Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q1 2025 Earnings Presentation
22 slides from Sterling Infrastructure's earnings presentation, May 6, 2025
Slide 1: Q1 2025 Earnings Call
May 6, 2025 Q1 2025 EARNINGS CALL 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 9.0% 10% 7.5% 7.6% 1,500 8% 2019-2024 Operating margin %* Revenue ($ millions)* +18% 6% 1,000 4.0% 3.4% 4% 500 2.2% 2% REVENUE CAGR 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 $7.00 $6.00 $6.10 $5.00 $4.44 2019-2024 $4.00 +38% 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) $(
Slide 6: First Quarter 2025 Results
+ First Quarter 2025 Results Sterling | STRL: First Quarter 2025 6
Slide 7: First Quarter 2025 Results Highlights
First Quarter 2025 Results Highlights • Revenues: $430.9 million • Net Income: $39.5 million • Adjusted Net Income(1): $50.2 million • Diluted EPS: $1.28 • Adjusted Diluted EPS(1): $1.63 • EBITDA(1): $72.1 million • Adjusted EBITDA(1): $80.3 million • Cash Flow from Operations(2): $84.9 million • Ca
Slide 8: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions, except per share data) Q1 2025 Q1 2024 ($ in millions) Q1 2025 Q1 2024 Revenues $ 430.9 $ 440.4 E-Infrastructure Solutions Gross Profit 94.8 76.9 Revenue $ 218.3 $ 184.5 G&A Expense (34.6) (27.3) Operating Income $ 46.6 $ 27.2 Intangible Amo
Slide 9: Quarterly Consolidated Results
Quarterly Consolidated Results (2024 period reflects the deconsolidation of RHB) ($ in millions, except per share data) Q1 2025 Q1 2024 % Change Revenues $ 430.9 $ 401.9 7.2 % Gross Profit 94.8 71.6 32.4 % G&A Expense (34.6) (26.3) Intangible Amortization (4.5) (4.3) Acquisition Related Costs (0.2)
Slide 10: Remaining Performance Obligations (RPOs)
(1) Remaining Performance Obligations (RPOs) March 31, December 31, ($ in millions) 2025 2024 E-Infrastructure Solutions RPOs $ 1,216.8 $ 1,032.1 Transportation Solutions RPOs 860.5 622.1 Building Solutions RPOs - Commercial 51.1 39.0 Total RPOs $ 2,128.4 $ 1,693.2 (1) Our remaining performance obli
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 Forward Looking Debt/EBITDA Leverage Ratio ratio of +/-2.5X. 1.3X 5-Year Credit Facility 1.0X $311M Term Loan Borrowings 0.8X 0.8X 0.8X $75M Revolving Credit Facility (Undrawn) 0.5X 0.3X Key
Slide 12: 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 | STRL: F
Slide 13: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 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 | STRL: First Quarter 2025 13
Slide 14: Appendix
+ Appendix Sterling | STRL: First Quarter 2025 14
Slide 15: 2025 Modeling Considerations
(1) 2025 Modeling Considerations Revenue $2,050 to $2,150 Gross Margin ~22.0% G&A Expense as % of Revenue (Excluding ~6.3% Intangible Amortization) Other Operating Income $13 to $15 JV Non-Controlling Interest Expense ~$12 Effective Income Tax Rate ~26% Diluted EPS $7.15 to $7.65 Adjusted Diluted EP
Slide 16: 2025 Modeling Considerations Continued
2025 Modeling Considerations Continued* Non-Cash Items FY 2025 Expectations FY 2024 Depreciation $54 to $55 $51.4 Intangible Amortization $25 $17.0 Debt Issuance Cost Amortization ~$1 $1.1 Stock-based Compensation ~$23 $19.0 Deferred Taxes $7 to $8 $32.6 Other Cash Flow Items FY 2025 Expectations FY
Slide 17: Adjusted Net Income Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Net income attributable to Sterling common stockholders $ 39,477 $ 31,048 Non-cash stock-based compensation 6,683 4,586 Intangible asset amortization(1) 6
Slide 18: EBITDA Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Net income attributable to Sterling common stockholders $ 39,477 $ 31,048 Depreciation and amortization(1) 19,137 16,258 Interest (income) expense, net (1,595) 762 Inc
Slide 19: Non-GAAP Segment Information
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES NON-GAAP SEGMENT INFORMATION (In thousands) (Unaudited) Three Months Ended March 31, % of % of 2025 2024 Revenue Revenue Revenues (Excluding RHB) E-Infrastructure Solutions $ 218,263 51% $ 184,476 46% Transportation Solutions 120,661 28% 110,505 27% Build
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 $ 222,000 $ 238,700 $ 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 $ 222 $ 239 $ 257 Depreciation and amortization(1) 79 80 68 Interest income, net of int
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.
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