By admin 
THE WOODLANDS, Texas, Feb. 25, 2025 /PRNewswire/ — Sterling Infrastructure, Inc. (NasdaqGS: STRL) (“Sterling” or the “Company”) today announced financial results for the fourth quarter and full year 2024 and provided full year 2025 guidance.
The financial comparisons herein are to the prior year quarter, unless otherwise noted.
Due to the deconsolidation of our RHB joint venture on December 31, 2024, RHB is not included in year-end 2024 consolidated backlog. As such, our prior-year comparisons for these metrics are on an adjusted basis to exclude RHB. Please see the “Historical Quarterly Backlog Information” section below for reconciliations to historical figures.
Fourth Quarter 2024 Results
- Revenues of $498.8 million, an increase of 3%
- Gross margin of 21.4%, up from 18.9%
- Net income of $113.2 million, or $3.64 per diluted share, an increase of 182% and 184% respectively
- Excluding the impact of a one-time gain on the deconsolidation of a subsidiary and acquisition-related costs, net income was $45.5 million, or $1.46 per diluted share, an increase of 12% and 13%, respectively
- EBITDA(1) of $167.4 million, an increase of 145%
- Adjusted EBITDA(1) of $76.4 million, an increase of 11%
- Cash flows from operations totaled $497.1 million for the twelve months ended December 31, 2024
- Cash and cash equivalents totaled $664.2 million at December 31, 2024
- Backlog at December 31, 2024 was $1.69 billion
- Combined backlog(2) at December 31, 2024 was $1.83 billion
For the full year ended December 31, 2024, revenue increased by 7% over 2023. The Company reported net income of $257.5 million, or $8.27 per diluted share in 2024, versus $138.7 million, or $4.44 per diluted share, in 2023. Adjusted net income(1) increased 36.3% to $189.9 million, or $6.10 per diluted share in 2024, versus $139.3 million, or $4.46 per diluted share, in 2023. EBITDA(1) increased 59% to $410.9 million in 2024, versus $259.0 million in 2023. Adjusted EBITDA(1) increased 23% to $320.0 million in 2024, versus $259.9 million in 2023.
|
(1) See “Non-GAAP Measures”, “Adjusted Net Income Reconciliation”, and “EBITDA Reconciliation” sections below for more information. |
|
(2) Combined Backlog includes Unsigned Awards of $137.9 million at December 31, 2024. |
CEO Remarks and Outlook
“2024 was another record year for Sterling as we grew our adjusted net income by 36% to deliver diluted EPS of $6.10, which was above the high end of our previously guided range,” stated Joe Cutillo, Sterling’s Chief Executive Officer. “Additionally, our gross margins exceeded 20% on an annual basis, a new record, and we generated nearly $500 million of operating cash flow.”
Mr. Cutillo continued, “In the fourth quarter we delivered 3% revenue growth and a 13% increase in adjusted diluted EPS. Our focus on margin expansion continues to drive profitability growth well in excess of revenue growth, and we expect this trend to continue in 2025. Gross profit margins in the quarter of 21.4% remained extremely strong as we have shifted the business toward higher-margin service offerings.
We closed the year with combined backlog of $1.83 billion, which was up slightly from prior year levels on a like-for-like basis. Notably, E-Infrastructure Solutions backlog reached over $1 billion and grew 27% relative to the prior year. Additionally, award activity has been strong in the first quarter of 2025 and our pipeline of high-probability future phase work continues to grow. Our operating cash flow generation in the fourth quarter of 2024 was again excellent at $174 million, driving our net cash position to $348 million, and supporting share repurchases of $20 million.”
Mr. Cutillo added, “In E-Infrastructure Solutions, we achieved 50% operating income growth in the fourth quarter as operating margins expanded nearly 700 basis points to reach 24.1%. This excellent margin profile reflects our shift toward large mission-critical projects, including data centers and manufacturing, where our scale, superior execution, and track record of delivering projects on time are extremely valuable to our customers.
