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    Sterling Reports First Quarter 2025 Results and Increases Full Year Guidance

    5/5/25 4:05:00 PM ET
    $STRL
    Military/Government/Technical
    Industrials
    Get the next $STRL alert in real time by email

    THE WOODLANDS, Texas, May 5, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NASDAQ:STRL) ("Sterling" or the "Company") today announced financial results for the first quarter of 2025.

    Sterling Infrastructure, Inc. (PRNewsfoto/Sterling Infrastructure, Inc.)

    The financial comparisons herein are to the prior year quarter, unless otherwise noted.

    Due to the deconsolidation of the RHB joint venture on December 31, 2024, RHB is no longer included in consolidated revenue or backlog. As such, prior-year comparisons for these metrics are on an adjusted, pro forma basis to exclude RHB. Please see the "Historical Quarterly Backlog Information" section below for reconciliations to historical figures.

    First Quarter 2025 Results

    • Revenues of $430.9 million. Revenues increased 7% excluding RHB from the prior year quarter.
    • Gross margin of 22.0%, up from 17.5%
    • Net income of $39.5 million, or $1.28 per diluted share, increases of 27% and 28%, respectively
    • Adjusted net income(1) of $50.2 million, or $1.63 per diluted share, increases of 28% and 29%, respectively
    • EBITDA(1) of $72.1 million, an increase of 30%
    • Adjusted EBITDA(1) of $80.3 million, an increase of 31%
    • Cash flows from operations totaled $84.9 million
    • Cash and cash equivalents totaled $638.6 million at March 31, 2025
    • Backlog at March 31, 2025 was $2.13 billion
    • Combined backlog(2) at March 31, 2025 was $2.23 billion


    (1) See "Non-GAAP Measures", "Adjusted Net Income Reconciliation", and "EBITDA Reconciliation" sections below for more information.

    (2) Combined Backlog includes Unsigned Awards of $103.2 million at March 31, 2025.

     

    Drake Concrete Acquisition

    During the first quarter of 2025, Sterling closed on the acquisition of Drake Concrete, LLC, a provider of concrete slabs for residential home builders in the Dallas-Fort Worth market. The acquisition strengthens Sterling's geographic footprint within the DFW metroplex and expands and deepens the customer base, given limited customer overlap with Tealstone. Sterling anticipates that Drake will contribute approximately $55 million of revenue and $6.5 million in adjusted EBITDA in 2025. The purchase price was $25 million in cash plus a four year earn-out opportunity. Drake will be included in the Building Solutions segment.

    CEO Remarks and Outlook

    "Sterling is off to a great start in 2025, as we grew our first quarter adjusted net income by 28% to deliver adjusted diluted EPS of $1.63," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth in the quarter was a solid 7%, on a pro forma basis, fueled by strong 18% growth in E-Infrastructure Solutions and 9% growth in Transportation Solutions. Gross profit margins in the quarter of 22% remained extremely strong as we have shifted the business toward higher-margin service offerings, and contributed to adjusted EBITDA growth of 31%."

    Mr. Cutillo continued, "We ended the quarter with backlog of $2.1 billion, a 17% increase compared to the prior year first quarter on a like-for-like basis. Our book-to-burn ratio in the quarter was 2.2x. Notably, E-Infrastructure Solutions had another strong quarter for awards, as backlog reached over $1.2 billion and grew 27% compared to the prior year. Additionally, our pipeline of high-probability future phase work continues to grow. Our operating cash flow generation in the first quarter was again excellent at $85 million, driving our net cash position to $329 million, and supporting share repurchases of $44 million."

    Mr. Cutillo added, "In E-Infrastructure Solutions, we achieved 18% revenue growth and 61% adjusted operating income growth in the first quarter as adjusted operating margins expanded nearly 618 basis points to reach 23.2%. 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. The data center market remains very active and now represents over 65% of E-Infrastructure backlog.

    Transportation Solutions revenue increased 9% and adjusted operating income grew 60%. We continue to see good demand and project opportunities in our core Rocky Mountain and Arizona regions. The downsizing of our low-bid Texas heavy highway business is progressing to plan. This shift will weigh on revenue and backlog in the near term, but will benefit margins as we move through 2025.

