Revenue growth accelerated to 19.2% year-over-year in 2026Q2, with gross margin recovering to 12.9% from -2.4% in 2024Q3, though stock-based compensation consumed 88% of net income.
Tutor Perini Corporation (TPC) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 6.25B | 5.54B | 4.33B | 3.88B | 3.79B | 4.64B | 5.32B | 4.45B | 4.45B | 4.76B | 4.97B | 4.92B | 4.49B | 4.18B | 4.11B | 3.72B | 3.2B | 5.15B | 5.66B | 4.63B | 3.04B | 1.73B | 1.84B | 1.37B | 1.09B | 1.55B | 1.11B | 1.02B | 1.04B | 1.32B | 1.27B |
| Revenue Growth % | 22.55% | 28.11% | 11.51% | 2.36% | -18.33% | -12.73% | 19.5% | -0.09% | -6.36% | -4.34% | 1.07% | 9.53% | 7.58% | 1.56% | 10.63% | 16.16% | -37.9% | -8.98% | 22.3% | 52.11% | 75.53% | -5.91% | 34.07% | 26.64% | -30.15% | 40.49% | 8.45% | -1.58% | -21.79% | 4.27% | 15.37% |
| Cost of Goods Sold | 5.52B | 4.9B | 4.13B | 3.74B | 3.76B | 4.18B | 4.83B | 4.21B | 4B | 4.3B | 4.52B | 4.56B | 3.99B | 3.71B | 3.7B | 3.32B | 2.86B | 4.76B | 5.33B | 4.38B | 2.87B | 1.66B | 1.75B | 1.3B | 1.03B | 1.5B | 1.05B | 965.6M | 983.3M | 1.27B | 1.21B |
| COGS % of Revenue | - | 88.32% | 95.45% | 96.38% | 99.22% | 89.95% | 90.86% | 94.57% | 89.8% | 90.45% | 90.81% | 92.76% | 88.75% | 88.82% | 89.9% | 89.36% | 89.44% | 92.47% | 94.11% | 94.62% | 94.43% | 95.98% | 94.93% | 94.89% | 94.59% | 96.29% | 95.07% | 94.71% | 94.92% | 96.16% | 95.5% |
| Gross Profit | 735.1M | 647.51M | 197.04M | 140.62M | 29.61M | 466.39M | 486.15M | 241.77M | 454.45M | 454.4M | 457.19M | 356.25M | 505.44M | 466.9M | 415.13M | 395.34M | 337.85M | 388.05M | 333.23M | 248.89M | 169.4M | 69.7M | 93.38M | 70.25M | 58.65M | 57.56M | 54.52M | 53.9M | 52.6M | 50.8M | 57.1M |
| Gross Margin % | 11.75% | 11.68% | 4.55% | 3.62% | 0.78% | 10.05% | 9.14% | 5.43% | 10.2% | 9.55% | 9.19% | 7.24% | 11.25% | 11.18% | 10.1% | 10.64% | 10.56% | 7.53% | 5.89% | 5.38% | 5.57% | 4.02% | 5.07% | 5.11% | 5.41% | 3.71% | 4.93% | 5.29% | 5.08% | 3.84% | 4.5% |
| Gross Profit Growth % | - | 228.62% | 40.12% | 374.89% | -93.65% | -4.06% | 101.08% | -46.8% | 0.01% | -0.61% | 28.33% | -29.52% | 8.25% | 12.47% | 5.01% | 17.02% | -12.94% | 16.45% | 33.88% | 46.93% | 143.02% | -25.36% | 32.92% | 19.78% | 1.89% | 5.57% | 1.16% | 2.47% | 3.54% | -11.03% | 222.6% |
| Operating Expenses | 382.65M | 415.55M | 300.79M | 255.22M | 234.38M | 239.59M | 223.81M | 606.78M | 262.58M | 274.93M | 255.27M | 250.84M | 263.75M | 263.08M | 260.37M | 226.97M | 165.54M | 176.5M | 134M | 107.91M | 98.52M | 53.8M | 43.05M | 39.76M | 32.77M | 28.06M | 27.17M | 30M | 30.4M | 32.5M | 116.5M |
| OpEx % of Revenue | - | 7.5% | 6.95% | 6.58% | 6.18% | 5.16% | 4.21% | 13.63% | 5.89% | 5.78% | 5.13% | 5.1% | 5.87% | 6.3% | 6.33% | 6.11% | 5.17% | 3.43% | 2.37% | 2.33% | 3.24% | 3.1% | 2.34% | 2.89% | 3.02% | 1.81% | 2.46% | 2.94% | 2.93% | 2.45% | 9.17% |
| Selling, General & Admin | 382.65M | 415.55M | 300.79M | 255.22M | 234.38M | 239.59M | 223.81M | 226.92M | 262.58M | 274.93M | 255.27M | 250.84M | 263.75M | 263.08M | 260.37M | 226.97M | 165.54M | 176.5M | 134M | 107.91M | 98.52M | 61.75M | 43.05M | 39.76M | 32.77M | 28.06M | 24.98M | 26.6M | 28.8M | 30.6M | 113.9M |
| SG&A % of Revenue | - | 7.5% | 6.95% | 6.58% | 6.18% | 5.16% | 4.21% | 5.1% | 5.89% | 5.78% | 5.13% | 5.1% | 5.87% | 6.3% | 6.33% | 6.11% | 5.17% | 3.43% | 2.37% | 2.33% | 3.24% | 3.56% | 2.34% | 2.89% | 3.02% | 1.81% | 2.26% | 2.61% | 2.78% | 2.31% | 8.97% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 379.86M | 0 | 0 | 0 | 0 | 0 | 0 | -1.86M | 0 | 0 | 0 | 0 | 0 | 0 | -7.95M | 0 | 0 | 0 | 0 | 2.19M | 3.4M | 1.6M | 1.9M | 2.6M |
| Operating Income | 352.45M | 231.96M | -103.75M | -114.6M | -204.76M | 226.8M | 262.34M | -365.01M | 191.88M | 179.48M | 201.92M | 105.41M | 241.69M | 203.82M | -221.81M | 168.38M | 172.31M | 211.54M | -25.25M | 140.98M | 70.88M | 7.95M | 50.33M | 30.49M | 25.88M | 29.5M | 27.36M | 23.9M | 22.2M | 18.3M | -59.4M |
| Operating Margin % | 5.64% | 4.18% | -2.4% | -2.95% | -5.4% | 4.89% | 4.93% | -8.2% | 4.31% | 3.77% | 4.06% | 2.14% | 5.38% | 4.88% | -5.39% | 4.53% | 5.39% | 4.11% | -0.45% | 3.05% | 2.33% | 0.46% | 2.73% | 2.22% | 2.39% | 1.9% | 2.47% | 2.34% | 2.14% | 1.38% | -4.68% |
| Operating Income Growth % | - | 323.57% | 9.46% | 44.03% | -190.28% | -13.55% | 171.87% | -290.23% | 6.91% | -11.11% | 91.55% | -56.38% | 18.58% | 191.89% | -231.74% | -2.28% | -18.55% | 937.93% | -117.91% | 98.9% | 791.22% | -84.2% | 65.08% | 17.81% | -12.27% | 7.85% | 14.46% | 7.66% | 21.31% | 130.81% | -165.18% |
| EBITDA | 396.58M | 281.78M | -49.97M | -69.37M | -140.4M | 345.03M | 369.38M | -299.96M | 239.14M | 231.41M | 269.22M | 149.14M | 297.66M | 263.23M | -160.35M | 216.01M | 203.65M | 250.05M | 2.35M | 151.92M | 80.81M | 14.66M | 55.46M | 33.88M | 29.08M | 32.1M | 29.55M | 27.3M | 23.8M | 20.2M | -56.8M |
| EBITDA Margin % | 6.34% | 5.08% | -1.15% | -1.79% | -3.7% | 7.43% | 6.94% | -6.74% | 5.37% | 4.86% | 5.41% | 3.03% | 6.63% | 6.3% | -3.9% | 5.81% | 6.37% | 4.85% | 0.04% | 3.28% | 2.66% | 0.85% | 3.01% | 2.47% | 2.68% | 2.07% | 2.67% | 2.68% | 2.3% | 1.53% | -4.47% |
