Sterling Reports Record Second Quarter 2025 Results and Increases Full Year Guidance

Rhea-AI Summary

Sterling Infrastructure (NASDAQ: STRL) reported exceptional Q2 2025 financial results, with revenues reaching $614.5 million, marking a 21% increase year-over-year (excluding RHB). The company achieved record-breaking performance with net income of $71.0 million, or $2.31 per diluted share, up 37% and 38% respectively.

Key highlights include gross margin improvement to 23.3% from 19.3%, EBITDA of $116.2 million (up 34%), and strong cash position of $699.4 million. The company's backlog stands at $2.01 billion with a book-to-burn ratio of 1.4x for H1 2025.

Sterling has increased its full-year 2025 guidance, projecting revenue of $2.10-2.15 billion and adjusted diluted EPS of $9.21-9.47. The company is also progressing with its planned acquisition of CEC Facilities Group LLC, though guidance figures exclude CEC's contribution.

Positive

• Record Q2 net income of $71.0 million, up 37% year-over-year
• Revenue growth of 21% to $614.5 million (excluding RHB)
• Significant gross margin expansion to 23.3% from 19.3%
• Strong cash position of $699.4 million with excellent cash flow generation
• E-Infrastructure Solutions segment showed 29% revenue growth with 28.3% operating margins
• Backlog increased 24% year-over-year to $2.01 billion
• Full year 2025 guidance raised across all metrics

Negative

• Building Solutions segment revenue declined 1% with 28% drop in adjusted operating income
• Residential business facing headwinds due to housing market slowdown
• Transportation Solutions experiencing revenue impact from downsizing Texas heavy highway business
• Book-to-burn ratio decreased to 0.8x in Q2 due to seasonal lull in Transportation awards

THE WOODLANDS, Texas, Aug. 4, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or the "Company") today announced record financial results for the second quarter of 2025.

The financial comparisons herein are to the prior year quarter, unless otherwise noted.

Due to the deconsolidation of the RHB joint venture on December 31, 2024, RHB is no longer included in consolidated revenue or backlog. As such, prior-year comparisons for these metrics have been adjusted to exclude RHB. Please see the "Historical Quarterly Backlog Information" section below for reconciliations to historical figures.

Second Quarter 2025 Results

• Revenues of $614.5 million. Revenues increased 21% excluding RHB from the prior year quarter
• Gross margin of 23.3%, up from 19.3%
• Net income of $71.0 million, or $2.31 per diluted share, increases of 37% and 38%, respectively, and a new second quarter record.
• Adjusted net income⁽¹⁾ of $82.8 million, or $2.69 per diluted share, increases of 39% and 41%, respectively
• EBITDA⁽¹⁾ of $116.2 million, an increase of 34% and a new second quarter record.
• Adjusted EBITDA⁽¹⁾ of $125.6 million, an increase of 35%
• Cash flows from operations totaled $170.3 million for the six months ended June 30, 2025
• Cash and cash equivalents totaled $699.4 million at June 30, 2025
• Backlog at June 30, 2025 was $2.01 billion. The book-to-burn ratio for the six months ended June 30, 2025 was 1.4x.
• Combined backlog⁽²⁾ at June 30, 2025 was $2.25 billion. The book-to-burn ratio for the six months ended June 30, 2025 was 1.5x.

(1) See "Non-GAAP Measures", "Adjusted Net Income Reconciliation", and "EBITDA Reconciliation" sections below for more information.

(2) Combined Backlog includes Unsigned Awards of $237.3 million at June 30, 2025.

Acquisition Update

On June 17th, Sterling announced that it had reached an agreement to acquire all of the assets of CEC Facilities Group LLC ("CEC"), and the transaction continues to progress towards closing. Sterling's expectations for CEC's full year performance are unchanged. Sterling's updated guidance figures included in this earnings release do not include any contribution from CEC.