E-Infrastructure revenue increased 8% compared to the prior year quarter, driven by strength in data center work. Notably, data center-related revenue increased over 50% compared to the prior year quarter and now represents over 60% of segment backlog.
Transportation Solutions revenue increased 24% for the full year and operating margins were 6.5%. In the fourth quarter, revenue and operating income declined against a challenging comparison to 4Q23 which benefited from very favorable weather and project timing. We continue to see good demand and project opportunities in our core Rocky Mountain and Arizona regions. We have made the strategic decision to accelerate our shift away from low bid heavy highway work in Texas, which will weigh on revenue and backlog in the near term, but will benefit margins as we move through 2025.
In Building Solutions, full year 2024 revenue increased 1.1% and operating income increased 6.3%. In the quarter, revenue declined 3% and operating income declined 17%. The decline in operating income is entirely attributable to $1.8 million of earn-out expense related to the acquisition of PPG. Our residential businesses continued to be impacted by the slowdown in the Dallas-Fort Worth market, as prospective homebuyers are facing affordability challenges. We remain bullish on the multi-year demand trends in our key geographies and are cautiously optimistic of a rebound in the second half of 2025.”
“We believe 2025 will be another excellent year for Sterling as we continue to drive bottom line growth that outpaces top line growth. The midpoint of our 2025 guidance would represent 10% revenue growth pro forma for the new RHB accounting methodology, 18% adjusted net income growth and 18% adjusted EBITDA growth,” Mr. Cutillo concluded.
Full Year 2025 Guidance
- Revenue of $2.00 billion to $2.15 billion
- Net Income of $215 million to $230 million
- Diluted EPS of $6.75 to $7.25
- EBITDA(1) of $370 million to $395 million
Full Year 2025 Non-GAAP Guidance
Sterling is introducing new non-GAAP methodology for 2025 that includes new adjustments for non-cash stock-based compensation and amortization of intangible assets. In addition, we are expanding our definition of acquisition related costs to include earn-outs. Please see the “Net Income Guidance Reconciliation” and “EBITDA Guidance Reconciliation” sections below for reconciliations of GAAP to non-GAAP measures and comparable 2024 results.
- Adjusted Net Income(1) of $252 million to $267 million
- Adjusted Diluted EPS(1) of $7.90 to $8.40
- Adjusted EBITDA(1) of $395 million to $420 million
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(1) See “Non-GAAP Measures”, “Net Income Guidance Reconciliation” and “EBITDA Guidance Reconciliation” sections below for more information. |
Conference Call
Sterling’s management will hold a conference call to discuss these results and recent corporate developments on Wednesday, February 26, 2025 at 9:00 a.m. ET/8:00 a.m. CT. Interested parties may participate in the call by dialing (800) 836-8184. Please call in 10 minutes before the conference call is scheduled to begin and ask for the Sterling Infrastructure call. To coincide with the conference call, Sterling will post a slide presentation at www.strlco.com on the Events & Presentations section of the Investor Relations tab. Following management’s opening remarks, there will be a question and answer session.
To listen to a simultaneous webcast of the call, please go to the Company’s website at www.strlco.com at least 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call webcast will be archived on the Company’s website for 30 days.
About Sterling
Sterling operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services for manufacturing, data centers, large scale distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society’s quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.
Joe Cutillo, CEO, “We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow.”
Important Information for Investors and Stockholders
Non-GAAP Measures
This press release contains “Non-GAAP” financial measures as defined under Regulation G of the amended U.S. Securities Exchange Act of 1934. The Company reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), but the Company believes that certain Non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the Company’s ongoing operations and are useful for period-over-period comparisons of those operations.
