Sterling Infrastructure reports Q3 adjusted EPS $3.48, consensus $2.84

Reports Q3 revenue $689.0M, consensus $618.8M. “Our outstanding Q3 results reflect the strength of our portfolio, as we delivered very strong top line growth of 32% and even better bottom-line growth, with adjusted diluted earnings per share reaching $3.48, a 58% increase,” stated CEO Joe Cutillo. “…Gross profit margins in the quarter of 25% marked a new high for the Company, as we have shifted the business toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 47%. We ended the quarter with signed backlog of $2.6B, which grew 34% year-over-year on a same-store basis. Combined backlog grew 44% and reached over $3B for the first time in our history. Third quarter book to burn ratios excluding the impact of CEC, were 1.23x for backlog and 1.76x for combined backlog. With the addition of CEC, the aggregate of our combined backlog and high-probability future phase work gives us visibility into a pool of work totaling more than $4B. Our operating cash flow generation in the third quarter was again excellent at $84M, and we remain in a positive net cash position.”