CEO Remarks and Outlook

"Our outstanding second quarter results reflect the strength and resilience of our portfolio, as we delivered very strong top line growth of 21% and even better bottom-line growth, with adjusted diluted earnings per share reaching $2.69, a 41% increase," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth was again fueled by strong 29% growth in E-Infrastructure Solutions and 24% growth in Transportation Solutions, which more than offset softness in the Building Solutions market. Gross profit margins in the quarter of 23% marked a new high for the company, as we have shifted the business toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 35%."

Mr. Cutillo continued, "We ended the quarter with backlog of $2.0 billion, a 24% increase compared to the prior year second quarter on a like-for-like basis. Our book-to-burn ratio in the quarter was 0.8x, reflecting the strong backlog burn in the quarter combined with the typical seasonal lull in Transportation awards in the second quarter. Notably, E-Infrastructure Solutions awards remained strong in the quarter, outpacing the strong backlog burn. The combination of our signed backlog and high-probability future phase work continues to give us visibility into a pool of E-Infrastructure work approaching $2 billion. Our operating cash flow generation in the second quarter was again excellent at $85 million, driving our net cash position to $401 million."

Mr. Cutillo added, "In E-Infrastructure Solutions, we achieved 29% revenue growth and 57% adjusted operating income growth in the second quarter as adjusted operating margins expanded over 500 basis points to reach 28.3%. This excellent margin profile reflects our shift toward large, mission-critical projects, including data centers and manufacturing, where our scale, superior execution, and track record of delivering projects on time are extremely valuable to our customers. Notably, awards in the E-Commerce distribution space increased meaningfully in the quarter. Large, mission-critical work continues to make up the majority of our backlog.

We are very excited about our previously announced agreement to acquire CEC. We continue to believe that the combination of CEC's leading electrical services to high-growth markets including semiconductor and data center and Sterling's best-in-class site civil infrastructure services will allow us to accelerate project timelines and become even more valuable to our customers. Additionally, we believe CEC will help accelerate our geographic expansion into Texas.

Transportation Solutions revenue increased 24% and adjusted operating income grew 78%. We continue to see solid demand and project opportunities in our core Rocky Mountain and Arizona regions. The downsizing of our low-bid Texas heavy highway business is progressing to plan. This shift will weigh on revenue and backlog in the near term, but will continue to benefit margins as we move through 2025.

In Building Solutions, revenue declined 1% and adjusted operating income declined 28%. Our residential businesses continued to be impacted by the slowdown in the housing market, as prospective homebuyers are facing affordability challenges. We remain bullish on the multi-year demand trends in our key geographies, but expect soft market conditions to persist in the near term."

"We believe 2025 will be another record year for Sterling as we continue to drive bottom line growth that outpaces top line growth. We are raising our 2025 guidance to reflect our strong first half performance, backlog, and visibility into future phase opportunities. The midpoints of our revised 2025 guidance would represent 13% revenue growth as adjusted for RHB, 32% adjusted diluted earnings per share growth and 30% adjusted EBITDA growth," Mr. Cutillo concluded.

Full Year 2025 Guidance

• Revenue of $2.10 billion to $2.15 billion
• Net Income of $243 million to $252 million
• Diluted EPS of $7.87 to $8.13
• EBITDA⁽¹⁾ of $406 million to $421 million

Full Year 2025 Adjusted Guidance

Please see the "Adjusted Net Income Guidance Reconciliation" and "EBITDA Guidance Reconciliation" sections below for reconciliations of GAAP to non-GAAP measures and comparable 2024 results.

• Adjusted Net Income⁽¹⁾ of $285 million to $294 million
• Adjusted Diluted EPS⁽¹⁾ of $9.21 to $9.47
• Adjusted EBITDA⁽¹⁾ of $438 million to $453 million

(1) See "Non-GAAP Measures", "Adjusted Net Income Guidance Reconciliation" and "EBITDA Guidance Reconciliation" sections below for more information.

Conference Call

Sterling's management will hold a conference call to discuss these results and recent corporate developments on Tuesday, August 5, 2025 at 9:00 a.m. ET/8:00 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 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, 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

Non-GAAP Measures

This press release contains "Non-GAAP" financial measures as defined under Regulation G of the amended U.S. Securities Exchange Act of 1934. The Company reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), but the Company believes that certain Non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of those operations.