| EBITDA Growth % | 171.66% | 663.94% | 27.97% | 50.59% | -140.69% | -6.59% | 223.14% | -225.43% | 3.34% | -14.05% | 80.51% | -49.9% | 13.08% | 264.16% | -174.24% | 6.07% | -18.56% | 10540.43% | -98.45% | 88.01% | 451.35% | -73.57% | 63.7% | 16.49% | -9.41% | 8.65% | 8.23% | 14.71% | 17.82% | 135.56% | -189.8% |
| D&A (Non-Cash Add-back) | 44.13M | 49.81M | 53.79M | 45.23M | 64.36M | 118.23M | 107.03M | 65.04M | 47.27M | 51.93M | 67.3M | 43.73M | 55.97M | 59.41M | 61.46M | 47.63M | 31.33M | 38.51M | 27.6M | 10.94M | 9.93M | 6.7M | 5.13M | 3.39M | 3.2M | 2.6M | 2.19M | 3.4M | 1.6M | 1.9M | 2.6M |
| EBIT | 265.59M | 259.47M | -88.53M | -99.26M | -199.65M | 227.27M | 239.28M | -360.74M | 193.91M | 215.04M | 203.45M | 117.87M | 232.15M | 185.25M | -223.67M | 172.8M | 170.03M | 212.64M | -15.69M | 156.34M | 70.88M | 15.91M | 48.72M | 30.2M | 25.88M | 29.5M | 27.36M | 23.9M | 26.2M | 20.5M | -59.4M |
| Net Interest Income | -21.09M | -54.97M | -87.94M | -85.16M | -68.03M | -67.48M | -76.21M | -67.49M | -63.52M | -63.73M | -59.78M | -45.14M | -42.56M | -40.29M | -43.42M | -34.53M | -7.72M | -7.5M | -4.16M | -1.95M | -3.77M | -2M | -704K | -1M | -1.49M | -2.01M | -3.97M | 0 | -8.7M | 0 | -9.9M |
| Interest Income | 0 | 0 | 1.2M | 0 | 0 | 0 | 0 | 0 | 0 | 5.66M | 0 | 0 | 4.79M | 8.74M | 2.84M | 1.22M | 4.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 21.09M | 54.97M | 89.13M | 85.16M | 68.03M | 67.48M | 76.21M | 67.49M | 63.52M | 69.38M | 59.78M | 44.03M | 47.35M | 49.03M | 46.26M | 35.75M | 10.56M | 7.5M | 4.16M | 1.95M | 3.77M | 2M | 704K | 1M | 1.49M | 2.01M | 3.97M | 0 | 8.7M | 0 | 9.9M |
| Other Income/Expense | -86.28M | -27.45M | -69.25M | -67.96M | -62.91M | -67.02M | -88.06M | -60.83M | -59.26M | -25.5M | -52.8M | -31.57M | -54.25M | -64.21M | -46.03M | -31.33M | -12.84M | -6.4M | 5.4M | 13.41M | -1.19M | -1.03M | -3.79M | 432K | -2M | -2.23M | -3.02M | -7.1M | -5.1M | -11.6M | -10.4M |
| Pretax Income | 266.16M | 204.51M | -173.01M | -182.55M | -267.67M | 159.78M | 174.28M | -425.83M | 132.61M | 153.97M | 149.12M | 73.84M | 187.44M | 139.62M | -267.84M | 137.05M | 159.47M | 205.14M | -19.85M | 154.4M | 69.69M | 6.92M | 44.93M | 30.92M | 23.88M | 27.27M | 24.34M | 16.8M | 12.8M | 6.4M | -69.8M |
| Pretax Margin % | 4.26% | 3.69% | -4% | -4.7% | -7.06% | 3.44% | 3.28% | -9.57% | 2.98% | 3.24% | 3% | 1.5% | 4.17% | 3.34% | -6.51% | 3.69% | 4.98% | 3.98% | -0.35% | 3.34% | 2.29% | 0.4% | 2.44% | 2.25% | 2.2% | 1.76% | 2.2% | 1.65% | 1.24% | 0.48% | -5.49% |
