Sterling Infrastructure, Inc. · NASDAQ:STRL

Sterling Infrastructure — Q2 2025 Earnings Presentation

34 slides from Sterling Infrastructure's earnings presentation, October 2025

  1. Slide 1: Investor Presentation

    Investor Presentation We build and service the infrastructure that enables our economy to run, our people to move and our country to grow.

  2. 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 forwa

  3. Slide 3: DISCLOSURE: Non-GAAP Measures

    DISCLOSURE: Non-GAAP Measures This presentation contains “Non-GAAP” financial measures as defined under Regulation G of the amended U.S. Securities Exchange Act of 1934. The Company reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), but the Company b

  4. Slide 4: Key Takeaways

    Sterling, A Leading Infrastructure Services Provider • Focused on high-margin growth, strategic market expansion and operational excellence Transformation Built the Foundation for Success • Disciplined approach to project selection and resource allocation, prioritizing high-margin, high-return oppor

  5. Slide 5: A Leading Infrastructure Services Provider

    STERLING, A Leading Infrastructure Services Provider Through high-value service and low execution risk, we are building the infrastructure foundation needed today for tomorrow's way of life Segment Results* $9.9 $2.12 16.3% $401 E-Infrastructure Solutions 44% BILLION BILLION 2024 Adjusted EBITDA Mar

  6. Slide 6: Strategic Elements as the Foundation for Success

    Strategic Elements as the Foundation for Success The key pillars of our strategy remain our guide as we look to the future Solidify the Base Grow High-Margin Expand Into Products and Services Adjacent Markets • Improved bid discipline • Concentrated focus on • Acquisition targets with bottom-line gr

  7. Slide 7: Built the Foundation for Success

    TRANSFORMATION Built the Foundation for Success 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform 12.5% 2,500 12% 10.4% 2,000 9.0% 10% 7.6% 1,500 7.5% 8% 2019-2024 +18% Revenue ($ millions)* Operating margin %* 6% 1,000 4.0% 3.4% 4% 500 2.2% REVENUE CAGR 2% 0 0% (2.0)% -500 (2)%

  8. Slide 8: Transformation Built the Foundation for Success

    Transformation Built the Foundation for Success 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform $9.00 $8.27 $8.00 $7.00 $7.09 $6.00 $5.00 $4.44 2019-2024 $4.00 +42% Diluted EPS* $3.16 $3.00 $2.11 $2.00 $1.24 $1.53 EPS CAGR $1.00 $0.60 $0.10 $— $(1.00) $(0.66) $(2.00) $(3.00) $(

  9. Slide 9: A Pipeline of High-Profitability Work

    BACKLOG, A Pipeline of High-Profitability Work 2,500 Backlog does not Backlog and Unsigned Awards ($ millions)* 2,000 include 1,500 >$750 1,000 MILLION of future phases of work associated 500 with current projects — 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Backlog U

  10. Slide 10: Strong Platform Serving Diverse End Markets

    Strong Platform Serving Diverse End 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 In

  11. Slide 11: E-Infrastructure Solutions

    E-Infrastructure Solutions Four-Year CAGR** Largest, highest-margin segment ranked #1 in ENR's 2023 Top 20 Firms in Excavation* What We Do: 23% REVENUE Leading provider of large-scale specialty site infrastructure 28% development services, including site selection and preparation, and mission-critic

  12. Slide 12: Transportation Solutions

    Transportation Solutions Four-Year CAGR* Strong markets with attractive margin opportunities What We Do: 9% Revenue Infrastructure and rehabilitation projects for highways, roads, bridges, 43% airports, ports, light rail and storm drainage systems in the Rocky Mountain states and Texas. Markets • Al

  13. Slide 13: Building Solutions

    Building Solutions Four-Year CAGR* Improved bid discipline and reduced risk What We Do: 10% Revenue Residential and Commercial concrete slabs in the Dallas/Fort Worth 13% (DFW), Houston, and Phoenix markets. Plumbing capabilities (rough in, top outs, fixtures in DFW) and surveying. Markets • Dallas/

  14. Slide 14: Financial Overview

    • Financial Results Highlights Financial • Cash Flow Overview FINANCIAL • Balance Sheet • Capital Allocation Priorities OVERVIEW • Full Year Guidance • Summary Sterling Infrastructure, Inc. | STRL: IR Presentation 14

  15. Slide 15: Second Quarter 2025 Results Highlights

    Second Quarter 2025 Results Highlights Revenue growth of 21% driven, as adjusted for RHB, by segment growth of over 29% in E-Infrastructure Solutions and 24% in Transportation Solutions Gross profit margins of 23% marked a new high for Sterling Cash Flow from Ops(2): $85.4M Cash & Cash Equivalents(2

  16. Slide 16: Strong Cash Flow Profile Provides Flexibility and Supports Growth Investments

    Strong Cash Flow Profile Provides Flexibility and Supports Growth Investments Operating Cash Flow Considerations: $497 500 $479 • In recent quarters, cash flow 400 has benefited from the timing of cash payments on large projects in E-Infrastructure 300 and Transportation Solutions $219 • Over the lo

