Sterling Reports Record Third Quarter 2024 Results and Raises Full Year Profitability Guidance
Sterling Infrastructure (NasdaqGS: STRL) reported record third quarter 2024 results with a 6% revenue increase to $593.7 million, a 56% rise in net income to $61.3 million, and EBITDA up 42% to $100.8 million. Gross margins improved to 21.9%, and operating cash flows reached $322.8 million for the first nine months of 2024. The company's cash and cash equivalents totaled $648.1 million, and the combined backlog was $2.37 billion as of September 30, 2024. CEO Joe Cutillo highlighted significant growth in the E-Infrastructure Solutions segment, with operating income up 89% and a 90% increase in data center-related revenue. The Transportation Solutions segment saw 18% revenue growth. However, the Building Solutions segment experienced a 10% revenue decline. Sterling raised its full-year 2024 guidance, expecting revenue between $2.150 billion and $2.175 billion, net income of $180 million to $185 million, and EBITDA of $310 million to $315 million.
Sterling Infrastructure (NasdaqGS: STRL) ha riportato risultati record per il terzo trimestre del 2024, con un incremento del 6% dei ricavi, pari a 593,7 milioni di dollari, un aumento del 56% del reddito netto a 61,3 milioni di dollari e un EBITDA cresciuto del 42% a 100,8 milioni di dollari. I margini lordi sono migliorati al 21,9% e i flussi di cassa operativi hanno raggiunto 322,8 milioni di dollari nei primi nove mesi del 2024. Le disponibilità liquide e equivalenti hanno totalizzato 648,1 milioni di dollari, mentre l'ordine accumulato è stato di 2,37 miliardi di dollari al 30 settembre 2024. Il CEO Joe Cutillo ha evidenziato una crescita significativa nel segmento E-Infrastructure Solutions, con un reddito operativo aumentato del 89% e un incremento del 90% dei ricavi legati ai data center. Il segmento Transportation Solutions ha visto una crescita dei ricavi del 18%. Tuttavia, il segmento Building Solutions ha registrato un calo del 10% nei ricavi. Sterling ha rivisto al rialzo le previsioni per l'intero anno 2024, prevedendo ricavi compresi tra 2,150 miliardi e 2,175 miliardi di dollari, un reddito netto di 180 milioni a 185 milioni di dollari e un EBITDA tra 310 milioni e 315 milioni di dollari.
Sterling Infrastructure (NasdaqGS: STRL) informó resultados récord para el tercer trimestre de 2024, con un aumento del 6% en los ingresos, alcanzando los 593,7 millones de dólares, un aumento del 56% en el ingreso neto a 61,3 millones de dólares y un EBITDA que subió un 42% a 100,8 millones de dólares. Los márgenes brutos mejoraron al 21,9% y los flujos de efectivo operativos llegaron a 322,8 millones de dólares en los primeros nueve meses de 2024. La compañía tuvo efectivo y equivalentes por un total de 648,1 millones de dólares, y el backlog combinado fue de 2,37 mil millones de dólares al 30 de septiembre de 2024. El CEO Joe Cutillo destacó un crecimiento significativo en el segmento de E-Infrastructure Solutions, con un ingreso operativo que aumentó un 89% y un incremento del 90% en los ingresos relacionados con centros de datos. El segmento de Transportation Solutions vio un crecimiento del 18% en los ingresos. Sin embargo, el segmento de Building Solutions experimentó una disminución del 10% en los ingresos. Sterling elevó su guía para todo el año 2024, esperando ingresos entre 2,150 mil millones y 2,175 mil millones de dólares, un ingreso neto de 180 millones a 185 millones de dólares y un EBITDA de 310 millones a 315 millones de dólares.
