large Civil and Building segment projects, particularly in the Northeast and California. Approximately two-thirds of the segment’s backlog represents electrical and mechanical projects that are being performed for the Civil and Building segments. We believe that the segment remains well-positioned to continue capturing its share of other new projects.

Current wording

Backlog for the Specialty Contractors segment was $3.2 billion as of September 30, 2026, consistent with the level as of September 30, 2025. The Specialty Contractors segment continues to be primarily focused on servicing the Company’s current and prospective large Civil and Building segment projects, particularly in the Northeast and California. Approximately two-thirds of the segment’s backlog represents electrical and mechanical projects that are being performed for the Civil and Building segments. We believe that the segment remains well-positioned to continue capturing its share of other new projects.

Previous wording

Corporate general and administrative expenses were $41.7 million and $87.2 million during the three and six months ended June 30, 2026, respectively, compared to $68.1 million and $85.7 million for the same periods in 2025. The decrease in corporate general and administrative expenses in the second quarter of 2026 compared to 2025 was primarily due to lower share-based compensation expense. The decrease in share-based compensation expense was primarily driven by the absence of certain liability-classified awards that vested at the end of 2025. Liability-classified awards are remeasured at fair value at the end of each reporting period with the change in fair value recognized in earnings. The Company currently projects a decrease in share-based compensation expense over the remainder of 2026 as compared to 2025, and a much more significant decrease in 2027 as certain such awards have vested and most of the remaining liability-classified awards will vest by the end of 2026. After the Company’s shareholders approved additional shares under the Plan in May 2025, the Company stopped awarding liability-classified, long-term incentive compensation awards, which will help to reduce future earnings volatility.

Current wording

Corporate general and administrative expenses were $37.1 million and $124.3 million during the three and nine months ended September 30, 2026, respectively, compared to $79.7 million and $165.4 million for the same periods in 2025. The decrease in corporate general and administrative expenses in both periods of 2026 compared to 2025 was primarily due to lower share-based compensation expense. The decrease in share-based compensation expense was primarily driven by the absence of certain liability-classified awards that vested at the end of 2025. Liability-classified awards are remeasured at fair value at the end of each reporting period with the change in fair value recognized in earnings. The Company currently projects a decrease in share- based compensation expense over the remainder of 2026 as compared to 2025, and a much more significant decrease in 2027 as certain such awards have vested and most of the remaining liability-classified awards will vest by the end of 2026. After the Company’s shareholders approved additional shares under the Plan in May 2025, the Company stopped awarding liability-classified, long-term incentive compensation awards, which will help to reduce future earnings volatility.

Previous wording

Other Income, Net, Interest Expense and Income Tax Expense

Current wording

Other Income, Net, Interest Expense, Loss on Extinguishment of Debt, Pension Settlement Charge and Income Tax Expense

Previous wording

Other income, net, for the three and six months ended June 30, 2026 increased $4.6 million and $10.7 million, respectively, compared to the same periods in 2025.

Current wording

Other income, net, for the three and nine months ended September 30, 2026 increased $8.5 million and $19.3 million, respectively, compared to the same periods in 2025 primarily due to higher interest income earned on greater average cash and cash equivalent balances during 2026.

Previous wording

Interest expense for the three and six months ended June 30, 2026 increased $0.1 million and decreased $0.8 million, respectively, compared to the same periods in 2025. As a result of the refinancing of its senior notes completed on July 2, 2026, discussed further in Liquidity and Capital Resources below, the Company expects annualized cash interest expense savings of $21.0 million.

Current wording

Interest expense for the three and nine months ended September 30, 2026 decreased $6.2 million and $7.1 million, respectively, compared to the same periods in 2025, primarily due to the Company’s successful refinancing of its senior notes on July 2, 2026. As a result of the refinancing, discussed further in Liquidity and Capital Resources below, the interest rate on the Company’s senior note borrowings was reduced from 11.875% to 6.625%, and the Company expects annualized cash interest expense savings of $21.0 million.

