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Sterling Q1 2025 Earnings Report
Sterling Infrastructure, Inc. reported its financial results for the first quarter of 2025, showing significant growth in adjusted net income and EBITDA, driven by strong performance in E-Infrastructure and Transportation Solutions.
Key Takeaways
Sterling Infrastructure, Inc. delivered a strong first quarter in 2025, with adjusted net income increasing by 28% and adjusted diluted EPS by 29%. Revenue grew 7% excluding RHB, primarily fueled by an 18% increase in E-Infrastructure Solutions and 9% in Transportation Solutions. Gross profit margins expanded significantly to 22.0%.
Adjusted net income increased by 28% to $50.2 million, with adjusted diluted EPS reaching $1.63.
Revenues grew 7% (excluding RHB) to $430.9 million, driven by E-Infrastructure Solutions (18% growth) and Transportation Solutions (9% growth).
Gross margin improved to 22.0% from 17.5% in the prior year quarter.
Adjusted EBITDA increased by 31% to $80.3 million, reflecting a shift towards higher-margin service offerings.
Revenue by Segment
Forward Guidance
Sterling is raising its full-year 2025 guidance, anticipating continued bottom-line growth that outpaces top-line growth, driven by strong first-quarter performance, robust backlog, and the impact of share repurchases.
Positive Outlook
- Revenue guidance increased to $2.05 billion - $2.15 billion.
- Net income guidance raised to $222 million - $239 million.
- Diluted EPS guidance increased to $7.15 - $7.65.
- EBITDA guidance raised to $381 million - $403 million.
- Adjusted EBITDA guidance increased to $410 million - $432 million.
Challenges Ahead
- The downsizing of the low-bid Texas heavy highway business is expected to weigh on revenue and backlog in the near term.
- Residential businesses continue to be impacted by the slowdown in the housing market.
- Prospective homebuyers are facing affordability challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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