Latest news with #backlog
Yahoo
5 hours ago
- Business
- Yahoo
Tutor Perini fends off tariff impacts as backlog doubles
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. For years, Tutor Perini executives have asked investors for patience as the company worked through dispute resolutions on older projects and ramped up new, multibillion-dollar jobs. That patience is now paying off. The Los Angeles-based contractor had one of its 'best quarters ever' during Q2 2025, according to CEO Gary Smalley, as its backlog more than doubled from a year ago to achieve a new company record and revenue hit its highest point since 2009. The firm's leadership said it wasn't feeling any impacts of tariffs on its projects and doesn't anticipate any for the foreseeable future. It said the macro funding environment remains robust, even for its portion of California's high-speed rail project, which President Donald Trump has tried to derail by rescinding $4 billion of federal money. Indeed, the results were so good that they seemed to surprise even the firm's top brass. 'Overall, Tutor Perini's business continues to perform extremely well and frankly even better than we anticipated at the start of this year,' CEO Gary Smalley said on a second quarter conference call Aug. 7 to discuss the firm's results. 'We are at the beginning of the life cycle for several major higher margin projects that are expected to derive substantial growth, profitability and cash flow as project execution activities continue. What you're seeing now is just a preview of what these projects should produce on a larger scale in the coming years.' That momentum led the firm to increase its financial guidance for only the second time in its history — and the second time it has done so this year. The company said it was raising its earnings guidance to a range of $1.70 to $2.00 per share, up from $1.60 to $1.95 per share for the year, and anticipates profits for 2026 and 2027 to be even higher. Those buoyant results stand in stark contrast to those from Fluor, which said tariffs and economic uncertainty had sapped its backlog and triggered cancellations among its customers. When an analyst asked what drove Tutor Perini's upward revision, Smalley said the company's work on new projects was simply unfolding more smoothly and faster than it originally expected, and that it wasn't hitting the snags it had in the past. 'The project execution, you know, the ramp up of some of these projects, was a little quicker than we anticipated,' Smalley said. 'We factored in some contingency or some expectation that things would not go as brilliantly, let's say, as they did.' The firm had reason to be cautious with its estimates. For example, it posted a $171 million loss for 2023 as disputes over its past projects caused massive writedowns. But now, Smalley said at 2025's halfway point, the firm had only used about one-third of the contingencies — or wiggle room for things like cost increases and project delays — that it had baked into its projections at the beginning of the year. 'Work in some of the units, some of the smaller work, came in, we'll say, more timely than we anticipated, so that also helped,' Smalley said. No hit from tariffs Smalley also made it clear to investors that Trump's tariff policies weren't having a negative impact on the contractor's business to date and weren't anticipated to do so in the future. 'When we were talking about tariffs not having an impact, we're not just talking about up to now,' Smalley said. 'We're talking about looking forward as well for each of our major projects.' Smalley said the firm re-evaluated its tariff risks on its major ongoing projects in the quarter — for instance, due to rising steel prices — but because it had bought out both materials and labor for those jobs in advance, it had already locked in its costs. For new jobs going forward, it plans to bake higher prices into its bids, meaning project sponsors will need to cover them. 'Any possible exposure that we might have for tariffs, I can tell you that it was even less exposure than what we had seen last quarter,' Smalley said. California high-speed rail on track Smalley also said that Tutor Perini wasn't facing project cancellation risk, despite the broader uncertainty over the economy, including on its $3.55 billion contract for completing 32 miles of California's high-speed rail project. 'In recent discussions with this customer regarding the federal government's decision to reduce funding on the overall program, the customer confirmed that our project is funded and authorized and is not expected to be adversely impacted,' Smalley said. Reduced competition The contractor's strategy of being one of the last firms standing in terms of bidding on multibillion-dollar megaprojects, where prolonged timelines make it challenging to accurately foresee cost increases and delays, has also been working. Ron Tutor, Tutor Perini's executive chairman, said the company has seen fewer bidders on major jobs, as many contractors have chosen not to take on the risk that's inherent in these kinds of massive undertakings. 'I've talked about that for the last two to three years: We have never seen more than one other bidder in the last two years, and on … two occasions, we were the only bidder,' Tutor said. That competitive landscape — or lack thereof — has allowed the firm to be choosy in the jobs it does pursue, while also naming its price. Those factors have only turned more in Tutor Perini's favor as its backlog has ballooned. 'Our record backlog continues to enable us to be highly selective as to which opportunities we will pursue and to focus on bidding projects that have favorable contractual terms, limited competition and higher margins,' Smalley said. In fact, in the company's civil segment, which handles heavy infrastructure projects, profit margins are now approaching 15%, Smalley said, up from 8% to 10% in previous years. 