Non-GAAP measures may include adjusted net income, adjusted operating 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: the financial estimates or projections of CEC and the anticipated closing date and benefits of the potential acquisition; 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 U.S. Securities and Exchange Commission and elsewhere in those filings. Additional factors or risks that we currently deem immaterial, that are not presently known to us or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made. 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

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)  ‌
	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenues	$       614,468		$       582,822		$    1,045,417		$    1,023,182
Cost of revenues	(471,328)		(470,079)		(807,437)		(833,535)
Gross profit	143,140		112,743		237,980		189,647
General and administrative expense	(33,987)		(27,856)		(68,618)		(55,154)
Intangible asset amortization	(4,536)		(4,280)		(9,039)		(8,577)
Acquisition related costs	(2,495)		(101)		(2,674)		(137)
Earn-out expense	(1,343)		(1,000)		(2,686)		(2,000)
Other operating income (expense), net	3,785		(6,772)		5,677		(8,920)
Operating income	104,564		72,734		160,640		114,859
Interest income	6,901		6,305		13,728		12,207
Interest expense	(4,995)		(6,513)		(10,227)		(13,177)
Income before income taxes	106,470		72,526		164,141		113,889
Income tax expense	(27,362)		(17,952)		(42,442)		(25,556)
Net income, including noncontrolling interests	79,108		54,574		121,699		88,333
Less: Net income attributable to noncontrolling interests	(8,117)		(2,695)		(11,231)		(5,406)
Net income attributable to Sterling common stockholders	$         70,991		$         51,879		$       110,468		$         82,927
‌
Net income per share attributable to Sterling common stockholders:
Basic	$              2.33		$              1.68		$              3.62		$              2.68
Diluted	$              2.31		$              1.67		$              3.59		$              2.66
‌
Weighted average common shares outstanding:
Basic	30,408		30,914		30,477		30,945
Diluted	30,762		31,145		30,804		31,158

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES SEGMENT INFORMATION (In thousands) (Unaudited) ‌
	Three Months Ended June 30,								Six Months Ended June 30,
Revenues	2025		% of Revenue		2024		% of Revenue		2025		% of Revenue		2024		% of Revenue
E-Infrastructure Solutions	$       310,406		51 %		$       241,312		41 %		$  528,669		51 %		$  425,788		42 %
Transportation Solutions	196,797		32 %		232,775		40 %		317,458		30 %		381,744		37 %
Building Solutions	107,265		17 %		108,735		19 %		199,290		19 %		215,650		21 %
Total Revenues	$       614,468				$       582,822				$  1,045,417				$  1,023,182
‌
Operating Income
E-Infrastructure Solutions	$         83,767		27.0 %		$         51,677		21.4 %		$  130,409		24.7 %		$    78,846		18.5 %
Transportation Solutions	25,975		13.2 %		15,449		6.6 %		37,228		11.7 %		23,581		6.2 %
Building Solutions	9,855		9.2 %		14,813		13.6 %		22,207		11.1 %		30,588		14.2 %
Segment Operating Income	119,597		19.5 %		81,939		14.1 %		189,844		18.2 %		133,015		13.0 %
Corporate G&A Expense	(11,195)				(8,104)				(23,844)				(16,019)
Acquisition Related Costs	(2,495)				(101)				(2,674)				(137)
Earn-out Expense	(1,343)				(1,000)				(2,686)				(2,000)
Total Operating Income	$       104,564		17.0 %		$         72,734		12.5 %		$  160,640		15.4 %		$  114,859		11.2 %