    In Building Solutions, revenue declined 14% and adjusted operating income declined 18%. Our residential businesses continued to be impacted by the slowdown in the housing market, as prospective homebuyers are facing affordability challenges. Additionally, weather conditions were unusually severe in the quarter. We remain bullish on the multi-year demand trends in our key geographies."

    "We believe 2025 will be another excellent year for Sterling as we continue to drive bottom line growth that outpaces top line growth. We are raising our 2025 guidance to reflect our strong first quarter performance, backlog, and the impact of share repurchases. The midpoint of our revised 2025 guidance would represent 12% revenue growth pro forma for the new RHB accounting methodology, 22% adjusted diluted earnings per share growth and 23% adjusted EBITDA growth," Mr. Cutillo concluded.

    Full Year 2025 Guidance

    • Revenue of $2.05 billion to $2.15 billion
    • Net Income of $222 million to $239 million
    • Diluted EPS of $7.15 to $7.65
    • EBITDA(1) of $381 million to $403 million

    Full Year 2025 Adjusted Guidance

    Please see the "Adjusted 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 $262 million to $278 million
    • Adjusted Diluted EPS(1) of $8.40 to $8.90
    • Adjusted EBITDA(1) of $410 million to $432 million

    (1) See "Non-GAAP Measures", "Adjusted 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 Tuesday, May 6, 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, 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

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    (In thousands, except per share data)

    (Unaudited)





    Three Months Ended March 31,



    2025



    2024

    Revenues

    $         430,949



    $         440,360

    Cost of revenues

    (336,109)



    (363,456)

    Gross profit

    94,840



    76,904

    General and administrative expense

    (34,631)



    (27,298)

    Intangible asset amortization

    (4,503)



    (4,297)

    Acquisition related costs

    (179)



    (36)

    Earn-out expense

    (1,343)



    (1,000)

    Other operating income (expense), net

    1,892



    (2,148)

    Operating income

    56,076



    42,125

    Interest income

    6,827



    5,902

    Interest expense

    (5,232)



    (6,664)

    Income before income taxes

    57,671



    41,363

    Income tax expense

    (15,080)



    (7,604)

    Net income, including noncontrolling interests

    42,591



    33,759

    Less: Net income attributable to noncontrolling interests

    (3,114)



    (2,711)

    Net income attributable to Sterling common stockholders

    $           39,477



    $           31,048









    Net income per share attributable to Sterling common stockholders:







    Basic

    $                1.29



    $                1.00

    Diluted

    $                1.28



    $                1.00









    Weighted average common shares outstanding:







    Basic

    30,547



    30,977

    Diluted

    30,881



    31,186

     

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    SEGMENT INFORMATION

    (In thousands)

    (Unaudited)





    Three Months Ended March 31,

    Revenues

    2025



    % of

    Revenue



    2024



    % of

    Revenue

    E-Infrastructure Solutions

    $       218,263



    51 %



    $       184,476



    42 %

    Transportation Solutions

    120,661



    28 %



    148,969



    34 %

    Building Solutions

    92,025



    21 %



    106,915



    24 %

    Total Revenues

    $       430,949







    $       440,360





















    Operating Income















    E-Infrastructure Solutions

    $         46,642



    21.4 %



    $         27,169



    14.7 %

    Transportation Solutions

    11,253



    9.3 %



    8,132



    5.5 %

    Building Solutions

    12,352



    13.4 %



    15,775



    14.8 %

    Segment Operating Income

    70,247



    16.3 %



    51,076



    11.6 %

    Corporate G&A Expense

    (12,649)







    (7,915)





    Acquisition Related Costs

    (179)







    (36)





    Earn-out Expense

    (1,343)







    (1,000)





    Total Operating Income

    $         56,076



    13.0 %



    $         42,125



    9.6 %

     

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (In thousands, except per share data)

    (Unaudited)





    March 31, 2025



    December 31, 2024

    Assets







    Current assets:







