THE
WOODLANDS, Texas, Feb. 25,
2025 /PRNewswire/ -- Sterling Infrastructure, Inc.
(NasdaqGS: STRL) ("Sterling" or the "Company") today announced
financial results for the fourth quarter and full year 2024 and
provided full year 2025 guidance.
The financial comparisons herein are to the prior year quarter,
unless otherwise noted.
Due to the deconsolidation of our RHB joint venture on
December 31, 2024, RHB is not
included in year-end 2024 consolidated backlog. As such, our
prior-year comparisons for these metrics are on an adjusted basis
to exclude RHB. Please see the "Historical Quarterly Backlog
Information" section below for reconciliations to historical
figures.
Fourth Quarter 2024 Results
- Revenues of $498.8 million, an
increase of 3%
- Gross margin of 21.4%, up from 18.9%
- Net income of $113.2 million, or
$3.64 per diluted share, an increase
of 182% and 184% respectively
- Excluding the impact of a one-time gain on the deconsolidation
of a subsidiary and acquisition-related costs, net income was
$45.5 million, or $1.46 per diluted share, an increase of 12% and
13%, respectively
- EBITDA(1) of $167.4
million, an increase of 145%
- Adjusted EBITDA(1) of $76.4
million, an increase of 11%
- Cash flows from operations totaled $497.1 million for the twelve months ended
December 31, 2024
- Cash and cash equivalents totaled $664.2
million at December 31,
2024
- Backlog at December 31, 2024 was
$1.69 billion
- Combined backlog(2) at December 31, 2024 was $1.83 billion
For the full year ended December 31,
2024, revenue increased by 7% over 2023. The Company
reported net income of $257.5
million, or $8.27 per diluted
share in 2024, versus $138.7 million,
or $4.44 per diluted share, in 2023.
Adjusted net income(1) increased 36.3% to $189.9 million, or $6.10 per diluted share in 2024, versus
$139.3 million, or $4.46 per diluted share, in 2023.
EBITDA(1) increased 59% to $410.9
million in 2024, versus $259.0
million in 2023. Adjusted EBITDA(1) increased 23%
to $320.0 million in 2024, versus
$259.9 million in 2023.
|
(1) See "Non-GAAP Measures",
"Adjusted Net Income Reconciliation", and "EBITDA Reconciliation"
sections below for more information.
|
|
(2) Combined Backlog
includes Unsigned Awards of $137.9 million at December 31,
2024.
|
CEO Remarks and Outlook
"2024 was another record year
for Sterling as we grew our adjusted net income by 36% to
deliver diluted EPS of $6.10, which
was above the high end of our previously guided range," stated
Joe Cutillo, Sterling's Chief
Executive Officer. "Additionally, our gross margins exceeded 20% on
an annual basis, a new record, and we generated nearly $500 million of operating cash flow."
Mr. Cutillo continued, "In the fourth quarter we delivered 3%
revenue growth and a 13% increase in adjusted diluted EPS. Our
focus on margin expansion continues to drive profitability growth
well in excess of revenue growth, and we expect this trend to
continue in 2025. Gross profit margins in the quarter of 21.4%
remained extremely strong as we have shifted the business toward
higher-margin service offerings.
We closed the year with combined backlog of $1.83 billion, which was up slightly from
prior year levels on a like-for-like basis. Notably,
E-Infrastructure Solutions backlog reached over $1 billion and
grew 27% relative to the prior year. Additionally, award activity
has been strong in the first quarter of 2025 and our pipeline of
high-probability future phase work continues to grow. Our operating
cash flow generation in the fourth quarter of 2024 was again
excellent at $174 million, driving
our net cash position to $348
million, and supporting share repurchases of $20 million."
Mr. Cutillo added, "In E-Infrastructure Solutions, we
achieved 50% operating income growth in the fourth quarter as
operating margins expanded nearly 700 basis points to reach 24.1%.
This excellent margin profile reflects our shift toward large
mission-critical projects, including data centers and
manufacturing, where our scale, superior execution, and track
record of delivering projects on time are extremely valuable to our
customers.
E-Infrastructure revenue increased 8% compared to the prior year
quarter, driven by strength in data center work. Notably, data
center-related revenue increased over 50% compared to the prior
year quarter and now represents over 60% of segment backlog.
Transportation Solutions revenue increased 24% for the full year
and operating margins were 6.5%. In the fourth quarter, revenue and
operating income declined against a challenging comparison to 4Q23
which benefited from very favorable weather and project timing. We
continue to see good demand and project opportunities in our core
Rocky Mountain and Arizona
regions. We have made the strategic decision to accelerate our
shift away from low bid heavy highway work in Texas, which will weigh on revenue and backlog
in the near term, but will benefit margins as we move through
2025.
In Building Solutions, full year 2024 revenue increased 1.1% and
operating income increased 6.3%. In the quarter, revenue declined
3% and operating income declined 17%. The decline in operating
income is entirely attributable to $1.8
million of earn-out expense related to the acquisition of
PPG. Our residential businesses continued to be impacted by the
slowdown in the Dallas-Fort Worth
market, as prospective homebuyers are facing affordability
challenges. We remain bullish on the multi-year demand trends in
our key geographies and are cautiously optimistic of a rebound in
the second half of 2025."
"We believe 2025 will be another excellent year for
Sterling as we continue to drive bottom line growth that outpaces
top line growth. The midpoint of our 2025 guidance would represent
10% revenue growth pro forma for the new RHB accounting
methodology, 18% adjusted net income growth and 18% adjusted EBITDA
growth," Mr. Cutillo concluded.
Full Year 2025 Guidance
- Revenue of $2.00 billion to
$2.15 billion
- Net Income of $215 million to
$230 million
- Diluted EPS of $6.75 to
$7.25
- EBITDA(1) of $370
million to $395 million
Full Year 2025 Non-GAAP Guidance
Sterling is
introducing new non-GAAP methodology for 2025 that includes new
adjustments for non-cash stock-based compensation and amortization
of intangible assets. In addition, we are expanding our definition
of acquisition related costs to include earn-outs. Please see the
"Net Income Guidance Reconciliation" and "EBITDA Guidance
Reconciliation" sections below for reconciliations of GAAP to
non-GAAP measures and comparable 2024 results.
- Adjusted Net Income(1) of $252 million to $267
million
- Adjusted Diluted EPS(1) of $7.90 to $8.40
- Adjusted EBITDA(1) of $395
million to $420 million
|
(1) See "Non-GAAP Measures",
"Net Income Guidance Reconciliation" and "EBITDA Guidance
Reconciliation" sections below for more information.
|
Conference Call
Sterling's management will hold a
conference call to discuss these results and recent corporate
developments on Wednesday, February 26, 2025 at 9:00 a.m. ET/8:00 a.m.
CT. Interested parties may participate in the call by
dialing (800) 836-8184. Please call in 10 minutes before the
conference call is scheduled to begin and ask for the Sterling
Infrastructure call. To coincide with the conference call, Sterling
will post a slide presentation at www.strlco.com on the Events
& Presentations section of the Investor Relations tab.
Following management's opening remarks, there will be a question
and answer session.
To listen to a simultaneous webcast of the call, please go to
the Company's website at www.strlco.com at least 15 minutes early
to download and install any necessary audio software. If you are
unable to listen live, the conference call webcast will be archived
on the Company's website for 30 days.
About Sterling
Sterling operates through a variety of
subsidiaries within three segments specializing in
E-Infrastructure, Transportation and Building Solutions in
the United States, primarily
across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain
regions and the Pacific Islands. E-Infrastructure Solutions
provides advanced, large-scale site development services for
manufacturing, data centers, large scale distribution centers,
warehousing, power generation and more. Transportation Solutions
includes infrastructure and rehabilitation projects for highways,
roads, bridges, airports, ports, rail and storm drainage systems.
Building Solutions includes residential and commercial concrete
foundations for single-family and multi-family homes, parking
structures, elevated slabs, other concrete work, plumbing services,
and surveys for new single-family residential builds. From strategy
to operations, we are committed to sustainability by operating
responsibly to safeguard and improve society's quality of life.
Caring for our people and our communities, our customers and our
investors – that is The Sterling Way.
Joe Cutillo,
CEO, "We build and service the infrastructure that enables our
economy to run,
our people to move and our country to grow."
Important Information for Investors and Stockholders
Non-GAAP Measures
This press release contains "Non-GAAP" financial measures as
defined under Regulation G of the amended U.S. Securities Exchange
Act of 1934. The Company reports financial results in accordance
with U.S. generally accepted accounting principles ("GAAP"), but
the Company believes that certain Non-GAAP financial measures
provide useful supplemental information to investors regarding the
underlying business trends and performance of the Company's ongoing
operations and are useful for period-over-period comparisons of
those operations.
Non-GAAP measures may include adjusted net income, adjusted EPS,
EBITDA and adjusted EBITDA, in each case excluding the impacts of
certain identified items. The excluded items represent items that
the Company does not consider to be representative of its normal
operations. The Company believes that these measures are useful for
investors to review, because they provide a consistent measure of
the underlying financial results of the Company's ongoing business
and, in the Company's view, allow for a supplemental comparison
against historical results and expectations for future performance.
Furthermore, the Company uses each of these to measure the
performance of the Company's operations for budgeting and
forecasting, as well as for determining employee incentive
compensation. However, Non-GAAP measures should not be considered
as substitutes for net income, EPS, or other data prepared and
reported in accordance with GAAP and should be viewed in addition
to the Company's reported results prepared in accordance with
GAAP.
Reconciliations of Non-GAAP financial measures to the most
comparable GAAP measures are provided in the tables included within
this press release.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that are considered
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond our
control, which may include statements about: our business strategy;
our financial strategy; our industry outlook; our guidance; our
expected margin growth; and our plans, objectives, expectations,
forecasts, outlook and intentions. All of these types of
statements, other than statements of historical fact included in
this press release, are forward-looking statements. In some cases,
forward-looking statements can be identified by terminology such as
"may," "will," "could," "would," "should," "expect," "plan,"
"project," "intend," "anticipate," "believe," "estimate,"
"predict," "potential," "pursue," "target," "guidance," "continue,"
the negative of such terms or other comparable terminology. The
forward-looking statements contained in this press release are
largely based on our expectations, which reflect estimates and
assumptions made by our management. These estimates and assumptions
reflect our best judgment based on currently known market
conditions and other factors. Although we believe such estimates
and assumptions to be reasonable, they are inherently uncertain and
involve a number of risks and uncertainties that are beyond our
control. In addition, management's assumptions about future events
may prove to be inaccurate. Management cautions all readers that
the forward-looking statements contained in this press release are
not guarantees of future performance, and we cannot assure any
reader that such statements will be realized or the forward-looking
events and circumstances will occur. Actual results may differ
materially from those anticipated or implied in the forward-looking
statements due to factors listed in the "Risk Factors" section in
our filings with the U.S. Securities and Exchange Commission and
elsewhere in those filings. Additional factors or risks that we
currently deem immaterial, that are not presently known to us or
that arise in the future could also cause our actual results to
differ materially from our expected results. Given these
uncertainties, investors are cautioned that many of the assumptions
upon which our forward-looking statements are based are likely to
change after the date the forward-looking statements are made. The
forward-looking statements speak only as of the date made, and we
undertake no obligation to publicly update or revise any
forward-looking statements for any reason, whether as a result of
new information, future events or developments, changed
circumstances, or otherwise, notwithstanding any changes in our
assumptions, changes in business plans, actual experience or other
changes. These cautionary statements qualify all forward-looking
statements attributable to us or persons acting on our behalf.
Company Contact:
Sterling
Infrastructure, Inc.
Noelle Dilts, VP Investor Relations
and Corporate Strategy
281-214-0795
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
(Unaudited)
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
498,833
|
|
$
485,978
|
|
$ 2,115,756
|
|
$ 1,972,229
|
|
Cost of
revenues
|
(392,156)
|
|
(394,223)
|
|
(1,689,633)
|
|
(1,634,591)
|
|
Gross
profit
|
106,677
|
|
91,755
|
|
426,123
|
|
337,638
|
|
General and
administrative expense
|
(32,598)
|
|
(26,111)
|
|
(118,424)
|
|
(98,703)
|
|
Intangible asset
amortization
|
(4,180)
|
|
(4,017)
|
|
(17,037)
|
|
(15,226)
|
|
Acquisition related
costs
|
(212)
|
|
(521)
|
|
(421)
|
|
(873)
|
|
Other operating
expense, net
|
(7,416)
|
|
(5,338)
|
|
(25,619)
|
|
(17,041)
|
|
Operating
income
|
62,271
|
|
55,768
|
|
264,622
|
|
205,795
|
|
Interest
income
|
7,824
|
|
5,813
|
|
27,622
|
|
14,140
|
|
Interest
expense
|
(5,792)
|
|
(6,804)
|
|
(25,255)
|
|
(29,320)
|
|
Gain on deconsolidation
of subsidiary, net
|
91,289
|
|
—
|
|
91,289
|
|
—
|
|
Income before income
taxes
|
155,592
|
|
54,777
|
|
358,278
|
|
190,615
|
|
Income tax
expense
|
(38,400)
|
|
(12,341)
|
|
(87,360)
|
|
(47,770)
|
|
Net income, including
noncontrolling interests
|
117,192
|
|
42,436
|
|
270,918
|
|
142,845
|
|
Less: Net income
attributable to noncontrolling interests
|
(3,979)
|
|
(2,263)
|
|
(13,457)
|
|
(4,190)
|
|
Net income attributable
to Sterling common stockholders
|
$
113,213
|
|
$ 40,173
|
|
$
257,461
|
|
$
138,655
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Sterling common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
3.69
|
|
$
1.30
|
|
$
8.35
|
|
$
4.51
|
|
Diluted
|
$
3.64
|
|
$
1.28
|
|
$
8.27
|
|
$
4.44
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
30,696
|
|
30,819
|
|
30,830
|
|
30,755
|
|
Diluted
|
31,121
|
|
31,334
|
|
31,146
|
|
31,208
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
SEGMENT
INFORMATION
(In
thousands)
(Unaudited)
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
Revenues
|
2024
|
|
% of
Revenue
|
|
2023
|
|
% of
Revenue
|
|
2024
|
|
% of
Revenue
|
|
2023
|
|
% of
Revenue
|
|
E-Infrastructure
Solutions
|
$
234,041
|
|
47 %
|
|
$
217,472
|
|
45 %
|
|
$
923,728
|
|
44 %
|
|
$
937,408
|
|
48 %
|
|
Transportation
Solutions
|
174,664
|
|
35 %
|
|
175,685
|
|
36 %
|
|
783,659
|
|
37 %
|
|
630,908
|
|
32 %
|
|
Building
Solutions
|
90,128
|
|
18 %
|
|
92,821
|
|
19 %
|
|
408,369
|
|
19 %
|
|
403,913
|
|
20 %
|
|
Total
Revenues
|
$
498,833
|
|
|
|
$
485,978
|
|
|
|
$
2,115,756
|
|
|
|
$
1,972,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E-Infrastructure
Solutions
|
$
56,437
|
|
24.1 %
|
|
$
37,616
|
|
17.3 %
|
|
$
203,359
|
|
22.0 %
|
|
$
140,997
|
|
15.0 %
|
|
Transportation
Solutions
|
8,715
|
|
5.0 %
|
|
12,262
|
|
7.0 %
|
|
50,869
|
|
6.5 %
|
|
41,911
|
|
6.6 %
|
|
Building
Solutions
|
9,246
|
|
10.3 %
|
|
11,164
|
|
12.0 %
|
|
49,083
|
|
12.0 %
|
|
46,193
|
|
11.4 %
|
|
Segment Operating
Income
|
74,398
|
|
14.9 %
|
|
61,042
|
|
12.6 %
|
|
303,311
|
|
14.3 %
|
|
229,101
|
|
11.6 %
|
|
Corporate G&A
Expense
|
(11,915)
|
|
|
|
(4,753)
|
|
|
|
(38,268)
|
|
|
|
(22,433)
|
|
|
|
Acquisition Related
Costs
|
(212)
|
|
|
|
(521)
|
|
|
|
(421)
|
|
|
|
(873)
|
|
|
|
Total Operating
Income
|
$
62,271
|
|
12.5 %
|
|
$
55,768
|
|
11.5 %
|
|
$
264,622
|
|
12.5 %
|
|
$
205,795
|
|
10.4 %
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
except per share data)
(Unaudited)
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
664,195
|
|
$
471,563
|
|
Accounts
receivable
|
247,050
|
|
252,435
|
|
Contract
assets
|
55,387
|
|
88,600
|
|
Receivables from and
equity in construction joint ventures
|
5,811
|
|
17,506
|
|
Receivable from
affiliate
|
32,054
|
|
—
|
|
Other current
assets
|
17,383
|
|
17,875
|
|
Total current
assets
|
1,021,880
|
|
847,979
|
|
Property and equipment,
net
|
236,795
|
|
243,648
|
|
Investment in
unconsolidated subsidiary
|
107,400
|
|
—
|
|
Operating lease
right-of-use assets, net
|
52,668
|
|
57,235
|
|
Goodwill
|
264,597
|
|
281,117
|
|
Other intangibles,
net
|
316,390
|
|
328,397
|
|
Other non-current
assets, net
|
17,044
|
|
18,808
|
|
Total
assets
|
$
2,016,774
|
|
$
1,777,184
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
130,420