  17. Slide 17: Balance Sheet with Significant Firepower to Support Future Growth

    Balance Sheet with Significant Firepower to Support Future Growth 700 Total Debt and Cash Positions (1) Considerations: $664 • We expect to pursue strategic uses of our 600 liquidity, including acquisitions, stock repurchases, and managing leverage 500 $452 $472 • Sterling is comfortable with a forw

  18. Slide 18: 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 Capital Allocation Strategic M&A – “Bolt on” and/ or 4th Leg Opportunities Priorities Support • “Bolt-ons”: Continue to evaluate small-to-mid sized acquisit

  19. Slide 19: 2025 Guidance (Including CEC)

    2025 Guidance (Including CEC) Full Year 2025 Adjusted Guidance “We believe 2025 will be another record year for Sterling as we continue to drive bottom line • Revenue of $2.23 to $2.29B growth that outpaces top line growth. We are raising our 2025 • Adjusted Net Income(1) of $292 to $303 M guidance

  20. Slide 20: A Leading Infrastructure Services Provider

    STERLING, A Leading Infrastructure Services Provider Through high-value service and low execution risk, we are building the infrastructure foundation needed today for tomorrow's way of life Successful Strong, Continued Robust balance Strong historical strategic multi-year, opportunity for sheet, fre

  21. Slide 21: Appendix

    + Appendix Sterling Infrastructure, Inc. | STRL: IR Presentation 21

  22. Slide 22: Consolidated Results

    Consolidated Results Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per share data) 2025 2024 % Change 2025 2024 % Change Revenues (1) $614.5 $582.8 5.4% $1,045.4 $1,023.2 2.2% Gross Profit 143.1 112.7 27.0% 238.0 189.6 25.5% G&A Expense (34.0) (27.9) (68.6) (55.2) Inta

  23. Slide 23: Consolidated Results

    Consolidated Results (2024 period reflects the deconsolidation of RHB) Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2025 2024 (1) % Change 2025 2024 (2) % Change Revenues $614.5 $508.9 20.8% $1,045.4 $910.8 14.8 % Gross Profit 143.1 98.4 45.4% 238.0 170.0 40.0 % G&A Expense

  24. Slide 24: Quarterly and YTD Segment Results

    Quarterly and YTD Segment Results Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2025 2024 2025 2024 E-Infrastructure Solutions Revenue $ 310.4 $ 241.3 $ 528.7 $ 425.8 Operating Income $ 83.8 $ 51.7 $ 130.4 $ 78.8 Operating Margin 27.0 % 21.4 % 24.7 % 18.5 % Transportation Sol

  25. Slide 25: Non-GAAP Segment Information

    Non-GAAP Segment Information Three Months Ended June 30, Six Months Ended June 30 % of % of % of % of ($ in thousands, Unaudited) 2025 2024 2025 2024 Revenue Revenue Revenue Revenue Revenues (Excluding RHB) E-Infrastructure Solutions $ 310,406 51% $ 241,312 47% $ 528,669 51% $ 425,788 47% Transporta

  26. Slide 26: Adjusted Net Income Reconciliation

    Adjusted Net Income Reconciliation Three Months Ended June 30, Six Months Ended June 30, ($ in thousands, Unaudited) 2025 2024 2025 2024 Net income attributable to Sterling common stockholders $ 70,991 $ 51,879 $ 110,468 $ 82,927 Non-cash stock-based compensation 5,595 4,796 12,278 9,382 Intangible

  27. Slide 27: Adjusted Net Income Reconciliation

    Adjusted Net Income Reconciliation Full Year ($ in thousands, Unaudited) 2024 Actual Net income attributable to Sterling common stockholders $ 257,461 Gain on deconsolidation of subsidiary, net (91,289) Non-cash stock-based compensation 19,003 Intangible asset amortization 17,037 Acquisition related

  28. Slide 28: EBITDA Reconciliation

    EBITDA Reconciliation Three Months Ended June 30, Six Months Ended June 30, ($ in thousands, Unaudited) 2025 2024 2025 2024 Net income attributable to Sterling common stockholders $ 70,991 $ 51,879 $ 110,468 $ 82,927 Depreciation and amortization(1) 19,769 16,925 34,613 33,183 Interest (income) expe

  29. Slide 29: EBITDA Reconciliation

    EBITDA Reconciliation Full Year 2024 ($ in thousands, Unaudited) Actual Net income attributable to Sterling common stockholders $ 257 Depreciation and amortization 68 Interest income, net of interest expense (2) Income tax expense 87 EBITDA (1) 411 Gain on deconsolidation of subsidiary, net (91) Non

  30. Slide 30: STRL 3-Year Stock Price Performance

    STRL 3-Year Stock Price Performance Source: FactSet Sterling Infrastructure, Inc. | STRL: IR Presentation 30

  31. Slide 31: Active Geographical Footprint

    Active Geographical Footprint Sterling Infrastructure, Inc. | STRL: IR Presentation 31

  32. Slide 32: Strategic Acquisitions

    Strategic Acquisitions Sterling Infrastructure, Inc. | STRL: IR Presentation 32

  33. Slide 33: Sustainability

    Sustainability Protecting Our Environment • Sound governance From strategy to operations, we are committed to sustainability by operating • Environmentally responsible construction services responsibly to safeguard and improve and solutions for today and tomorrow society’s quality of life. Taking Ca

  34. Slide 34: 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 We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. Sterling Infrastructure, Inc. | ST

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