Sterling Announces Two Large Transportation Solutions Project Awards

Rhea-AI Summary

Sterling Infrastructure (STRL) has secured two major transportation projects through its Ralph L. Wadsworth (RLW) subsidiary. The first is the I-15 1800 North Interchange project in Davis County, Utah, valued at $195 million, with RLW holding a 60% interest alongside Whitaker Construction. This project will commence in spring 2025 and run through late 2027.

The second award is the I-25 North Corridor project for the Colorado Department of Transportation, valued at $86 million. RLW maintains a 51% share in this phase, partnering with SEMA Construction. This project represents the next phase of a multi-year initiative that began pre-construction in 2018.

Positive

• Secured $195M I-15 project with 60% share ($117M)
• Won $86M I-25 project with 51% share ($43.9M)
• Both projects strengthen backlog in core Rocky Mountain region

Negative

• None.

Insights

Financial Analyst

Sterling Infrastructure has secured two significant transportation project awards totaling $281 million, representing meaningful additions to the company's project backlog and future revenue streams. The larger $195 million I-15 interchange project in Utah (with Sterling's 60% share equating to $117 million) will enter the backlog in Q1 2025, while the $86 million I-25 North Corridor project in Colorado (with Sterling's 51% share totaling $43.9 million) is already included in the year-end 2024 backlog.

These awards are particularly notable as they represent approximately 4.8% of Sterling's current $3.37 billion market capitalization. For a company that generated $1.97 billion in revenue for FY2023, these projects contribute meaningfully to future revenue visibility, especially with the Utah project extending through late 2027.

The transportation infrastructure segment has historically delivered solid profit margins for Sterling, typically in the 9-12% range, superior to traditional heavy civil construction. These awards align with management's strategic pivot toward higher-margin specialty infrastructure work that began several years ago.

The timing of these projects is strategically advantageous. The Utah project's spring 2025 start provides Sterling with extended revenue visibility while the Colorado project represents a continuation of ongoing work, demonstrating Sterling's ability to secure follow-on contracts - a positive indicator of customer satisfaction and execution quality.

These awards should be viewed in the context of increased federal infrastructure spending from the $1.2 trillion Infrastructure Investment and Jobs Act, which continues to create a favorable bidding environment for companies like Sterling. The company's success in securing these competitive bids suggests strong positioning to capture additional infrastructure projects as federal funding flows to state transportation departments.

While joint ventures introduce some coordination complexity, Sterling's established relationships with these partners (Whitaker Construction and SEMA Construction) and its track record of successful project execution in the Rocky Mountain region mitigate these risks considerably.

THE WOODLANDS, Texas, Feb. 25, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company") today announced that Sterling's Ralph L. Wadsworth (RLW) subsidiary has been awarded two significant transportation projects:

• The I-15 1800 North Interchange project for the Utah Department of Transportation (UDOT) will enhance regional mobility in Davis County, Utah.  The project has a total value of $195 million and is expected to begin in spring 2025 and continue through late 2027. RLW has a 60% interest in the job, while joint venture partner Whitaker Construction holds the remaining 40%. The project will be included in first quarter 2025 backlog.
• The I-25 North Corridor project is part of the Colorado Department of Transportation's (CDOT) northern transportation improvement project.  The award has a total value of $86 million and marks the next phase of a multi-year project that began pre-construction activities in 2018. RLW's share of this phase is 51%, with joint venture partner SEMA Construction at 49%. The award is included in December 31, 2024 combined backlog.

CEO Remarks

"These awards exemplify the attractive project opportunities we are seeing in our core Rocky Mountain and Arizona regions," stated Joe Cutillo, Sterling's CEO. "RLW continues to prove that its technical capabilities and best-in-class execution make it a trusted partner for highway and bridge work," Mr. Cutillo concluded.

About Sterling

Sterling operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services for manufacturing, data centers, large scale distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society's quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.

Joe Cutillo, CEO, "We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow.

Important Information for Investors and Stockholders

Cautionary Statement Regarding Forward-Looking Statements

This press release contains statements that are considered forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to risks and uncertainties, including those risks identified in the Company's filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

Company Contact:
Sterling Infrastructure, Inc.
Noelle Dilts, VP Investor Relations and Corporate Strategy
281-214-0795
Noelle.dilts@strlco.com

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SOURCE Sterling Infrastructure, Inc.

FAQ

What is the total value of Sterling Infrastructure's (STRL) new project awards in 2025?

The total value of the two new projects is $281 million, comprising a $195 million I-15 project and an $86 million I-25 project.

When will Sterling Infrastructure (STRL) begin the I-15 1800 North Interchange project in Utah?

The I-15 project will begin in spring 2025 and continue through late 2027.

What is Sterling Infrastructure's (STRL) ownership stake in the Utah I-15 project?

Sterling's RLW subsidiary holds a 60% interest in the I-15 project, while Whitaker Construction holds 40%.

What is Sterling Infrastructure's (STRL) share in the Colorado I-25 North Corridor project?

Sterling's RLW subsidiary holds a 51% share in the I-25 project, with SEMA Construction holding 49%.