'We'd like to expand on that further,' Smalley said. By the numbers For the second quarter, Tutor Perini reported revenue of $1.37 billion, up 22% from the $1.13 billion it realized in the same period last year. Backlog grew to $21.1 billion, a company record, up 102% from a year ago. And net income came in at $20 million, up from $800,000 during Q2 2024. If there were any blemishes in the company's report, they came from Tutor Perini's specialty segment, which focuses on electrical, mechanical, plumbing and HVAC. The unit posted a loss of $18 million in Q2, wider than the $8 million loss it posted a year ago. The firm attributed the loss to about $15 million in unfavorable adjustments due to the settlement of legacy claims in the Northeast. Despite that pock, analysts on the call applauded the company's second quarter performance, while shareholders voted with their pocketbooks. The company's share price has more than doubled since its 2025 first quarter earnings report, when the firm first signaled its strategy was getting traction. Shares leaped another 20% after the firm's call this week. 'Everyone's been patient for a long time to see the results that we've generated,' Smalley told analysts. 'We're growing the business at a very significant clip.' 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Yahoo
5 hours ago
- Politics
- Yahoo
‘Severely lacking': Trump admin has backlog of 27K student loan complaints
An office housed in the U.S. Department of Education has a backlog of over 27,000 complaints from students and student loan borrowers, according to a letter sent by the department in response to Sen. Elizabeth Warren. The letter, sent on July 21 by the department's Office of Ombudsman, comes after severe cuts to the Department of Education's staff and an executive order dismantling the U.S. Department of Education. The ombudsman department has decreased from around 63 employees to 25, according to a court filing from a former employee in July. Of the 27,000, only 1,122 complaints were closed during May 2025 — though it remains unclear how many of those closed complaints were successfully resolved by the department. There was a backlog of 16,000 complaints in March, around the time of the Education Department cuts, which resulted in layoffs, according to a court filing from a former employee. 'If the Ombudsman's Office continues to receive complaints at the rate at which it did between mid-March and late June of this year, the backlog will continue to grow by hundreds of complaints per month if ED does not begin resolving complaints significantly faster than it did in May,' Warren wrote in response on August 6. A U.S. Department of Education spokesperson didn't respond immediately to a request for comment. Read more: 'Utter horse crap': What Dept. of Education layoffs mean for Mass. Warren also pushed the U.S. Department of Education Secretary Linda McMahon to provide more details about how the department is working in response to the layoffs. 'The American people deserve to know how your policies are impacting services and programs that millions of students and families across the country rely upon,' she said. More Higher Ed Trump orders colleges to prove they don't consider race in admissions Legal document shows discord between Harvard and Trump admin amid negotiations Harvard and Trump admin await judge's decision as deadline ticks closer 'They fear deportation': University student newspaper sues Trump admin over free speech Is Harvard considering a $500M deal with Trump? Faculty don't think so Read the original article on MassLive. Solve the daily Crossword
BBC News
a day ago
- Politics
- BBC News
Bristol City Council loses fight over Freedom of Information cases
A council has lost its legal battle against the Information Commissioner's Office (ICO) after failing to clear a Freedom of Information request City Council was last year handed an enforcement notice by the data watchdog over 158 overdue FOI requests. The council had said it would clear them in 39 months but they are supposed to be answered within 20 council did not dispute the watchdog's complaints but appealed the notice. Judge Kiai dismissed the appeal at the First-tier Tribunal on Wednesday, saying the ICO had "exercised its discretion correctly".A spokesperson for the council said it would "continue to work towards addressing" the backlog. According to the ICO, which upholds rights to information in the public interest, it has received more complaints about Bristol City Council (BCC) than any other watchdog said it had received more than 60 complaints about the authority since April 2023, many of which related to unanswered FOI issuing the enforcement notice, the ICO had urged the council to create an action and recovery plan to ensure that 90% of requests were answered by the end of 2023. The council failed to achieve this. 'Stop hiding' Issuing its enforcement notice in March 2024, the ICO said there had been "no improvement" in efforts to clear the backlog and that 39 months was "unreasonable".Councillor Nicholas Coombes, vice-chairman of the Audit Committee, said: "We are appalled at the build-up of unanswered FOI requests under the last administration, and that BCC chose to appeal the regulator's enforcement notice rather than take their advice."BCC needs to stop hiding behind legal tricks and improve the FOI service, as recommended by the Information Commissioner. "Political leaders need to continue our transformation of the council to welcome public scrutiny and involvement, so that fewer people resort to Freedom of Information requests."A genuinely open council makes better decisions and wastes less money on legal fees."