Non-GAAP measures may include adjusted net income, adjusted EPS, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that the Company does not consider to be representative of its normal operations. The Company believes that these measures are useful for investors to review, because they provide a consistent measure of the underlying financial results of the Company’s ongoing business and, in the Company’s view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, the Company uses each of these to measure the performance of the Company’s operations for budgeting and forecasting, as well as for determining employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for net income, EPS, or other data prepared and reported in accordance with GAAP and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
Reconciliations of Non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included within this press release.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that are considered forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about: our business strategy; our financial strategy; our industry outlook; our guidance; our expected margin growth; and our plans, objectives, expectations, forecasts, outlook and intentions. All of these types of statements, other than statements of historical fact included in this press release, are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “guidance,” “continue,” the negative of such terms or other comparable terminology. The forward-looking statements contained in this press release are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management’s assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this press release are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors listed in the “Risk Factors” section in our filings with the U.S. Securities and Exchange Commission and elsewhere in those filings. Additional factors or risks that we currently deem immaterial, that are not presently known to us or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
Company Contact:
Sterling Infrastructure, Inc.
Noelle Dilts, VP Investor Relations and Corporate Strategy
281-214-0795
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STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
|
|||||||
|
Three Months Ended |
Twelve Months Ended |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
Revenues |
$ 498,833 |
$ 485,978 |
$ 2,115,756 |
$ 1,972,229 |
|||
|
Cost of revenues |
(392,156) |
(394,223) |
(1,689,633) |
(1,634,591) |
|||
|
Gross profit |
106,677 |
91,755 |
426,123 |
337,638 |
|||
|
General and administrative expense |
(32,598) |
(26,111) |
(118,424) |
(98,703) |
|||
|
Intangible asset amortization |
(4,180) |
(4,017) |
(17,037) |
(15,226) |
|||
|
Acquisition related costs |
(212) |
(521) |
(421) |
(873) |
|||
|
Other operating expense, net |
(7,416) |
(5,338) |
(25,619) |
(17,041) |
|||
|
Operating income |
62,271 |
55,768 |
264,622 |
205,795 |
|||
|
Interest income |
7,824 |
5,813 |
27,622 |
14,140 |
|||
|
Interest expense |
(5,792) |
(6,804) |
(25,255) |
(29,320) |
|||
|
Gain on deconsolidation of subsidiary, net |
91,289 |
— |
91,289 |
— |
|||
|
Income before income taxes |
155,592 |
54,777 |
358,278 |
190,615 |
|||
|
Income tax expense |
(38,400) |
(12,341) |
(87,360) |
(47,770) |
|||
|
Net income, including noncontrolling interests |
