Sterling Infrastructure(STRL) - 2024 Q4 - Annual Results

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]