Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Investor Presentation (December 2024)
25 slides from Sterling Infrastructure's investor presentation, December 2024
Slide 1: Investor Presentation Winter 2024
Investor Presentation Winter 2024 We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow.
Slide 2: DISCLOSURE: Forward-Looking Statements
DISCLOSURE: Forward-Looking Statements This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward- looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forw
Slide 3: Sterling at a Glance
Sterling at a Glance Leading infrastructure services provider creating consistent shareholder value through superior returns and excellent execution NASDAQ: STRL 2023 Revenue: 2023 EBITDA 3Q24 net cash $1.97 billion Margin: 13.1% $10.44 per Market Cap: share $4.83 billion 8-year revenue History of s
Slide 4: Attractive Geographic Footprint
Attractive Geographic Footprint WA MT OR ID NY WY PA NE NJ NV UT DE E-Infrastructure CA CO WV KS MD VA E-Infrastructure & Transportation KY Transportation NC TN Transportation & Building AZ NM SC E-Infrastructure, Transportation & Building MS AL GA TX FL Sterling Infrastructure, Inc. | STRL: IR Pres
Slide 5: Transformation Built the Foundation for Success
Transformation Built the Foundation for Success 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform Revenue CAGR 2019-2023: +21% * Revenue and Operating margin from continuing operations Sterling Infrastructure, Inc. | STRL: IR Presentation 5
Slide 6: Leveraging the Foundation to Drive Growth
Leveraging the Foundation to Drive Growth 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform EPS CAGR 2019-2023: +38% Historical Bottom-line Growth ~2X Top-Line Growth * Diluted EPS from continuing operations Sterling Infrastructure, Inc. | STRL: IR Presentation 6
Slide 7: Diverse Platform Serving Attractive Markets
Diverse Platform Serving Attractive Markets Sterling is playing a critical role in building the data infrastructure that enables today's way of life, the manufacturing production coming back to the US, the highways, the bridges, and the airports that connect us and the homes we live in. Sterling Inf
Slide 8: Strong, Multi-Year Growth Drivers
Strong, Multi-Year Growth Drivers Building Solutions Residential and Commercial concrete slabs in the Dallas/ Fort Worth, Houston, and Phoenix markets. Plumbing capabilities (rough in, top outs, fixtures) in DFW. Key Drivers: + Demand for single-family homes in Dallas, E-Infrastructure Leading provi
Slide 9: Backlog, a Pipeline of High-Profitability Work
Backlog, a Pipeline of High-Profitability Work Backlog Does Not Include >$0.5B of Future-Phase Work * Backlog and Unsigned Awards from continuing operations Sterling Infrastructure, Inc. | STRL: IR Presentation 9
Slide 10: Financial Overview
Financial Overview Sterling Infrastructure, Inc. | STRL: IR Presentation 10
Slide 11: Third Quarter 2024 Results Highlights
Third Quarter 2024 Results Highlights 3Q24 vs 3Q23: 6% Revenue Growth and 56% Increase in Diluted EPS +Revenues: $593.7 million +Net Income: $61.3 million +Diluted EPS: $1.97 +EBITDA(1): $100.8 million +Cash Flow from Operations(2): $322.8 million +Cash & Cash Equivalents(3): $648.1 million +Backlog
Slide 12: Strong Cash Flow Profile Provides Flexibility and Supports Growth Investments
Strong Cash Flow Profile Provides Flexibility and Supports Growth Investments Considerations: • In recent quarters, cash flow has benefited from the timing of cash payments on large projects in E-Infrastructure and Transportation Solutions. • Over the long-term, we expect that operating cash flow wi
Slide 13: Balance Sheet with Significant Firepower to Support Future Growth
Balance Sheet with Significant Firepower to Support Future Growth Total Debt and Cash Positions (1) Considerations: • We expect to pursue strategic uses of our liquidity, including acquisitions, investing in capital equipment and managing leverage. • Sterling is comfortable with a forward- looking d
Slide 14: Capital Allocation Priorities Support Growth in Existing and New Markets
Capital Allocation Priorities Support Growth in Existing and New Markets Support organic growth in existing and new markets + Capital expenditures support multi-year growth, weighted toward E-Infrastructure Solutions Strategic M&A – “Bolt on” and/ or 4th Leg Opportunities + “Bolt-ons”: Continue to e
Slide 15: Full Year 2024 Guidance
Full Year 2024 Guidance Revenue of $2.150 to $2.175 billion “We believe 2024 will be another excellent year for Sterling. Given our strong results through the third quarter Net Income of $180 to $185 million and backlog position, we are raising our full year profitability guidance. The midpoint of o
Slide 16: Sterling, a Leading Provider of Infrastructure Services in the U.S.
Sterling, a Leading Provider of Infrastructure Services in the U.S. Successful strategic Strong, Continued Strong Robust historical foundation with multi-year, opportunity balance sheet, stock strong, secular for margin FCF performance diversified growth drivers expansion platform Sterling Infrastru
Slide 17: Appendix
+ Appendix Sterling Infrastructure, Inc. | STRL: IR Presentation 17
Slide 18: 2024 Modeling Considerations
2024 Modeling Considerations(1) Revenue $2,150 to $2,175 Gross Margin 19.0% to 20.0% G&A Expense as % of Revenue (Excluding Intangible Amortization) ~5% Intangible Amortization $17 Other Operating Expense Net $23 to $25 JV Non-Controlling Interest Expense ~$12 Effective Income Tax Rate ~24% Net Inco
Slide 19: 2024 Modeling Considerations Continued
2024 Modeling Considerations Continued* Non-Cash Items FY 2024 Expectations FY 2023 Depreciation $50 $42.2 Intangible Amortization $17 $15.2 Debt Issuance Cost Amortization $1 to $2 $1.7 Stock-based Compensation $18 to $20 $14.6 Deferred Taxes $7 to $8 $14.7 Other Cash Flow Items FY 2024 Expectation
Slide 20: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions) Q3 2024 Q3 2023 ($ in millions) Q3 2024 Q3 2023 Revenues $ 593.7 $ 560.3 E-Infrastructure Solutions Gross Profit 129.8 91.9 Revenue $ 263.9 $ 253.9 G&A Expense (30.7) (25.2) Operating Income $ 68.1 $ 35.9 Intangible Amortization (4.3) (3.7)
Slide 21: EBITDA Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net income attributable to Sterling common $ 61,321 $ 39,353 $ 144,248 $ 98,482 stockholders Depreciation and amortizatio
Slide 22: EBITDA Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) Full Year 2024 Guidance Low High Net income attributable to Sterling common stockholders $ 180 $ 185 Depreciation and amortization 67 67 Interest expense, net of interest income — — Income tax expen
Slide 23: STRL 3-Year Stock Price Performance
STRL 3-Year Stock Price Performance Closing Price 08-Nov-2021 to 08-Nov-2024 (Daily) Price (Local Currency) 250 Sterling Infrastructure, Inc. 200 150 100 50 0 1/22 4/22 7/22 10/22 1/23 4/23 7/23 10/23 1/24 4/24 7/24 10/24 Source: FactSet Prices Source: FactSet Sterling Infrastructure, Inc. | STRL: I
Slide 24: Sustainability
Sustainability Protecting Our Environment + Sound governance From strategy to operations, we are + Environmentally responsible construction services and committed to sustainability by operating responsibly to safeguard and improve solutions for today and tomorrow society’s quality of life. Taking Ca
Slide 25: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 Cell (720) 270-6361 noelle.dilts@strlco.com Sterling Infrastructure, Inc. | STRL: IR Presentation 25
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