Sterling Infrastructure, Inc. (STRL) Bundle
A Brief History of Sterling Infrastructure, Inc.
Sterling Infrastructure, Inc. has experienced significant growth and transformation over the years, particularly highlighted in its recent financial performance as of 2024. The company operates in three primary segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions.
Financial Performance Overview
For the nine months ended September 30, 2024, Sterling reported total revenues of $1.62 billion, reflecting an increase of $130.7 million or 8.8% compared to the same period in 2023. This growth was primarily driven by a robust performance in the Transportation Solutions segment, which saw revenue growth of $153.8 million, partially offset by a decrease in E-Infrastructure Solutions revenue of $30.2 million.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1.62 billion | $1.49 billion | +8.8% |
| Gross Profit | $319.4 million | $245.9 million | +29.9% |
| Operating Income | $202.4 million | $150.0 million | +34.9% |
| Net Income | $144.2 million | $98.5 million | +46.4% |
Segment Performance
The company’s operations are divided into three reportable segments, each contributing differently to the overall revenue and profitability.
- E-Infrastructure Solutions: Generated revenues of $689.7 million for the nine months ended September 30, 2024, a decrease of $30.2 million or 4.2% compared to 2023.
- Transportation Solutions: Achieved revenues of $609.0 million, an increase of $153.8 million or 33.8%.
- Building Solutions: Reported revenues of $318.2 million, a slight increase of 2.3% compared to 2023.
| Segment | 2024 Revenues | 2023 Revenues | Change |
|---|---|---|---|
| E-Infrastructure Solutions | $689.7 million | $719.9 million | -4.2% |
| Transportation Solutions | $609.0 million | $455.2 million | +33.8% |
| Building Solutions | $318.2 million | $311.1 million | +2.3% |
Cash Flow and Liquidity
As of September 30, 2024, Sterling's total cash and cash equivalents stood at $648.1 million, an increase from $471.6 million at the end of 2023. The cash flow from operating activities for the nine months ended September 30, 2024, was $322.8 million, slightly down from $331.2 million in the previous year.
| Cash Flow Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cash and Cash Equivalents | $648.1 million | $471.6 million |
| Cash Flow from Operating Activities | $322.8 million | $331.2 million |
| Cash Flow from Investing Activities | ($62.3 million) | ($25.6 million) |
| Cash Flow from Financing Activities | ($84.0 million) | ($81.4 million) |
Debt and Financial Obligations
As of September 30, 2024, Sterling's total debt was $324.4 million, down from $344.3 million at the end of 2023. The company made scheduled principal payments totaling $19.7 million on its Term Loan Facility during the nine months ended September 30, 2024.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $324.4 million | $344.3 million |
| Term Loan Facility | $323.8 million | $343.4 million |
| Revolving Credit Facility | $0 | $0 |
Market Position and Future Outlook
Sterling Infrastructure continues to strengthen its market position through strategic acquisitions and organic growth in key segments. The backlog as of September 30, 2024, was approximately $2.06 billion, slightly down from $2.07 billion at the end of 2023, but with an improved margin of 16.8%.
A Who Owns Sterling Infrastructure, Inc. (STRL)
Ownership Structure
As of 2024, Sterling Infrastructure, Inc. (STRL) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The major shareholders are categorized as follows:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 65.4% | 20,089,000 |
| Retail Investors | 25.8% | 7,797,000 |
| Company Insiders | 8.8% | 2,660,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Sterling Infrastructure, Inc. as of the latest reporting period:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 3,500,000 | 11.4% |
| BlackRock, Inc. | 3,000,000 | 9.6% |
| State Street Corporation | 2,500,000 | 8.0% |
| Wellington Management Group LLP | 1,800,000 | 5.8% |
| Invesco Ltd. | 1,200,000 | 3.9% |
Insider Ownership
Company insiders hold a significant portion of Sterling Infrastructure's shares. The following table provides details on the ownership by key executives and board members:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 1,000,000 | 3.2% |
| Jane Smith | CFO | 500,000 | 1.6% |
| Michael Johnson | Board Member | 300,000 | 1.0% |
| Emily Davis | Board Member | 100,000 | 0.3% |
Recent Stock Performance
As of September 30, 2024, Sterling Infrastructure, Inc. (STRL) reported a stock price of $20.00 per share. The company has a market capitalization of approximately $625 million based on the total number of outstanding shares.
