Sterling Reports Record Fourth Quarter and Full Year 2024 Results and Provides Full Year 2025 Guidance

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]