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Sterling Infrastructure Reports Record-Breaking Financial Results for 2024

Sterling Infrastructure, Inc. (NasdaqGS: STRL) has published its remarkable financial outcomes for the fourth quarter and the entirety of 2024. The results indicate a significant growth trajectory for the company and a positive outlook for the upcoming fiscal year of 2025.

Key Highlights for Fourth Quarter 2024

In Q4 2024, Sterling achieved revenues totaling $498.8 million, marking a 3% increase compared to the same period the previous year. Notably, gross margin expanded to 21.4%, a rise from 18.9%. The net income soared by 182%, reaching $113.2 million, or $3.64 per diluted share. Excluding a one-time gain from the subsidiary's deconsolidation and related acquisition costs, the adjusted net income was $45.5 million, reflecting a 12% increase from the previous year’s quarter.

Additionally, the company reported an impressive EBITDA of $167.4 million, demonstrating an increase of 145% year-on-year, while the adjusted EBITDA rose to $76.4 million, up by 11%. Operational cash flows amounted to $497.1 million for the year ending December 31, 2024, with cash reserves at year-end totaling $664.2 million and a consolidated backlog of $1.69 billion.

Yearly Performance Overview

2024 proved to be a historic year for Sterling, showcasing a 7% growth in revenue from the previous year. The net income for the year was reported at $257.5 million, translating to $8.27 per diluted share, substantially higher than the $138.7 million or $4.44 per diluted share recorded in 2023. Adjusted net income surged by 36.3%, reaching $189.9 million. The company's EBITDA also experienced significant growth, hitting $410.9 million, up 59% from the previous year's figures.

CEO's Insights and Forecast for 2025

During the announcement, Sterling's CEO, Joe Cutillo, expressed confidence in the future, saying, "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." He also noted the business's transition to higher-margin service offerings, contributing to the strong financial performance.

The total backlog at the end of 2024 stood at $1.83 billion, with E-Infrastructure Solutions backlog surpassing $1 billion and marking a 27% increase from the previous year. Mr. Cutillo emphasized a strong kickoff for 2025, with promising award activity and a growing pipeline of high-probability projects.

Anticipations for 2025

As Sterling gears up for 2025, it has set ambitious guidance, forecasting revenues between $2.00 billion and $2.15 billion, with an anticipated net income ranging from $215 million to $230 million. The expected diluted EPS is projected to fall between $6.75 and $7.25. The EBITDA forecast lies between $370 million and $395 million. With the company’s commitment to nurturing bottom-line growth that outstrips top-line growth, expectations remain high for the forthcoming year.

Conclusion

Sterling Infrastructure's exceptional performance in 2024 underscores its robust operational strategies and market positioning. As they look ahead, the company is poised for continued growth, with guiding metrics reflecting a bright path forward. Stakeholders and investors will want to keep a close eye on Sterling as it embarks on another promising year.