Core Insights - Sterling Infrastructure, Inc. has been awarded two significant transportation projects, highlighting the attractive opportunities in the Rocky Mountain and Arizona regions [1][6] - The CEO emphasized the technical capabilities and execution quality of the Ralph L. Wadsworth subsidiary, reinforcing its reputation as a trusted partner for highway and bridge work [1][3] Company Overview - Sterling operates through various subsidiaries across three segments: E-Infrastructure, Transportation, and Building Solutions, primarily in the Southern, Northeastern, Mid-Atlantic, Rocky Mountain regions, and the Pacific Islands [2] - E-Infrastructure Solutions focus on large-scale site development for manufacturing, data centers, and power generation [2] - Transportation Solutions encompass infrastructure projects for highways, roads, bridges, and airports [2] - Building Solutions include concrete foundations for residential and commercial projects, plumbing services, and surveys for new builds [2] - The company is committed to sustainability and improving society's quality of life through responsible operations [2] Project Details - The I-15 1800 North Interchange project in Utah has a total value of $195 million, with RLW holding a 60% interest, expected to begin in spring 2025 and continue through late 2027 [6] - The I-25 North Corridor project in Colorado is valued at $86 million, with RLW's share at 51%, marking the next phase of a multi-year project that started pre-construction activities in 2018 [6]

Financial Performance - For the full year 2024, revenue increased by 7% to $2.00 billion, with net income of $257.5 million, or $8.27 per diluted share, compared to $138.7 million, or $4.44 per diluted share, in 2023[4] - Adjusted net income for 2024 rose by 36.3% to $189.9 million, or $6.10 per diluted share, while EBITDA increased by 59% to $410.9 million[4] - In Q4 2024, revenues were $498.8 million, a 3% increase, with net income of $113.2 million, representing a 182% increase[6] - Gross profit for the year ended December 31, 2024, was $426.1 million, up 26.2% from $337.6 million in 2023[24] - Net income attributable to Sterling common stockholders for the year was $257.5 million, a 85.5% increase compared to $138.7 million in 2023[24] - Operating income for 2024 was $264.62 million, up 28.6% from $205.80 million in 2023[32] - Adjusted net income attributable to Sterling common stockholders for Q4 2024 was $45.49 million, compared to $40.58 million in Q4 2023, reflecting a 2.2% increase[36] - Basic net income per share for Q4 2024 was $3.69, significantly higher than $1.30 in Q4 2023[36] Revenue Segments - E-Infrastructure revenue increased by 8% year-over-year, driven by a more than 50% increase in data center-related revenue[9] - Transportation Solutions revenue increased by 24% for the full year, with operating margins at 6.5%[10] - E-Infrastructure Solutions segment revenues increased to $234.0 million in Q4 2024, accounting for 47% of total revenues, up from 45% in Q4 2023[26] - E-Infrastructure Solutions segment generated $923.73 million in revenue for 2024, accounting for 49.2% of total revenues[32] - Transportation Solutions segment revenue for 2024 was $547.78 million, up 25.1% from $437.85 million in 2023[32] Guidance and Projections - For 2025, the company expects revenue guidance of $2.00 billion to $2.15 billion, with adjusted net income guidance of $252 million to $267 million[13] - The midpoint of 2025 guidance indicates a projected 10% revenue growth and 18% growth in adjusted net income and adjusted EBITDA[11] - Full year 2025 guidance for net income attributable to Sterling common stockholders is projected between $215 million and $230 million, compared to $257.461 million in 2024[40] - Adjusted net income per share for 2025 is expected to be between $7.90 and $8.40, compared to $7.09 in 2024[40] Cash Flow and Assets - Cash flows from operations totaled $497.1 million for the twelve months ended December 31, 2024, with cash and cash equivalents at $664.2 million[6] - Cash and cash equivalents at the end of Q4 2024 were $664.2 million, a 40.7% increase from $471.6 million at the end of Q4 2023[28] - Total assets grew to $2.02 billion in Q4 2024, up from $1.78 billion in Q4 2023, reflecting a 13.6% increase[28] Backlog and Future Work - The combined backlog at December 31, 2024, was $1.83 billion, with E-Infrastructure Solutions backlog growing by 27% to over $1 billion[8] - The backlog excluding RHB for Q4 2024 was $1,693.22 million, a 4.5% increase from $1,661.22 million in Q4 2023[34] - The combined backlog excluding RHB for Q4 2024 was $1,831.14 million, showing stability compared to $1,808.89 million in Q4 2023[34] Costs and Expenses - The company reported acquisition-related costs of $421,000 for the twelve months ended December 2024, down from $873,000 in the previous year[36] - Non-cash stock-based compensation for 2024 was $19.003 million, with a consistent guidance of $20 million for 2025[40] - Acquisition related costs for 2024 were $5.177 million, with guidance remaining at $5 million for 2025[40] Other Financial Metrics - Operating income for Q4 2024 was $62.3 million, representing a 12.5% margin, compared to $55.8 million and an 11.5% margin in Q4 2023[26] - Total liabilities increased to $1.19 billion in Q4 2024, compared to $1.15 billion in Q4 2023, indicating a 3.0% rise[28] - The company reported a gain on deconsolidation of subsidiary of $91.3 million for the year, contributing significantly to net income[24] - The company incurred a gain on deconsolidation of subsidiary of $91.289 million in 2024, which will not be included in the adjusted net income for 2025[40] - Depreciation and amortization for the full year 2024 was $68 million, with guidance for 2025 set between $76 million and $81 million[42] - The weighted average diluted shares outstanding increased from 31,146 in 2024 to a projected 32,000 in 2025[40]