    Cash and cash equivalents

    $                638,647



    $                664,195

    Accounts receivable

    285,751



    247,050

    Contract assets

    48,704



    55,387

    Receivables from and equity in construction joint ventures

    6,912



    5,811

    Receivable from affiliate

    —



    32,054

    Other current assets

    17,720



    17,383

    Total current assets

    997,734



    1,021,880

    Property and equipment, net

    244,659



    236,795

    Investment in unconsolidated subsidiary

    109,291



    107,400

    Operating lease right-of-use assets, net

    48,264



    52,668

    Goodwill

    283,664



    264,597

    Other intangibles, net

    333,694



    316,390

    Other non-current assets, net

    17,233



    17,044

    Total assets

    $             2,034,539



    $             2,016,774

    Liabilities and Stockholders' Equity







    Current liabilities:







    Accounts payable

    $                128,885



    $                130,420

    Contract liabilities

    534,388



    508,846

    Current maturities of long-term debt

    26,419



    26,423

    Current portion of long-term lease obligations

    19,333



    20,498

    Accrued compensation

    24,918



    36,774

    Other current liabilities

    22,826



    18,997

    Total current liabilities

    756,769



    741,958

    Long-term debt

    283,603



    289,898

    Long-term lease obligations

    29,334



    32,455

    Deferred tax liability, net

    110,010



    109,360

    Other long-term liabilities

    27,896



    16,625

    Total liabilities

    1,207,612



    1,190,296

    Stockholders' equity:







    Common stock

    312



    312

    Additional paid in capital

    283,050



    288,395

    Treasury stock, at cost

    (99,918)



    (63,121)

    Retained earnings

    621,972



    582,495

    Total Sterling stockholders' equity

    805,416



    808,081

    Noncontrolling interests

    21,511



    18,397

    Total stockholders' equity

    826,927



    826,478

    Total liabilities and stockholders' equity

    $             2,034,539



    $             2,016,774

     

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (In thousands)

    (Unaudited)





    Three Months Ended March 31,



    2025



    2024

    Cash flows from operating activities:







    Net income

    $                 42,591



    $                 33,759

    Adjustments to reconcile net income to net cash provided by operating activities:







    Depreciation and amortization

    16,991



    16,258

    Amortization of debt issuance costs and non-cash interest

    256



    305

    Gain on disposal of property and equipment

    (782)



    (585)

    Equity in earnings from unconsolidated subsidiary

    (1,892)



    —

    Deferred taxes

    650



    1,517

    Stock-based compensation

    6,683



    4,586

    Changes in operating assets and liabilities

    20,386



    (6,249)

    Net cash provided by operating activities

    84,883



    49,591

    Cash flows from investing activities:







    Acquisitions, net of cash acquired

    (37,860)



    (1,016)

    Capital expenditures

    (17,924)



    (22,432)

    Proceeds from sale of property and equipment

    1,573



    2,401

    Net cash used in investing activities

    (54,211)



    (21,047)

    Cash flows from financing activities:







    Repayments of debt

    (6,606)



    (6,678)

    Repurchase of common stock

    (43,846)



    —

    Withholding taxes paid on net share settlement of equity awards

    (5,768)



    (13,015)

    Net cash used in financing activities

    (56,220)



    (19,693)

    Net change in cash, cash equivalents, and restricted cash

    (25,548)



    8,851

    Cash, cash equivalents and restricted cash at beginning of period

    664,195



    471,563

    Cash, cash equivalents and restricted cash at end of period

    638,647



    480,414

    Less: restricted cash

    —



    —

    Cash and cash equivalents at end of period

    $               638,647



    $               480,414

     

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    ADJUSTED NET INCOME RECONCILIATION

    (In thousands)     

    (Unaudited)





    Three Months Ended March 31,



    2025



    2024

    Net income attributable to Sterling common stockholders

    $           39,477



    $           31,048

    Non-cash stock-based compensation

    6,683



    4,586

    Intangible asset amortization (1)

    6,374



    4,297

    Acquisition related costs

    179



    36

    Earn-out expense

    1,343



    1,000

    Income tax impact of adjustments

    (3,812)



