Total Revenue

+6% " " " " "

The $593.7 million revenue increase was driven by continued organic growth in the company’s segments and incremental contributions from recent acquisitions. Favorable infrastructure market conditions also helped bolster volumes, while strategic initiatives targeting advanced manufacturing and data-center projects contributed to top-line expansion. Looking ahead, sustained public investment in infrastructure and ongoing focus on higher-margin projects are expected to support revenue growth.

Operating Income (EBIT)

+53% " " " " "

The jump to $87.5 million in EBIT stemmed from a favorable project mix with higher-margin opportunities, continued efficiency gains, and lower material cost volatility compared to the prior period. Company-specific initiatives around cost management and execution discipline further enhanced margins. Going forward, maintaining margin discipline and selecting mission-critical, higher-value projects are likely to remain central strategies.

Net Income

+56% " " " " "

Net income climbed to $61.3 million on the back of strong revenue growth, improved operating leverage, and lower supply chain pressures. This was amplified by reduced interest expenses and effective tax rate stability which converted higher operating income into higher net profitability. Continued focus on core segments and improved execution should help uphold profitability.

SG&A

+22% " " " " "

SG&A rose to $30.7 million, mainly from acquisition-related overhead, inflation in key support functions, and growth-driven hires to manage expanding project pipelines. Despite this increase, SG&A remains relatively controlled as a percentage of revenue. Over time, the company intends to offset higher overhead with operational efficiencies and integration synergies.

D&A

-43% " " " " "

The decrease to $17.4 million indicates lower capital spending obligations and amortization charges from acquisitions maturing. Some earlier-phase intangible assets may also have fully amortized, reducing the overall depreciation and amortization burden. Looking forward, any new major acquisitions or significant capital investments could again affect D&A levels.

EPS (Diluted)

+56% " " " " "

EPS grew to $1.97, propelled by the robust net income growth, improved margins, and disciplined cost management. The combination of favorable market dynamics, larger-scale projects, and prudent balance sheet management helped elevate per-share earnings. Continued focus on high-return projects and conservative capital allocation signals potential for sustained EPS strength.

Revenue

FY 2024

$2.15B to $2.225B "

$2.15B to $2.175B "

lowered

Gross Profit Margin

FY 2024

18.5% to 19% "

19% to 20% "

raised

Net Income

FY 2024

$175M to $180M "

$180M to $185M "

raised

Diluted EPS

FY 2024

$5.60 to $5.75 "

$5.85 to $6.00 "

raised

EBITDA

FY 2024

$300M to $310M "

$310M to $315M "

raised

Effective Tax Rate

FY 2024

Approximately 25% "

Approximately 24% "

lowered

Net CapEx

FY 2024

$60M to $65M "

$65M to $70M "

raised

Consistent demand and pipeline growth (E-Infrastructure)

In Q1, Q2, and Q4, Sterling emphasized robust demand driven by data center projects with backlog shares around 40% and a steadily growing pipeline that underpins future project visibility. " " " " " "

In Q3, data center projects now represent over 50% of the E-Infrastructure backlog, with strong pipeline growth and expectations of incremental pipeline work exceeding $1 billion by mid-2025. " " " "

Upward momentum with increased emphasis on data center growth.

Strong cash flow generation

Previous periods highlighted operating cash flows of $50 million (Q1), $121 million (Q2) and record levels with strong liquidity in Q4, underpinning funding for acquisitions and growth. " " " "

Q3 reported operating cash flow of $152 million and a net cash position of $326 million, reinforcing a robust liquidity profile to fund strategic initiatives. " "

Consistently strong with a progressive increase, supporting growth and acquisitions.

Consistent margin expansion across segments

In Q1 and Q2, E-Infrastructure margins expanded by 290 to over 480 basis points, while Q4 noted significant margin boosts across Transportation and modest changes in Building Solutions. " " " "

Q3 showed dramatic improvement in E-Infrastructure margins (expanding over 1,100 basis points to 25.8%) alongside healthy gains in Transportation, although Building Solutions continued to experience mixed signals. " " " "

Improving, particularly in high-priority segments, indicating stronger profitability.

Backlog growth and project visibility

Q1, Q2, and Q4 demonstrated strong and growing backlogs, with Transportation Solutions showing significant increases and overall pipeline visibility extending into 2025 and beyond. " " "

In Q3, the total backlog was steady at $2.1 billion with strong visibility for future projects and a robust pipeline exceeding $0.5 billion, reinforcing confidence in sustained growth. " " "

Stable with high visibility; consistently positive outlook across periods.

Geographic and market diversification

In Q1 and Q4, Sterling discussed expanding into the Northeast, as well as entering new verticals such as semiconductors, pharma, and food and beverage to diversify revenue streams. " " " "

No specific mention in Q3 regarding geographic or vertical diversification efforts.

Not mentioned in current period, suggesting a temporary de-emphasis.

Interest rate dependency risks

Q2 detailed the slowdown in small warehouses, commercial, and e-commerce due to rising rates, while Q1 noted softness with expectations for recovery by early 2025; Q4 had no explicit dependency risk reference.

Q3 highlighted affordability challenges impacting these segments, with potential for accelerated recovery if interest rate cuts occur before year-end. " " "

Persistent risk with a slightly optimistic outlook if conditions improve.

Challenges in the Building Solutions segment

Q1 noted strong performance in key markets like Dallas, Houston, and Phoenix; Q2 observed a 7% revenue decline due to weather and land constraints; Q4 offered a mixed picture with robust residential growth but weak commercial performance. " " "

Q3 reported contrasting signals with softness in the Dallas market (29% decline in residential slabs) but early positive indicators in plumbing, alongside growth in Houston and Phoenix. " "

Mixed signals persist; recovery signs emerging in specific submarkets amid ongoing challenges.

Pipeline conversion risks

Q4 and Q2 highlighted that multi-phase contracts lead to incremental backlog additions that are not immediately bookable, with inherent uncertainty in timing. " "

Q3 reiterated that pipeline work consists of contractual change orders tied to project completions, which makes immediate revenue recognition challenging despite a growing backlog. "

Consistently communicated caution due to contractual structures, maintaining a neutral risk profile.

Selective acquisition strategy challenges

Q1 emphasized a highly selective approach with active pursuit of quality targets; Q2 noted challenges in finding great businesses despite ongoing efforts; Q4 acknowledged difficulty in securing targets that enhance recurring revenue streams. " " "

In Q3, there was no specific discussion on acquisition challenges, although the importance of M&A in the E-Infrastructure market was reasserted. "

Acquisition challenges persist though not explicitly reiterated in the current period.

Leadership transition risks

Only Q4 mentioned an upcoming CFO retirement with plans for a seamless transition. "

No mention in Q3 regarding leadership transition or CFO retirement.

Not mentioned in the current period, indicating resolution or decreased emphasis.