Q1 2025 Total Revenue

–2% (USD 430,949k vs. USD 440,360k)

Total Revenue declined slightly by 2% in Q1 2025 compared to Q1 2024, suggesting modest revenue challenges possibly due to seasonal or market mix shifts versus the previous period’s stronger performance. This minor decline contrasts with robust performance in other areas. " " "

Q1 2025 Operating Income

+33% (USD 56,076k vs. USD 42,125k)

Operating Income increased by 33%, reflecting a significant improvement in profitability driven by an enhanced project mix and cost efficiencies. Stronger margins in higher-margin segments helped boost operating income compared to the previous period’s results. " " "

Q1 2025 Net Income attributable to Sterling

+27% (USD 39,477k vs. USD 31,048k)

Net Income rose by approximately 27%, as the benefits of improved operating profitability were passed through to the bottom line, indicating effective expense management and favorable operational performance relative to Q1 2024. " " "

Q1 2025 Net Cash Provided by Operating Activities

+71% (USD 84,883k vs. USD 49,591k)

Net Cash from Operations surged by 71%, demonstrating enhanced cash flow management, potentially driven by improved working capital controls, a higher level of non-cash adjustments (such as increased depreciation/amortization), and better management of contract capital compared to the prior period. "

Q1 2025 Balance Sheet Liquidity

– Not a YoY percentage change provided; Total Assets USD 2,034,539k and Cash/Restricted Cash USD 638,647k

A robust liquidity position is evident with total assets of USD 2,034,539k and ending cash & equivalents of USD 638,647k. This healthy balance sheet reflects the company’s ability to generate strong operating cash flows, which helped build on the solid liquidity base established in previous periods. " "

Revenue

FY 2025

$2.0 billion to $2.15 billion "

$2.05 billion to $2.15 billion "

raised

Net Income

FY 2025

no prior guidance

$222 million to $239 million "

no prior guidance

Diluted EPS

FY 2025

$6.75 to $7.25 "

$7.15 to $7.65 "

raised

Adjusted EPS

FY 2025

$7.90 to $8.40 "

$8.40 to $8.90 "

raised

EBITDA

FY 2025

$370 million to $395 million "

$381 million to $403 million "

raised

Adjusted EBITDA

FY 2025

$395 million to $420 million "

$410 million to $432 million "

raised

E-Infrastructure Backlog and Pipeline Growth

Previously, Q4 2024 " reported surpassing a $1B backlog with notable pipeline work, Q3 2024 " highlighted incremental awards driving a 13% increase and strong data center contributions, and Q2 2024 " emphasized improved margins with a steady backlog growth.

In Q1 2025 " the backlog reached $1.2B with a 27% year‐over‐year increase, future phase expectations were raised to $0.75B, and visibility into nearly $2B in work was noted, driven largely by mission‐critical projects.

Consistent growth and expanding pipeline driven by a strong focus on mission‐critical data center work, demonstrating continuous upward momentum in backlog size and project visibility. " " " "

Data Center Demand and Expansion

Q4 2024 " " and Q3 2024 " noted robust demand—with data center work representing over 50–60% of the backlog—and geographic expansion into regions like the Rocky Mountains was discussed. Q2 2024 " " emphasized more than 100% revenue growth in data center projects with ongoing expansion in key regions.

Q1 2025 " " reported data center revenue increasing 60% year‐over‐year, with mission‐critical work now making up over 65% of the backlog and continued customer focus on capacity and geographic demand (e.g. Texas activity).

Strong and sustained demand, with a continued emphasis on data center projects as the primary growth driver. The geographic focus remains robust, and the strategic narrative has shifted toward maintaining this dominance amid organic and potential acquisition-based expansion. " " " " " "

Operating Margin Improvement and Project Mix Adjustment

In Q4 2024 " " operating margins saw significant improvements (up to 700 basis points in some cases) due to a mix shift toward large mission‐critical projects; Q3 2024 " " " and Q2 2024 " noted similar performances with targeted adjustments in project mix yielding higher margins.

Q1 2025 " " reported that operating margins in E-Infrastructure climbed to 23% and highlighted a deliberate move away from low‐bid projects toward higher‐margin, mission‐critical projects across segments.

Persistent and improving margin performance as the company continues to adjust its project mix. The strategy of focusing on higher-margin, mission‐critical work is consistent and appears to be yielding increasing operating efficiencies and profitability. " " " " " " "

Transportation Solutions Revenue and Strategy Shifts

Q4 2024 " " " reflected strong revenue in Transportation Solutions along with a strategic shift away from low‐bid heavy highway work, while Q3 2024 " " and Q2 2024 " " showed strong organic revenue growth, robust backlog formation, and early moves toward progressive design-build projects.

