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

THE WOODLANDS, Texas, Nov. 3, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or the "Company") today announced record financial results for the third 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.

Third Quarter 2025 Results

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

(2) Combined Backlog includes Unsigned Awards of $868.8 million at September 30, 2025, with $335.3 million of Unsigned Awards contributed from CEC.

CEO Remarks and Outlook

"Our outstanding third quarter results reflect the strength of our portfolio, as we delivered very strong top line growth of 32% and even better bottom-line growth, with adjusted diluted earnings per share reaching $3.48, a 58% increase," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth was again fueled by strong 58% growth in E-Infrastructure Solutions and 10% growth in Transportation Solutions, which more than offset softness in the Building Solutions market. Gross profit margins in the quarter of 25% 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 47%."

Mr. Cutillo continued, "We ended the quarter with signed backlog of $2.6 billion, which grew 34% year-over-year on a same-store basis. Combined backlog grew 44% and reached over $3 billion for the first time in our history. Third quarter book to burn ratios excluding the impact of CEC, were 1.23x for backlog and 1.76x for combined backlog. With the addition of CEC, the aggregate of our combined backlog and high-probability future phase work gives us visibility into a pool of work totaling more than $4 billion. Our operating cash flow generation in the third quarter was again excellent at $84 million, and we remain in a positive net cash position."

Mr. Cutillo added, "In E-Infrastructure Solutions, we achieved 58% revenue growth and 57% adjusted operating income growth in the third quarter. Revenue for the legacy Site Development business increased 42% and operating margins expanded both year over year and sequentially. The strength of our 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 for our site development services remained strong in the quarter, outpacing the strong backlog burn.

We are pleased to have closed the CEC acquisition in the quarter, which contributed $41 million to revenue and adjusted operating income that was in-line with our expectations in September. As we have begun early discussions with our customers, we have even more confidence that the combination of CEC's leading electrical services to high-growth markets and Sterling's best-in-class site civil infrastructure services will allow us to accelerate project timelines and drive even more value.

Transportation Solutions revenue increased 10% and adjusted operating income grew 40%. 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 backlog and revenue in the near term, but will continue to benefit margins as we move through 2025 and into 2026.

In Building Solutions, revenue declined 1% and adjusted operating income declined 10%. 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 year-to-date performance, backlog, and visibility into future phase opportunities. The midpoints of our revised 2025 guidance would represent 27% year-over-year revenue growth as adjusted for RHB, 47% adjusted diluted earnings per share growth and 42% adjusted EBITDA growth," Mr. Cutillo concluded.

Full Year 2025 Guidance

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.

(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, November 4, 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 and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, 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 anticipated benefits of the CEC 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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues

$ 689,019

$ 593,741

$ 1,734,436

$ 1,616,923

Cost of revenues

(518,803)

(463,942)

(1,326,240)

(1,297,477)

Gross profit

170,216

129,799

408,196

319,446

General and administrative expense

(37,585)

(30,672)

(106,203)

(85,826)

Intangible asset amortization

(6,035)

(4,280)

(15,074)

(12,857)

Acquisition related costs

(5,349)

(72)

(8,023)

(209)

Earn-out expense

(1,343)

(1,000)

(4,029)

(3,000)

Other operating income (expense), net

5,405

(6,283)

11,082

(15,203)

Operating income

125,309

87,492

285,949

202,351

Interest income

5,677

7,591

19,405

19,798

Interest expense

(4,140)

(6,286)

(14,367)

(19,463)

Income before income taxes

126,846

88,797

290,987

202,686

Income tax expense

(30,517)

(23,404)

(72,959)

(48,960)

Net income, including noncontrolling interests

96,329

65,393

218,028

153,726

Less: Net income attributable to noncontrolling interests

(4,241)

(4,072)

(15,472)

(9,478)

Net income attributable to Sterling common stockholders

$ 92,088

$ 61,321

$ 202,556

$ 144,248

Net income per share attributable to Sterling common stockholders:

