Business
Sterling Reports First Quarter 2025 Results and Increases Full Year Guidance
THE WOODLANDS, Texas, May 5, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or the "Company") today announced financial
About this update from Sterling Infrastructure, Inc.
[{"type":"text","content":"THE WOODLANDS, Texas, May 5, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) (\"Sterling\" or the \"Company\") today announced financial results for the first quarter of 2025.\n\n \n \n \n \n \n \n\n \nThe financial comparisons herein are to the prior year quarter, unless otherwise noted.\nDue 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.\nFirst Quarter 2025 Results\nRevenues 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%, respectivelyAdjusted net income(1) of $50.2 million, or $1.63 per diluted share, increases of 28% and 29%, respectivelyEBITDA(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 millionCash and cash equivalents totaled $638.6 million at March 31, 2025Backlog at March 31, 2025 was $2.13 billionCombined 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.\n(2) Combined Backlog includes Unsigned Awards of $103.2 million at March 31, 2025.\n \nDrake Concrete Acquisition\nDuring 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.\nCEO Remarks and Outlook\n\"Sterling is off to a great start in 2025, as we grew our first quarter adjusted net income by 28% to deliver adjusted di...