In Q1 2025 " revenue grew 9% on a pro forma basis with an 11% year‐over‐year increase in backlog; there is a clear shift away from low‐bid projects (e.g. in Texas) toward alternative, higher-margin services in highway, aviation, and rail.

An ongoing strategic pivot—the segment is shifting focus from lower-margin, low-bid contracts toward projects with higher operating profit potential without sacrificing organic growth, underscoring a gradual yet marked emphasis on profitability. " " " " " " "

Pricing Strategies and Tariff/Raw Material Exposure Management

Q4 2024 " " provided limited discussion—mainly noting stable pricing in mission‐critical projects and minimal immediate impact from tariffs—while Q3 2024 and Q2 2024 " had little or no explicit details on these topics.

Q1 2025 " offered detailed coverage including indexing mechanisms for key materials (steel, piping), phase-by-phase pricing strategies, and contractual adjustments to manage raw material and tariff exposures effectively across segments.

An increased focus on proactive pricing and cost risk management is now evident. The detailed, structured approach in Q1 2025 marks a shift to more rigorous measures to protect margins, reflecting a strategic response to market volatility not as prominently discussed in prior periods. " " " "

Legislative Uncertainty and Federal Funding Risks

Q4 2024 " discussed the stability of transportation project funding under a mix of state and federal sources, with no significant negative impact; Q3 2024 and Q2 2024 explicitly did not address this topic.

Q1 2025 " reaffirmed that federal funding is expected to continue, citing historical transition mechanisms and bipartisan efforts toward a new, potentially larger infrastructure bill, thus mitigating concerns over legislative uncertainty.

Consistent optimism despite uncertainty—while legislative risks have always been a background theme, the current period underscores proactive planning and bipartisan progress, reducing potential risks and reinforcing a stable outlook for federal funding. " "

Geographic Expansion Challenges

Q4 2024 " highlighted the cost and logistical difficulties of shipping crews long distances and the challenges in identifying suitable acquisition targets; Q3 2024 " noted diminishing returns when deploying assets too far, and Q2 2024 " " mentioned organic expansion into new regions like the Mid-Atlantic and Rocky Mountain areas.

Q1 2025 " pointed out that despite high activity in Texas, the company’s footprint there is limited; it is actively exploring both organic growth and acquisitions to strengthen its presence in high-potential regions.

Ongoing and persistent challenges in geographic expansion are evident across periods. Although strategies are evolving (including acquisitions), logistical and cost barriers continue to temper expansion efforts, necessitating further strategic adjustments. " " " " "

Acquisition Strategy and M&A Opportunities

Q4 2024 " " emphasized targeting the e-Infrastructure market and the difficulty finding acquisition targets that match Sterling’s scale; Q3 2024 " " and Q2 2024 " " " described an active search for complementary acquisitions to bolster growth and fill geographic gaps.

Q1 2025 " " reaffirmed the focus on acquisitions to accelerate geographic expansion and add complementary services such as electrical and mechanical capabilities, emphasizing an ongoing search to enhance their competitive platform.

A sustained strategic priority—the emphasis on acquisitions remains constant across periods, with a continued focus on supplementing organic growth through targeted M&A, particularly in e-Infrastructure and complementary service areas, to drive future expansion. " " " " " " " " "

Building Solutions and Residential Market Dynamics

In Q4 2024 " " , Q3 2024 " " , and Q2 2024 " " the Building Solutions segment showed mixed results with revenue declines in residential concrete slabs, softness in key geographies like Dallas, and challenges related to affordability and land availability, though long-term recovery was anticipated.

Q1 2025 " reported a 14% revenue decline in Building Solutions, with the legacy residential business down 19% due to softness in the housing market, severe weather, and affordability challenges, even while acknowledging pent-up demand.

Continued weakness in the residential market is evident, with near-term softness driven by affordability, weather, and market challenges. However, there is cautious long-term optimism as pent-up demand and strategic acquisitions (e.g. Drake Concrete) may help reverse the trend in key geographies. " " " " " " "

Interest Rate Impact on Key Market Segments

Q4 2024 " " and Q3 2024 " observed that higher interest rates were contributing to affordability challenges and slowing residential demand, while Q2 2024 " noted that although higher rates had a dampening effect, there was cautious optimism that eventual rate cuts would revive activity.

Q1 2025 " " again highlighted that elevated interest rates are suppressing housing demand and impacting affordability in the Building Solutions segment, though there is an expectation that a decline in rates will eventually help rebalance demand.

Interest rates continue to be a significant headwind affecting affordability and demand in key market segments. The sentiment remains consistent: short-term pressures are evident, but there is guarded optimism that a future easing of rates will positively impact the market. " " " " "