Basic

$ 3.02

$ 2.00

$ 6.64

$ 4.67

Diluted

$ 2.97

$ 1.97

$ 6.56

$ 4.63

Weighted average common shares outstanding:

Basic

30,519

30,735

30,491

30,875

Diluted

30,960

31,070

30,875

31,184

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Revenues

2025

% of

Revenue

2024

% of

Revenue

2025

% of

Revenue

2024

% of

Revenue

E-Infrastructure Solutions

$ 417,106

60 %

$ 263,899

45 %

$ 945,775

55 %

$ 689,687

43 %

Transportation Solutions

170,490

25 %

227,251

38 %

487,948

28 %

608,995

37 %

Building Solutions

101,423

15 %

102,591

17 %

300,713

17 %

318,241

20 %

Total Revenues

$ 689,019

$ 593,741

$ 1,734,436

$ 1,616,923

Operating Income

E-Infrastructure Solutions

$ 106,614

25.6 %

$ 68,076

25.8 %

$ 237,023

25.1 %

$ 146,922

21.3 %

Transportation Solutions

24,377

14.3 %

18,573

8.2 %

61,605

12.6 %

42,154

6.9 %

Building Solutions

10,752

10.6 %

12,249

11.9 %

32,959

11.0 %

42,837

13.5 %

Segment Operating Income

141,743

20.6 %

98,898

16.7 %

331,587

19.1 %

231,913

14.3 %

Corporate G&A Expense

(9,742)

(10,334)

(33,586)

(26,353)

Acquisition Related Costs

(5,349)

(72)

(8,023)

(209)

Earn-out Expense

(1,343)

(1,000)

(4,029)

(3,000)

Total Operating Income

$ 125,309

18.2 %

$ 87,492

14.7 %

$ 285,949

16.5 %

$ 202,351

12.5 %

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

September 30,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

$ 306,395

$ 664,195

Accounts receivable

496,058

247,050

Contract assets

102,736

55,387

Receivables from and equity in construction joint ventures

5,204

5,811

Receivable from affiliate

—

32,054

Other current assets

52,755

17,383

Total current assets

963,148

1,021,880

Property and equipment, net

268,033

236,795

Investment in unconsolidated subsidiary

108,512

107,400

Operating lease right-of-use assets, net

64,232

52,668

Goodwill

580,564

264,597

Other intangibles, net

561,716

316,390

Other non-current assets, net

16,062

17,044

Total assets

$ 2,562,267

$ 2,016,774

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$ 198,323

$ 130,420

Contract liabilities

616,273

508,846

Current maturities of long-term debt

15,154

26,423

Current portion of long-term lease obligations

20,980

20,498

Accrued compensation

62,033

36,774

Other current liabilities

54,030

18,997

Total current liabilities

966,793

741,958

Long-term debt

279,479

289,898

Long-term lease obligations

43,588

32,455

Deferred tax liability, net

118,616

109,360

Other long-term liabilities

68,796

16,625

Total liabilities

1,477,272

1,190,296

Stockholders' equity:

Common stock

315

312

Additional paid in capital

369,505

288,395

Treasury stock, at cost

(103,745)

(63,121)

Retained earnings

785,051

582,495

Total Sterling stockholders' equity

1,051,126

808,081

Noncontrolling interests

33,869

18,397

Total stockholders' equity

1,084,995

826,478

Total liabilities and stockholders' equity

$ 2,562,267

$ 2,016,774

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Nine Months Ended September 30,

2025

2024

Cash flows from operating activities:

Net income

$ 218,028

$ 153,726

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

54,526

50,546

Amortization of debt issuance costs and non-cash interest

633

877

Gain on disposal of property and equipment

(2,500)

(3,280)

Distribution of earnings from unconsolidated subsidiary

16,252

—

Equity in earnings from unconsolidated subsidiary

(11,082)