    (1,823)

    Adjusted net income attributable to Sterling common stockholders (2)

    $           50,244



    $           39,144









    Net income per share attributable to Sterling common stockholders:







    Basic

    $                1.29



    $                1.00

    Diluted

    $                1.28



    $                1.00









    Adjusted net income per share attributable to Sterling common stockholders:







    Basic

    $                1.64



    $                1.26

    Diluted

    $                1.63



    $                1.26









    Weighted average common shares outstanding:







    Basic

    30,547



    30,977

    Diluted

    30,881



    31,186





    (1)

    For the three months ended March 31, 2025, intangible asset amortization includes $1,871 related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.





    (2)

    The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, 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 March 31,



    2025



    2024

    Net income attributable to Sterling common stockholders

    $             39,477



    $             31,048

    Depreciation and amortization (1)

    19,137



    16,258

    Interest (income) expense, net

    (1,595)



    762

    Income tax expense

    15,080



    7,604

    EBITDA(2)

    72,099



    55,672

    Non-cash stock-based compensation

    6,683



    4,586

    Acquisition related costs

    179



    36

    Earn-out expense

    1,343



    1,000

    Adjusted EBITDA(3)

    $             80,304



    $             61,294





    (1)

    For the three months ended March 31, 2025, depreciation and amortization includes $1,871 of intangible asset amortization and $275 of depreciation expense related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.





    (2)

    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.





    (3)

    The Company defines adjusted EBITDA as EBITDA excluding the impact of non-cash stock-based compensation, acquisition related costs, and earn-out expense.

     

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    NON-GAAP SEGMENT INFORMATION

    (In thousands)

    (Unaudited)

     



    The table below presents the three months ended March 31, 2025 and 2024 revenue and operating income by segment as adjusted for the 2024 period to conform to our 2025 presentation reflecting the deconsolidation of RHB on revenue and to exclude the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense on operating income:



















    Three Months Ended March 31,

    Revenues (Excluding RHB)

    2025



    % of

    Revenue



    2024



    % of

    Revenue

    E-Infrastructure Solutions

    $           218,263



    51 %



    $           184,476



    46 %

    Transportation Solutions

    120,661



    28 %



    110,505



    27 %

    Building Solutions

    92,025



    21 %



    106,915



    27 %

    Total Revenues (Excluding RHB) (1)

    $           430,949







    $           401,896





















    Adjusted Operating Income















    E-Infrastructure Solutions

    $             50,583



    23.2 %



    $             31,345



    17.0 %

    Transportation Solutions

    13,577



    11.3 %



    8,512



    7.7 %

    Building Solutions

    14,234



    15.5 %



    17,403



    16.3 %

    Adjusted Segment Operating Income

    78,394



    18.2 %



    57,260



    14.2 %

    Corporate G&A Expense

    (7,739)







    (5,216)





    Total Adjusted Operating Income (2)

    $             70,655



    16.4 %



    $             52,044



    12.9 %





















    (1)

    Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, the Company will report RHB's operating income as a single line item ("Other operating income (expense), net") in the Consolidated Statements of Operations. RHB's revenue is no longer included in Sterling's consolidated revenue in 2025. For the three months ended March 31, 2024, total GAAP revenue of $440,360 has been adjusted to exclude $38,464 of RHB revenue.





    (2)

    The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense. For the three months ended March 31, 2025, GAAP operating income of $56,076 is adjusted to exclude $6,683 of non-cash stock-based compensation, $6,374 of intangible asset amortization (including $1,871 related to the fair value step up of RHB), $179 of acquisition related costs, and $1,343 of earn-out expense. For the three months ended March 31, 2024, GAAP operating income of $42,125 is adjusted to exclude $4,586 of non-cash stock-based compensation, $4,297 of intangible asset amortization, $36 of acquisition related costs, and $1,000 of earn-out expense.

