Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sidoti Small Cap Conference March 2025
30 slides from Sterling Infrastructure's conference presentation, Mar 19, 2025
Slide 1: Sidoti Small Cap Conference
Sidoti Small Cap Conference March 19, 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: Sterling, at a Glance
+ Sterling, a Leading Infrastructure Services Provider Sterling, + Transformation Built the Foundation for Success + Backlog of High-Profitability Work at a Glance + Strong Platform Serving Diverse End Markets + E-Infrastructure Solutions + Transportation Solutions + Building Solutions Sterling Infr
Slide 4: Sterling, 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 NASDAQ: Building STRL 2024 Revenue: 2024 Adjusted 12/31/24 net Solutions 19% $2.12 billion EBITDA Margin: cash
Slide 5: Transformation Built the Foundation for Success
Transformation Built the Foundation for Success 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform 12.5% 2,500 12% 10.4% 2,000 9.0% 10% Revenue CAGR 7.5% 7.6% 2019-2024: 1,500 8% +18% Operating margin %* Revenue ($ millions)* 6% 1,000 4.0% 3.4% 4% 500 2.2% 2% 0 0% (2.0)% -500 (2)%
Slide 6: 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: $6.00 $6.10 +38% $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 7: Backlog, a Pipeline of High-Profitability Work
Backlog, a Pipeline of High-Profitability Work 2,500 Backlog Does Backlog and Unsigned Awards ($ millions)* 2,000 Not Include 3/4 of a Billion Dollars of 1,500 Future-Phase Work 1,000 500 — 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Q324 Q424 Backlog Unsigned Awards RHB Backlog(1) *Backl
Slide 8: 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 Inf
Slide 9: E-Infrastructure Solutions
E-Infrastructure Solutions Largest, highest-margin segment ranked #1 in ENR's 2023 Top 20 Firms in Excavation* What We Do: Leading provider of large-scale specialty site infrastructure improvement contracting services, including site selection and preparation, in the Southeastern, Northeastern and M
Slide 10: Transportation Solutions
Transportation Solutions Strong markets with attractive margin opportunities What We Do: Infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail and storm drainage systems in the Rocky Mountain regions, Pacific Islands and Texas. 2024 Financial Metrics Ma
Slide 11: Building Solutions
Building Solutions Improved bid discipline and reduced risk What We Do: Residential and Commercial concrete slabs in the Dallas/Fort Worth (DFW), Houston, and Phoenix markets. Plumbing capabilities (rough in, top outs, fixtures in DFW). 2024 Financial Metrics Markets + Revenue: $408 million + Dallas
Slide 12: Financial Overview
+ Quarter and Full Year Results Highlights Financial + Cash Flow + Balance Sheet Overview + Capital Allocation Priorities + Full Year Guidance + Summary Sterling Infrastructure, Inc. | STRL: IR Presentation 12
Slide 13: 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 14: 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 has benefited from the timing 400 of cash payments on large projects in E-Infrastructure and Transportation Solutions. 300 • Over the long-t
Slide 15: Balance Sheet with Significant Firepower to Support Future Growth
Balance Sheet with Significant Firepower to Support Future Growth Total Debt and Cash Positions (1) 700 Considerations: $664 • We expect to pursue strategic uses of our 600 liquidity, including acquisitions, investing in capital equipment and managing leverage. 500 $472 • Sterling is comfortable wit
Slide 16: 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
Slide 17: Full Year 2025 Guidance
Full Year 2025 Guidance Revenue of $2.00 to $2.15 billion “We believe 2025 will be another Net Income of $215 to $230 million excellent year for Sterling as we continue to drive bottom line growth that outpaces EPS of $6.75 to $7.25 top line growth. The midpoint of our 2025 guidance would represent
Slide 18: 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 foundation with multi-year, opportunity Robust balance historical stock strong, secular growth for margin sheet, FCF performance diversified drivers expansion platform Sterling Infrastru
Slide 19: Appendix
+ RHB Summary + + 2025 Modeling Considerations + Quarterly Consolidated and Segment Results Appendix + EBITDA Reconciliation + Adjusted Net Income Guidance Reconciliation + EBITDA Guidance Reconciliation + STRL 3-Year Stock Price Performance + Active Geographical Footprint + Sustainability + Contact
Slide 20: 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 21: 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 Expense $13 to $15 JV Non-Controlling Interest Expense ~$12 Effective Income Tax Rate ~26% Diluted EPS $6.75 to $7.25 Adjusted Dil
Slide 22: 2024 Modeling Considerations Continued
2024 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 $32.6 Other Cash Flow Items FY 2025 Expectati
Slide 23: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions) 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 Amortization (4.2) (4.0)
Slide 24: 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 25: 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 26: 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 27: STRL 3-Year Stock Price Performance
STRL 3-Year Stock Price Performance Source: FactSet Sterling Infrastructure, Inc. | STRL: IR Presentation 27
Slide 28: Active Geographical Footprint
Active Geographical Footprint Sterling Infrastructure, Inc. | STRL: IR Presentation 28
Slide 29: Sustainability
Sustainability Protecting Our Environment + Sound governance From strategy to operations, we are + Environmentally responsible construction services and committed to sustainability by solutions for today and tomorrow operating responsibly to safeguard and improve society’s quality of life. Taking Ca
Slide 30: 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 30
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