Core Viewpoint - Sterling Infrastructure, Inc. reported strong financial results for the full year 2024, with significant increases in revenue, net income, and EBITDA, while providing optimistic guidance for 2025. Financial Performance - For the full year 2024, revenue increased by 7% to $2.12 billion compared to 2023 [4] - Net income for 2024 was $257.5 million, or $8.27 per diluted share, up from $138.7 million, or $4.44 per diluted share in 2023, representing an increase of 86% [4] - Adjusted net income rose by 36.3% to $189.9 million, or $6.10 per diluted share in 2024, compared to $139.3 million, or $4.46 per diluted share in 2023 [4] - EBITDA increased by 59% to $410.9 million in 2024, compared to $259.0 million in 2023 [4] - Adjusted EBITDA grew by 23% to $320.0 million in 2024, compared to $259.9 million in 2023 [4] Segment Performance - E-Infrastructure Solutions revenue increased by 8% year-over-year, with data center-related revenue rising over 50% [8] - Transportation Solutions revenue increased by 24% for the full year, although it faced a decline in the fourth quarter due to challenging comparisons [9] - Building Solutions saw a modest revenue increase of 1.1% for the full year, but a decline of 3% in the fourth quarter [10] Backlog and Guidance - The combined backlog at year-end 2024 was $1.83 billion, slightly up from the previous year [7] - E-Infrastructure Solutions backlog grew by 27% year-over-year, exceeding $1 billion [7] - For 2025, the company expects revenue growth of 10%, adjusted net income growth of 18%, and adjusted EBITDA growth of 18% [10] Cash Flow and Financial Position - Operating cash flow for the full year 2024 was nearly $500 million, with a net cash position of $348 million [6] - Cash and cash equivalents at the end of 2024 totaled $664.2 million, up from $471.6 million at the end of 2023 [28] CEO Remarks - The CEO highlighted the record performance in 2024, with a focus on margin expansion and profitability growth exceeding revenue growth [6] - The company is optimistic about continued growth in 2025, driven by strategic shifts towards higher-margin service offerings [6]

