Sterling Infrastructure reports Q1 adjusted EPS $1.63, consensus $1.45

Reports Q1 revenue $430.9M, consensus $409.05M. “Sterling is off to a great start in 2025, as we grew our Q1 adjusted net income by 28% to deliver adjusted diluted EPS of $1.63,” stated CEO Joe Cutillo. “Revenue growth in the quarter was a solid 7%, on a pro forma basis, fueled by strong 18% growth in E-Infrastructure Solutions and 9% growth in Transportation Solutions. Gross profit margins in the quarter of 22% remained extremely strong as we have shifted the business toward higher-margin service offerings, and contributed to adjusted EBITDA growth of 31%. We ended the quarter with backlog of $2.1B, a 17% increase compared to the prior year Q1 on a like-for-like basis. Our book-to-burn ratio in the quarter was 2.2x. Notably, E-Infrastructure Solutions had another strong quarter for awards, as backlog reached over $1.2B and grew 27% compared to the prior year. Additionally, our pipeline of high-probability future phase work continues to grow. Our operating cash flow generation in the first quarter was again excellent at $85M, driving our net cash position to $329M, and supporting share repurchases of $44M.”