     

    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

    $   222,000



    $   238,700



    $   257,461

    Gain on deconsolidation of subsidiary, net

    —



    —



    (91,289)

    Non-cash stock-based compensation

    23,000



    23,000



    19,003

    Intangible asset amortization (1)

    24,539



    24,539



    17,037

    Acquisition related costs

    179



    179



    421

    Earn-out expense

    6,000



    6,000



    4,756

    Income tax impact of adjustments

    (14,000)



    (14,000)



    13,356

    Adjusted net income attributable to Sterling common stockholders (2)

    $   261,718



    $   278,418



    $   220,745













    Net income per share attributable to Sterling common stockholders:











    Diluted

    $          7.15



    $          7.65



    $          8.27













    Adjusted net income per share attributable to Sterling common stockholders:











    Diluted

    $          8.40



    $          8.90



    $          7.09













    Weighted average common shares outstanding:











    Diluted

    31,200



    31,200



    31,146

















    (1)

    Intangible asset amortization includes approximately $7,500 related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.





    (2)

    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, non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, 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

    $            222



    $            239



    $                257

    Depreciation and amortization (1)

    79



    80



    68

    Interest income, net of interest expense

    (2)



    (4)



    (2)

    Income tax expense

    82



    88



    87

    EBITDA (2)

    381



    403



    411

    Gain on deconsolidation of subsidiary, net

    —



    —



    (91)

    Non-cash stock-based compensation

    23



    23



    19

    Acquisition related costs

    —



    —



    —

    Earn-out expense

    6



    6



    5

    Adjusted EBITDA(3)

    $            410



    $            432



    $                344















    (1) Depreciation and intangible asset amortization includes approximately $1.1 million and $7.5 million, respectively, related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.



    (2) 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.



    (3) The Company defines adjusted EBITDA as EBITDA excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, acquisition related costs and earn-out expense.

     

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    HISTORICAL QUARTERLY SEGMENT INFORMATION

    (In thousands)

    (Unaudited)

     



    The following tables present our 2024 quarterly revenue and operating income by segment as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB and the separate presentation of earn-out expense:























    2024 Quarters Ended (Unaudited)





    Revenues (Excluding RHB)

    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

    Total Revenues (Excluding RHB) (1)

    $        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

    15,775



    14,813



    12,249



    11,002



    53,839

    Segment Operating Income

    51,076



    81,939



    98,898



    76,154



    308,067

    Corporate G&A Expense

    (7,915)



    (8,104)



    (10,334)



    (11,915)



    (38,268)

    Acquisition Related Costs

    (36)



    (101)



    (72)



    (212)



    (421)

    Earn-out Expense

    (1,000)



    (1,000)



    (1,000)



    (1,756)



    (4,756)

    Total Operating Income

    $          42,125



    $          72,734



    $          87,492



    $          62,271



    $        264,622





















    Adjusted Operating Income



















    E-Infrastructure Solutions

    $          31,345



    $          55,841



    $          71,244



    $          60,316



    $        218,746

    Transportation Solutions

    8,512



    15,874



    19,070



    9,180



    52,636

    Building Solutions

    17,403



    16,423



    13,928



    12,632



    60,386

    Segment Operating Income

    57,260



    88,138



    104,242



    82,128



    331,768

    Corporate

    (5,216)



    (5,227)



    (7,027)



    (8,459)



    (25,929)

    Adjusted Operating Income (2)

    $          52,044



    $          82,911



    $          97,215



    $          73,669



    $        305,839

























    (1)

    Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, the Company will report RHB's operating income as a single line item ("Other operating income (expense), net") in the Consolidated Statements of Operations. RHB's revenue is no longer included in Sterling's consolidated revenue in 2025.





    (2)

    The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense.

     

    STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

    HISTORICAL QUARTERLY BACKLOG INFORMATION

    (In thousands)

    (Unaudited)

     



    The following table presents our 2024 backlog and combined backlog as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB:



















    2024 Quarters Ended (Unaudited)

    Backlog

    March 31



    June 30



    September 30



    December 31

    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

















     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/sterling-reports-first-quarter-2025-results-and-increases-full-year-guidance-302446320.html

    SOURCE Sterling Infrastructure, Inc.

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