Core Viewpoint - Sterling Infrastructure, Inc. (STRL) is positioned for strong growth driven by its focus on e-infrastructure and transportation markets, despite recent stock performance challenges [7][21]. Financial Performance - STRL reported Q3 2024 EPS of $1.97, a 56% increase year-over-year, exceeding the Zacks Consensus Estimate by 17.3% [1][2]. - Revenues for Q3 2024 were $593.7 million, slightly missing expectations by 1% [1]. - The company's backlog reached $2.1 billion, with a combined backlog of $2.37 billion, indicating strong future growth potential [1]. Segment Performance - E-Infrastructure Solutions accounted for 45% of Q3 2024 revenues, with data center projects making up over 50% of its backlog [8]. - The Transportation Solutions segment represented 38% of total revenues, benefiting from robust state and local funding and the Infrastructure Bill's allocation of $643 billion [9]. - The Building Solutions segment, which accounted for 17% of revenues, faces challenges in the residential construction market due to affordability concerns and high interest rates [10]. Market Position and Strategy - STRL has consistently surpassed earnings expectations, with an average surprise of 21.5% over the last four quarters [2][3]. - The company is strategically focused on high-margin projects and has established itself as a major player in the e-infrastructure market [7]. Valuation and Stock Performance - STRL stock has underperformed, losing 20% since the AI-related market selloff on January 27, 2025, and 39.7% from its 52-week high [12][15]. - The stock is currently trading at a forward P/E ratio of 18.98, above the industry average of 18.33 and its three-year median of 15.24, indicating a stretched valuation [15][16]. Future Outlook - The company is expected to benefit from increased capital expenditures in AI-related infrastructure, with major clients like Amazon and Meta planning significant investments [21]. - Despite the promising outlook, the heavy reliance on big tech contracts poses risks if there is a slowdown in AI-related spending [22].

Company Performance - Sterling Infrastructure (STRL) closed at $124.27, down 1.93% from the previous trading day, underperforming the S&P 500, which fell 0.43% [1] - Over the past month, STRL shares have decreased by 36.82%, significantly lagging behind the Construction sector's loss of 5.29% and the S&P 500's gain of 2.6% [2] Upcoming Earnings - The company is set to release its earnings report on February 25, 2025, with an expected EPS of $1.34, reflecting a 3.08% increase from the same quarter last year [3] - Revenue is forecasted to be $533.75 million, indicating a 9.83% increase compared to the same quarter last year [3] Analyst Sentiment - Recent revisions to analyst forecasts for Sterling Infrastructure are crucial as they indicate changing business trends, with positive revisions suggesting analyst optimism about the company's profitability [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Sterling Infrastructure at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6] Valuation Metrics - Sterling Infrastructure has a Forward P/E ratio of 19.62, which is slightly higher than its industry's Forward P/E of 19.46 [7] - The company holds a PEG ratio of 1.31, comparable to the industry average PEG ratio of 1.32 [8] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, has a Zacks Industry Rank of 163, placing it in the bottom 36% of over 250 industries [9]

Core Viewpoint - Sterling Infrastructure, Inc. (STRL) has experienced a significant decline of 18% in the past month, contrasting with the broader market trends and underperforming compared to its industry peers [1][2]. Performance Overview - STRL's stock performance has sharply declined, while the Zacks Construction sector increased by 0.2% and the Zacks S&P 500 Composite gained 3.8% during the same period [1]. - The company has underperformed within its industry, lagging behind competitors like Dycom Industries, Inc. (DY), which gained 4.7% [2]. Technical Indicators - STRL is trading below its 50-day and 200-day simple moving averages (SMAs), indicating potential bearish momentum [5]. Revenue and Income Challenges - The building solutions segment saw a 10% drop in revenue and a 12% decline in operating income in Q3 2024, primarily due to a slowdown in the Dallas residential market [8]. - Prolonged higher interest rates, with the Fed holding rates at 4.25%-4.50%, could suppress residential construction activity, negatively impacting the company's growth and margins [9]. Sector Dependency Risks - STRL's over-reliance on data centers, which constitute over half of its e-infrastructure backlog, poses risks if there is a slowdown in AI-related infrastructure projects [10]. Valuation Concerns - STRL's forward 12-month P/E ratio is 21.49, higher than the industry average of 19.1 and above its three-year median of 15.1 [11]. - Despite a higher valuation reflecting growth potential, recent price declines may deter investors from buying at current levels [12]. Growth Catalysts - The E-Infrastructure segment accounted for 45% of total revenues in Q3 2024, surging 90% year over year due to demand from AI and cloud computing [13]. - The transportation segment, making up 38% of total revenues, reported a 33.8% increase in revenues in the first nine months of 2024, supported by federal infrastructure funding [14]. Backlog and Financial Position - STRL's backlog stands at $2.37 billion, with over half tied to data center developments, indicating strong future revenue visibility [15]. - The transportation backlog is $1.4 billion, reflecting ongoing demand for highway expansion and public infrastructure projects [17]. - The company generated $322.8 million in operating cash flow in the first nine months of 2024, with a conservative leverage profile and strong financial flexibility [18][19]. Analyst Sentiment - Analysts have revised earnings per share estimates for 2025 upward, reflecting expected 8.1% year-over-year growth [20]. - The average price target set by analysts is $191.50 per share, suggesting a 32.2% upside from the recent closing price [21]. Conclusion - Despite recent challenges, STRL remains fundamentally strong with a solid backlog and growth potential in e-infrastructure [23]. - The stock's recent decline and valuation concerns suggest caution, with a Zacks Rank 3 (Hold) indicating a potential wait for a better entry point [24].