117,192 |
42,436 |
270,918 |
142,845 |
|||
|
Less: Net income attributable to noncontrolling interests |
(3,979) |
(2,263) |
(13,457) |
(4,190) |
|||
|
Net income attributable to Sterling common stockholders |
$ 113,213 |
$ 40,173 |
$ 257,461 |
$ 138,655 |
|||
|
Net income per share attributable to Sterling common stockholders: |
|||||||
|
Basic |
$ 3.69 |
$ 1.30 |
$ 8.35 |
$ 4.51 |
|||
|
Diluted |
$ 3.64 |
$ 1.28 |
$ 8.27 |
$ 4.44 |
|||
|
Weighted average common shares outstanding: |
|||||||
|
Basic |
30,696 |
30,819 |
30,830 |
30,755 |
|||
|
Diluted |
31,121 |
31,334 |
31,146 |
31,208 |
|||
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES SEGMENT INFORMATION (In thousands) (Unaudited)
|
|||||||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
|
Revenues |
2024 |
% of |
2023 |
% of |
2024 |
% of |
2023 |
% of |
|||||||
|
E-Infrastructure Solutions |
$ 234,041 |
47 % |
$ 217,472 |
45 % |
$ 923,728 |
44 % |
$ 937,408 |
48 % |
|||||||
|
Transportation Solutions |
174,664 |
35 % |
175,685 |
36 % |
783,659 |
37 % |
630,908 |
32 % |
|||||||
|
Building Solutions |
90,128 |
18 % |
92,821 |
19 % |
408,369 |
19 % |
403,913 |
20 % |
|||||||
|
Total Revenues |
$ 498,833 |
$ 485,978 |
$ 2,115,756 |
$ 1,972,229 |
|||||||||||
|
Operating Income |
|||||||||||||||
|
E-Infrastructure Solutions |
$ 56,437 |
24.1 % |
$ 37,616 |
17.3 % |
$ 203,359 |
22.0 % |
$ 140,997 |
15.0 % |
|||||||
|
Transportation Solutions |
8,715 |
5.0 % |
12,262 |
7.0 % |
50,869 |
6.5 % |
41,911 |
6.6 % |
|||||||
|
Building Solutions |
9,246 |
10.3 % |
11,164 |
12.0 % |
49,083 |
12.0 % |
46,193 |
11.4 % |
|||||||
|
Segment Operating Income |
74,398 |
14.9 % |
61,042 |
12.6 % |
303,311 |
14.3 % |
229,101 |
11.6 % |
|||||||
|
Corporate G&A Expense |
(11,915) |
(4,753) |
(38,268) |
(22,433) |
|||||||||||
|
Acquisition Related Costs |
(212) |
(521) |
(421) |
(873) |
|||||||||||
|
Total Operating Income |
$ 62,271 |
12.5 % |
$ 55,768 |
11.5 % |
$ 264,622 |
12.5 % |
$ 205,795 |
10.4 % |
|||||||
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited)
|
|||
|
December 31, 2024 |
December 31, 2023 |
||
|
Assets |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
$ 664,195 |
$ 471,563 |
|
|
Accounts receivable |
247,050 |
252,435 |
|
|
Contract assets |
55,387 |
88,600 |
|
|
Receivables from and equity in construction joint ventures |
5,811 |
17,506 |
|
|
Receivable from affiliate |
32,054 |
— |
|
|
Other current assets |
17,383 |
17,875 |
|
|
Total current assets |
1,021,880 |
847,979 |
|
|
Property and equipment, net |
236,795 |
243,648 |
|
|
Investment in unconsolidated subsidiary |
107,400 |
— |
|
|
Operating lease right-of-use assets, net |
52,668 |
57,235 |
|
|
Goodwill |
264,597 |
281,117 |
|
|
Other intangibles, net |
316,390 |
328,397 |
|
|
Other non-current assets, net |
17,044 |
18,808 |
|
|
Total assets |
$ 2,016,774 |
$ 1,777,184 |
|
|
Liabilities and Stockholders’ Equity |
|||
|
Current liabilities: |
|||
|
Accounts payable |
$ 130,420 |
$ 145,968 |
|
|
Contract liabilities |
508,846 |
444,160 |
|
|
Current maturities of long-term debt |
26,423 |
26,520 |
|
|
Current portion of long-term lease obligations |
20,498 |
19,641 |
|
|
Accrued compensation |
36,774 |
27,758 |
|
|
Other current liabilities |
18,997 |
14,121 |
|
|
Total current liabilities |
741,958 |
678,168 |
|
|
Long-term debt |
