Sterling Reports Record Third Quarter 2025 Results and Increases Full Year Guidance

, /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or the "Company") today announced record financial results for the third quarter of 2025. 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 have been adjusted to exclude RHB. Please see the "Historical Quarterly Backlog Information" section below for reconciliations to historical figures. Third Quarter 2025 Results Revenues of $689.0 million. Revenues increased 32% excluding RHB from the prior year quarter. The CEC acquisition contributed $41.4 million to revenue in the quarter. Gross margin of 24.7%, up from 21.9%. Net income of $92.1 million, or $2.97 per diluted share, increases of 50% and 51%, respectively, and a new third quarter record. Adjusted net income(1) of $107.7 million, or $3.48 per diluted share, increases of 57% and 58%, respectively. EBITDA(1) of $143.1 million, an increase of 42% and a new third quarter record. Adjusted EBITDA(1) of $155.8 million, an increase of 47%. Cash flows from operations totaled $253.9 million for the nine months ended September 30, 2025. Cash and cash equivalents totaled $306.4 million at September 30, 2025. Backlog at September 30, 2025 was $2.58 billion. The CEC acquisition contributed $475.3 million to backlog. Combined backlog(2) at September 30, 2025 was $3.44 billion. The CEC acquisition contributed $810.5 million to combined backlog. Share repurchases totaled $4.7 million in the quarter at an average price of $274.37 per share. (1) See "Non-GAAP Measures", "Adjusted Net Income Reconciliation", and "EBITDA Reconciliation" sections below for more information. (2) Combined Backlog includes Unsigned Awards of $868.8 million at September 30, 2025, with $335.3 million of Unsigned Awards contributed from CEC. CEO Remarks and Outlook "Our outstanding third quarter results reflect the strength of our portfolio, as we delivered very strong top line growth of 32% and even better bottom-line growth, with adjusted diluted earnings per share reaching $3.48, a 58% increase," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth was again fueled by strong 58% growth in E-Infrastructure Solutions and 10% growth in Transportation Solutions, which more than offset softness in the Building Solutions market. Gross profit margins in the quarter of 25% marked a new high for the Company, as we have shifted the business toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 47%." Mr. Cutillo continued, "We ended the quarter with signed backlog of $2.6 billion, which grew 34% year-over-year on a same-store basis. Combined backlog grew 44% and reached over $3 billion for the first time in our history. Third quarter book to burn ratios excluding the impact of CEC, were 1.23x for backlog and 1.76x for combined backlog. With the addition of CEC, the aggregate of our combined backlog and high-probability future phase work gives us visibility into a pool of work totaling more than $4 billion. Our operating cash flow generation in the third quarter was again excellent at $84 million, and we remain in a positive net cash position." Mr. Cutillo added, "In E-Infrastructure Solutions, we achieved 58% revenue growth and 57% adjusted operating income growth in the third quarter. Revenue for the legacy Site Development business increased 42% and operating margins expanded both year over year and sequentially. The strength of our 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. Notably, awards for our site development services remained strong in the quarter, outpacing the strong backlog burn. We are pleased to have closed the CEC acquisition in the quarter, which contributed $41 million to revenue and adjusted operating income that was in-line with our expectations in September. As we have begun early discussions with our customers, we have even more confidence that the combination of CEC's leading electrical services to high-growth markets and Sterling's best-in-class site civil infrastructure services will allow us to