Sterling Infrastructure(US:STRL)2025-05-06 13:10Financial Performance - Revenues for Q1 2025 were $430.9 million, a decrease from $440.4 million in Q1 2024; excluding $38.5 million of RHB revenue from Q1 2024, revenues increased by $29.1 million[85]. - Gross profit for Q1 2025 was $94.8 million, an increase of $17.9 million or 23.3% compared to Q1 2024, with a gross margin of 22.0%[86]. - Total revenues for Q1 2025 were $430.9 million, a decrease of 2.3% compared to $440.4 million in Q1 2024[94]. - Total operating income for Q1 2025 was $56.1 million, representing 13.0% of revenue, compared to $42.1 million, or 9.6% of revenue, in Q1 2024[94]. - General and administrative expenses increased to $34.6 million, or 8.0% of revenue, in Q1 2025 from $27.3 million, or 6.2% of revenue, in Q1 2024[88]. - Net cash provided by operating activities was $84.9 million in Q1 2025, up from $49.6 million in Q1 2024[101]. - Net cash used in investing activities was $54.2 million in Q1 2025, primarily driven by $37.9 million for acquisitions[103]. - The effective income tax rate for Q1 2025 was 26.1%, with an anticipated full-year rate of approximately 26%[91][92]. - As of March 31, 2025, the company held cash and cash equivalents of $638.6 million[101]. Backlog and Awards - Backlog as of March 31, 2025, was $2.13 billion, up from $1.69 billion at December 31, 2024, with a book-to-burn ratio of 2.2X[83]. - The margin in Backlog increased to 17.7% at March 31, 2025, from 16.7% at December 31, 2024, driven by a greater mix of E-Infrastructure Solutions[83]. - Unsigned Awards were $103.2 million at March 31, 2025, down from $137.9 million at December 31, 2024; Combined Backlog totaled $2.23 billion[84]. Segment Performance - E-Infrastructure Solutions segment revenues increased by $33.8 million, or 18.3%, to $218.3 million in Q1 2025[95]. - Transportation Solutions segment revenues decreased to $120.7 million in Q1 2025 from $149.0 million in Q1 2024, but increased by $10.2 million when excluding prior year RHB revenue[97]. - Building Solutions segment revenues decreased by $14.9 million, or 13.9%, to $92.0 million in Q1 2025 due to lower commercial volume[99]. Strategic Initiatives - The Drake Acquisition for $25 million in cash plus a four-year earn-out opportunity strengthens the company's presence in the Dallas-Fort Worth market[76]. - The Infrastructure Investments and Jobs Act (IIJA) provides approximately $643 billion in funding for transportation programs, significantly increasing funding levels for the next five years[79]. - E-Infrastructure Solutions is expected to see growth driven by investments in data centers and advanced manufacturing, with a recovery in e-commerce distribution sector activity noted[78]. - Building Solutions segment is experiencing a decline due to interest rate uncertainty and affordability challenges, but long-term growth is anticipated due to population growth and housing shortages[81]. - The company aims to improve margins across all segments while focusing on growth in E-Infrastructure Solutions and expanding market share in Building Solutions[77].