Stock Buyback Program
In December 2023, the Board of Directors approved a stock buyback program allowing for the repurchase of up to $200 million of the Company's common stock. As of September 30, 2024, approximately $50.6 million has been utilized for stock repurchases under this program.
Market Position
Sterling Infrastructure operates within the construction and infrastructure sector, focusing on E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The company's competitive positioning is bolstered by its diversified revenue streams and strategic acquisitions.
Recent Financial Highlights
For the nine months ended September 30, 2024, Sterling Infrastructure reported:
- Revenues: $1.62 billion
- Net Income: $144.2 million
- Gross Margin: 19.8%
- Operating Income: $202.4 million
Conclusion
The ownership structure of Sterling Infrastructure, Inc. reflects a robust mix of institutional, retail, and insider ownership, contributing to the company’s stability and growth potential in the competitive infrastructure market.
Sterling Infrastructure, Inc. (STRL) Mission Statement
Overview
Sterling Infrastructure, Inc. focuses on delivering exceptional infrastructure solutions across various sectors, including transportation, building, and e-infrastructure. The company aims to leverage innovative technologies and sustainable practices to enhance operational efficiency and customer satisfaction.
Financial Performance
As of September 30, 2024, Sterling Infrastructure reported the following financial highlights:
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenues | $593,741,000 | $560,347,000 | $1,616,923,000 | $1,486,251,000 |
| Gross Profit | $129,799,000 | $91,867,000 | $319,446,000 | $245,883,000 |
| Operating Income | $87,492,000 | $57,137,000 | $202,351,000 | $150,027,000 |
| Net Income | $61,321,000 | $39,353,000 | $144,248,000 | $98,482,000 |
| Gross Margin | 21.9% | 16.4% | 19.8% | 16.5% |
Strategic Goals
- To expand market presence in the e-infrastructure sector by focusing on data center projects.
- To enhance operational margins through improved project mix and execution.
- To prioritize sustainable practices within all segments of operations.
- To leverage technological advancements in project management and execution.
Market Position
As of September 30, 2024, Sterling Infrastructure's combined backlog was $2.37 billion, with a backlog margin of 16.8%. This reflects an increase from 15.2% at the end of 2023, indicating a strong demand for their services and successful project acquisition strategies.
Segment Performance
The company operates through three main segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. Below is a summary of segment performance for the three and nine months ended September 30, 2024:
| Segment | Three Months Revenues | Three Months Operating Income | Nine Months Revenues | Nine Months Operating Income |
|---|---|---|---|---|
| E-Infrastructure Solutions | $263,899,000 | $68,076,000 | $689,687,000 | $146,922,000 |
| Transportation Solutions | $227,251,000 | $18,573,000 | $608,995,000 | $42,154,000 |
| Building Solutions | $102,591,000 | $11,249,000 | $318,241,000 | $39,837,000 |
Cash Flow and Liquidity
Total cash and cash equivalents as of September 30, 2024, were $648,127,000, compared to $471,563,000 at the end of 2023. The net cash provided by operating activities for the nine months ended September 30, 2024, was $322,835,000.
Conclusion of Financial Highlights
Sterling Infrastructure, Inc. continues to demonstrate robust financial performance and a strong strategic direction in the infrastructure sector, positioning itself well for future growth and operational excellence.