|
|
$
145,968
|
|
Contract
liabilities
|
508,846
|
|
444,160
|
|
Current maturities of
long-term debt
|
26,423
|
|
26,520
|
|
Current portion of
long-term lease obligations
|
20,498
|
|
19,641
|
|
Accrued
compensation
|
36,774
|
|
27,758
|
|
Other current
liabilities
|
18,997
|
|
14,121
|
|
Total current
liabilities
|
741,958
|
|
678,168
|
|
Long-term
debt
|
289,898
|
|
314,996
|
|
Long-term lease
obligations
|
32,455
|
|
37,722
|
|
Members' interest
subject to mandatory redemption and undistributed
earnings
|
—
|
|
29,108
|
|
Deferred tax liability,
net
|
109,360
|
|
76,764
|
|
Other long-term
liabilities
|
16,625
|
|
16,573
|
|
Total
liabilities
|
1,190,296
|
|
1,153,331
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
312
|
|
309
|
|
Additional paid in
capital
|
288,395
|
|
293,570
|
|
Treasury stock, at
cost
|
(63,121)
|
|
—
|
|
Retained
earnings
|
582,495
|
|
325,034
|
|
Total Sterling
stockholders' equity
|
808,081
|
|
618,913
|
|
Noncontrolling
interests
|
18,397
|
|
4,940
|
|
Total stockholders'
equity
|
826,478
|
|
623,853
|
|
Total liabilities and
stockholders' equity
|
$
2,016,774
|
|
$
1,777,184
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
Twelve Months Ended
December 31,
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
270,918
|
|
$
142,845
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
68,410
|
|
57,403
|
|
Amortization of debt
issuance costs and non-cash interest
|
1,146
|
|
1,727
|
|
Gain on disposal of
property and equipment
|
(3,473)
|
|
(5,286)
|
|
Gain on
deconsolidation of subsidiary, net
|
(91,289)
|
|
—
|
|
Deferred
taxes
|
32,573
|
|
14,746
|
|
Stock-based
compensation
|
19,003
|
|
14,622
|
|
Changes in operating
assets and liabilities
|
199,816
|
|
252,527
|
|
Net cash provided by
operating activities
|
497,104
|
|
478,584
|
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(11,223)
|
|
(51,177)
|
|
Disposition, net of
cash disposed
|
—
|
|
14,000
|
|
Deconsolidation, net
of cash
|
(103,829)
|
|
—
|
|
Capital
expenditures
|
(80,954)
|
|
(64,379)
|
|
Proceeds from sale of
property and equipment
|
10,157
|
|
13,804
|
|
Net cash used in
investing activities
|
(185,849)
|
|
(87,752)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Cash received from
credit facility
|
—
|
|
2,562
|
|
Repayments of
debt
|
(26,539)
|
|
(93,491)
|
|
Purchase of common
stock
|
(70,596)
|
|
—
|
|
Distributions to
noncontrolling interest owners
|
—
|
|
(2,450)
|
|
Withholding taxes paid
on net share settlement of equity awards
|
(21,452)
|
|
(9,567)
|
|
Debt issuance
costs
|
—
|
|
(1,572)
|
|
Other
|
(36)
|
|
(16)
|
|
Net cash used in
financing activities
|
(118,623)
|
|
(104,534)
|
|
Net change in cash,
cash equivalents, and restricted cash
|
192,632
|
|
286,298
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
471,563
|
|
185,265
|
|
Cash, cash equivalents
and restricted cash at end of period
|
664,195
|
|
471,563
|
|
Less: restricted
cash
|
—
|
|
—
|
|
Cash and cash
equivalents at end of period
|
$
664,195
|
|
$
471,563
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
HISTORICAL QUARTERLY
SEGMENT INFORMATION
(In
thousands)
(Unaudited)
|
|
The following tables
present our 2024, 2023 and 2022 quarterly revenue and
income from operations by segment adjusted to conform to our 2025
presentation reflecting the deconsolidation of RHB and continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
2024 Quarters Ended
(Unaudited)
|
|
|
|
Revenues
|
March
31
|
|
June
30
|
|
September
30
|
|
December
31
|
|
Total
|
|
E-Infrastructure
Solutions
|
$
184,476
|
|
$
241,312
|
|
$
263,899
|
|
$
234,041
|
|
$
923,728
|
|