Previous wording

The Company recognized income tax expense of $30.8 million and $47.8 million for the three and six months ended June 30, 2026 resulting in an effective income tax rate of 26.8% and 27.9%, respectively. The effective income tax rate for the three and six months ended June 30, 2026 was higher than the 21.0% federal statutory income tax rate primarily due to non-deductible expenses and state income taxes (net of federal tax benefit), partially offset by earnings attributable to noncontrolling interests (for which income taxes are not the responsibility of the Company) and federal income tax credits.

Current wording

The Company recognized income tax expense of $11.1 million and $58.9 million for the three and nine months ended September 30, 2026 resulting in an effective income tax rate of 22.7% and 26.7%, respectively. The Company recognized income tax expense of $15.2 million and $50.0 million for the three and nine months ended September 30, 2025 resulting in an effective income tax rate of 44.6% and 31.5%, respectively. The effective income tax rates for each of these periods were higher than the 21.0% federal statutory income tax rate primarily due to non-deductible expenses and state income taxes (net of federal tax benefit), partially offset by earnings attributable to noncontrolling interests (for which income taxes are not the responsibility of the Company) and federal income tax credits. The decrease in the effective tax rates for the 2026 periods compared to the same periods in 2025 was primarily due to the lower non-deductible share-based compensation expenses in 2026.

Previous wording

Liquidity is provided by available cash and cash equivalents, cash generated from operations, credit facilities and access to capital markets. We have a committed line of credit totaling $170.0 million as of June 30, 2026 (increased to $350.0 million effective July 2, 2026, as discussed further below in Debt), which may be used for revolving loans, letters of credit and/or general purposes. We believe that cash generated from operations, along with our unused credit capacity and available cash balances as of June 30, 2026, will be sufficient to fund working capital needs, dividends, share repurchases, and debt maturities for the next 12 months and beyond. We generated a record amount of operating cash in the first six months of 2026, as discussed below in Cash and Working Capital. We expect strong operating cash flow to continue in the second half of 2026 and beyond, both from project execution activities and the resolution of outstanding claims and change orders. In addition, over the next two years we expect to continue to benefit from the utilization of available net operating loss carryforwards to reduce our cash outflows for income taxes. We also explore repayments or refinancings of our outstanding indebtedness and share repurchases from time to time based on our cash needs, credit strength and market conditions.

Current wording

Liquidity is provided by available cash and cash equivalents, cash generated from operations, credit facilities and access to capital markets. We had a committed and unused line of credit totaling $350.0 million as of September 30, 2026, which may be used for revolving loans, letters of credit and/or general purposes. We believe that cash generated from operations, along with our unused credit capacity and available cash balances as of September 30, 2026, will be sufficient to fund working capital needs, dividends, share repurchases, and debt maturities for the next 12 months and beyond. We generated a record amount of operating cash in the first nine months of 2026, as discussed below in Cash and Working Capital. We expect strong operating cash flow to continue in the fourth quarter of 2026 and beyond, both from project execution activities and the resolution of outstanding claims and change orders. In addition, we expect to continue to benefit from the utilization of available net operating loss carryforwards to reduce our cash outflows for income taxes through the end of 2027. We also explore repayments or refinancings of our outstanding indebtedness and share repurchases from time to time based on our cash needs, credit strength and market conditions.

Previous wording

As discussed further in Debt below, as of July 2, 2026, we completed the refinancing of our senior notes and entered into an amendment and restatement of our existing revolving credit facility, which, among other things, extends debt maturities, is expected to significantly reduce future interest expense, more than doubles the size of our available revolving credit facility and provides for meaningfully improved terms.

Current wording

As discussed further in Debt below, as of July 2, 2026, we completed the refinancing of our senior notes and entered into an amendment and restatement of our existing revolving credit facility, which, among other things, extended debt maturities, is expected to significantly reduce future interest expense, more than doubled the size of our available revolving credit facility and provided meaningfully improved terms.

Previous wording

Cash and cash equivalents were $938.2 million as of June 30, 2026 compared to $734.6 million as of December 31, 2025. Cash immediately available for general corporate purposes was $423.5 million and $270.7 million as of June 30, 2026 and December 31, 2025, respectively, with the remainder being amounts held by our consolidated joint ventures and also our proportionate share of cash held by our unconsolidated joint ventures. Cash held by our joint ventures is available only for joint venture-related uses, including distributions to joint venture partners. In addition, our restricted cash and restricted investments totaled $277.8 million as of June 30, 2026 compared to $264.6 million as of December 31, 2025. Restricted cash and restricted investments at June 30, 2026 were primarily held to secure insurance-related contingent obligations and deposits.

