Sterling Infrastructure beats Q4 earnings, shares rise on strong 2025 outlook

Published 25/02/2025, 23:06
Sterling Infrastructure beats Q4 earnings, shares rise on strong 2025 outlook

THE WOODLANDS, Texas - Sterling Infrastructure, Inc. (NASDAQ:STRL) reported fourth-quarter earnings that surpassed analyst expectations, driving shares up 3% in after-hours trading. The company also provided robust revenue guidance for 2025, signaling continued growth.

The infrastructure construction company posted adjusted earnings per share of $1.46 for Q4, beating the analyst consensus of $1.29. Revenue came in at $498.8 million, up 3% YoY but below estimates of $533.43 million.

For the full year 2024, Sterling reported adjusted net income of $189.9 million, or $6.10 per diluted share, a 36.3% increase from $139.3 million, or $4.46 per share, in 2023. Full-year revenue grew 7% compared to the previous year.

"2024 was another record year for Sterling as we grew our adjusted net income by 36% to deliver diluted EPS of $6.10, which was above the high end of our previously guided range," said CEO Joe Cutillo.

Looking ahead, Sterling provided an optimistic outlook for 2025, projecting revenue between $2.00 billion and $2.15 billion. The midpoint of this guidance represents 10% growth on a pro forma basis and exceeds the average analyst estimate of $2.06 billion.

The company’s E-Infrastructure Solutions segment showed particular strength, with operating income growing 50% in Q4 and margins expanding nearly 700 basis points to 24.1%. Data center-related revenue increased over 50% compared to the prior year quarter and now represents over 60% of the segment’s backlog.

Sterling ended the quarter with a combined backlog of $1.83 billion, slightly up from the previous year. The company’s cash position remained strong, with $664.2 million in cash and cash equivalents as of December 31, 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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