Slide 1: Q4 2024 Earnings Call
Q4 2024 Earnings Call February 26, 2025 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: WHO is Sterling?
WHO is Sterling? A market-leading infrastructure service provider of e-infrastructure, building and transportation solutions. A story of successful execution of a multi-year strategic business transformation; born of a vision that levers our entrepreneurial spirit. We offer a customer-centric, marke
Slide 4: Transformation 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 10% 9.0% Revenue CAGR 7.5% 7.6% 2019-2024: +18% 1,500 8% Operating margin %* Revenue ($ millions)* 6% 1,000 4.0% 3.4% 4% 500 2.2% 2% 0 0% (2.0)% -500 (2)%
Slide 5: 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 EPS CAGR $7.00 2019-2024: +38% $6.00 $6.10 $5.00 $4.44 $4.00 Diluted EPS* $3.16 $3.00 $2.11 $2.00 $1.53 $1.24 $1.00 $0.60 $0.10 $— $(1.00) $(0.66) $(2.00) $(3.00) $
Slide 6: Fourth Quarter 2024 Results
+ Fourth Quarter 2024 Results Sterling | STRL: Fourth Quarter 2024 6
Slide 7: Fourth Quarter and Full Year 2024 Results Highlights
Fourth Quarter and Full Year 2024 Results Highlights + Revenues: $498.8 million and $2,115.8 million, respectively + Net Income: $113.2 million and $257.5 million, respectively + Adjusted Net Income(1): $45.5 million and $189.9 million, respectively + Diluted EPS: $3.64 and $8.27, respectively + Adj
Slide 8: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions, except per share data) Q4 2024 Q4 2023 ($ in millions) Q4 2024 Q4 2023 Revenues $ 498.8 $ 486.0 E-Infrastructure Solutions Gross Profit 106.7 91.8 Revenue $ 234.0 $ 217.5 G&A Expense (32.6) (26.1) Operating Income $ 56.4 $ 37.6 Intangible Am
Slide 9: Full Year Consolidated and Segment Results
Full Year Consolidated and Segment Results ($ in millions) 2024 2023 ($ in millions) 2024 2023 Revenues $ 2,115.8 $ 1,972.2 E-Infrastructure Solutions Gross Profit 426.1 337.6 Revenue $ 923.7 $ 937.4 G&A Expense (118.4) (98.7) Intangible Amortization (17.0) (15.2) Operating Income $ 203.4 $ 141.0 Ac
Slide 10: Remaining Performance Obligations (RPOs)
(1) Remaining Performance Obligations (RPOs) December 31, December 31, ($ in millions) 2024 2023 E-Infrastructure Solutions RPOs $ 1,032.1 $ 813.7 Transportation Solutions RPOs(2) 622.1 1,184.5 Building Solutions RPOs - Commercial 39.0 68.8 Total RPOs $ 1,693.2 $ 2,067.0 (1) Our remaining performanc
Slide 11: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Increased EBITDA and Cash Flow Drives Liquidity Strategy Sterling is comfortable with a Debt/EBITDA leverage Debt/EBITDA Leverage Ratio ratio of +/-2.5X. 1.3X 1.3X 1.0X 5-Year Credit Facility 1.0X 0.8X $317M Term Loan Borrowings $75M Revolving Credit Facility (Undrawn) 0.5X 0.3X Key Cash Flow Consid
Slide 12: Summary
Summary Sterling, A Leading Provider of Infrastructure Services in the U.S. Successful strategic Strong, Continued Strong foundation with multi-year, opportunity Robust balance historical stock strong, secular growth for margin sheet, FCF performance diversified drivers expansion platform Sterling |
Slide 13: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com Sterling | STRL: Fourth Quarter 2024 13
Slide 14: Appendix
+ Appendix Sterling | STRL: Fourth Quarter 2024 14
Slide 15: RHB Amendment Impact Summary
RHB Amendment Impact Summary The RHB operating agreement was amended on December 31, 2024. Under GAAP, this contractual change requires that Sterling no longer consolidate RHB’s results. As a result of this amendment, Sterling: + recognized a non-cash gain on deconsolidation of $67.9 million, net of
Slide 16: 2025 Modeling Considerations
(1) 2025 Modeling Considerations Revenue $2,000 to $2,150 Gross Margin 21.0% to 22.0% G&A Expense as % of Revenue (Excluding ~6% Intangible Amortization) Other Operating Income $13 to $15 JV Non-Controlling Interest Expense ~$12 Effective Income Tax Rate ~26% Diluted EPS $6.75 to $7.25 Adjusted Dilu
Slide 17: 2025 Modeling Considerations Continued
2025 Modeling Considerations Continued* Non-Cash Items FY 2025 Expectations FY 2024 Depreciation $51 to $56 $51.4 Intangible Amortization $25 $17.0 Debt Issuance Cost Amortization ~$1 $1.1 Stock-based Compensation $19 to $21 $19.0 Deferred Taxes $7 to $8 $32.6 Other Cash Flow Items FY 2025 Expectati
Slide 18: Adjusted Net Income Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Net income attributable to Sterling common stockholders $ 113,213 $ 40,173 $ 257,461 $ 138,655 Gain on decon
Slide 19: EBITDA Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Net income attributable to Sterling common stockholders $ 113,213 $ 40,173 $ 257,461 $ 138,655 Depreciation and amortizat
Slide 20: Adjusted Net Income Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME GUIDANCE RECONCILIATION (In thousands) (Unaudited) Full Year 2025 Guidance Full Year Low High 2024 Actual Net income attributable to Sterling common stockholders $ 215,000 $ 230,000 $ 257,461 Gain on deconsolidation of subsidiary, net
Slide 21: EBITDA Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) Full Year 2025 Full Year Guidance 2024 Low High Actual Net income attributable to Sterling common stockholders $ 215 $ 230 $ 257 Depreciation and amortization 76 81 68 Interest income, net of intere
Slide 22: 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.