289,898 |
314,996 |
|
|
Long-term lease obligations |
32,455 |
37,722 |
|
|
Members’ interest subject to mandatory redemption and undistributed earnings |
— |
29,108 |
|
|
Deferred tax liability, net |
109,360 |
76,764 |
|
|
Other long-term liabilities |
16,625 |
16,573 |
|
|
Total liabilities |
1,190,296 |
1,153,331 |
|
|
Stockholders’ equity: |
|||
|
Common stock |
312 |
309 |
|
|
Additional paid in capital |
288,395 |
293,570 |
|
|
Treasury stock, at cost |
(63,121) |
— |
|
|
Retained earnings |
582,495 |
325,034 |
|
|
Total Sterling stockholders’ equity |
808,081 |
618,913 |
|
|
Noncontrolling interests |
18,397 |
4,940 |
|
|
Total stockholders’ equity |
826,478 |
623,853 |
|
|
Total liabilities and stockholders’ equity |
$ 2,016,774 |
$ 1,777,184 |
|
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
|
|||
|
Twelve Months Ended December 31, |
|||
|
2024 |
2023 |
||
|
Cash flows from operating activities: |
|||
|
Net income |
$ 270,918 |
$ 142,845 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
|
Depreciation and amortization |
68,410 |
57,403 |
|
|
Amortization of debt issuance costs and non-cash interest |
1,146 |
1,727 |
|
|
Gain on disposal of property and equipment |
(3,473) |
(5,286) |
|
|
Gain on deconsolidation of subsidiary, net |
(91,289) |
— |
|
|
Deferred taxes |
32,573 |
14,746 |
|
|
Stock-based compensation |
19,003 |
14,622 |
|
|
Changes in operating assets and liabilities |
199,816 |
252,527 |
|
|
Net cash provided by operating activities |
497,104 |
478,584 |
|
|
Cash flows from investing activities: |
|||
|
Acquisitions, net of cash acquired |
(11,223) |
(51,177) |
|
|
Disposition, net of cash disposed |
— |
14,000 |
|
|
Deconsolidation, net of cash |
(103,829) |
— |
|
|
Capital expenditures |
(80,954) |
(64,379) |
|
|
Proceeds from sale of property and equipment |
10,157 |
13,804 |
|
|
Net cash used in investing activities |
(185,849) |
(87,752) |
|
|
Cash flows from financing activities: |
|||
|
Cash received from credit facility |
— |
2,562 |
|
|
Repayments of debt |
(26,539) |
(93,491) |
|
|
Purchase of common stock |
(70,596) |
— |
|
|
Distributions to noncontrolling interest owners |
— |
(2,450) |
|
|
Withholding taxes paid on net share settlement of equity awards |
(21,452) |
(9,567) |
|
|
Debt issuance costs |
— |
(1,572) |
|
|
Other |
(36) |
(16) |
|
|
Net cash used in financing activities |
(118,623) |
(104,534) |
|
|
Net change in cash, cash equivalents, and restricted cash |
192,632 |
286,298 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
471,563 |
185,265 |
|
|
Cash, cash equivalents and restricted cash at end of period |
664,195 |
471,563 |
|
|
Less: restricted cash |
— |
— |
|
|
Cash and cash equivalents at end of period |
$ 664,195 |
$ 471,563 |
|
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited)
|
|||||||||
|
The following tables present our 2024, 2023 and 2022 quarterly revenue and income from operations by segment adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB and continuing operations: |
|||||||||
|
2024 Quarters Ended (Unaudited) |
|||||||||
|
Revenues |
March 31 |
June 30 |
September 30 |
December 31 |
Total |
||||
|
E-Infrastructure Solutions |
$ 184,476 |
$ 241,312 |
$ 263,899 |
$ 234,041 |
$ 923,728 |
||||
|
Transportation Solutions |
110,505 |
158,828 |
155,063 |
123,387 |
547,783 |
||||
|