스터링 인프라스트럭처(Sterling Infrastructure, NasdaqGS: STRL)는 2024년 3분기의 기록적인 실적을 보고하며, 수익이 6% 증가한 5억 9,370만 달러, 순이익이 56% 증가한 6,130만 달러, EBITDA가 42% 증가한 1억 8백만 달러를 기록했습니다. 총 매출 증가율은 21.9%로 향상되었고, 운영 현금 흐름은 2024년 첫 9개월 동안 3억 2,280만 달러에 달했습니다. 회사의 현금 및 현금성 자산은 6억 4,810만 달러에 이르렀고, 2024년 9월 30일 기준으로 수주잔고는 23억 7,000만 달러였습니다. CEO 조 쿠틸로(Joe Cutillo)는 E-인프라 솔루션 부문에서 89%의 운영 소득 증가와 90%의 데이터 센터 관련 수익 증가가 있었다고 강조했습니다. 교통 솔루션 부문은 18%의 수익 성장을 보였습니다. 그러나 건축 솔루션 부문은 10%의 수익 감소를 경험했습니다. 스터링은 2024년 전체 연도에 대한 전망을 상향 조정하며, 수익이 21억 5천만 달러에서 21억 7천5백만 달러, 순이익이 1억 8천만 달러에서 1억 8천5백만 달러, EBITDA는 3억 1천만 달러에서 3억 1천5백만 달러에 이를 것으로 예상했습니다.
Sterling Infrastructure (NasdaqGS: STRL) a annoncé des résultats records pour le troisième trimestre de 2024, avec une augmentation des revenus de 6 % à 593,7 millions de dollars, une hausse de 56 % du bénéfice net à 61,3 millions de dollars et un EBITDA en hausse de 42 % à 100,8 millions de dollars. Les marges brutes se sont améliorées pour atteindre 21,9 %, et les flux de trésorerie d'exploitation ont atteint 322,8 millions de dollars au cours des neuf premiers mois de 2024. La trésorerie et les équivalents de trésorerie de l'entreprise totalisaient 648,1 millions de dollars, et le carnet de commandes combiné s'élevait à 2,37 milliards de dollars au 30 septembre 2024. Le PDG Joe Cutillo a souligné une croissance significative dans le segment des solutions d'infrastructure électronique, avec un revenu opérationnel en hausse de 89 % et une augmentation de 90 % des revenus liés aux centres de données. Le segment des solutions de transport a connu une croissance des revenus de 18 %. Cependant, le segment des solutions de construction a enregistré une baisse de 10 % des revenus. Sterling a relevé ses prévisions pour l'ensemble de l'année 2024, s'attendant à un chiffre d'affaires compris entre 2,150 milliards et 2,175 milliards de dollars, un bénéfice net de 180 millions à 185 millions de dollars et un EBITDA de 310 millions à 315 millions de dollars.
Sterling Infrastructure (NasdaqGS: STRL) hat für das dritte Quartal 2024 Rekordergebnisse erzielt, mit einem Umsatzanstieg von 6% auf 593,7 Millionen Dollar, einem Anstieg des Nettogewinns um 56% auf 61,3 Millionen Dollar und einem EBITDA-Anstieg von 42% auf 100,8 Millionen Dollar. Die Bruttomargen verbesserten sich auf 21,9%, und die operativen Cashflows erreichten in den ersten neun Monaten des Jahres 2024 322,8 Millionen Dollar. Die liquiden Mittel und Zahlungsmitteläquivalente des Unternehmens betrugen insgesamt 648,1 Millionen Dollar, und der gesamte Auftragsbestand lag am 30. September 2024 bei 2,37 Milliarden Dollar. CEO Joe Cutillo hob das signifikante Wachstum im Segment der E-Infrastruktur-Lösungen hervor, wo der Betriebsgewinn um 89% und die Umsätze im Zusammenhang mit Rechenzentren um 90% stiegen. Das Segment Transportation Solutions verzeichnete ein Umsatzwachstum von 18%. Der Bereich Building Solutions hingegen erlebte einen Umsatzrückgang von 10%. Sterling erhöhte die Prognose für das Gesamtjahr 2024 und erwartet einen Umsatz zwischen 2,150 Milliarden und 2,175 Milliarden Dollar, einen Nettogewinn von 180 Millionen bis 185 Millionen Dollar und ein EBITDA von 310 Millionen bis 315 Millionen Dollar.
- Revenue increased by 6% to $593.7 million.
- Net income rose by 56% to $61.3 million.
- EBITDA increased by 42% to $100.8 million.
- Gross margin improved to 21.9%.
- Operating cash flows totaled $322.8 million for the first nine months of 2024.
- Cash and cash equivalents were $648.1 million.
- Combined backlog was $2.37 billion.
- E-Infrastructure Solutions segment saw 89% operating income growth.
- Data center-related revenue increased by 90%.
- Building Solutions segment revenue declined by 10%.
- Operating profit in Building Solutions declined by 12%.
Insights
Sterling Infrastructure delivered an exceptional Q3 2024 with remarkable financial performance across key metrics. Revenue grew 6% to
The company's cash position is particularly strong with
The raised guidance for 2024, projecting
The strategic pivot toward data center projects is particularly noteworthy, with this segment showing
While the Building Solutions segment faces near-term headwinds from interest rate impacts in Dallas, the multi-year demographic trends in Sterling's key markets remain favorable. The Transportation segment's
The financial comparisons herein are to the prior year quarter, unless otherwise noted.
Third Quarter 2024 Results
- Revenues of
, an increase of$593.7 million 6% - Gross margin of
21.9% , up from16.4% - Net Income of
, or$61.3 million per diluted share, an increase of$1.97 56% for both metrics - EBITDA(1) of
, an increase of$100.8 million 42% - Cash flows from operations totaled
for the nine months ended September 30, 2024$322.8 million - Cash and Cash Equivalents totaled
at September 30, 2024$648.1 million - Backlog at September 30, 2024 was
$2.06 billion - Combined backlog(2) at September 30, 2024 was
$2.37 billion
CEO Remarks and Outlook
"In the third quarter we delivered
Mr. Cutillo continued, "In E-Infrastructure Solutions, we achieved
Transportation Solutions had another excellent quarter, delivering
In Building Solutions, revenue declined
"We believe 2024 will be another excellent year for Sterling. Given our strong results through the third quarter and backlog position, we are raising our full year profitability guidance. The midpoint of our 2024 guidance would represent
(1) See the "Non-GAAP Measures" and "EBITDA Reconciliation" sections below for more information. |
(2) Combined Backlog includes Unsigned Awards of |
Full Year 2024 Guidance
- Revenue of
to$2.15 0 billion$2.17 5 billion - Net Income of
to$180 million $185 million - Diluted EPS of
to$5.85 $6.00 - EBITDA(1) of
to$310 million $315 million
Conference Call
Sterling's management will hold a conference call to discuss these results and recent corporate developments on Thursday, November 7, 2024 at 10:00 a.m. ET/9:00 a.m. CT. Interested parties may participate in the call by dialing (800) 836-8184. Please call in 10 minutes before the conference call is scheduled to begin and ask for the Sterling Infrastructure call. To coincide with the conference call, Sterling will post a slide presentation at www.strlco.com on the Events & Presentations section of the Investor Relations tab. Following management's opening remarks, there will be a question and answer session.
To listen to a simultaneous webcast of the call, please go to the Company's website at www.strlco.com at least 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call webcast will be archived on the Company's website for 30 days.
About Sterling
Sterling operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in
Joe Cutillo, CEO, "We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow."
(1) See the "Non-GAAP Measures" and "EBITDA Guidance Reconciliation" sections below for more information. |
Important Information for Investors and Stockholders
Non-GAAP Measures
This press release contains "Non-GAAP" financial measures as defined under Regulation G of the amended
Non-GAAP measures may include adjusted net income, adjusted EPS, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that the Company does not consider to be representative of its normal operations. The Company believes that these measures are useful for investors to review, because they provide a consistent measure of the underlying financial results of the Company's ongoing business and, in the Company's view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, the Company uses each of these to measure the performance of the Company's operations for budgeting and forecasting, as well as for determining employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for net income, EPS, or other data prepared and reported in accordance with GAAP and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Reconciliations of Non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included within this press release.
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. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about: our business strategy; our financial strategy; our industry outlook; our guidance; our expected margin growth; and our plans, objectives, expectations, forecasts, outlook and intentions. All of these types of statements, other than statements of historical fact included in this press release, are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "guidance," "continue," the negative of such terms or other comparable terminology. The forward-looking statements contained in this press release are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management's assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this press release are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors listed in the "Risk Factors" section in our filings with the
Company Contact:
Sterling Infrastructure, Inc.
