Core Insights - Sterling Infrastructure, Inc. reported strong financial results for Q1 2025, with adjusted net income increasing by 28% and adjusted diluted EPS reaching $1.63 [6][8][9] - The company experienced a revenue growth of 7% on a pro forma basis, driven by significant growth in E-Infrastructure Solutions and Transportation Solutions [6][8] - The backlog at the end of Q1 2025 was $2.1 billion, reflecting a 17% increase year-over-year, with a book-to-burn ratio of 2.2x [6][8] Financial Performance - Revenues for Q1 2025 were $430.9 million, a 7% increase compared to the prior year quarter, excluding RHB [8][20] - Gross margin improved to 22.0%, up from 17.5% in the previous year [8][20] - Net income attributable to Sterling common stockholders was $39.5 million, or $1.28 per diluted share, representing increases of 27% and 28% respectively [8][20] Segment Performance - E-Infrastructure Solutions generated revenues of $218.3 million, accounting for 51% of total revenue, with an operating income margin of 21.4% [21] - Transportation Solutions saw revenues of $120.7 million, with a 9% increase and an operating income margin of 9.3% [21] - Building Solutions experienced a revenue decline of 14%, attributed to challenges in the housing market [9][21] Acquisition and Strategic Moves - The acquisition of Drake Concrete, LLC for $25 million is expected to contribute approximately $55 million in revenue and $6.5 million in adjusted EBITDA in 2025 [5][6] - The company is focusing on high-margin service offerings, which has positively impacted gross profit margins and adjusted EBITDA growth [6][9] Outlook and Guidance - The company raised its 2025 guidance, projecting a 12% revenue growth on a pro forma basis, alongside 22% growth in adjusted diluted EPS and 23% growth in adjusted EBITDA [9][33] - The CEO expressed confidence in continued bottom-line growth that outpaces top-line growth, supported by a strong backlog and cash flow generation [6][9]

Core Viewpoint - Sterling Infrastructure, Inc. is positioned for strong growth in 2025, with significant earnings and revenue expectations despite seasonal challenges in the first quarter [5][23]. Financial Performance - In the last reported quarter, Sterling achieved adjusted EPS of $1.46, exceeding the Zacks Consensus Estimate by 9% and reflecting a year-over-year growth of 13.2% [2]. - Revenues for the last quarter were $498.8 million, marking a 3% increase year-over-year, although slightly below guidance [2]. - The company has consistently surpassed earnings expectations, with an average surprise of 16.2% over the last four quarters [3][4]. Earnings Estimates - The Zacks Consensus Estimate for the third-quarter EPS remains at $1.58, indicating a 58% growth from the previous year [5]. - For 2025, Sterling is projected to achieve a 34.6% EPS growth compared to the prior year [5]. Market Position and Segments - Sterling operates in the e-infrastructure and transportation markets, with a strong focus on high-margin projects and a robust backlog [8]. - The E-Infrastructure Solutions segment accounted for 47% of fourth-quarter 2024 revenues, benefiting from capital deployment in data centers and advanced manufacturing [10]. - The Transportation Solutions segment, contributing 35% of total revenues, is expected to gain from strong demand and funding from the Infrastructure Bill [11]. - The Building Solutions segment, which made up 18% of revenues, faces challenges in the residential construction market due to affordability issues and weather disruptions [12]. Strategic Growth Factors - Acquisitions have played a crucial role in expanding Sterling's operations and boosting revenues [13]. - The company is well-positioned to capitalize on ongoing federal infrastructure spending and rising demand for data centers driven by AI technology advancements [8][22]. Stock Performance and Valuation - STRL stock has shown positive momentum, trading above its 50-day and 200-day moving averages, indicating investor confidence [16][24]. - The stock is currently trading at a forward P/E ratio of 17.4, slightly below the industry average of 17.73, suggesting a reasonable valuation [17][24].

Group 1 - Sterling Infrastructure (STRL) closed at $149.59, with a -1.42% change from the previous day, underperforming the S&P 500 which gained 0.06% [1] - Over the past month, STRL shares have increased by 30.65%, while the Construction sector and S&P 500 have decreased by 6.22% and 4.29% respectively [1] - The upcoming earnings report on May 5, 2025, is projected to show an EPS of $1.58, a 58% increase year-over-year, with revenue expected at $415.6 million, reflecting a 5.62% decline from the previous year [2] Group 2 - For the annual period, earnings are anticipated at $8.21 per share and revenue at $2.03 billion, indicating a +34.59% increase in earnings and a -4.08% decrease in revenue compared to last year [3] - Recent shifts in analyst projections for Sterling Infrastructure are important as they indicate changing business trends, with positive revisions suggesting analyst optimism [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Sterling Infrastructure as 1, indicating strong buy potential [6] Group 3 - Sterling Infrastructure has a Forward P/E ratio of 18.5, which is in line with the industry average, and a PEG ratio of 1.23, compared to the industry average of 1.77 [7] - The Engineering - R and D Services industry, part of the Construction sector, holds a Zacks Industry Rank of 26, placing it in the top 11% of over 250 industries [8]

THE WOODLANDS, Texas, April 24, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company") today announced that it plans to issue its financial results for the first quarter of 2025 on Monday, May 5, 2025, after the stock market closes. Sterling's management will host a conference call on Tuesday, May 6, 2025, at 9:00 am ET/8:00 am CT to discuss the first quarter, as well as the 2025 outlook. Interested parties may participate in the call by dialing (800) 836-8184. Ple ...

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sterling Infrastructure presently features a Zacks Rank of #1 (Strong Buy). In terms of valuation, Sterling Infrastructure is currently trading at a Forward P/E ratio of 16.03. This ex ...

Shares of Sterling Infrastructure, Inc. (STRL) are currently trading above their 50-day simple moving average (SMA), a key technical indicator that suggests a short-term bullish trend. The 50-day SMA helps smooth out price volatility, making it easier for investors to identify the underlying direction of a stock’s movement. When a stock trades above this level, it’s often seen as a signal of upward momentum and potential continued strength in the near term.Sterling Price Movement vs. 50-Day Moving AverageIm ...

As a finance enthusiast with experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the long run. I enjoy writing about these businesses, telling their stories, strategies, and financial details. I use a mix of looking at their finances and writing to give insights into how well companies might do, helping people understand the market better ...

Core Points - Sterling Infrastructure Inc. will replace Patterson Companies Inc. in the S&P SmallCap 600 effective April 17, 2025 [1] - The acquisition of Patterson Companies by Patient Square Capital is expected to be completed soon, pending final closing conditions [1] Summary by Category Index Changes - Effective Date: April 17, 2025 - Addition: Sterling Infrastructure Inc. (Ticker: STRL) in the Industrials sector [1] - Deletion: Patterson Companies Inc. (Ticker: PDCO) in the Health Care sector [1]

Sterling Infrastructure (STRL) and Granite Construction (GVA) are prominent mid-cap construction companies in the United States specializing in large-scale infrastructure, transportation and water-related projects. Both firms have seen tailwinds from rising federal and state infrastructure investments, especially with the momentum generated by the Infrastructure Investment and Jobs Act (IIJA).As the United States focuses on upgrading aging transportation systems and advancing sustainable infrastructure, the ...

Sterling Infrastructure (STRL) shares soared 3.9% in the last trading session to close at $109.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% loss over the past four weeks.Sterling shares have been gaining on the optimism surrounding the company's strategic focus on high-margin services, booming E-Infrastructure business, and solid federal infrastructure funding ensuring long-term stability.This civil construction comp ...