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Mar 31, 2021
Sterling Q1 2021 Earnings Report
Sterling reported record revenue, earnings, and operating cash flow for the first quarter of 2021, with backlog reaching an all-time high.
Key Takeaways
Sterling Construction Company reported a strong start to 2021 with record first-quarter revenue of $315.3 million, a gross margin of 14.3%, and net income of $10.6 million. The company reaffirmed its full-year 2021 revenue and income guidance, expecting to be on the higher end of the guidance range.
Revenues increased to $315.3 million compared to $296.7 million in the first quarter of 2020.
Gross margin improved to 14.3% from 11.9% in the prior year.
Operating income rose to $22.8 million, up from $12.1 million in Q1 2020.
Backlog reached a record high of $1.64 billion.
Sterling
Sterling
Forward Guidance
Sterling reaffirmed its full-year 2021 guidance, anticipating being on the higher end of the provided range.
Positive Outlook
- Strong start to the year, even with weather challenges.
- Diversified revenue streams and focus on higher margin, lower risk opportunities.
- Robust pipeline of projects for large, high-profile customers in Specialty Services.
- Impressively strong performance in the Residential segment despite weather-related disruptions.
- Continued shift in Heavy Civil revenues towards alternative delivery work and higher margins.
Challenges Ahead
- Supply chain pressures impacting segment margins, specifically relating to the cost of concrete, lumber, and steel.
- Heavy Civil revenues are down $8.6 million from the prior year quarter.
- Uncertain timing of the infrastructure bill.
- COVID-19 pandemic impact on the global economy and financial markets
- Weather challenges encountered across much of the geographic footprint