accelerate project timelines and drive even more value. Transportation Solutions revenue increased 10% and adjusted operating income grew 40%. We continue to see solid 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 backlog and revenue in the near term, but will continue to benefit margins as we move through 2025 and into 2026. In Building Solutions, revenue declined 1% and adjusted operating income declined 10%. Our residential businesses continued to be impacted by the slowdown in the housing market, as prospective homebuyers are facing affordability challenges. We remain bullish on the multi-year demand trends in our key geographies, but expect soft market conditions to persist in the near term." "We believe 2025 will be another record 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 year-to-date performance, backlog, and visibility into future phase opportunities. The midpoints of our revised 2025 guidance would represent 27% year-over-year revenue growth as adjusted for RHB, 47% adjusted diluted earnings per share growth and 42% adjusted EBITDA growth," Mr. Cutillo concluded. Full Year 2025 Guidance Revenue of $2.375 billion to $2.390 billion Net Income of $270 million to $275 million Diluted EPS of $8.73 to $8.87 EBITDA(1) of $448 million to $453 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 $321 million to $326 million Adjusted Diluted EPS(1) of $10.35 to $10.52 Adjusted EBITDA(1) of $486 million to $491 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, November 4, 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 and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, 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 operating 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: the anticipated benefits of the CEC acquisition; 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 Strategy281-214-0795 STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues $ 689,019 $ 593,741 $ 1,734,436 $ 1,616,923 Cost of revenues (518,803) (463,942) (1,326,240) (1,297,477) Gross profit 170,216 129,799 408,196 319,446 General and administrative expense (37,585) (30,672) (106,203) (85,826) Intangible asset amortization (6,035) (4,280) (15,074) (12,857) Acquisition related costs (5,349) (72) (8,023) (209) Earn-out expense (1,343) (1,000) (4,029) (3,000) Other operating income (expense), net 5,405 (6,283) 11,082 (15,203) Operating income 125,309 87,492 285,949 202,351 Interest income 5,677 7,591 19,405 19,798 Interest expense (4,140) (6,286) (14,367) (19,463) Income before income taxes 126,846 88,797 290,987 202,686 Income tax expense (30,517) (23,404) (72,959) (48,960) Net income, including noncontrolling interests 96,329 65,393 218,028 153,726 Less: Net income attributable to noncontrolling interests (4,241) (4,072) (15,472) (9,478) Net income attributable to Sterling common stockholders $ 92,088 $ 61,321 $ 202,556 $ 144,248 Net income per share attributable to Sterling common stockholders: Basic $ 3.02 $ 2.00 $ 6.64 $ 4.67 Diluted $ 2.97 $ 1.97 $ 6.56 $ 4.63 Weighted average common shares outstanding: Basic 30,519 30,735 30,491 30,875 Diluted 30,960 31,070 30,875 31,184 STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES SEGMENT INFORMATION (In thousands) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, Revenues 2025 % of Revenue 2024 % of Revenue 2025 % of Revenue 2024 % of Revenue E-Infrastructure Solutions $ 417,106 60 % $ 263,899 45 % $ 945,775 55 % $ 689,687 43 % Transportation Solutions 170,490 25 % 227,251 38 % 487,948 28 % 608,995 37 % Building Solutions 101,423 15 % 102,591 17 % 300,713 17 % 318,241 20 % Total Revenues $ 689,019 $ 593,741 $ 1,734,436 $ 1,616,923 Operating Income E-Infrastructure Solutions $ 106,614 25.6 % $ 68,076 25.8 % $ 237,023 25.1 % $ 146,922 21.3 % Transportation Solutions 24,377 14.3 % 18,573 8.2 % 61,605 12.6 % 42,154 6.9 % Building Solutions 10,752 10.6 % 12,249 11.9 % 32,959 11.0 % 42,837 13.5 % Segment Operating Income 141,743 20.6 % 98,898 16.7 % 331,587 19.1 % 231,913 14.3 % Corporate G&A Expense (9,742) (10,334) (33,586) (26,353) Acquisition Related Costs (5,349) (72) (8,023) (209) Earn-out Expense (1,343) (1,000) (4,029) (3,000) Total Operating Income $ 125,309 18.2 % $ 87,492 14.7 % $ 285,949 16.5 % $ 202,351 12.5 % STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 306,395 $ 664,195 Accounts receivable 496,058 247,050 Contract assets 102,736 55,387 Receivables from and equity in construction joint ventures 5,204 5,811 Receivable from affiliate — 32,054 Other current assets 52,755 17,383 Total current assets 963,148 1,021,880 Property and equipment, net 268,033 236,795 Investment in unconsolidated subsidiary 108,512 107,400 Operating lease right-of-use assets, net 64,232 52,668 Goodwill 580,564 264,597 Other intangibles, net 561,716 316,390 Other non-current assets, net 16,062 17,044 Total assets $ 2,562,267 $ 2,016,774 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 198,323 $ 130,420 Contract liabilities 616,273 508,846 Current maturities of long-term debt 15,154 26,423 Current portion of long-term lease obligations 20,980 20,498 Accrued compensation 62,033 36,774 Other current liabilities 54,030 18,997 Total current liabilities 966,793 741,958 Long-term debt 279,479 289,898 Long-term lease obligations 43,588 32,455 Deferred tax liability, net 118,616 109,360 Other long-term liabilities 68,796 16,625 Total liabilities 1,477,272 1,190,296 Stockholders' equity: Common stock 315 312 Additional paid in capital 369,505 288,395 Treasury stock, at cost (103,745) (63,121) Retained earnings 785,051 582,495 Total Sterling stockholders' equity 1,051,126 808,081 Noncontrolling interests 33,869 18,397 Total stockholders' equity 1,084,995 826,478 Total liabilities and stockholders' equity $ 2,562,267 $ 2,016,774 STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income $ 218,028 $ 153,726 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 54,526 50,546 Amortization of debt issuance costs and non-cash interest 633 877 Gain on disposal of property and equipment (2,500) (3,280) Distribution of earnings from unconsolidated subsidiary 16,252 — Equity in earnings from unconsolidated subsidiary (11,082) — Deferred taxes 9,256 6,107 Stock-based compensation 18,241 13,753 Changes in operating assets and liabilities (49,417) 101,106 Net cash provided by operating activities 253,937 322,835 Cash flows from investing activities: Acquisitions, net of cash acquired (484,156) (4,827) Capital expenditures (50,923) (65,309) Proceeds from sale of property and equipment 4,014 7,834 Net cash used in investing activities (531,065) (62,302) Cash flows from financing activities: Repayments of debt (21,067) (19,931) Repurchase of common stock (48,546) (50,596) Withholding taxes paid on net share settlement of equity awards (9,650) (13,408) Debt issuance costs (1,409) — Other — (34) Net cash used in financing activities (80,672) (83,969) Net change in cash, cash equivalents, and restricted cash (357,800) 176,564 Cash, cash equivalents and restricted cash at beginning of period 664,195 471,563 Cash, cash equivalents and restricted cash at end of period 306,395 648,127 Less: restricted cash — — Cash and cash equivalents at end of period $ 306,395 $ 648,127 STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income attributable to Sterling common stockholders $ 92,088 $ 61,321 $ 202,556 $ 144,248 Non-cash stock-based compensation 5,963 4,371 18,241 13,753 Intangible asset amortization (1) 7,906 4,280 20,688 12,857 Acquisition related costs 5,349 72 8,023 209 Earn-out expense 1,343 1,000 4,029 3,000 Income tax impact of adjustments (4,947) (2,563) (12,782) (7,203) Adjusted net income attributable to Sterling common stockholders (2) $ 107,702 $ 68,481 $ 240,755 $ 166,864 Net income per share attributable to Sterling common stockholders: Basic $ 3.02 $ 2.00 $ 6.64 $ 4.67 Diluted $ 2.97 $ 1.97 $ 6.56 $ 4.63 Adjusted net income per share attributable to Sterling common stockholders: Basic $ 3.53 $ 2.23 $ 7.90 $ 5.40 Diluted $ 3.48 $ 2.20 $ 7.80 $ 5.35 Weighted average common shares outstanding: Basic 30,519 30,735 30,491 30,875 Diluted 30,960 31,070 30,875 31,184 (1) For the three and nine months ended September 30, 2025, intangible asset amortization includes $1,871 and $5,614, respectively related to the basis difference 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 September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income attributable to Sterling common stockholders $ 92,088 $ 61,321 $ 202,556 $ 144,248 Depreciation and amortization (1) 22,059 17,363 60,965 50,546 Interest income, net (1,537) (1,305) (5,038) (335) Income tax expense 30,517 23,404 72,959 48,960 EBITDA(2) 143,127 100,783 331,442 243,419 Non-cash stock-based compensation 5,963 4,371 18,241 13,753 Acquisition related costs 5,349 72 8,023 209 Earn-out expense 1,343 1,000 4,029 3,000 Adjusted EBITDA(3) $ 155,782 $ 106,226 $ 361,735 $ 260,381 (1) For the three and nine months ended September 30, 2025, depreciation and amortization includes $1,871 and $5,614, respectively, of intangible asset amortization and $275 and $825, respectively, of depreciation expense related to the basis difference 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 and nine months ended September 30, 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 September 30, Nine Months Ended September 30, Revenues (Excluding RHB) 2025 % of Revenue 2024 % of Revenue 2025 % of Revenue 2024 % of Revenue E-Infrastructure Solutions $ 417,106 60 % $ 263,899 51 % $ 945,775 55 % $ 689,687 48 % Transportation Solutions 170,490 25 % 155,063 30 % 487,948 28 % 424,396 30 % Building Solutions 101,423 15 % 102,591 19 % 300,713 17 % 318,241 22 % Total Revenues (Excluding RHB) (1) $ 689,019 $ 521,553 $ 1,734,436 $ 1,432,324 Adjusted Operating Income E-Infrastructure Solutions $ 111,697 26.8 % $ 71,244 27.0 % $ 249,998 26.4 % $ 158,430 23.0 % Transportation Solutions 26,680 15.6 % 19,070 12.3 % 68,528 14.0 % 43,456 10.2 % Building Solutions 12,594 12.4 % 13,928 13.6 % 38,625 12.8 % 47,754 15.0 % Adjusted Segment Operating Income 150,971 21.9 % 104,242 20.0 % 357,151 20.6 % 249,640 17.4 % Corporate G&A Expense (5,101) (7,027) (20,221) (17,470) Total Adjusted Operating Income (2) $ 145,870 21.2 % $ 97,215 18.6 % $ 336,930 19.4 % $ 232,170 16.2 % (1) Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, the Company reports 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 and nine months ended September 30, 2024, total GAAP revenue of $593,741 and $1,616,923, respectively, have been adjusted to exclude $72,188 and $184,599, respectively, 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 September 30, 2025, GAAP operating income of $125,309 is adjusted to exclude $5,963 of non-cash stock-based compensation, $7,906 of intangible asset amortization (including $1,871 related to the basis difference of RHB), $5,349 of acquisition related costs, and $1,343 of earn-out expense. For the nine months ended September 30, 2025, GAAP operating income of $285,949 is adjusted to exclude $18,241 of non-cash stock-based compensation, $20,688 of intangible asset amortization (including $5,614 related to the basis difference of RHB), $8,023 of acquisition related costs, and $4,029 of earn-out expense. For the three months ended September 30, 2024, GAAP operating income of $87,492 is adjusted to exclude $4,371 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $72 of acquisition related costs, and $1,000 of earn-out expense. For the nine months ended September 30, 2024, GAAP operating income of $202,351 is adjusted to exclude $13,753 of non-cash stock-based compensation, $12,857 of intangible asset amortization, $209 of acquisition related costs, and $3,000 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 $ 270,000 $ 275,000 $ 257,461 Gain on deconsolidation of subsidiary, net — — (91,289) Non-cash stock-based compensation 24,000 24,000 19,003 Intangible asset amortization (1) 30,000 30,000 17,037 Acquisition related costs 8,000 8,000 421 Earn-out expense 6,000 6,000 4,756 Income tax impact of adjustments (17,000) (17,000) 13,356 Adjusted net