Sterling Construction ( (STRL) ) has released its Q3 earnings. Here is a breakdown of the information Sterling Construction presented to its investors.
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Sterling Infrastructure, Inc. is a company that operates through various subsidiaries in the United States, focusing on E-Infrastructure, Transportation, and Building Solutions. The company is known for its commitment to sustainability and operates primarily across the Southern, Northeastern, Mid-Atlantic, and Rocky Mountain regions, as well as the Pacific Islands.
Sterling Infrastructure, Inc. reported record results for the third quarter of 2024, with revenues reaching $593.7 million, marking a 6% increase from the previous year. The company also raised its full-year profitability guidance, reflecting its strong financial performance and strategic positioning in large-scale infrastructure projects.
Key highlights of the financial performance include a significant increase in net income, up 56% to $61.3 million, and a 42% rise in EBITDA, reaching $100.8 million. Sterling’s gross margin improved to a record 21.9%. The company’s combined backlog stood at $2.37 billion, indicating a strong pipeline of future projects, particularly in E-Infrastructure Solutions, where operating income grew by 89%.
Sterling’s Transportation Solutions segment also reported robust growth, with an 18% increase in revenue and a 28% rise in operating profit. However, Building Solutions faced a decline in both revenue and operating profit, impacted by market conditions in Dallas. Nevertheless, the company remains optimistic about long-term demand trends and expects a recovery in 2025.
Looking ahead, Sterling anticipates continued strong performance for the remainder of 2024, driven by its strategic focus on high-margin, large-scale projects. The company has raised its full-year guidance, projecting revenue growth of up to 10% and net income growth of 32%, demonstrating confidence in its ability to capitalize on market opportunities and deliver sustained shareholder value.