Transportation
Solutions
|
110,505
|
|
158,828
|
|
155,063
|
|
123,387
|
|
547,783
|
|
Building
Solutions
|
106,915
|
|
108,735
|
|
102,591
|
|
90,128
|
|
408,369
|
|
Revenues
|
$
401,896
|
|
$
508,875
|
|
$
521,553
|
|
$
447,556
|
|
$ 1,879,880
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
E-Infrastructure
Solutions
|
$
27,169
|
|
$
51,677
|
|
$
68,076
|
|
$
56,437
|
|
$
203,359
|
|
Transportation
Solutions
|
8,132
|
|
15,449
|
|
18,573
|
|
8,715
|
|
50,869
|
|
Building
Solutions
|
14,775
|
|
13,813
|
|
11,249
|
|
9,246
|
|
49,083
|
|
Segment Operating
Income
|
50,076
|
|
80,939
|
|
97,898
|
|
74,398
|
|
303,311
|
|
Corporate
|
(7,915)
|
|
(8,104)
|
|
(10,334)
|
|
(11,915)
|
|
(38,268)
|
|
Acquisition related
costs
|
(36)
|
|
(101)
|
|
(72)
|
|
(212)
|
|
(421)
|
|
Operating
Income
|
$
42,125
|
|
$
72,734
|
|
$
87,492
|
|
$
62,271
|
|
$
264,622
|
|
|
2023 Quarters Ended
(Unaudited)
|
|
|
|
Revenues
|
March
31
|
|
June
30
|
|
September
30
|
|
December
31
|
|
Total
|
|
E-Infrastructure
Solutions
|
$
205,840
|
|
$
260,148
|
|
$
253,948
|
|
$
217,472
|
|
$
937,408
|
|
Transportation
Solutions
|
89,702
|
|
108,890
|
|
123,550
|
|
115,711
|
|
437,853
|
|
Building
Solutions
|
86,600
|
|
111,089
|
|
113,403
|
|
92,821
|
|
403,913
|
|
Revenues
|
$
382,142
|
|
$
480,127
|
|
$
490,901
|
|
$
426,004
|
|
$ 1,779,174
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
E-Infrastructure
Solutions
|
$
24,269
|
|
$
43,167
|
|
$
35,945
|
|
$
37,616
|
|
$
140,997
|
|
Transportation
Solutions
|
5,306
|
|
9,856
|
|
14,487
|
|
12,262
|
|
41,911
|
|
Building
Solutions
|
8,701
|
|
13,480
|
|
12,848
|
|
11,164
|
|
46,193
|
|
Segment Operating
Income
|
38,276
|
|
66,503
|
|
63,280
|
|
61,042
|
|
229,101
|
|
Corporate
|
(5,459)
|
|
(6,181)
|
|
(6,040)
|
|
(4,753)
|
|
(22,433)
|
|
Acquisition related
costs
|
(190)
|
|
(59)
|
|
(103)
|
|
(521)
|
|
(873)
|
|
Operating
Income
|
$
32,627
|
|
$
60,263
|
|
$
57,137
|
|
$
55,768
|
|
$
205,795
|
|
|
2022 Quarters Ended
(Unaudited)
|
|
|
|
Revenues
|
March
31
|
|
June
30
|
|
September
30
|
|
December
31
|
|
Total
|
|
E-Infrastructure
Solutions
|
$
168,927
|
|
$
233,548
|
|
$
255,530
|
|
$
247,272
|
|
$
905,277
|
|
Transportation
Solutions
|
95,716
|
|
111,424
|
|
116,055
|
|
91,834
|
|
415,029
|
|
Building
Solutions
|
80,894
|
|
85,639
|
|
80,286
|
|
74,790
|
|
321,609
|
|
Revenues
|
$
345,537
|
|
$
430,611
|
|
$
451,871
|
|
$
413,896
|
|
$ 1,641,915
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
E-Infrastructure
Solutions
|
$
21,285
|
|
$
32,824
|
|
$
37,533
|
|
$
29,811
|
|
$
121,453
|
|
Transportation
Solutions
|
4,443
|
|
7,410
|
|
9,700
|
|
5,070
|
|
26,623
|
|
Building
Solutions
|
9,358
|
|
9,751
|
|
9,324
|
|
8,260
|
|
36,693
|
|
Segment Operating
Income
|
35,086
|
|
$
49,985
|
|
56,557
|
|
43,141
|
|
184,769
|
|
Corporate
|
(5,468)
|
|
(5,766)
|
|
(7,005)
|
|
(5,833)
|
|
(24,072)
|
|
Acquisition related
costs
|
(255)
|
|
(230)
|
|
(77)
|
|
(265)
|
|
(827)
|
|
Operating
Income
|
$
29,363
|
|
$
43,989
|
|
$
49,475
|
|
$
37,043
|
|
$
159,870
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
HISTORICAL QUARTERLY
BACKLOG INFORMATION
(In
thousands)
(Unaudited)
|
|
The following tables
present our 2024, 2023 and 2022 backlog and combined
backlog adjusted to conform to our December 31, 2024 presentation
reflecting the deconsolidation of RHB and continuing
operations:
|
|
|
|
|
|
|
|
|
|
2024 Quarters Ended
(Unaudited)
|
|
March
31
|
|
June
30
|
|
September
30
|
|
December
31
|
|
Backlog
|
|
|
|
|
|
|
|
|
Backlog including
RHB
|
$ 2,352,126
|
|
$ 2,098,781
|
|
$ 2,055,081
|
|
$ 2,184,478
|
|
Less: RHB
Backlog
|
(528,043)