Noelle Dilts, VP Investor Relations and Corporate Strategy
281-214-0795
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 593,741 | $ 560,347 | |||||
Cost of revenues | (463,942) | (468,480) | (1,297,477) | (1,240,368) | |||
Gross profit | 129,799 | 91,867 | 319,446 | 245,883 | |||
General and administrative expense | (30,672) | (25,237) | (85,826) | (72,592) | |||
Intangible asset amortization | (4,280) | (3,736) | (12,857) | (11,209) | |||
Acquisition related costs | (72) | (103) | (209) | (352) | |||
Other operating expense, net | (7,283) | (5,654) | (18,203) | (11,703) | |||
Operating income | 87,492 | 57,137 | 202,351 | 150,027 | |||
Interest income | 7,591 | 4,150 | 19,798 | 8,327 | |||
Interest expense | (6,286) | (7,257) | (19,463) | (22,516) | |||
Income before income taxes | 88,797 | 54,030 | 202,686 | 135,838 | |||
Income tax expense | (23,404) | (13,891) | (48,960) | (35,429) | |||
Net income, including noncontrolling interests | 65,393 | 40,139 | 153,726 | 100,409 | |||
Less: Net income attributable to noncontrolling interests | (4,072) | (786) | (9,478) | (1,927) | |||
Net income attributable to Sterling common stockholders | $ 61,321 | $ 39,353 | $ 144,248 | $ 98,482 | |||
Net income per share attributable to Sterling common stockholders: | |||||||
Basic | $ 2.00 | $ 1.28 | $ 4.67 | $ 3.20 | |||
Diluted | $ 1.97 | $ 1.26 | $ 4.63 | $ 3.17 | |||
Weighted average common shares outstanding: | |||||||
Basic | 30,735 | 30,800 | 30,875 | 30,733 | |||
Diluted | 31,070 | 31,217 | 31,184 | 31,048 |
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Revenues | 2024 | % of | 2023 | % of | 2024 | % of | 2023 | % of | |||||||
E-Infrastructure Solutions | $ 263,899 | 45 % | $ 253,948 | 45 % | $ 689,687 | 43 % | $ 719,936 | 48 % | |||||||
Transportation Solutions | 227,251 | 38 % | 192,996 | 35 % | 608,995 | 37 % | 455,223 | 31 % | |||||||
Building Solutions | 102,591 | 17 % | 113,403 | 20 % | 318,241 | 20 % | 311,092 | 21 % | |||||||
Total Revenues | $ 593,741 | $ 560,347 | $ 1,616,923 | $ 1,486,251 | |||||||||||
Operating Income | |||||||||||||||
E-Infrastructure Solutions | $ 68,076 | 25.8 % | $ 35,945 | 14.2 % | $ 146,922 | 21.3 % | $ 103,381 | 14.4 % | |||||||
Transportation Solutions | 18,573 | 8.2 % | 14,487 | 7.5 % | 42,154 | 6.9 % | 29,649 | 6.5 % | |||||||
Building Solutions | 11,249 | 11.0 % | 12,848 | 11.3 % | 39,837 | 12.5 % | 35,029 | 11.3 % | |||||||
Segment Operating Income | 97,898 | 16.5 % | 63,280 | 11.3 % | 228,913 | 14.2 % | 168,059 | 11.3 % | |||||||
Corporate G&A Expense | (10,334) | (6,040) | (26,353) | (17,680) | |||||||||||
Acquisition Related Costs | (72) | (103) | (209) | (352) | |||||||||||
Total Operating Income | $ 87,492 | 14.7 % | $ 57,137 | 10.2 % | $ 202,351 | 12.5 % | $ 150,027 | 10.1 % |
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES | |||
September 30, 2024 | December 31, 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 648,127 | $ 471,563 | |
Accounts receivable | 329,882 | 252,435 | |
Contract assets | 79,736 | 88,600 | |
Receivables from and equity in construction joint ventures | 7,814 | 17,506 | |
Other current assets | 18,086 | 17,875 | |
Total current assets | 1,083,645 | 847,979 | |
Property and equipment, net | 270,532 | 243,648 | |
Operating lease right-of-use assets, net | 54,748 | 57,235 | |
Goodwill | 281,363 | 281,117 | |
Other intangibles, net | 315,540 | 328,397 | |
Other non-current assets, net | 17,757 | 18,808 | |
Total assets | $ 2,023,585 | $ 1,777,184 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 160,199 | $ 145,968 | |
Contract liabilities | 563,531 | 444,160 | |
Current maturities of long-term debt | 26,425 | 26,520 | |
Current portion of long-term lease obligations | 19,531 | 19,641 | |