Building Solutions |
106,915 |
108,735 |
102,591 |
90,128 |
408,369 |
||||
|
Revenues |
$ 401,896 |
$ 508,875 |
$ 521,553 |
$ 447,556 |
$ 1,879,880 |
||||
|
Operating Income |
|||||||||
|
E-Infrastructure Solutions |
$ 27,169 |
$ 51,677 |
$ 68,076 |
$ 56,437 |
$ 203,359 |
||||
|
Transportation Solutions |
8,132 |
15,449 |
18,573 |
8,715 |
50,869 |
||||
|
Building Solutions |
14,775 |
13,813 |
11,249 |
9,246 |
49,083 |
||||
|
Segment Operating Income |
50,076 |
80,939 |
97,898 |
74,398 |
303,311 |
||||
|
Corporate |
(7,915) |
(8,104) |
(10,334) |
(11,915) |
(38,268) |
||||
|
Acquisition related costs |
(36) |
(101) |
(72) |
(212) |
(421) |
||||
|
Operating Income |
$ 42,125 |
$ 72,734 |
$ 87,492 |
$ 62,271 |
$ 264,622 |
||||
|
2023 Quarters Ended (Unaudited) |
|||||||||
|
Revenues |
March 31 |
June 30 |
September 30 |
December 31 |
Total |
||||
|
E-Infrastructure Solutions |
$ 205,840 |
$ 260,148 |
$ 253,948 |
$ 217,472 |
$ 937,408 |
||||
|
Transportation Solutions |
89,702 |
108,890 |
123,550 |
115,711 |
437,853 |
||||
|
Building Solutions |
86,600 |
111,089 |
113,403 |
92,821 |
403,913 |
||||
|
Revenues |
$ 382,142 |
$ 480,127 |
$ 490,901 |
$ 426,004 |
$ 1,779,174 |
||||
|
Operating Income |
|||||||||
|
E-Infrastructure Solutions |
$ 24,269 |
$ 43,167 |
$ 35,945 |
$ 37,616 |
$ 140,997 |
||||
|
Transportation Solutions |
5,306 |
9,856 |
14,487 |
12,262 |
41,911 |
||||
|
Building Solutions |
8,701 |
13,480 |
12,848 |
11,164 |
46,193 |
||||
|
Segment Operating Income |
38,276 |
66,503 |
63,280 |
61,042 |
229,101 |
||||
|
Corporate |
(5,459) |
(6,181) |
(6,040) |
(4,753) |
(22,433) |
||||
|
Acquisition related costs |
(190) |
(59) |
(103) |
(521) |
(873) |
||||
|
Operating Income |
$ 32,627 |
$ 60,263 |
$ 57,137 |
$ 55,768 |
$ 205,795 |
||||
|
2022 Quarters Ended (Unaudited) |
|||||||||
|
Revenues |
March 31 |
June 30 |
September 30 |
December 31 |
Total |
||||
|
E-Infrastructure Solutions |
$ 168,927 |
$ 233,548 |
$ 255,530 |
$ 247,272 |
$ 905,277 |
||||
|
Transportation Solutions |
95,716 |
111,424 |
116,055 |
91,834 |
415,029 |
||||
|
Building Solutions |
80,894 |
85,639 |
80,286 |
74,790 |
321,609 |
||||
|
Revenues |
$ 345,537 |
$ 430,611 |
$ 451,871 |
$ 413,896 |
$ 1,641,915 |
||||
|
Operating Income |
|||||||||
|
E-Infrastructure Solutions |
$ 21,285 |
$ 32,824 |
$ 37,533 |
$ 29,811 |
$ 121,453 |
||||
|
Transportation Solutions |
4,443 |
7,410 |
9,700 |
5,070 |
26,623 |
||||
|
Building Solutions |
9,358 |
9,751 |
9,324 |
8,260 |
36,693 |
||||
|
Segment Operating Income |
35,086 |
$ 49,985 |
56,557 |
43,141 |
184,769 |
||||
|
Corporate |
(5,468) |
(5,766) |
(7,005) |
(5,833) |
(24,072) |
||||
|
Acquisition related costs |
(255) |
(230) |
(77) |
(265) |
(827) |
||||
|
Operating Income |
$ 29,363 |
$ 43,989 |
$ 49,475 |
$ 37,043 |
$ 159,870 |
||||
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY BACKLOG INFORMATION (In thousands) (Unaudited)
|
|||||||
|
The following tables present our 2024, 2023 and 2022 backlog and combined backlog adjusted to conform to our December 31, 2024 presentation reflecting the deconsolidation of RHB and continuing operations: |
|||||||
|
2024 Quarters Ended (Unaudited) |
|||||||
|
March 31 |
June 30 |
September 30 |
December 31 |
||||
|
Backlog |
|||||||
|
Backlog including RHB |
$ 2,352,126 |
$ 2,098,781 |
$ 2,055,081 |
$ 2,184,478 |
|||
|
