Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — William Blair 45th Annual Growth Stock Conference (June 2025)
34 slides from Sterling Infrastructure's conference presentation, June 2025
Slide 1: Investor Presentation
Investor Presentation William Blair 45th Annual Growth Stock Conference 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 forwa
Slide 3: 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
Slide 4: 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 $5.77 $2.12 15.1% $329 BILLION Market Cap BILLION 2024 Revenue 2024 Adjusted EBITDA Margin MILLION 3/31/25 Net
Slide 5: Strategic Elements as the Foundation for Success
Strategic Elements as the Foundation for Success The key pillars of our strategy remain our guide as we look to the future Grow High-Margin Expand Into Solidify the Base Products and Services Adjacent Markets • Improved bid discipline • Concentrated focus on • Acquisition targets with • Reduced risk
Slide 6: Transformation: Built the Foundation for Success
TRANSFORMATION Built the Foundation for Success 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform 12.5% 2,500 12% 10.4% 2,000 9.0% 10% 7.5% 7.6% 1,500 8% Operating margin %* Revenue ($ millions)* 6% 1,000 4.0% 3.4% 4% 500 2.2% 2% 0 0% (2.0)% -500 (2)% (4.9)% (4)% -1,000 (6)% 2015
Slide 7: Transformation: Built the Foundation for Success (EPS)
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 $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) $(2.40) 2015 2016 2017 201
Slide 8: Backlog, a Pipeline of High-Profitability Work
BACKLOG, a Pipeline of High-Profitability Work 2,500 Backlog and Unsigned Awards ($ millions)* Backlog does not 2,000 include 1,500 ~$750 MILLION 1,000 of future phases of work associated with current 500 projects — 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Q324 Q424 Q125 Backlog Unsign
Slide 9: 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 10: E-Infrastructure Solutions
E-Infrastructure Solutions Four-Year CAGR** 23% Largest, highest-margin segment ranked #1 in ENR's 2023 Top 20 Firms in Excavation* What We Do: Revenue Leading provider of large-scale specialty site infrastructure 28% improvement contracting services, including site selection and preparation, in the
Slide 11: Transportation Solutions
Transportation Solutions Four-Year CAGR** 9% Strong markets with attractive margin opportunities What We Do: 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 • L
Slide 12: Building Solutions
Building Solutions Four-Year CAGR** 10% Improved bid discipline and reduced risk What We Do: 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). Markets • Dallas/Fort Worth Op
Slide 13: Financial Overview
• Quarter and Full Year Results Highlights • Cash Flow FINANCIAL • Balance Sheet OVERVIEW • Capital Allocation Priorities • Full Year Guidance • Summary Sterling Infrastructure, Inc. | STRL: IR Presentation 13
Slide 14: 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 Cash & Cash Equivalents(2):
Slide 15: 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 16: 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 17: 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 18: Full Year 2025 Guidance
Full Year 2025 Guidance Revenue of $2.05 to $2.15 billion “We believe 2025 will be another excellent year for Sterling as we continue to drive Net Income of $222 to $239 million bottom line growth that outpaces top line growth. We are raising our 2025 guidance to EPS of $7.15 to $7.65 reflect our st
Slide 19: A Leading Infrastructure Services Provider in the U.S.
STERLING, A Leading Infrastructure Services Provider in the U.S. Successful Strong, Continued strategic Strong historical multi-year, opportunity for Robust balance foundation with stock secular growth margin sheet, FCF strong, diversified performance drivers expansion platform Sterling Infrastructu
Slide 20: Appendix
+ Appendix Sterling Infrastructure, Inc. | STRL: IR Presentation 20
Slide 21: 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 Expense $13 to $15 JV Non-Controlling Interest Expense ~$12 Effective Income Tax Rate ~26% Diluted EPS $7.15 to $7.65 Adjusted Diluted E
Slide 22: 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 $32.6 Other Cash Flow Items FY 2025 Expectations FY
Slide 23: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: STRL 3-Year Stock Price Performance
STRL 3-Year Stock Price Performance Source: FactSet Sterling Infrastructure, Inc. | STRL: IR Presentation 30
Slide 31: Active Geographical Footprint
Active Geographical Footprint Sterling Infrastructure, Inc. | STRL: IR Presentation 31
Slide 32: Strategic Acquisitions
Strategic Acquisitions Sterling Infrastructure, Inc. | STRL: IR Presentation 32
Slide 33: 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 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. 34 Sterling Infrastructure, Inc. |
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