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited)  ‌
	June 30,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$                699,373		$                664,195
Accounts receivable	347,661		247,050
Contract assets	51,778		55,387
Receivables from and equity in construction joint ventures	7,968		5,811
Receivable from affiliate	2,540		32,054
Other current assets	22,979		17,383
Total current assets	1,132,299		1,021,880
Property and equipment, net	244,810		236,795
Investment in unconsolidated subsidiary	109,040		107,400
Operating lease right-of-use assets, net	44,470		52,668
Goodwill	283,664		264,597
Other intangibles, net	329,158		316,390
Other non-current assets, net	17,449		17,044
Total assets	$             2,160,890		$             2,016,774
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$                159,259		$                130,420
Contract liabilities	553,171		508,846
Current maturities of long-term debt	15,162		26,423
Current portion of long-term lease obligations	18,202		20,498
Accrued compensation	36,596		36,774
Other current liabilities	13,841		18,997
Total current liabilities	796,231		741,958
Long-term debt	283,050		289,898
Long-term lease obligations	26,729		32,455
Deferred tax liability, net	114,774		109,360
Other long-term liabilities	28,733		16,625
Total liabilities	1,249,517		1,190,296
Stockholders' equity:
Common stock	312		312
Additional paid in capital	287,596		288,395
Treasury stock, at cost	(99,126)		(63,121)
Retained earnings	692,963		582,495
Total Sterling stockholders' equity	881,745		808,081
Noncontrolling interests	29,628		18,397
Total stockholders' equity	911,373		826,478
Total liabilities and stockholders' equity	$             2,160,890		$             2,016,774

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) ‌
	Six Months Ended June 30,
	2025		2024
Cash flows from operating activities:
Net income	$               121,699		$                 88,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,613		33,183
Amortization of debt issuance costs and non-cash interest	472		597
Gain on disposal of property and equipment	(1,340)		(2,964)
Distribution of earnings from unconsolidated subsidiary	10,319		—
Equity in earnings from unconsolidated subsidiary	(5,677)		—
Deferred taxes	5,414		3,517
Stock-based compensation	12,278		9,382
Changes in operating assets and liabilities	(7,467)		38,513
Net cash provided by operating activities	170,311		170,561
Cash flows from investing activities:
Acquisitions, net of cash acquired	(37,860)		(1,016)
Capital expenditures	(31,262)		(51,309)
Proceeds from sale of property and equipment	2,645		6,944
Net cash used in investing activities	(66,477)		(45,381)
Cash flows from financing activities:
Repayments of debt	(17,275)		(13,324)
Repurchase of common stock	(43,846)		(30,142)
Withholding taxes paid on net share settlement of equity awards	(6,126)		(13,264)
Debt issuance costs	(1,409)		—
Other	—		(28)
Net cash used in financing activities	(68,656)		(56,758)
Net change in cash, cash equivalents, and restricted cash	35,178		68,422
Cash, cash equivalents and restricted cash at beginning of period	664,195		471,563
Cash, cash equivalents and restricted cash at end of period	699,373		539,985
Less: restricted cash	—		—
Cash and cash equivalents at end of period	$               699,373		$               539,985

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands)      (Unaudited)  ‌
	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income attributable to Sterling common stockholders	$         70,991		$         51,879		$       110,468		$         82,927
Non-cash stock-based compensation	5,595		4,796		12,278		9,382
Intangible asset amortization (1)	6,408		4,280		12,782		8,577
Acquisition related costs	2,495		101		2,674		137
Earn-out expense	1,343		1,000		2,686		2,000
Income tax impact of adjustments	(4,071)		(2,519)		(7,866)		(4,509)
Adjusted net income attributable to Sterling common stockholders (2)	$         82,761		$         59,537		$       133,022		$         98,514
‌
Net income per share attributable to Sterling common stockholders:
Basic	$              2.33		$              1.68		$              3.62		$              2.68
Diluted	$              2.31		$              1.67		$              3.59		$              2.66
‌
Adjusted net income per share attributable to Sterling common stockholders:
Basic	$              2.72		$              1.93		$              4.36		$              3.18
Diluted	$              2.69		$              1.91		$              4.32		$              3.16
‌
Weighted average common shares outstanding:
Basic	30,408		30,914		30,477		30,945
Diluted	30,762		31,145		30,804		31,158

(1)	For the three and six months ended June 30, 2025, intangible asset amortization includes $1,872 and $3,743, respectively related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	‌
(2)	The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited)  ‌
	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income attributable to Sterling common stockholders	$         70,991		$         51,879		$       110,468		$         82,927
Depreciation and amortization (1)	19,769		16,925		38,906		33,183
Interest (income) expense, net	(1,906)		208		(3,501)		970
Income tax expense	27,362		17,952		42,442		25,556
EBITDA(2)	116,216		86,964		188,315		142,636
Non-cash stock-based compensation	5,595		4,796		12,278		9,382
Acquisition related costs	2,495		101		2,674		137
Earn-out expense	1,343		1,000		2,686		2,000
Adjusted EBITDA(3)	$       125,649		$         92,861		$       205,953		$       154,155

(1)	For the three and six months ended June 30, 2025, depreciation and amortization includes $1,872 and $3,743, respectively, of intangible asset amortization and $275 and $550, respectively, of depreciation expense related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	‌
(2)	The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders adjusted for depreciation and amortization, net interest income/expense and income tax expense.
	‌
(3)	The Company defines adjusted EBITDA as EBITDA excluding the impact of non-cash stock-based compensation, acquisition related costs, and earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES NON-GAAP SEGMENT INFORMATION (In thousands) (Unaudited)
The table below presents the three and six months ended June 30, 2025 and 2024 revenue and operating income by segment as adjusted for the 2024 period to conform to our 2025 presentation reflecting the deconsolidation of RHB on revenue and to exclude the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense on operating income:
‌
	Three Months Ended June 30,								Six Months Ended June 30,
Revenues (Excluding RHB)	2025		% of Revenue		2024		% of Revenue		2025		% of Revenue		2024		% of Revenue
E-Infrastructure Solutions	$  310,406		51 %		$  241,312		47 %		$    528,669		51 %		$    425,788		47 %
Transportation Solutions	196,797		32 %		158,828		31 %		317,458		30 %		269,333		30 %
Building Solutions	107,265		17 %		108,735		22 %		199,290		19 %		215,650		23 %
Total Revenues (Excluding RHB) (1)	$  614,468				$  508,875				$ 1,045,417				$    910,771
Adjusted Operating Income
E-Infrastructure Solutions	$    87,718		28.3 %		$    55,841		23.1 %		$    138,301		26.2 %		$      87,186		20.5 %
Transportation Solutions	28,271		14.4 %		15,874		10.0 %		41,848		13.2 %		24,386		9.1 %
Building Solutions	11,797		11.0 %		16,423		15.1 %		26,031		13.1 %		33,826		15.7 %
Adjusted Segment Operating Income	127,786		20.8 %		88,138		17.3 %		206,180		19.7 %		145,398		16.0 %
Corporate G&A Expense	(7,381)				(5,227)				(15,120)				(10,443)
Total Adjusted Operating Income (2)	$  120,405		19.6 %		$    82,911		16.3 %		$    191,060		18.3 %		$    134,955		14.8 %

(1)	Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, the Company will report RHB's operating income as a single line item ("Other operating income (expense), net") in the Consolidated Statements of Operations. RHB's revenue is no longer included in Sterling's consolidated revenue in 2025. For the three and six months ended June 30, 2024, total GAAP revenue of $582,822 and $1,023,182, respectively, have been adjusted to exclude $73,947 and $112,411, respectively, of RHB revenue.
	‌
(2)	The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense. For the three months ended June 30, 2025, GAAP operating income of $104,564 is adjusted to exclude $5,595 of non-cash stock-based compensation, $6,408 of intangible asset amortization (including $1,872 related to the fair value step up of RHB), $2,495 of acquisition related costs, and $1,343 of earn-out expense.
	‌
	For the six months ended June 30, 2025, GAAP operating income of $160,640 is adjusted to exclude $12,278 of non-cash stock-based compensation, $12,782 of intangible asset amortization (including $3,743 related to the fair value step up of RHB), $2,674 of acquisition related costs, and $2,686 of earn-out expense.
	‌
	For the three months ended June 30, 2024, GAAP operating income of $72,734 is adjusted to exclude $4,796 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $101 of acquisition related costs, and $1,000 of earn-out expense.
	‌
	For the six months ended June 30, 2024, GAAP operating income of $114,859 is adjusted to exclude $9,382 of non-cash stock-based compensation, $8,577 of intangible asset amortization, $137 of acquisition related costs, and $2,000 of earn-out expense.

