Financial Data and Key Metrics Changes - Adjusted earnings per share increased by 29% to $1.63, with adjusted EBITDA rising by 31% to $80 million [7] - Revenue grew by 7% on a pro forma basis, with gross profit margins expanding over 400 basis points to reach 22% [7][15] - Operating cash flow was strong at $85 million, compared to $49.6 million in the prior year [18] Business Line Data and Key Metrics Changes - E Infrastructure Solutions segment revenue grew by over 18%, driven primarily by a 60% increase in the data center market [7][12] - Transportation Solutions revenue increased by 9%, with adjusted operating profit growing by 60% due to strong market demand [12][13] - Building Solutions segment revenue declined by 14%, impacted by affordability challenges in the housing market [13] Market Data and Key Metrics Changes - Backlog at the end of the quarter totaled $2.1 billion, a 17% year-over-year increase on a pro forma basis [9] - E Infrastructure Solutions backlog was $1.2 billion, up 27% year-over-year [10] - Transportation Solutions backlog was $861 million, an 11% year-over-year increase [13] Company Strategy and Development Direction - The company remains focused on pursuing high-return opportunities and enhancing long-term value [8] - The acquisition of Drake Concrete for $25 million is expected to contribute $55 million in revenue and $6.5 million in EBITDA in 2025 [8] - The company is prioritizing e infrastructure for M&A opportunities, particularly in Texas, to capitalize on the growing market [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong multiyear opportunities in various markets despite uncertainties in trade policies and the economy [8][20] - The company anticipates continued growth in e infrastructure revenue in the mid to high teens and adjusted operating profit margins in the mid-20% range for 2025 [22] - Management noted that the residential market is currently soft but expects pent-up demand to drive recovery in the long term [48] Other Important Information - The company ended the quarter with a strong liquidity position, consisting of $638.6 million in cash and $310 million in debt [18] - Full year 2025 guidance includes revenue of $2.05 billion to $2.15 billion and adjusted EBITDA of $410 million to $432 million [19] Q&A Session Summary Question: Insights on the 35% of backlog not related to data centers - Management feels confident about the backlog, with steady manufacturing and increasing e-commerce activity contributing positively [28][30] Question: Exposure to tariffs and cost perspective - Management indicated minimal exposure to tariffs due to fixed pricing in contracts and indexing mechanisms in place [31][34] Question: Drivers of margin performance in Transportation Solutions - Margin improvement is primarily driven by a shift towards higher-margin services rather than the low bid strategy [42] Question: Comfort in bidding for new projects - Management remains optimistic about bid activity and backlog, focusing on long-term growth despite current softness in the residential market [48] Question: M&A priorities in e infrastructure - The company is looking for geographic expansion and additional services, particularly in Texas, to enhance its portfolio [54][56] Question: Expectations for the next infrastructure bill - Management noted positive bipartisan activity in Congress regarding the next infrastructure bill, indicating a proactive approach to future funding [63][66] Question: Capacity constraints related to biopharma projects - Management is confident in handling new projects and is prepared to increase capacity if necessary [70][72]

Core Viewpoint - Sterling Infrastructure (STRL) reported quarterly earnings of $1.63 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and showing an increase from $1 per share a year ago, indicating a positive earnings surprise of 3.16% [1] Financial Performance - The company achieved revenues of $430.95 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.69%, although this represents a decline from year-ago revenues of $440.36 million [2] - Over the last four quarters, Sterling Infrastructure has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance - Since the beginning of the year, Sterling Infrastructure shares have decreased by approximately 1.7%, while the S&P 500 has declined by 3.3%, indicating relative outperformance [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $2.14 on revenues of $535.3 million, and for the current fiscal year, it is $8.21 on revenues of $2.03 billion [7] Industry Context - The Engineering - R and D Services industry, to which Sterling Infrastructure belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

May 6, 2025 Q1 2025 EARNINGS CALL We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. DISCLOSURE: Forward-Looking Statements This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward- looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to a number of risks and ...

Financial Performance - First quarter 2025 revenue was $430.9 million, a 7% increase on a pro forma basis excluding RHB[6] - Adjusted net income for the first quarter increased by 28% to $50.2 million, resulting in adjusted diluted EPS of $1.63[6] - Total revenues for the three months ended March 31, 2025, were $430,949,000, up from $401,896,000 in 2024, reflecting a growth of 7.2%[34] - Adjusted EBITDA for the three months ended March 31, 2025, was $80,304,000, compared to $61,294,000 in 2024, indicating a 31% increase[32] - The company reported a net income attributable to Sterling common stockholders of $257 million for 2024, with guidance for 2025 set between $222 million and $239 million[38] Revenue Segments - E-Infrastructure Solutions revenue grew by 18%, contributing to a 61% increase in adjusted operating income, with adjusted operating margins expanding to 23.2%[7] - Transportation Solutions revenue increased by 9%, with adjusted operating income growing by 60%[8] - Building Solutions revenue declined by 14%, impacted by a slowdown in the housing market and severe weather conditions[9] - The E-Infrastructure Solutions segment generated revenues of $218,263,000, accounting for 51% of total revenues, up from $184,476,000 (46%) in 2024[34] Guidance and Projections - The company raised its full-year 2025 guidance, projecting 12% revenue growth and 22% adjusted diluted EPS growth[9] - The company provided full-year 2025 guidance for net income attributable to Sterling common stockholders between $222,000,000 and $238,700,000, compared to $257,461,000 in 2024[36] - Adjusted net income attributable to Sterling common stockholders for 2025 is projected to be between $261,718,000 and $278,418,000, compared to $220,745,000 in 2024[36] - Full Year 2025 EBITDA guidance is projected between $381 million and $403 million, compared to actual EBITDA of $411 million for 2024[38] Backlog and Demand - The company ended the quarter with a backlog of $2.1 billion, representing a 17% increase year-over-year[5] - The company reported a book-to-burn ratio of 2.2x for the quarter, indicating strong demand for future projects[5] - The backlog excluding RHB at the end of 2024 was $1.693 billion, showing a decrease from $1.824 billion at the beginning of the year[42] - The combined backlog excluding RHB was $1.831 billion at the end of 2024, compared to $1.891 billion at the beginning of the year[42] Cash Flow and Assets - Cash flows from operations totaled $84.9 million, with cash and cash equivalents at $638.6 million as of March 31, 2025[6] - Cash flows from operating activities for the three months ended March 31, 2025, were $84,883,000, significantly higher than $49,591,000 in 2024, marking a 71% increase[28] - Total assets increased to $2,034,539,000 as of March 31, 2025, from $2,016,774,000 at the end of 2024[26] - Total liabilities rose to $1,207,612,000 as of March 31, 2025, compared to $1,190,296,000 at the end of 2024[26] Stock and Acquisitions - The acquisition of Drake Concrete is expected to contribute approximately $55 million in revenue and $6.5 million in adjusted EBITDA in 2025[4] - The company repurchased $43,846,000 of common stock during the three months ended March 31, 2025[28] - Non-cash stock-based compensation for 2024 was $19 million, with a forecast of $23 million for 2025[38] - The company incurred acquisition-related costs of $421,000 in 2024, with no such costs projected for 2025[40] Other Notable Information - The company plans to report RHB's operating income as a single line item starting January 1, 2025, following its deconsolidation[40]

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 ...

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 ...

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