|
|
(476,842)
|
|
(485,050)
|
|
(491,255)
|
|
Backlog excluding
RHB
|
$ 1,824,083
|
|
$ 1,621,939
|
|
$ 1,570,031
|
|
$ 1,693,223
|
|
|
|
|
|
|
|
|
|
Combined
Backlog
|
|
|
|
|
|
|
|
|
Combined Backlog
including RHB
|
$ 2,419,748
|
|
$ 2,445,992
|
|
$ 2,374,690
|
|
$ 2,322,391
|
|
Less: RHB
Backlog
|
(528,043)
|
|
(536,165)
|
|
(539,494)
|
|
(491,255)
|
|
Combined Backlog
excluding RHB
|
$ 1,891,705
|
|
$ 1,909,827
|
|
$ 1,835,196
|
|
$ 1,831,136
|
|
|
|
|
|
|
|
|
|
2023 Quarters Ended
(Unaudited)
|
|
March
31
|
|
June
30
|
|
September
30
|
|
December
31
|
|
Backlog
|
|
|
|
|
|
|
|
|
Backlog including
RHB
|
$ 1,624,233
|
|
$ 1,735,669
|
|
$ 2,010,407
|
|
$ 2,067,016
|
|
Less: RHB
Backlog
|
(302,189)
|
|
(281,500)
|
|
(271,894)
|
|
(405,799)
|
|
Backlog excluding
RHB
|
$ 1,322,044
|
|
$ 1,454,169
|
|
$ 1,738,513
|
|
$ 1,661,217
|
|
|
|
|
|
|
|
|
|
Combined
Backlog
|
|
|
|
|
|
|
|
|
Combined Backlog
including RHB
|
$ 1,754,736
|
|
$ 2,392,910
|
|
$ 2,385,587
|
|
$ 2,370,248
|
|
Less: RHB
Backlog
|
(318,633)
|
|
(446,422)
|
|
(432,483)
|
|
(561,355)
|
|
Combined Backlog
excluding RHB
|
$ 1,436,103
|
|
$ 1,946,488
|
|
$ 1,953,104
|
|
$ 1,808,893
|
|
|
|
|
|
|
|
|
|
2022 Quarters Ended
(Unaudited)
|
|
March
31
|
|
June
30
|
|
September
30
|
|
December
31
|
|
Backlog
|
|
|
|
|
|
|
|
|
Backlog including
RHB
|
$ 1,378,335
|
|
$ 1,327,218
|
|
$ 1,411,271
|
|
$ 1,414,342
|
|
Less: RHB
Backlog
|
(273,382)
|
|
(277,158)
|
|
(272,103)
|
|
(301,223)
|
|
Backlog excluding
RHB
|
$ 1,104,953
|
|
$ 1,050,060
|
|
$ 1,139,168
|
|
$ 1,113,119
|
|
|
|
|
|
|
|
|
|
Combined
Backlog
|
|
|
|
|
|
|
|
|
Combined Backlog
including RHB
|
$ 1,466,439
|
|
$ 1,466,943
|
|
$ 1,625,630
|
|
$ 1,689,323
|
|
Less: RHB
Backlog
|
(297,695)
|
|
(309,198)
|
|
(329,901)
|
|
(323,556)
|
|
Combined Backlog
excluding RHB
|
$ 1,168,744
|
|
$ 1,157,745
|
|
$ 1,295,729
|
|
$ 1,365,767
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
ADJUSTED NET INCOME
RECONCILIATION
(In
thousands)
(Unaudited)
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income attributable
to Sterling common stockholders
|
$ 113,213
|
|
$
40,173
|
|
$ 257,461
|
|
$ 138,655
|
|
Gain on deconsolidation
of subsidiary, net
|
(91,289)
|
|
—
|
|
(91,289)
|
|
—
|
|
Acquisition related
costs
|
212
|
|
521
|
|
421
|
|
873
|
|
Income tax impact of
adjustments
|
23,354
|
|
(117)
|
|
23,303
|
|
(219)
|
|
Adjusted net income
attributable to Sterling common stockholders
(1)
|
$
45,490
|
|
$
40,577
|
|
$ 189,896
|
|
$ 139,309
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Sterling common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
3.69
|
|
$
1.30
|
|
$
8.35
|
|
$
4.51
|
|
Diluted
|
$
3.64
|
|
$
1.28
|
|
$
8.27
|
|
$
4.44
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per share attributable to Sterling common
stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.48
|
|
$
1.32
|
|
$
6.16
|
|
$
4.53
|
|
Diluted
|
$
1.46
|
|
$
1.29
|
|
$
6.10
|
|
$
4.46
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
30,696
|
|
30,819
|
|
30,830
|
|
30,755
|
|
Diluted
|
31,121
|
|
31,334
|
|
31,146
|
|
31,208
|
|
|
|
|
|
|
|
|
|
(1)
|
The Company defines
adjusted net income attributable to Sterling common stockholders as
GAAP net income attributable to Sterling common stockholders
excluding the impact of the net gain on deconsolidation of
subsidiary, acquisition related costs, and the income tax impact of
these adjustments. The tax impact of adjustments is determined by
using the Company's quarterly and annual effective tax rate, as
applicable, unless the nature of the item requires application of a
specific tax rate.