Yahoo
a day ago
- Business
- Yahoo
Thermon Group Holdings Inc (THR) Q1 2026 Earnings Call Highlights: Strategic Growth Amid ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Thermon Group Holdings Inc (NYSE:THR) achieved gross margin improvement over the prior year, demonstrating effective operational framework and agility. The company's backlog increased by 27% from last year, positioning it well for future revenue recognition. Thermon Group Holdings Inc (NYSE:THR) launched new products, Pontus and Poseidon load banks, targeting the growing data center market. The company reported strong order momentum in the rail and transit market, with the backlog doubling over the last 12 months. Thermon Group Holdings Inc (NYSE:THR) maintained a strong balance sheet with a leverage ratio of just one time, providing flexibility for growth strategies. Negative Points Thermon Group Holdings Inc (NYSE:THR) experienced a 5% year-over-year decline in revenues due to temporary delays in backlog conversion and project execution timing. The company faced softness in incoming order rates following liberation day, impacting overall bookings. Revenue in the first quarter decreased by 5%, with organic revenue down 11% excluding contributions from acquisitions. Adjusted EBITDA decreased by 9% due to revenue decline and continued investments in growth initiatives. Thermon Group Holdings Inc (NYSE:THR) anticipates margin headwinds in the upcoming quarters due to tariff impacts. Q & A Highlights Warning! GuruFocus has detected 2 Warning Sign with BOM:543526. Q: Can you provide an update on the capital improvement project that led to production delays and when the delayed orders are expected to ship? A: Yes, the capital improvement project took longer than anticipated, but it is now fully operational and running at historical throughput levels. We expect the delayed revenues to convert in Q2 and throughout the year. Supply chain disruptions have also been resolved. (Bruce Dames, CEO) Q: Could you elaborate on the liquid load bank opportunity in data centers and the expected revenue potential? A: Liquid load banks are used to test cooling and electrical systems in liquid-cooled data centers. We recently launched these products and are building a pipeline of opportunities. We aim to capture a 20-25% market share in this growing segment. (Bruce Dames, CEO) Q: What are your gross margin expectations for the next quarter and the rest of the year? A: We anticipate some margin headwinds in Q2 due to tariffs, but expect pricing adjustments to offset these costs in the latter half of the year. We aim to maintain gross margins around 44.8% by year-end. (Bruce Dames, CEO) Q: Can you discuss the strong demand at FATI and what has changed since the last fiscal quarter? A: FATI has seen strong demand, particularly in electrification opportunities in Europe and the Middle East. The backlog has doubled since the acquisition, driven by regulations and investments in electrification to reduce emissions. (Bruce Dames, CEO) Q: Could you provide more details on your capital allocation priorities, including M&A and share buybacks? A: Our M&A pipeline is active, and we are looking for opportunities to complement our strategy. We will continue share repurchases if there are no attractive M&A opportunities. We have flexibility in capital allocation, focusing on growth and debt reduction. (John Schott, CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
The Independent
2 days ago
- Politics
- The Independent
There is now a backlog of 27,000 student loan complaints at the Department of Education
The Department of Education's office for handling student loan complaints has a backlog of 27,000 after the Trump administration gutted the department of most of its staff. The Federal Student Aid ombudsman office handles hundreds of thousands of complaints each year from student loan borrowers experiencing issues with their loan information, loan servicer, school, and more. In 2024, the office received more than 200,000 complaints. But since the president signaled for Education Secretary Linda McMahon to essentially close the department, more than half of the workforce has been fired or offered buyouts. That has left the ombudsman office without enough staff to deal with cases, creating a backlog of 27,006 complaints. The office revealed its backlog in a letter sent from the department's Office of Legislation and Congressional Affairs to Senator Elizabeth Warren at the end of July. The letter was obtained by NBC News. 'The Trump administration is abandoning Americans who have been scammed by their student loan servicers or have problems with their loans,' Warren said in a statement to NBC News. 'I'm pushing Secretary McMahon because families across this country deserve answers about her efforts to dismantle the Department of Education,' Warren added. The Independent has asked the Department of Education for comment. Those having problems with their student loan lenders or federal loans with their schools have complained about difficulty in reaching the ombudsman office for several months – even before the Trump administration assumed power. In a Reddit thread, one person said that in December, a representative for the ombudsman's office worked directly for the loan lender and refused to escalate their complaint. The user said they eventually directly mailed a complaint to the complaint office, but never received a response. Another Reddit user echoed similar sentiments, saying a Federal Student Aid representative informed them that the ombudsman's office no longer had an operation number in December. Other Reddit threads complain of similar issues getting help through emails, calls, and physical mail. In February, one person said a representative in the ombudsman's office informed them that the office was no longer processing complaints and was told to direct complaints to their state ombudsman instead. But complaints about the office's pace have been around long before the Trump administration. Some Reddit threads raising concerns about the office's responses go back two years. Every year, the ombudsman's office is supposed to provide a review of its performance in the Federal Student Aid annual report. In 2022, the office said it received approximately 101,516 cases, and by the end of the fiscal year, 1,747 cases remained unassigned. But the number of complaints has dramatically increased each year since then, likely making it more difficult for people to respond. In the federal court case between McMahon and New York, in which the administration successfully requested the Supreme Court to allow the department to fire employees, a former employee who worked in the office of the ombudsman was already compiling a backlog in March. 'As of March 14, 2025, I had an open caseload of 322 complaints and the Ombudsman Office had a backlog of 16,000 complaints from borrowers awaiting research and resolution,' Rachel Gittleman said in her court filing. That means within four months, the office has received more than 11,006 complaints, which have gone ignored.