Accrued compensation | 43,198 | 27,758 | |
Other current liabilities | 26,152 | 14,121 | |
Total current liabilities | 839,036 | 678,168 | |
Long-term debt | 296,185 | 314,996 | |
Long-term lease obligations | 35,445 | 37,722 | |
Members' interest subject to mandatory redemption and undistributed earnings | 23,417 | 29,108 | |
Deferred tax liability, net | 82,894 | 76,764 | |
Other long-term liabilities | 15,666 | 16,573 | |
Total liabilities | 1,292,643 | 1,153,331 | |
Stockholders' equity: | |||
Common stock | 312 | 309 | |
Additional paid in capital | 295,831 | 293,570 | |
Treasury stock, at cost | (48,901) | — | |
Retained earnings | 469,282 | 325,034 | |
Total Sterling stockholders' equity | 716,524 | 618,913 | |
Noncontrolling interests | 14,418 | 4,940 | |
Total stockholders' equity | 730,942 | 623,853 | |
Total liabilities and stockholders' equity | $ 2,023,585 | $ 1,777,184 |
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 153,726 | $ 100,409 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 50,546 | 42,529 | |
Amortization of debt issuance costs and non-cash interest | 877 | 1,334 | |
Gain on disposal of property and equipment | (3,280) | (4,102) | |
Deferred taxes | 6,107 | 10,188 | |
Stock-based compensation | 13,753 | 10,975 | |
Changes in operating assets and liabilities | 101,106 | 169,882 | |
Net cash provided by operating activities | 322,835 | 331,215 | |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (4,827) | — | |
Disposition proceeds | — | 14,000 | |
Capital expenditures | (65,309) | (49,244) | |
Proceeds from sale of property and equipment | 7,834 | 9,607 | |
Net cash used in investing activities | (62,302) | (25,637) | |
Cash flows from financing activities: | |||
Repayments of debt | (19,931) | (76,850) | |
Repurchase of common stock | (50,596) | — | |
Withholding taxes paid on net share settlement of equity awards | (13,408) | (4,579) | |
Other | (34) | (16) | |
Net cash used in financing activities | (83,969) | (81,445) | |
Net change in cash, cash equivalents, and restricted cash | 176,564 | 224,133 | |
Cash, cash equivalents and restricted cash at beginning of period | 471,563 | 185,265 | |
Cash, cash equivalents and restricted cash at end of period | 648,127 | 409,398 | |
Less: restricted cash | — | — | |
Cash and cash equivalents at end of period | $ 648,127 | $ 409,398 |
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income attributable to Sterling common stockholders | $ 61,321 | $ 39,353 | $ 144,248 | $ 98,482 | |||
Depreciation and amortization | 17,363 | 14,857 | 50,546 | 42,529 | |||
Interest expense, net of interest income | (1,305) | 3,107 | (335) | 14,189 | |||
Income tax expense | 23,404 | 13,891 | 48,960 | 35,429 | |||
EBITDA(1) | 100,783 | 71,208 | 243,419 | 190,629 | |||
Acquisition related costs | 72 | 103 | 209 | 352 | |||
Adjusted EBITDA(2) | $ 100,855 | $ 71,311 | $ 243,628 | $ 190,981 | |||
(1) | The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders adjusted for depreciation and amortization, net interest expense and taxes. |
(2) | The Company defines adjusted EBITDA as EBITDA excluding the impact of acquisition related costs. |
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES | |||
Full Year 2024 Guidance | |||
Low | High | ||
Net income attributable to Sterling common stockholders | $ 180 | $ 185 | |
Depreciation and amortization | 67 | 67 | |
Interest expense, net of interest income | — | — | |
Income tax expense | 63 | 63 | |
EBITDA (1) | $ 310 | $ 315 | |
(1) | The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, and taxes. |
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SOURCE Sterling Infrastructure, Inc.
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