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
EBITDA
RECONCILIATION
(In
thousands)
(Unaudited)
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income attributable
to Sterling common stockholders
|
$
113,213
|
|
$
40,173
|
|
$
257,461
|
|
$
138,655
|
|
Depreciation and
amortization
|
17,864
|
|
14,874
|
|
68,410
|
|
57,403
|
|
Interest (income)
expense, net
|
(2,032)
|
|
991
|
|
(2,367)
|
|
15,180
|
|
Income tax
expense
|
38,400
|
|
12,341
|
|
87,360
|
|
47,770
|
|
EBITDA(1)
|
167,445
|
|
68,379
|
|
410,864
|
|
259,008
|
|
Gain on deconsolidation
of subsidiary, net
|
(91,289)
|
|
—
|
|
(91,289)
|
|
—
|
|
Acquisition related
costs
|
212
|
|
521
|
|
421
|
|
873
|
|
Adjusted
EBITDA(2)
|
$
76,368
|
|
$
68,900
|
|
$
319,996
|
|
$
259,881
|
|
|
|
|
|
|
|
|
|
(1)
|
The Company defines
EBITDA as GAAP net income attributable to Sterling common
stockholders adjusted for depreciation and amortization, net
interest income/expense and income tax expense.
|
|
|
|
(2)
|
The Company defines
adjusted EBITDA as EBITDA excluding the impact of the net gain on
deconsolidation of subsidiary and acquisition related
costs.
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
ADJUSTED NET INCOME
GUIDANCE RECONCILIATION
(In
thousands)
(Unaudited)
|
|
Full Year 2025
Guidance
|
|
Full
Year
|
|
Low
|
|
High
|
|
2024
Actual
|
|
Net income attributable
to Sterling common stockholders
|
$
215,000
|
|
$
230,000
|
|
$
257,461
|
|
Gain on deconsolidation
of subsidiary, net
|
—
|
|
—
|
|
(91,289)
|
|
Non-cash stock-based
compensation
|
20,000
|
|
20,000
|
|
19,003
|
|
Intangible asset
amortization
|
25,000
|
|
25,000
|
|
17,037
|
|
Acquisition related
costs
|
5,000
|
|
5,000
|
|
5,177
|
|
Income tax impact of
adjustments
|
(13,000)
|
|
(13,000)
|
|
13,356
|
|
Adjusted net income
attributable to Sterling common stockholders
(1)
|
$
252,000
|
|
$
267,000
|
|
$
220,745
|
|
|
|
|
|
|
|
Net income per share
attributable to Sterling common stockholders:
|
|
|
|
|
|
|
Diluted
|
$
6.75
|
|
$
7.25
|
|
$
8.27
|
|
|
|
|
|
|
|
Adjusted net income
per share attributable to Sterling common
stockholders:
|
|
|
|
|
|
|
Diluted
|
$
7.90
|
|
$
8.40
|
|
$
7.09
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Diluted
|
32,000
|
|
32,000
|
|
31,146
|
|
|
|
|
|
|
|
(1)
|
Starting in 2025, the
Company will define adjusted net income as GAAP net income
excluding the impact of the net gain on deconsolidation of
subsidiary, non-cash stock-based compensation, intangible asset
amortization, acquisition related costs (including earn-outs), and
the income tax impact of these adjustments. The tax impact of
adjustments is determined by using the Company's quarterly and
annual effective tax rate, as applicable, unless the nature of the
item requires application of a specific tax rate.
|
|
STERLING
INFRASTRUCTURE, INC. & SUBSIDIARIES
EBITDA GUIDANCE
RECONCILIATION
(In
millions)
(Unaudited)
|
|
Full Year 2025
Guidance
|
|
Full Year
2024
|
|
Low
|
|
High
|
|
Actual
|
|
Net income attributable
to Sterling common stockholders
|
$
215
|
|
$
230
|
|
$
257
|
|
Depreciation and
amortization
|
76
|
|
81
|
|
68
|
|
Interest income, net of
interest expense
|
(2)
|
|
(4)
|
|
(2)
|
|
Income tax
expense
|
81
|
|
88
|
|
87
|
|
EBITDA
(1)
|
370
|
|
395
|
|
411
|
|
Gain on deconsolidation
of subsidiary, net
|
—
|
|
—
|
|
(91)
|
|
Non-cash stock-based
compensation
|
20
|
|
20
|
|
19
|
|
Acquisition related
costs
|
5
|
|
5
|
|
5
|
|
Adjusted
EBITDA(2)
|
$
395
|
|
$
420
|
|
$
344
|
|
|
|
|
|
|
|
(1)
|
The Company defines
EBITDA as GAAP net income attributable to Sterling common
stockholders, adjusted for depreciation and amortization, net
interest income, and income tax expense.
|
|
|
|
(2)
|
In 2025, the Company
will define adjusted EBITDA as EBITDA excluding the impact of the
net gain on deconsolidation of subsidiary, non-cash stock-based
compensation, and acquisition related costs (including
earn-outs).
|
View original content to download
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SOURCE Sterling Infrastructure, Inc.