Core Viewpoint - Sterling Infrastructure, Inc. is set to release its financial results for Q4 and the full year of 2024 on February 25, 2025, after market close [1] Financial Results Announcement - The company will host a conference call on February 26, 2025, at 9:00 am ET to discuss the financial results and the outlook for 2025 [2] - Interested participants can join the call by dialing (800) 836-8184 and are advised to call in ten minutes early [2] Webcast Information - A simultaneous webcast of the conference call will be available on the company's website, with an archived version accessible for thirty days [3] Company Overview - Sterling operates through subsidiaries in three segments: E-Infrastructure, Transportation, and Building Solutions, primarily in the U.S. [4] - E-Infrastructure Solutions focus on large-scale site development for various sectors including manufacturing and data centers [4] - Transportation Solutions encompass infrastructure projects for highways, bridges, and airports [4] - Building Solutions provide concrete foundations and plumbing services for residential and commercial projects [4] - The company emphasizes sustainability and community care as part of its operational strategy [4] Leadership Statement - CEO Joe Cutillo stated that the company builds and services infrastructure essential for economic functioning and growth [5]

Group 1 - Sterling Infrastructure (NASDAQ: STRL) experienced moderated topline growth in the second half of the year due to a significant decline in the building solution segment [1] - The building solution segment is expected to remain under pressure moving forward [1] Group 2 - The analysis reflects a focus on understanding and explaining the financial details of companies, particularly in the technology, industrial, and conglomerate sectors [1]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Sterling Infrastructure (STRL) . This company, which is in the Zacks Engineering - R and D Services industry, shows potential for another earnings beat.This civil construction company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two ...

Group 1 - Sterling Infrastructure (STRL) closed at $196.58, reflecting a -1.98% change from the previous day, underperforming compared to the S&P 500's gain of 0.53% [1] - Over the last month, STRL shares increased by 14.68%, outperforming the Construction sector's gain of 4.6% and the S&P 500's gain of 2.69% [1] Group 2 - The upcoming earnings report for Sterling Infrastructure is anticipated to show an EPS of $1.34, representing a 3.08% increase from the same quarter last year, with revenue expected to reach $533.75 million, up 9.83% year-over-year [2] Group 3 - Recent modifications to analyst estimates for Sterling Infrastructure indicate a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system, which includes estimate changes, suggests a potential correlation with stock price performance [4] Group 4 - Sterling Infrastructure currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.23% over the past month [5] - The company has a Forward P/E ratio of 31.05, which is a premium compared to its industry's Forward P/E of 19.69, and a PEG ratio of 2.07, higher than the industry average PEG ratio of 1.89 [6] Group 5 - The Engineering - R and D Services industry, which includes Sterling Infrastructure, has a Zacks Industry Rank of 198, placing it in the bottom 22% of over 250 industries [7]