—

Deferred taxes

9,256

6,107

Stock-based compensation

18,241

13,753

Changes in operating assets and liabilities

(49,417)

101,106

Net cash provided by operating activities

253,937

322,835

Cash flows from investing activities:

Acquisitions, net of cash acquired

(484,156)

(4,827)

Capital expenditures

(50,923)

(65,309)

Proceeds from sale of property and equipment

4,014

7,834

Net cash used in investing activities

(531,065)

(62,302)

Cash flows from financing activities:

Repayments of debt

(21,067)

(19,931)

Repurchase of common stock

(48,546)

(50,596)

Withholding taxes paid on net share settlement of equity awards

(9,650)

(13,408)

Debt issuance costs

(1,409)

—

Other

—

(34)

Net cash used in financing activities

(80,672)

(83,969)

Net change in cash, cash equivalents, and restricted cash

(357,800)

176,564

Cash, cash equivalents and restricted cash at beginning of period

664,195

471,563

Cash, cash equivalents and restricted cash at end of period

306,395

648,127

Less: restricted cash

—

Cash and cash equivalents at end of period

$ 306,395

$ 648,127

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

ADJUSTED NET INCOME RECONCILIATION

(In thousands)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income attributable to Sterling common stockholders

$ 92,088

$ 61,321

$ 202,556

$ 144,248

Non-cash stock-based compensation

5,963

4,371

18,241

13,753

Intangible asset amortization (1)

7,906

4,280

20,688

12,857

Acquisition related costs

5,349

8,023

209

Earn-out expense

1,343

1,000

4,029

3,000

Income tax impact of adjustments

(4,947)

(2,563)

(12,782)

(7,203)

Adjusted net income attributable to Sterling common stockholders (2)

$ 107,702

$ 68,481

$ 240,755

$ 166,864

Net income per share attributable to Sterling common stockholders:

Basic

$ 3.02

$ 2.00

$ 6.64

$ 4.67

Diluted

$ 2.97

$ 1.97

$ 6.56

$ 4.63

Adjusted net income per share attributable to Sterling common stockholders:

Basic

$ 3.53

$ 2.23

$ 7.90

$ 5.40

Diluted

$ 3.48

$ 2.20

$ 7.80

$ 5.35

Weighted average common shares outstanding:

Basic

30,519

30,735

30,491

30,875

Diluted

30,960

31,070

30,875

31,184

(1)

For the three and nine months ended September 30, 2025, intangible asset amortization includes $1,871 and $5,614, respectively related to the basis difference 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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income attributable to Sterling common stockholders

$ 92,088

$ 61,321

$ 202,556

$ 144,248

Depreciation and amortization (1)

22,059

17,363

60,965

50,546

Interest income, net

(1,537)

(1,305)

(5,038)

(335)

Income tax expense

30,517

23,404

72,959

48,960

EBITDA (2)

143,127

100,783

331,442

243,419

Non-cash stock-based compensation

5,963

4,371

18,241

13,753

Acquisition related costs

5,349

8,023

209

Earn-out expense

1,343

1,000

4,029

3,000

Adjusted EBITDA (3)

$ 155,782

$ 106,226

$ 361,735

$ 260,381

(1)

For the three and nine months ended September 30, 2025, depreciation and amortization includes $1,871 and $5,614, respectively, of intangible asset amortization and $275 and $825, respectively, of depreciation expense related to the basis difference 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 nine months ended September 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 September 30,

Nine Months Ended September 30,

Revenues (Excluding RHB)

2025

% of

Revenue

2024

% of

Revenue

2025

% of

Revenue

2024

% of

Revenue

E-Infrastructure Solutions

$ 417,106

60 %

$ 263,899

51 %

$ 945,775

55 %

$ 689,687

48 %

Transportation Solutions

170,490

25 %

155,063

30 %

487,948

28 %

424,396

30 %

Building Solutions

101,423

15 %

102,591

19 %

300,713

17 %

318,241

22 %

Total Revenues (Excluding RHB) (1)

