Slide 1: Q2 2022 Earnings Call
We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. Q2 2022 Earnings Call August 2, 2022
Slide 2: Disclosure: Forward-Looking Statements
2Sterling: Second Quarter 2022 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 E
Slide 3: Sterling Infrastructure: name change and growth strategy
3Sterling: Second Quarter 2022 In June 2022, we aligned our name to better reflect our position as a market-leading infrastructure solutions provider driven by our entrepreneurial spirit and customer-centric culture along with a focused, disciplined and bold determination. We are… Sterling Infrastru
Slide 4: Delivering Value: Proven Performance & Strong Operational Execution
Sterling: Second Quarter 2022 4 Delivering Value: Sterling's Proven Performance & Strong Operational Execution Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance *See EBITDA
Slide 5: Successful Strategic Business Transformation Created Sterling Infrastructure
Sterling: Second Quarter 2022 5 Successful Strategic Business Transformation Created Sterling Infrastructure, Inc. *See EBITDA Reconciliations in the Appendix pages 21 - 22 2016 2017 2018 2019 2020 2021 2022E $— $50 $100 $150 $200 Heavy Civil & Residential EBITDA* (2016 - 2022E) E-Infrastructure, Bu
Slide 6: WHO is Sterling?
WHO is Sterling? A story of successful execution of multi-year strategic business transformation since 2016; born of a strategy and vision that levers our entrepreneurial spirit and our customer-centric culture. + E-Infrastructure Solutions + Highest margins in portfolio + Fastest growing segment in
Slide 7: Expanded Geographic Footprint in Strong Markets with Top Customers
Sterling: Second Quarter 2022 7 Sterling's Expanded Geographic Footprint in Strong Markets with Top Customers E-Infrastructure Solutions + Expanded geographic footprint providing value-added solutions to blue-chip customers in all major East Coast markets Building Solutions + Expanded geographic foo
Slide 8: WHY Sterling?
Sterling: Second Quarter 2022 8 WHY Sterling? + We build value for investors seeking high margins, healthy cash flow, proven performance and strong operational execution + Committed to our strategic vision, our blueprint for bottom-line growth, reducing risk and consistently outperforming peers + We
Slide 9: Strategic Execution | Proven Results | Strong Growth
Sterling: Second Quarter 2022 9 Strategic Execution | Proven Results | Strong Growth Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance
Slide 10: The Sterling Way
Protecting Habitats Onsite project management controls for avoidance, minimization and mitigation measures. A Florida site development project took careful measures to protect the federally protected burrowing owl by fencing around the nesting trees during the entire project. The Sterling Way Taking
Slide 11: Second Quarter 2022 Results
+ Second Quarter 2022 Results Sterling: Second Quarter 2022 11
Slide 12: Sterling Reports Record Second Quarter 2022 Results
Second Quarter 2022 Results Sterling Reports Record Second Quarter 2022 Results Earnings Continue to Outpace Expectations Increases 2022 Full Year Guidance Revenues: $510.6 million Net Income: $26.0 million Diluted EPS: $0.86 cents + Backlog: $1.54 billion with 12.6% margin(1) + Combined Backlog: $1
Slide 13: Quarterly Consolidated and Segment Results
Sterling: Second Quarter 2022 13 Quarterly Consolidated and Segment Results ($ in millions) Q2 2022 Q2 2021 Revenues $ 510.6 $ 401.7 Gross Profit 68.4 56.2 G&A Expense (23.4) (15.8) Intangible Amortization (3.5) (2.9) Acquisition Related Costs (0.2) — Other Operating Expense, Net (0.1) (4.8) Operati
Slide 14: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Sterling: Second Quarter 2022 14 Increased EBITDA and Cash Flow Drives Liquidity Strategy We expect to pursue strategic uses of our liquidity, such as, strategic acquisitions, investing in capital equipment and managing leverage. Capital allocation focus • Long-term shareholder value • Complementing
Slide 15: Contact Us
Sterling: Second Quarter 2022 15 Contact Us Sterling Ron Ballschmiede, Chief Financial Officer Mary Morley, Investor Relations Sterling Infrastructure, Inc. Tel: (281) 214-0777 The Equity Group Inc. Jeremy Hellman Tel: (212) 836-9626 jhellman@equityny.com
Slide 16: Appendix
+ Appendix Sterling: Second Quarter 2022 16
Slide 17: Strategy Driving Profitable Growth
Sterling: Second Quarter 2022 17 Strategy Driving Profitable Growth *See EBITDA Reconciliations in the Appendix pages 21 - 22
Slide 18: 2022 Modeling Considerations
2022 Modeling Considerations(1) Sterling: Second Quarter 2022 18 (1) In millions except for EPS and percentages. (2) Excludes growth related to the acquired Petillo business of approx. $225M for 2022. (3) See EBITDA guidance reconciliation on page 21. Three Year Revenue Growth Expectations: E-Infras
Slide 19: 2022 Modeling Considerations Continued
Sterling: Second Quarter 2022 19 2022 Modeling Considerations Continued* * In Millions except for percentages Non-Cash Items FY 2022 Expectations FY 2021 Depreciation $35 to $36 $22.7 Intangible Amortization $15 $11.5 Debt Issuance Cost Amortization $2 to $3 $2.2 Stock-based Compensation $9 to $10 $
Slide 20: EBITDA Reconciliation
Sterling: Second Quarter 2022 20 (1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, taxes, and net gain on extinguishment of debt. Three Months Ended June 30, Six Months Ended June 30, 2022
Slide 21: EBITDA Guidance Reconciliation
Sterling: Second Quarter 2022 21 (1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, taxes, and net gain on extinguishment of debt. Full Year 2022 Guidance Low High Net income attributable t
Slide 22: Historical EBITDA Reconciliation
Sterling: Second Quarter 2022 22 (1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, taxes, and net gain or loss on extinguishment of debt. 2016 2017 2018 2019 2020 2021 Net (loss) income at
Slide 23: ESG at Sterling: The Sterling Way
ESG at Sterling: The Sterling Way Our Core Values: Safety, Respect and Trust, Excellence, Integrity At Sterling, we understand that what we do has an immediate and significant positive impact on improving human conditions + We build our businesses around meeting the needs of the people we serve prov
Slide 24: Thank You
THANK YOU We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow.