Sterling Infrastructure (STRL) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with 7% revenue growth to $2.12B, adjusted EPS up 37% to $6.10, and operating cash flow of $497.1M.

• Fourth consecutive year of adjusted EPS growth above 35%, with E-Infrastructure backlog surpassing $1B for the first time.

• Strategic transformation since 2019 drove a 38% EPS CAGR and significant operating margin expansion.

• Gross margin exceeded 20% for the year and reached 21.4% in Q4, reflecting a shift to higher-margin services.

• E-Infrastructure opportunities are accelerating, with strong multi-year visibility and no signs of slowdown.

Financial highlights

• 2024 adjusted EPS was $6.10, up 37% year-over-year; full-year revenue was $2.12B, up 7%.

• Adjusted EBITDA reached $320M, up 23%; Q4 adjusted EPS was $1.46, up 13% year-over-year.

• Q4 operating income grew 12% on 3% revenue growth; Q4 gross margin exceeded 21%.

• Cash flow from operations in 2024 was $497.1M; year-end liquidity was $664.2M cash and net cash position of $348M.

• Debt/EBITDA leverage ratio improved to 0.5x at year-end 2024 from 1.0x a year earlier.

Outlook and guidance

• 2025 guidance: revenue of $2.0–2.15B, gross margin 21–22%, diluted EPS $6.75–7.25, adjusted EPS $7.90–8.40, adjusted EBITDA $395–420M.

• E-Infrastructure revenue expected to grow over 10% in 2025, with operating profit growth north of 25%.

• Transportation Solutions revenue expected to be flat (excluding RHB), but operating profit to grow in low to mid-teens.

• Building Solutions revenue to grow low single digits, with margin expansion expected.

• Effective tax rate for 2025 expected at ~26%; CAPEX projected at $70M–$80M.