Sterling Infrastructure(US:STRL)2025-05-05 20:05Financial 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]