Sterling Infrastructure Posts Strong Q1 Results and Guidance

Sterling Infrastructure Reports Q1 Results

Sterling Infrastructure, Inc. (NASDAQ: STRL) has announced its financial results for the first quarter of 2025, highlighting a strong start to the year. As compared to the previous quarter, the figures reflect significant advancements that position the company favorably for the remainder of the year.

Financial Highlights

In the first quarter of 2025, Sterling achieved revenues of $430.9 million, marking a 7% increase when excluding contributions from the deconsolidated joint venture. Gross margins saw a significant improvement, rising to 22.0% from 17.5% a year prior. Additionally, net income surged, amounting to $39.5 million, or $1.28 per diluted share, demonstrating increases of 27% and 28%, respectively. Adjusted net income reached $50.2 million, reflecting a 28% year-over-year increase.

Cash Flow and Backlog

The company’s cash flows from operations totaled $84.9 million, with cash and cash equivalents standing at an impressive $638.6 million. As of March 31, 2025, Sterling had a backlog of $2.1 billion that showcased robust demand and ongoing projects, up 17% compared to the same quarter last year.

Acquisition of Drake Concrete

During this quarter, Sterling successfully completed the acquisition of Drake Concrete, LLC, a strategic move aimed at expanding its geographical reach in the concrete services market. This acquisition is expected to provide approximately $55 million in revenue, along with $6.5 million in adjusted EBITDA for 2025, further solidifying Sterling's position in the industry.

Comments from CEO

CEO Joe Cutillo remarked on the company's performance, stating, "Sterling is off to a fantastic start in 2025, with our first quarter adjusted net income growing by 28%. Our revenue growth of 7% reflects the strength of our diversified solutions. Additionally, the progress in our E-Infrastructure Solutions and Transportation Solutions segments adds significant momentum to our growth narrative, with margins demonstrating robust performance."

Mr. Cutillo also noted the outstanding operating cash flow generation during the first quarter, reporting $85 million, contributing to a net cash position of $329 million, which supports future growth, including share repurchases.

2025 Guidance Update

Owing to the strong first quarter performance, Sterling has raised its guidance for the fiscal year 2025. The company expects revenue in the range of $2.05 billion to $2.15 billion. Net income is anticipated to be between $222 million and $239 million, with diluted EPS projected at $7.15 to $7.65. EBITDA for the year is also projected to be between $381 million and $403 million.

Adjustments for Accurate Reporting

The company continues to provide clarity on financial reporting, reflecting non-GAAP measures such as adjusted net income and EBITDA, which offer valuable insight into operational performance. Adjusted net income is expected to range from $262 million to $278 million, ensuring stakeholders have a comprehensive view of Sterling's fiscal health.

Conclusion

As Sterling Infrastructure navigates through 2025, its strong financial results, strategic acquisitions, and improved guidance showcase a commitment to robust growth and operational excellence. With a solid backlog and healthy financial positioning, Sterling is poised to capitalize on expansive opportunities within its sectors.

Frequently Asked Questions

What were Sterling's revenues for the first quarter of 2025?

Sterling reported revenues of $430.9 million for the first quarter of 2025.

How did Sterling's net income change compared to the previous year?

Net income increased by 27%, reaching $39.5 million, or $1.28 per diluted share.

What is the significance of the Drake Concrete acquisition?

The acquisition strengthens Sterling's market presence and is predicted to add significant revenue and EBITDA in 2025.

What is the company's backlog as of March 31, 2025?

Sterling's backlog was reported at $2.1 billion, reflecting a 17% increase compared to the same period last year.

What is Sterling's full-year revenue guidance for 2025?

The company expects 2025 revenues between $2.05 billion to $2.15 billion, adjusted following a strong first quarter.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

Contact Evelyn Baker privately here. Or send an email with ATTN: Evelyn Baker as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.