 

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	$   243,000		$   252,000		$   257,461
Gain on deconsolidation of subsidiary, net	—		—		(91,289)
Non-cash stock-based compensation	23,000		23,000		19,003
Intangible asset amortization (1)	25,633		25,633		17,037
Acquisition related costs	2,674		2,674		421
Earn-out expense	6,000		6,000		4,756
Income tax impact of adjustments	(15,000)		(15,000)		13,356
Adjusted net income attributable to Sterling common stockholders (2)	$   285,307		$   294,307		$   220,745
Net income per share attributable to Sterling common stockholders:
Diluted	$          7.87		$          8.13		$          8.27
‌
Adjusted net income per share attributable to Sterling common stockholders:
Diluted	$          9.21		$          9.47		$          7.09
‌
Weighted average common shares outstanding:
Diluted	31,000		31,000		31,146

(1)	Intangible asset amortization includes approximately $7,500 related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	‌
(2)	The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited)  ‌
	Full Year 2025 Guidance				Full Year 2024
	Low		High		Actual
Net income attributable to Sterling common stockholders	$            243		$            252		$                257
Depreciation and amortization (1)	79		80		68
Interest income, net of interest expense	(5)		(6)		(2)
Income tax expense	89		95		87
EBITDA (2)	406		421		410
Gain on deconsolidation of subsidiary, net	—		—		(91)
Non-cash stock-based compensation	23		23		19
Acquisition related costs	3		3		—
Earn-out expense	6		6		5
Adjusted EBITDA(3)	$            438		$            453		$                343

(1)	Depreciation and intangible asset amortization includes approximately $1.1 million and $7.5 million, respectively, related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	‌
(2)	The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest income, and income tax expense.
	‌
(3)	The Company defines adjusted EBITDA as EBITDA excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, acquisition related costs and earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited) ‌
The following tables present our 2024 quarterly revenue by segment as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB:
			‌
	2024 Quarters Ended (Unaudited)
Revenues (GAAP)	March 31		June 30		September 30		December 31		Total
E-Infrastructure Solutions	$        184,476		$        241,312		$        263,899		$        234,041		$        923,728
Transportation Solutions	148,969		232,775		227,251		174,664		783,659
Building Solutions	106,915		108,735		102,591		90,128		408,369
Total Revenues (GAAP)	$        440,360		$        582,822		$        593,741		$        498,833		$     2,115,756
‌
Revenues (RHB)
E-Infrastructure Solutions	$                  —		$                  —		$                  —		$                  —		$                  —
Transportation Solutions	38,464		73,947		72,188		51,277		235,876
Building Solutions	—		—		—		—		—
Total Revenues (RHB)	$          38,464		$          73,947		$          72,188		$          51,277		$        235,876
‌
Revenues (Excluding RHB)
E-Infrastructure Solutions	$        184,476		$        241,312		$        263,899		$        234,041		$        923,728
Transportation Solutions	110,505		158,828		155,063		123,387		547,783
Building Solutions	106,915		108,735		102,591		90,128		408,369
Total Revenues (Excluding RHB) (1)	$        401,896		$        508,875		$        521,553		$        447,556		$     1,879,880