Less: RHB Backlog |
(528,043) |
(476,842) |
(485,050) |
(491,255) |
|||
|
Backlog excluding RHB |
$ 1,824,083 |
$ 1,621,939 |
$ 1,570,031 |
$ 1,693,223 |
|||
|
Combined Backlog |
|||||||
|
Combined Backlog including RHB |
$ 2,419,748 |
$ 2,445,992 |
$ 2,374,690 |
$ 2,322,391 |
|||
|
Less: RHB Backlog |
(528,043) |
(536,165) |
(539,494) |
(491,255) |
|||
|
Combined Backlog excluding RHB |
$ 1,891,705 |
$ 1,909,827 |
$ 1,835,196 |
$ 1,831,136 |
|||
|
2023 Quarters Ended (Unaudited) |
|||||||
|
March 31 |
June 30 |
September 30 |
December 31 |
||||
|
Backlog |
|||||||
|
Backlog including RHB |
$ 1,624,233 |
$ 1,735,669 |
$ 2,010,407 |
$ 2,067,016 |
|||
|
Less: RHB Backlog |
(302,189) |
(281,500) |
(271,894) |
(405,799) |
|||
|
Backlog excluding RHB |
$ 1,322,044 |
$ 1,454,169 |
$ 1,738,513 |
$ 1,661,217 |
|||
|
Combined Backlog |
|||||||
|
Combined Backlog including RHB |
$ 1,754,736 |
$ 2,392,910 |
$ 2,385,587 |
$ 2,370,248 |
|||
|
Less: RHB Backlog |
(318,633) |
(446,422) |
(432,483) |
(561,355) |
|||
|
Combined Backlog excluding RHB |
$ 1,436,103 |
$ 1,946,488 |
$ 1,953,104 |
$ 1,808,893 |
|||
|
2022 Quarters Ended (Unaudited) |
|||||||
|
March 31 |
June 30 |
September 30 |
December 31 |
||||
|
Backlog |
|||||||
|
Backlog including RHB |
$ 1,378,335 |
$ 1,327,218 |
$ 1,411,271 |
$ 1,414,342 |
|||
|
Less: RHB Backlog |
(273,382) |
(277,158) |
(272,103) |
(301,223) |
|||
|
Backlog excluding RHB |
$ 1,104,953 |
$ 1,050,060 |
$ 1,139,168 |
$ 1,113,119 |
|||
|
Combined Backlog |
|||||||
|
Combined Backlog including RHB |
$ 1,466,439 |
$ 1,466,943 |
$ 1,625,630 |
$ 1,689,323 |
|||
|
Less: RHB Backlog |
(297,695) |
(309,198) |
(329,901) |
(323,556) |
|||
|
Combined Backlog excluding RHB |
$ 1,168,744 |
$ 1,157,745 |
$ 1,295,729 |
$ 1,365,767 |
|||
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands) (Unaudited)
|
|||||||
|
Three Months Ended |
Twelve Months Ended |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
Net income attributable to Sterling common stockholders |
$ 113,213 |
$ 40,173 |
$ 257,461 |
$ 138,655 |
|||
|
Gain on deconsolidation of subsidiary, net |
(91,289) |
— |
(91,289) |
— |
|||
|
Acquisition related costs |
212 |
521 |
421 |
873 |
|||
|
Income tax impact of adjustments |
23,354 |
(117) |
23,303 |
(219) |
|||
|
Adjusted net income attributable to Sterling common stockholders (1) |
$ 45,490 |
$ 40,577 |
$ 189,896 |
$ 139,309 |
|||
|
Net income per share attributable to Sterling common stockholders: |
|||||||
|
Basic |
$ 3.69 |
$ 1.30 |
$ 8.35 |
$ 4.51 |
|||
|
Diluted |
$ 3.64 |
$ 1.28 |
$ 8.27 |
$ 4.44 |
|||
|
Adjusted net income per share attributable to Sterling common stockholders: |
|||||||
|
Basic |
$ 1.48 |
$ 1.32 |
$ 6.16 |
$ 4.53 |
|||
|
Diluted |
$ 1.46 |
$ 1.29 |
$ 6.10 |
$ 4.46 |
|||
|
Weighted average common shares outstanding: |
|||||||
|
Basic |
30,696 |
30,819 |
30,830 |
30,755 |
|||
|
Diluted |
31,121 |
31,334 |
31,146 |
31,208 |
|||
|
(1) |
The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding the impact of the net gain on deconsolidation of subsidiary, acquisition related costs, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company’s quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate. |
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited)
|
|||||||
|
Three Months Ended |
Twelve Months Ended |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