income attributable to Sterling common stockholders (2) $ 321,000 $ 326,000 $ 220,745 Net income per share attributable to Sterling common stockholders: Diluted $ 8.73 $ 8.87 $ 8.27 Adjusted net income per share attributable to Sterling common stockholders: Diluted $ 10.35 $ 10.52 $ 7.09 Weighted average common shares outstanding: Diluted (2025 is approximate) 31,000 31,000 31,146 (1) Full year 2025 guidance includes intangible asset amortization of approximately $7,500 related to the basis difference 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 $ 270 $ 275 $ 257 Depreciation and amortization (1) 85 85 68 Interest income, net of interest expense (3) (4) (2) Income tax expense 96 97 87 EBITDA (2) 448 453 410 Gain on deconsolidation of subsidiary, net — — (91) Non-cash stock-based compensation 24 24 19 Acquisition related costs 8 8 — Earn-out expense 6 6 5 Adjusted EBITDA(3) $ 486 $ 491 $ 343 (1) Full year 2025 guidance includes depreciation and intangible asset amortization of approximately $1.1 million and $7.5 million, respectively, related to the basis difference 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 by segment as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB: 2024 Quarters Ended (Unaudited) Revenues (GAAP) March 31 June 30 September 30 December 31 Total E-Infrastructure Solutions $ 184,476 $ 241,312 $ 263,899 $ 234,041 $ 923,728 Transportation Solutions 148,969 232,775 227,251 174,664 783,659 Building Solutions 106,915 108,735 102,591 90,128 408,369 Total Revenues $ 440,360 $ 582,822 $ 593,741 $ 498,833 $ 2,115,756 Revenues (RHB) E-Infrastructure Solutions $ — $ — $ — $ — $ — Transportation Solutions 38,464 73,947 72,188 51,277 235,876 Building Solutions — — — — — Total Revenues $ 38,464 $ 73,947 $ 72,188 $ 51,277 $ 235,876 Revenues (Excluding RHB/Non-GAAP) (1) 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 $ 401,896 $ 508,875 $ 521,553 $ 447,556 $ 1,879,880 (1) Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, RHB's revenue is no longer included in Sterling's consolidated revenue. STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited) The following tables present our 2024 quarterly operating income and adjusted operating income by segment: 2024 Quarters Ended (Unaudited) Operating Income (GAAP) March 31 June 30 September 30 December 31 Total 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 (Non-GAAP) 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 (1) $ 52,044 $ 82,911 $ 97,215 $ 73,669 $ 305,839 (1) 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, 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. For the three months ended June 30, 2024, GAAP operating income of $72,734 is adjusted to exclude $4,796 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $101 of acquisition related costs, and $1,000 of earn-out expense. For the three months ended September 30, 2024, GAAP operating income of $87,492 is adjusted to exclude $4,371 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $72 of acquisition related costs, and $1,000 of earn-out expense. For the three months ended December 30, 2024, GAAP operating income of $62,271 is adjusted to exclude $5,250 of non-cash stock-based compensation, $4,180 of intangible asset amortization, $212 of acquisition related costs, and $1,756 of earn-out expense. For the year ended December 30, 2024, GAAP operating income of $264,622 is adjusted to exclude $19,003 of non-cash stock-based compensation, $17,037 of intangible asset amortization, $421 of acquisition related costs, and $4,756 of earn-out expense. STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY BACKLOG INFORMATION (In thousands) (Unaudited) The following table presents our 2024 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 (GAAP) $ 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 SOURCE Sterling Infrastructure, Inc.

Sterling Reports Record Third Quarter 2025 Results and Increases Full Year Guidance

FAQ

Why Very Bullish?

How important is it?

Why Long Term?

Related Companies

Related News