| Income Tax | 70.29M | 61.43M | -50.67M | -54.96M | -75.1M | 25.63M | 21.94M | -65.61M | 34.83M | -569K | 53.29M | 28.55M | 79.5M | 52.32M | -2.44M | 50.9M | 55.97M | 68.08M | 55.29M | 57.28M | 28.15M | 2.87M | 8.92M | -13.1M | 801K | 850K | -43K | 400K | 1.1M | 1M | 800K |
| Effective Tax Rate % | 26.41% | 30.04% | 29.29% | 30.1% | 28.06% | 16.04% | 12.59% | 15.41% | 26.27% | -0.37% | 35.74% | 38.66% | 42.42% | 37.47% | 0.91% | 37.14% | 35.1% | 33.19% | -278.54% | 37.1% | 40.4% | 41.5% | 19.85% | -42.35% | 3.35% | 3.12% | -0.18% | 2.38% | 8.59% | 15.63% | -1.15% |
| Net Income | 140.98M | 80.44M | -163.72M | -171.16M | -210.01M | 91.92M | 108.39M | -387.69M | 83.44M | 148.38M | 95.82M | 45.29M | 107.94M | 87.3M | -265.4M | 86.15M | 103.5M | 137.06M | -75.14M | 97.11M | 41.54M | 4.05M | 36.01M | 44.02M | 23.07M | 26.42M | 24.38M | -83.6M | 11.7M | 5.4M | -70.6M |
| Net Margin % | 2.25% | 1.45% | -3.78% | -4.41% | -5.54% | 1.98% | 2.04% | -8.71% | 1.87% | 3.12% | 1.93% | 0.92% | 2.4% | 2.09% | -6.46% | 2.32% | 3.24% | 2.66% | -1.33% | 2.1% | 1.36% | 0.23% | 1.95% | 3.2% | 2.13% | 1.7% | 2.21% | -8.2% | 1.13% | 0.41% | -5.56% |
| Net Income Growth % | 606.6% | 149.13% | 4.34% | 18.5% | -328.46% | -15.19% | 127.96% | -564.66% | -43.77% | 54.85% | 111.56% | -58.04% | 23.64% | 132.89% | -408.07% | -16.77% | -24.49% | 282.41% | -177.37% | 133.81% | 925.83% | -88.75% | -18.2% | 90.77% | -12.66% | 8.35% | 129.16% | -814.53% | 116.67% | 107.65% | -155.8% |
| Net Income (Continuing) | 195.87M | 143.08M | -122.34M | -127.6M | -192.57M | 134.15M | 152.34M | -360.23M | 97.78M | 154.54M | 95.82M | 45.29M | 107.94M | 87.3M | -265.4M | 86.15M | 103.5M | 137.06M | -75.14M | 97.11M | 41.54M | 4.05M | 36.01M | 44.02M | 23.07M | 26.42M | 24.38M | 16.4M | 16M | 7.9M | -70.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 73.62M | 44.03M | 23.88M | -7.68M | -7.73M | 18.8M | -10.91M | -9.62M | -21.29M | -8.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.1M | 1.1M | 2.5M |
| EPS (Diluted) | 2.64 | 1.51 | -3.13 | -3.30 | -3.75 | 2.61 | 2.98 | -7.17 | 1.66 | 2.92 | 1.92 | 0.91 | 2.20 | 1.80 | -5.59 | 1.80 | 2.13 | 2.79 | -2.19 | 3.54 | 1.54 | 0.20 | 1.39 | 2.10 | 0.91 | 1.04 | 0.39 | -15.76 | 1.08 | 0.01 | -15.13 |
| EPS Growth % | 595.96% | 148.24% | 5.15% | 12% | -243.68% | -12.42% | 141.56% | -531.93% | -43.15% | 52.08% | 110.99% | -58.64% | 22.22% | 132.2% | -410.56% | -15.49% | -23.66% | 227.4% | -161.86% | 129.87% | 670% | -85.61% | -33.81% | 130.77% | -12.5% | 166.67% | 102.47% | -1559.26% | 10700% | 100.07% | -140.92% |