Net income attributable to Sterling common stockholders |
$ 113,213 |
$ 40,173 |
$ 257,461 |
$ 138,655 |
|||
|
Depreciation and amortization |
17,864 |
14,874 |
68,410 |
57,403 |
|||
|
Interest (income) expense, net |
(2,032) |
991 |
(2,367) |
15,180 |
|||
|
Income tax expense |
38,400 |
12,341 |
87,360 |
47,770 |
|||
|
EBITDA(1) |
167,445 |
68,379 |
410,864 |
259,008 |
|||
|
Gain on deconsolidation of subsidiary, net |
(91,289) |
— |
(91,289) |
— |
|||
|
Acquisition related costs |
212 |
521 |
421 |
873 |
|||
|
Adjusted EBITDA(2) |
$ 76,368 |
$ 68,900 |
$ 319,996 |
$ 259,881 |
|||
|
(1) |
The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders adjusted for depreciation and amortization, net interest income/expense and income tax expense. |
|
(2) |
The Company defines adjusted EBITDA as EBITDA excluding the impact of the net gain on deconsolidation of subsidiary and acquisition related costs. |
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME GUIDANCE RECONCILIATION (In thousands) (Unaudited)
|
|||||
|
Full Year 2025 Guidance |
Full Year |
||||
|
Low |
High |
2024 Actual |
|||
|
Net income attributable to Sterling common stockholders |
$ 215,000 |
$ 230,000 |
$ 257,461 |
||
|
Gain on deconsolidation of subsidiary, net |
— |
— |
(91,289) |
||
|
Non-cash stock-based compensation |
20,000 |
20,000 |
19,003 |
||
|
Intangible asset amortization |
25,000 |
25,000 |
17,037 |
||
|
Acquisition related costs |
5,000 |
5,000 |
5,177 |
||
|
Income tax impact of adjustments |
(13,000) |
(13,000) |
13,356 |
||
|
Adjusted net income attributable to Sterling common stockholders (1) |
$ 252,000 |
$ 267,000 |
$ 220,745 |
||
|
Net income per share attributable to Sterling common stockholders: |
|||||
|
Diluted |
$ 6.75 |
$ 7.25 |
$ 8.27 |
||
|
Adjusted net income per share attributable to Sterling common stockholders: |
|||||
|
Diluted |
$ 7.90 |
$ 8.40 |
$ 7.09 |
||
|
Weighted average common shares outstanding: |
|||||
|
Diluted |
32,000 |
32,000 |
31,146 |
||
|
(1) |
Starting in 2025, the Company will define adjusted net income as GAAP net income excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, intangible asset amortization, acquisition related costs (including earn-outs), and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company’s quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate. |
|
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited)
|
|||||
|
Full Year 2025 Guidance |
Full Year 2024 |
||||
|
Low |
High |
Actual |
|||
|
Net income attributable to Sterling common stockholders |
$ 215 |
$ 230 |
$ 257 |
||
|
Depreciation and amortization |
76 |
81 |
68 |
||
|
Interest income, net of interest expense |
(2) |
(4) |
(2) |
||
|
Income tax expense |
81 |
88 |
87 |
||
|
EBITDA (1) |
370 |
395 |
411 |
||
|
Gain on deconsolidation of subsidiary, net |
— |
— |
(91) |
||
|
Non-cash stock-based compensation |
20 |
20 |
19 |
||
|
Acquisition related costs |
5 |
5 |
5 |
||
|
Adjusted EBITDA(2) |
$ 395 |
$ 420 |
$ 344 |
||
|
(1) |
The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest income, and income tax expense. |
|
(2) |
In 2025, the Company will define adjusted EBITDA as EBITDA excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, and acquisition related costs (including earn-outs). |
SOURCE Sterling Infrastructure, Inc.
