Sterling Infrastructure(STRL) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 revenue reached $689.0 million, a 32% increase year-over-year, excluding RHB[5] - Adjusted diluted earnings per share for the quarter were $3.48, reflecting a 58% increase[4] - Gross profit margin improved to 24.7%, up from 21.9% in the prior year[5] - Net income for the quarter was $92.1 million, a 50% increase compared to the previous year[5] - Revenues for Q3 2025 reached $689.0 million, a 16.0% increase from $593.7 million in Q3 2024[21] - Gross profit for Q3 2025 was $170.2 million, up 31.1% from $129.8 million in Q3 2024[21] - Operating income for Q3 2025 increased to $125.3 million, representing a 43.2% rise compared to $87.5 million in Q3 2024[21] - Net income attributable to Sterling common stockholders for Q3 2025 was $92.1 million, a 50.3% increase from $61.3 million in Q3 2024[21] - Adjusted net income attributable to Sterling common stockholders for Q3 2025 was $107.7 million, compared to $68.5 million in Q3 2024, representing a 57.3% increase[29] - Total revenues for Q3 2025, excluding RHB, reached $689.0 million, a 32.2% increase from $521.6 million in Q3 2024[33] - Adjusted EBITDA for Q3 2025 was $155.8 million, up 46.6% from $106.2 million in Q3 2024[31] Backlog and Acquisitions - Signed backlog at the end of the quarter was $2.6 billion, a 34% year-over-year growth[4] - Combined backlog reached over $3 billion for the first time, growing 44% year-over-year[4] - The CEC acquisition contributed $41.4 million to revenue and $475.3 million to backlog[5][7] - The backlog at the end of 2024 was $2,184,478 million, excluding RHB backlog, which was $491,255 million[47] Guidance and Projections - Full year 2025 guidance was raised to reflect a projected revenue of $2.375 billion to $2.390 billion, representing a 27% year-over-year growth[12] - Adjusted EBITDA for the full year is expected to be between $486 million and $491 million, indicating a 42% growth[12] - Full year 2025 guidance for net income attributable to Sterling common stockholders is projected between $270.0 million and $275.0 million, compared to $257.5 million in 2024[36] - Adjusted net income per share for 2025 is expected to be between $10.35 and $10.52, significantly higher than $7.09 in 2024[36] Segment Performance - E-Infrastructure Solutions revenue grew by 58%, while Transportation Solutions revenue increased by 10%[6][8] - E-Infrastructure Solutions contributed $417.1 million in revenues for Q3 2025, accounting for 60% of total revenues[23] - The E-Infrastructure Solutions segment generated revenues of $417.1 million in Q3 2025, accounting for 60% of total revenues[33] - Transportation Solutions revenue for 2024 was $547,783 million, showing a significant contribution to total revenues[40] Assets and Liabilities - Total assets as of September 30, 2025, were $2.56 billion, up from $2.02 billion at the end of 2024[25] - Cash and cash equivalents decreased to $306.4 million from $664.2 million at the end of 2024[27] - Total liabilities increased to $1.48 billion as of September 30, 2025, compared to $1.19 billion at the end of 2024[25] Operating Expenses - The company incurred $5.3 million in acquisition-related costs in Q3 2025, compared to $72,000 in Q3 2024[31] - Non-cash stock-based compensation for Q3 2025 was $6.0 million, up from $4.4 million in Q3 2024[31] - Corporate G&A expenses for 2024 totaled $38,268 million, impacting overall operating income[42] - Adjusted operating income for 2024 was $305,839 million, reflecting adjustments for non-cash stock-based compensation and other costs[42] Historical Performance - Net income attributable to Sterling common stockholders for 2024 was $257 million, with guidance for 2025 set between $270 million and $275 million[38] - Total revenues for 2024 reached $2,115,756 million, with E-Infrastructure Solutions contributing $923,728 million, Transportation Solutions $783,659 million, and Building Solutions $408,369 million[40] - Adjusted EBITDA for 2024 was $343 million, with guidance for 2025 projected between $486 million and $491 million[38] - The total operating income for 2024 was $264,622 million, with segment operating income from E-Infrastructure Solutions at $203,359 million[42] - The company reported a gain on deconsolidation of subsidiary, netting a loss of $91 million in 2024[38]