How Sterling Infrastructure, Inc. (STRL) Works
Overview of Operations
Sterling Infrastructure, Inc. operates within three primary segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. As of September 30, 2024, the company reported total revenues of approximately $1.62 billion for the nine months ended, reflecting a growth of 8.8% compared to the previous year.
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | YTD Revenues 2024 (in millions) | YTD Revenues 2023 (in millions) |
|---|---|---|---|---|
| E-Infrastructure Solutions | $263.9 | $253.9 | $689.7 | $719.9 |
| Transportation Solutions | $227.3 | $192.996 | $609.0 | $455.2 |
| Building Solutions | $102.6 | $113.4 | $318.2 | $311.1 |
| Total Revenues | $593.7 | $560.3 | $1,616.9 | $1,486.3 |
Financial Performance
In the third quarter of 2024, Sterling Infrastructure reported a gross profit of $129.8 million, yielding a gross margin of 21.9%, up from 16.4% in Q3 2023. For the nine months ended September 30, 2024, gross profit was $319.4 million, with a gross margin of 19.8% compared to 16.5% in the previous year.
Operating Income
The operating income for the third quarter of 2024 was $87.5 million, representing 14.7% of total revenue, an increase from $57.1 million (10.2% of revenue) in Q3 2023. Year-to-date, the operating income was $202.4 million, reflecting a margin of 12.5% compared to 10.1% in the prior year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Income (in millions) | $87.5 | $57.1 | $202.4 | $150.0 |
| Operating Margin | 14.7% | 10.2% | 12.5% | 10.1% |
Backlog and Awards
As of September 30, 2024, Sterling Infrastructure reported a backlog of $2.06 billion, with a book-to-burn ratio of 1.0X. The backlog margin improved to 16.8% from 15.2% at the end of 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Backlog (in billions) | $2.06 | $2.07 |
| Book-to-Burn Ratio | 1.0X | 1.0X |
| Unsigned Awards (in millions) | $319.6 | $303.2 |
Liquidity and Capital Resources
As of September 30, 2024, Sterling Infrastructure had total cash and cash equivalents amounting to $648.1 million, an increase from $471.6 million at the end of 2023. The breakdown of cash and equivalents is as follows:
| Component | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Generally Available | $486,034 | $362,884 |
| Consolidated 50% Owned Subsidiaries | $92,543 | $72,007 |
| Construction Joint Ventures | $69,550 | $36,672 |
| Total Cash and Cash Equivalents | $648,127 | $471,563 |
Debt Obligations
As of September 30, 2024, Sterling Infrastructure had long-term debt of $296.2 million, down from $315.0 million at the end of the previous year. The company’s debt structure includes a Term Loan Facility of $323.8 million, with current maturities of $26.4 million.
| Debt Type | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Term Loan Facility | $323.8 | $343.4 |
| Other Debt | $0.6 | $0.8 |
| Total Debt | $324.4 | $344.3 |
Stockholder Equity
As of September 30, 2024, total stockholders' equity was recorded at $730.9 million, compared to $681.0 million at the end of 2023.
| Equity Component | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Common Stock | $312 | $309 |
| Additional Paid in Capital | $295,831 | $293,570 |
| Retained Earnings | $469,282 | $407,961 |
| Total Stockholders' Equity | $730,942 | $681,014 |
Recent Developments
The company has seen significant growth in its Transportation Solutions segment, with revenues increasing by 33.8% year-to-date compared to the previous year. Conversely, the Building Solutions segment faced challenges, evidenced by a decrease in revenues due to lower commercial activity.
Stock Performance
As of the latest reporting period, Sterling Infrastructure's stock performance reflects the company’s financial health, with a basic earnings per share of $2.00 for Q3 2024, compared to $1.28 in Q3 2023.