| EPS (Basic) | - | 1.53 | -3.13 | -3.30 | -3.75 | 2.63 | 3.01 | -7.17 | 1.67 | 2.99 | 1.95 | 0.92 | 2.22 | 1.82 | -5.59 | 1.82 | 2.15 | 2.82 | -2.19 | 3.62 | 1.56 | 0.21 | 1.47 | 2.18 | 0.92 | 1.07 | 0.39 | -16.04 | 1.08 | 0.01 | -15.13 |
| Diluted Shares Outstanding | 53.45M | 53.41M | 52.32M | 51.84M | 51.32M | 51.37M | 51.08M | 50.22M | 50.3M | 50.76M | 49.86M | 49.67M | 49.11M | 48.59M | 47.47M | 47.89M | 48.65M | 49.08M | 34.27M | 27.42M | 26.76M | 26.15M | 25.06M | 23.58M | 22.94M | 23.36M | 18.53M | 5.3M | 5.41M | 5.16M | 4.67M |
| Basic Shares Outstanding | 52.57M | 52.69M | 52.32M | 51.84M | 51.32M | 51.02M | 50.66M | 50.22M | 49.95M | 49.65M | 49.15M | 48.98M | 48.56M | 47.85M | 47.47M | 47.23M | 48.11M | 48.52M | 34.27M | 26.82M | 26.31M | 25.52M | 23.72M | 22.76M | 22.66M | 22.7M | 18.52M | 5.21M | 5.41M | 5.16M | 4.67M |
| Dividend Payout Ratio | - | 3.94% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 45.5% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TPC stock.
For fiscal year 2025, Tutor Perini Corporation (TPC) reported total revenue of $5.54B. This represents a 336.4% increase compared to $1.27B in 1996.
Tutor Perini Corporation (TPC) is profitable, generating $80.4M in net income for the fiscal year ending 2025 with a net profit margin of 1.5%.
Tutor Perini Corporation (TPC) reported an operating income of $232.0M, resulting in an operating profit margin of 4.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Tutor Perini Corporation (TPC) generated $647.5M in gross profit for the year, representing a gross profit margin of 11.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Project execution and margin volatility
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates Sharply
TPC's revenue grew 19.2% year-over-year in 2026Q2, reaching $1.6B, the highest in the reported period, according to the latest quarterly data. This marks a clear acceleration from the 11.5% growth in 2026Q1.
The sequential acceleration from 11.5% to 19.2% suggests strengthening demand and possibly improved project execution. Revenue has expanded for eight consecutive quarters, with the pace picking up notably in the last two quarters. This trend appears driven by organic growth, as no acquisition-related revenue is disclosed. The durability of this growth will depend on the company's ability to sustain backlog conversion, which warrants monitoring given the cyclical nature of construction.
Gross Margin Recovery from Negative Territory
Gross margin rebounded from -2.4% in 2024Q3 to 12.9% in 2026Q2, as reported in financial statements. This recovery is substantial, but still below the 14.3% peak seen in 2025Q2.