$ 689,019

$ 521,553

$ 1,734,436

$ 1,432,324

Adjusted Operating Income

E-Infrastructure Solutions

$ 111,697

26.8 %

$ 71,244

27.0 %

$ 249,998

26.4 %

$ 158,430

23.0 %

Transportation Solutions

26,680

15.6 %

19,070

12.3 %

68,528

14.0 %

43,456

10.2 %

Building Solutions

12,594

12.4 %

13,928

13.6 %

38,625

12.8 %

47,754

15.0 %

Adjusted Segment Operating Income

150,971

21.9 %

104,242

20.0 %

357,151

20.6 %

249,640

17.4 %

Corporate G&A Expense

(5,101)

(7,027)

(20,221)

(17,470)

Total Adjusted Operating Income (2)

$ 145,870

21.2 %

$ 97,215

18.6 %

$ 336,930

19.4 %

$ 232,170

16.2 %

(1)

Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, the Company reports 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 nine months ended September 30, 2024, total GAAP revenue of $593,741 and $1,616,923, respectively, have been adjusted to exclude $72,188 and $184,599, 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 September 30, 2025, GAAP operating income of $125,309 is adjusted to exclude $5,963 of non-cash stock-based compensation, $7,906 of intangible asset amortization (including $1,871 related to the basis difference of RHB), $5,349 of acquisition related costs, and $1,343 of earn-out expense.

For the nine months ended September 30, 2025, GAAP operating income of $285,949 is adjusted to exclude $18,241 of non-cash stock-based compensation, $20,688 of intangible asset amortization (including $5,614 related to the basis difference of RHB), $8,023 of acquisition related costs, and $4,029 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 nine months ended September 30, 2024, GAAP operating income of $202,351 is adjusted to exclude $13,753 of non-cash stock-based compensation, $12,857 of intangible asset amortization, $209 of acquisition related costs, and $3,000 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

$ 270,000

$ 275,000

$ 257,461

Gain on deconsolidation of subsidiary, net

—

(91,289)

Non-cash stock-based compensation

24,000

19,003

Intangible asset amortization (1)

30,000

17,037

Acquisition related costs

8,000

421

Earn-out expense

6,000

4,756

Income tax impact of adjustments

(17,000)

13,356

Adjusted net income attributable to Sterling common stockholders (2)

$ 321,000

$ 326,000

$ 220,745

Net income per share attributable to Sterling common stockholders:

Diluted

$ 8.73

$ 8.87

$ 8.27

Adjusted net income per share attributable to Sterling common stockholders:

Diluted

$ 10.35

$ 10.52

$ 7.09

Weighted average common shares outstanding:

Diluted (2025 is approximate)

31,000

31,146

(1)

Full year 2025 guidance includes intangible asset amortization of approximately $7,500 related to the basis difference 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

$ 270

$ 275

$ 257

Depreciation and amortization (1)

Interest income, net of interest expense

(3)

(4)

(2)

Income tax expense

EBITDA (2)

448

453

410

Gain on deconsolidation of subsidiary, net

—

(91)

Non-cash stock-based compensation

Acquisition related costs

—

Earn-out expense

Adjusted EBITDA (3)

$ 486

$ 491

$ 343

(1)

Full year 2025 guidance includes depreciation and intangible asset amortization of approximately $1.1 million and $7.5 million, respectively, related to the basis difference 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

$ 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

$ 38,464

$ 73,947

$ 72,188

$ 51,277

$ 235,876

Revenues (Excluding RHB/Non-GAAP) (1)

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

$ 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)

(1,756)

(4,756)

Total Operating Income

$ 42,125

$ 72,734

$ 87,492

$ 62,271

$ 264,622

Adjusted Operating Income (Non-GAAP)

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)

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 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

SOURCE Sterling Infrastructure, Inc.