#United States #The Woodlands #Sterling Infrastructure #E-Infrastructure #CEC Group

Sterling Infrastructure Completes Acquisition of CEC Facilities Group

In a significant move to strengthen its capabilities, Sterling Infrastructure, Inc., listed on NasdaqGS as STRL, has finalized the acquisition of CEC Facilities Group, LLC, a prominent electrical and mechanical contractor based in Irving, Texas. This acquisition marks an important milestone in Sterling's strategic growth approach and aims to extend its services in the E-Infrastructure sector.

E-Infrastructure Services Expanded

The union of Sterling Infrastructure and CEC Facilities Group will enable the former to broaden its portfolio of E-Infrastructure services. As a part of the integration, CEC will contribute an anticipated revenue of approximately $130 to $138 million and adjusted earnings per share ranging between $0.22 and $0.24 by the end of the calendar year 2025. Furthermore, Sterling estimates an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) contribution around $17 to $18 million.

Insights from the CEO

Expressing enthusiasm over the deal, Joe Cutillo, CEO of Sterling, stated, "We are excited to officially welcome CEC into the Sterling family. This acquisition significantly expands our E-Infrastructure capabilities and allows us to provide faster, more efficient project solutions." He emphasized the potential for greater innovation and added value to the clientele through this collaborative effort.

Robust Growth Strategy

Sterling Infrastructure operates through a variety of subsidiaries segmenting its business into three main areas: E-Infrastructure, Transportation, and Building Solutions across various regions in the United States including the Southern, Northeastern, Mid-Atlantic, and Rocky Mountain regions, as well as the Pacific Islands.

The E-Infrastructure Solutions segment specializes in large-scale site development services and essential electrical services tailored for data centers, semiconductor manufacturing, distribution centers, and power generation, among others. The Transportation Solutions segment involves infrastructure projects concerning highways, railroads, ports, and airports, while the Building Solutions segment focuses on residential and commercial concrete foundations.

Forward-Looking Statements

This acquisition aligns with Sterling's commitment to sustainable practices and societal improvement, reinforcing its role in energizing the economy, enhancing operational efficiency, and contributing positively to the communities served. While the acquisition is anticipated to enhance both immediate and long-term financial performance, it comes with inherent risks associated with integrating the new operations. Sterling warns investors about the uncertainties in realizing the full benefits of the acquisition as outlined in the forward-looking statements.

Finally, the carefully executed strategy reflects Sterling’s dedication not only towards business expansion but also towards delivering quality services that enhance infrastructure across the sectors it operates in, affirmatively adding to its corporate responsibility ethos, encapsulated in their mission 'The Sterling Way.'

In closing, this acquisition presents an exciting opportunity for Sterling Infrastructure, positioning it firmly on a path of progressive growth and innovation in the coming years.