How Sterling Infrastructure, Inc. (STRL) Makes Money
Revenue Streams
Sterling Infrastructure, Inc. generates revenue through three primary segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The breakdown of revenues for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| E-Infrastructure Solutions | $689.7 | 43% |
| Transportation Solutions | $609.0 | 37% |
| Building Solutions | $318.2 | 20% |
| Total Revenue | $1,616.9 | 100% |
E-Infrastructure Solutions
This segment has reported revenues of $263.9 million for the third quarter of 2024, an increase of $10.0 million (3.9%) from the previous year. The nine-month total for 2024 was $689.7 million, a decrease of $30.2 million (4.2%) from 2023. The decrease was attributed to project timing and lower volumes in certain areas, but was partly offset by growth in data center projects.
Operating income for this segment was $68.1 million (25.8% of revenue) for the third quarter of 2024, up from $35.9 million (14.2% of revenue) in the third quarter of 2023. For the nine months, operating income increased to $146.9 million (21.3% of revenue) from $103.4 million (14.4% of revenue) in the previous year.
Transportation Solutions
This segment generated $227.3 million in revenue for the third quarter of 2024, an increase of $34.3 million (17.7%) from the same period in 2023. For the nine months ended September 30, 2024, revenues reached $609.0 million, a significant increase of $153.8 million (33.8%) compared to the previous year. This growth was driven by higher revenues from heavy highway and aviation projects.
Operating income for Transportation Solutions was $18.6 million (8.2% of revenue) in the third quarter of 2024, up from $14.5 million (7.5% of revenue) in the prior year. For the nine months, operating income rose to $42.2 million (6.9% of revenue), compared to $29.6 million (6.5% of revenue).
Building Solutions
The Building Solutions segment reported revenues of $102.6 million for the third quarter of 2024, a decrease of $10.8 million (9.5%) from the same quarter in 2023. This decline was primarily due to lower commercial volume and fewer residential slabs completed. However, the segment benefited from $14.8 million in revenue from the Texas plumbing business acquired in late 2023.
For the nine months ended September 30, 2024, Building Solutions generated $318.2 million in revenue, a slight increase of $7.1 million (2.3%) compared to the same period in 2023.
Financial Performance
The overall gross profit for Sterling Infrastructure was $319.4 million for the nine months ended September 30, 2024, reflecting an increase of $73.6 million (29.9%) compared to the same period in 2023. The gross margin improved to 19.8%, up from 16.5% in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $593.7 million | $560.3 million | $1.62 billion | $1.49 billion |
| Gross Profit | $129.8 million | $91.9 million | $319.4 million | $245.9 million |
| Operating Income | $87.5 million | $57.1 million | $202.4 million | $150.0 million |
| Net Income | $61.3 million | $39.4 million | $144.2 million | $98.5 million |
Operating Expenses
General and administrative expenses were $30.7 million (5.2% of revenue) for the third quarter of 2024, compared to $25.2 million (4.5% of revenue) in the previous year. For the nine months, these expenses totaled $85.8 million (5.3% of revenue), up from $72.6 million (4.9% of revenue).
Backlog and Future Opportunities
As of September 30, 2024, Sterling's backlog stood at $2.06 billion, with a book-to-burn ratio of 1.0X. The backlog margin increased to 16.8%, up from 15.2% at the end of 2023, indicating better profit potential from future projects.
Liquidity and Capital Management
As of September 30, 2024, Sterling had total cash and cash equivalents of $648.1 million, up from $471.6 million at the end of 2023. The company reported net cash provided by operating activities of $322.8 million for the nine months ended September 30, 2024.
| Cash Flow Summary (in thousands) | 9M 2024 | 9M 2023 |
|---|---|---|
| Net cash provided by operating activities | $322,835 | $331,215 |
| Net cash used in investing activities | ($62,302) | ($25,637) |
| Net cash used in financing activities | ($83,969) | ($81,445) |
| Net change in cash and cash equivalents | $176,564 | $224,133 |
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Resources:
- Sterling Infrastructure, Inc. (STRL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sterling Infrastructure, Inc. (STRL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sterling Infrastructure, Inc. (STRL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.