Current wording

Cash and cash equivalents were $1.1 billion as of September 30, 2026 compared to $734.6 million as of December 31, 2025. Cash immediately available for general corporate purposes was $504.2 million and $270.7 million as of September 30, 2026 and December 31, 2025, respectively, with the remainder being amounts held by our consolidated joint ventures and also our proportionate share of cash held by our unconsolidated joint ventures. Cash held by our joint ventures is available only for joint venture-related uses, including distributions to joint venture partners. In addition, our restricted cash and restricted investments totaled $327.8 million as of September 30, 2026 compared to $264.6 million as of December 31, 2025. Restricted cash and restricted investments at September 30, 2026 were primarily held to secure insurance-related contingent obligations and deposits.

Previous wording

During the six months ended June 30, 2026, net cash provided by operating activities was $334.1 million, the largest result for the first six months of any year. The record operating cash flow for the first six months of 2026 was driven by higher volume and strong execution and collections on profitable projects. During the six months ended June 30, 2025, net cash provided by operating activities was $285.3 million. The net cash provided by operating activities for the 2025 period was primarily due to advanced payments on newer projects for mobilization and other initial project costs and collections related to dispute resolutions.

Current wording

During the nine months ended September 30, 2026, net cash provided by operating activities was $665.1 million, the largest result for the first nine months of any year, breaking the previous record set in the 2025 period of $574.4 million. The operating cash flow for the first nine months of both 2026 and 2025 was driven by higher volume and strong execution and collections on profitable projects, and to a lesser extent, from collections related to dispute resolutions.

Previous wording

Net cash used in investing activities during the first six months of 2026 was $91.7 million primarily due to the acquisition of property and equipment for projects (i.e., capital expenditures) totaling $51.7 million and net cash used in investment transactions of $44.2 million. Net cash used in investing activities during the first six months of 2025 was $67.7 million primarily due to the acquisition of property and equipment for projects totaling $56.9 million and other net cash used in investment transactions of $15.0 million.

Current wording

Net cash used in investing activities during the first nine months of 2026 was $157.3 million primarily due to the acquisition of property and equipment for projects (i.e., capital expenditures) totaling $91.3 million and net cash used in investment transactions of $71.1 million. Net cash used in investing activities during the first nine months of 2025 was $130.9 million primarily due to the acquisition of property and equipment for projects totaling $105.9 million and net cash used in investment transactions of $30.2 million.

Previous wording

Net cash used in financing activities was $67.5 million for the first six months of 2026, which was primarily driven by payments of$30.0 million for the repurchase of common stock and$13.2 million for the repayment of debt. Net cash used in financing activities was $134.7 million for the first six months of 2025, which was primarily driven by a $116.7 million net repayment of debt.

Current wording

Net cash used in financing activities was $131.4 million for the first nine months of 2026, which was primarily driven by $45.9 million of payments for debt issuance and extinguishment costs related to debt transactions during the period, payments of $30.0 million for the repurchase of common stock, a $14.3 million net repayment of debt (including the 2026 Senior Notes issuance of $400.0 million and the 2024 Senior Notes redemption of $400.0 million, both of which are discussed below in Debt), and $11.2 million of dividends paid. Net cash used in financing activities was $149.6 million for the first nine months of 2025, which was primarily driven by a $124.0 million net repayment of debt.

Previous wording

At June 30, 2026, we had working capital of $1.0 billion, a ratio of current assets to current liabilities of 1.29 and a ratio of debt to equity of 0.30, compared to working capital of $0.9 billion, a ratio of current assets to current liabilities of 1.27 and a ratio of debt to equity of 0.32 at December 31, 2025.

Current wording

At September 30, 2026, we had working capital of $1.0 billion, a ratio of current assets to current liabilities of 1.27 and a ratio of debt to equity of 0.29, compared to working capital of $0.9 billion, a ratio of current assets to current liabilities of 1.27 and a ratio of debt to equity of 0.32 at December 31, 2025.