The swing from negative gross margins in late 2024 to double-digit margins in 2026 indicates a significant improvement in project profitability, likely due to better cost controls and favorable project mix. However, the margin is not yet back to the 14.3% level achieved in 2025Q2, suggesting some volatility. Compared to peers like KBR (14.8%) and STRL (23.0%), TPC's gross margin is in the mid-range, implying potential for further improvement if execution remains disciplined.
Operating Leverage Drives Profit Expansion
Operating income surged to $117.7M in 2026Q2, a 54% increase from the prior quarter, while revenue grew only 14%, as per the income statement. This demonstrates strong operating leverage.
The operating margin expanded from 4.3% in 2026Q1 to 7.2% in 2026Q2, while SG&A remained relatively flat at $93.5M versus $95.5M. This indicates that overhead costs are not scaling with revenue, allowing incremental revenue to flow through to operating income. The leverage is also evident when comparing 2026Q2 to 2025Q2: revenue grew 19.2% but operating income grew 54% (from $76.4M to $117.7M). This suggests efficient cost management, though investors should monitor whether SG&A will rise as the company pursues further growth.
Earnings Quality Tempered by Stock Compensation
Net income of $65.7M in 2026Q2 includes $57.9M in stock-based compensation, which is nearly 88% of net income, based on reported figures. This high SBC may inflate EPS relative to cash earnings.
The substantial SBC expense, which is non-cash, reduces reported net income but is added back for cash flow purposes. In 2026Q2, SBC was $57.9M, significantly higher than the $55.4M in 2025Q2 and the $1.4M in 2024Q4. This pattern suggests that a large portion of employee compensation is equity-based, which could dilute shareholders over time. While SBC is a legitimate expense, the magnitude relative to net income warrants scrutiny, as it may overstate the quality of earnings if cash generation does not keep pace.
COGS Dominates Cost Structure, SG&A Controlled
COGS accounted for 87.1% of revenue in 2026Q2, while SG&A was only 5.7% of revenue, as per the income statement. This highlights the project-cost intensity of the construction business.
The primary cost driver is COGS, which directly reflects project costs, materials, and labor. The gross margin of 12.9% indicates that TPC retains a modest portion of revenue after direct costs. SG&A, at $93.5M, is relatively stable across quarters, showing discipline in overhead spending. However, the volatility in gross margin (from -2.4% to 14.3% over the past two years) underscores the risk of cost overruns on fixed-price contracts. Management's ability to control project costs will be critical to sustaining profitability.
2024Q4 Marks Turning Point from Losses
The most significant inflection occurred in 2024Q4, when gross margin turned negative at -0.9% and net income was -$79.4M, according to the income statement. This was followed by a sharp recovery to positive margins in 2025.
The negative gross margin in 2024Q4 and 2024Q3 indicates severe project write-downs or cost overruns, likely on specific contracts. The subsequent recovery to positive margins in 2025 and 2026 suggests that the company resolved these issues, possibly through claims or better project management. This inflection highlights the inherent volatility in construction earnings and the importance of project execution. The lasting impact is a more cautious approach to risk, as evidenced by the improved but still fluctuating margins.
Margin Sustainability and SBC Dilution Risks
Despite strong revenue growth, gross margin remains below its 2025Q2 peak, and stock-based compensation is high relative to net income, as per the latest data. These factors could pressure future profitability.
Short-sellers might argue that the recent margin improvement is not sustainable, given the historical volatility and the fact that gross margin in 2026Q2 (12.9%) is still below the 14.3% achieved in 2025Q2. Additionally, the high SBC expense (nearly 88% of net income in 2026Q2) suggests that reported EPS may be inflated relative to cash earnings, and dilution could weigh on shareholder value. If revenue growth decelerates or project costs escalate, the operating leverage could reverse, leading to margin compression. Investors should monitor backlog quality and the trajectory of SBC.