(1) Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, RHB's revenue is no longer included in Sterling's consolidated revenue.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited)
The following tables present our 2024 quarterly operating income and adjusted operating income by segment:
	2024 Quarters Ended (Unaudited)
Operating Income (GAAP)	March 31		June 30		September 30		December 31		Total
E-Infrastructure Solutions	$          27,169		$          51,677		$          68,076		$          56,437		$        203,359
Transportation Solutions	8,132		15,449		18,573		8,715		50,869
Building Solutions	15,775		14,813		12,249		11,002		53,839
Segment Operating Income	51,076		81,939		98,898		76,154		308,067
Corporate G&A Expense	(7,915)		(8,104)		(10,334)		(11,915)		(38,268)
Acquisition Related Costs	(36)		(101)		(72)		(212)		(421)
Earn-out Expense	(1,000)		(1,000)		(1,000)		(1,756)		(4,756)
Total Operating Income (GAAP)	$          42,125		$          72,734		$          87,492		$          62,271		$        264,622
‌
Adjusted Operating Income
E-Infrastructure Solutions	$          31,345		$          55,841		$          71,244		$          60,316		$        218,746
Transportation Solutions	8,512		15,874		19,070		9,180		52,636
Building Solutions	17,403		16,423		13,928		12,632		60,386
Segment Operating Income	57,260		88,138		104,242		82,128		331,768
Corporate	(5,216)		(5,227)		(7,027)		(8,459)		(25,929)
Adjusted Operating Income (1)	$          52,044		$          82,911		$          97,215		$          73,669		$        305,839

(1)	The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense.
	For the three months ended March 31, 2024, GAAP operating income of $42,125 is adjusted to exclude $4,586 of non-cash stock-based compensation, $4,297 of intangible asset amortization, $36 of acquisition related costs, and $1,000 of earn-out expense.
	For the three months ended June 30, 2024, GAAP operating income of $72,734 is adjusted to exclude $4,796 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $101 of acquisition related costs, and $1,000 of earn-out expense.
	For the three months ended September 30, 2024, GAAP operating income of $87,492 is adjusted to exclude $4,371 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $72 of acquisition related costs, and $1,000 of earn-out expense.
	For the three months ended December 30, 2024, GAAP operating income of $62,271 is adjusted to exclude $5,250 of non-cash stock-based compensation, $4,180 of intangible asset amortization, $212 of acquisition related costs, and $1,756 of earn-out expense.
	For the year ended December 30, 2024, GAAP operating income of $264,622 is adjusted to exclude $19,003 of non-cash stock-based compensation, $17,037 of intangible asset amortization, $421 of acquisition related costs, and $4,756 of earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY BACKLOG INFORMATION (In thousands) (Unaudited)
The following table presents our 2024 backlog as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB:
	2024 Quarters Ended (Unaudited)
Backlog	March 31		June 30		September 30		December 31
Backlog (GAAP)	$     2,352,126		$     2,098,781		$     2,055,081		$     2,184,478
Less: RHB Backlog	(528,043)		(476,842)		(485,050)		(491,255)
Backlog excluding RHB	$     1,824,083		$     1,621,939		$     1,570,031		$     1,693,223

 

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SOURCE Sterling Infrastructure, Inc.

FAQ

What were Sterling Infrastructure's (STRL) Q2 2025 earnings results?

Sterling reported Q2 2025 revenue of $614.5 million (up 21%), net income of $71.0 million (up 37%), and earnings per diluted share of $2.31 (up 38%). The company achieved a record gross margin of 23.3%.

What is Sterling Infrastructure's (STRL) updated guidance for 2025?

Sterling raised its 2025 guidance to revenue of $2.10-2.15 billion, adjusted diluted EPS of $9.21-9.47, and adjusted EBITDA of $438-453 million, representing significant year-over-year growth.

How much cash does Sterling Infrastructure (STRL) have as of Q2 2025?

Sterling reported cash and cash equivalents of $699.4 million as of June 30, 2025, with strong operating cash flows of $170.3 million for the first six months of 2025.

What is Sterling Infrastructure's (STRL) current backlog?

Sterling's backlog at June 30, 2025 was $2.01 billion, with combined backlog (including unsigned awards) of $2.25 billion. The book-to-burn ratio for H1 2025 was 1.5x.

How is Sterling Infrastructure's (STRL) E-Infrastructure Solutions segment performing?

The E-Infrastructure Solutions segment achieved 29% revenue growth with adjusted operating margins expanding over 500 basis points to 28.3%, driven by large mission-critical projects in data centers and manufacturing.