On this page of StockholderLetter.com we present the latest annual shareholder letter from STERLING INFRASTRUCTURE, INC. — ticker symbol STRL. Reading current and past STRL letters to shareholders can bring important insights into the investment thesis.
Building Tomorrow Today ANNUAL REPORT FOR THE YE AR ENDED DECEMBER 31, 2024 NASDAQ: STRL
Table of Contents Message From Our Leaders iii 2024 Results at a Glance v Strategic Execution vi Sterling Business Segments vii The Sterling Way viii Building Tomorrow Today ix 2024 Form 10-K 1 About Sterling Sterling Infrastructure, Inc. ( Sterling or the Company ) operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services for data centers, manufacturing, e-commerce distribution centers, warehousing and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work and plumbing services and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society s quality of life. Caring for our people and our communities, our customers and our investors that is The Sterling Way. Joe Cutillo, CEO, We build and service the infrastructure that enables our economy to run, our people to move and our country to grow. WA MT OR Geographic Footprint ID E-Infrastructure & Transportation NV Transportation Transportation & Building NY WY E-Infrastructure CA PA NE UT CO Transportation, E-Infrastructure & Building AZ NJ DE WV KS VA KY MD NC TN NM SC MS AL GA TX FL Sterling Infrastructure, Inc. 2024 Annual Report ii
Message From Our Leaders Dear Shareholders, As we conclude 2024, we reflect on another year of tremendous progress and success at Sterling Infrastructure. Our unwavering focus on high-margin growth, strategic market expansion and operational excellence has strengthened our leadership position in the industry. Today, Sterling is driving industry-leading margins, robust cash flow and sustainable long-term value for our stakeholders. At the core of this success is The Sterling Way our steadfast commitment to innovation, execution and responsibility to our people, customers, investors and communities. While we celebrate our accomplishments, our focus remains on the road ahead. Sterling plays a crucial role in shaping America s future advancing the facilities necessary for artificial intelligence (AI) and other emerging technologies, building domestic manufacturing infrastructure, strengthening critical transportation networks and developing the homes in which we live. This infrastructure is the backbone of tomorrow s America. With strong end markets and margin expansion opportunities, we are well positioned to drive significant bottom-line growth and create sustained value for our shareholders. 2024 HIGHLIGHTS AND ACCOMPLISHMENTS Optimizing Margins and Returns To Drive Shareholder Value Sterling delivered another outstanding year in 2024, achieving adjusted EPS growth of 37% and revenue growth of 7%. This marks our fourth consecutive year generating adjusted EPS growth in excess of 35%. Our disciplined approach to project selection and resource allocation prioritizing high-margin, high-return opportunities remains a key driver of our success. In 2024, we reached a major milestone as gross margins expanded 300 basis points to 20.1%, surpassing the 20% target we set a few years ago. Looking ahead, we see continued opportunities for margin expansion and strong financial performance. Our outstanding execution led to a 91.6% increase in Sterling s share price in 2024, significantly outperforming the S&P 500 s 23% growth. Multi-Year Investment Trends Driving Growth Across Our Segments Our E-Infrastructure Solutions segment achieved a 44% increase in operating income in 2024 as our work continued to shift toward large, mission-critical projects, including data centers. Our superior project management capabilities and ability to finish jobs ahead of schedule are extremely valuable to our customers in the mission-critical space. We continue to see significant opportunity over the next several years associated with the reshoring of manufacturing to America. We ended the year with an E-Infrastructure Solutions backlog of over $1 billion for the first time in our history, up 27% over the prior year period, at strong margins. Additionally, our backlog does not yet capture nearly three-quarters of a billion dollars in high-probability work tied to future project phases on our current jobs. The combination of our firm backlog and these future phase opportunities provides us with clear visibility into future growth and profitability. Our Transportation Solutions segment grew revenue by 24% and operating income by 21% in 2024, benefiting from historic levels of state and federal infrastructure funding, including the Infrastructure Investment and Jobs Act (IIJA). In our core Rocky Mountain and Arizona markets, demand for transportation projects remains at very high levels, and we see growth opportunities for 2025 and 2026, albeit at more modest rates than seen in 2024, as we have moved deeper into the funding cycle. Late in 2024, we made the strategic decision to accelerate the wind down of our Texas low-bid operations. While this will moderate top-line and backlog growth, we believe this will have a meaningful benefit to margins as we move through the year. We believe we are positioned to deliver strong operating income growth in Transportation Solutions in the coming years. Our Building Solutions segment remains well positioned to deliver revenue and profitability growth over a multi-year period, driven by population growth, housing needs and share gain in our Dallas-Fort Worth, Houston and Phoenix markets. In 2024, demand for homes, particularly in DFW, has been impacted as potential homebuyers struggle with affordability challenges. We are cautiously optimistic that activity will accelerate in the second half of 2025. Additionally, we see opportunity for share gain in the Houston, Phoenix and Fort Worth markets. Sterling Infrastructure, Inc. 2024 Annual Report iii
Strengthening Our Balance Sheet and Strategic Capital Allocation Sterling s strong operating cash flow generation of nearly $500 million in 2024 resulted in a net cash position of $348 million at year end. Our disciplined approach to capital allocation prioritizes strategic acquisitions that expand our services, enhance our market position and drive long-term value. Additionally, we are taking an opportunistic approach to share repurchases. During the year, we repurchased $71 million of stock at an average price of approximately $117 per share. There remained $129 million available under our existing authorization at year end. We remain committed to deploying capital in a disciplined manner to maximize shareholder value. At Sterling, protecting our employees remains our top priority. Commitment to Safety and Our People In 2024, our industry-leading safety initiatives maintained an incident rate 45% below the national average. We received multiple industry accolades for our safety culture, including ten safety awards, two of which were first-place honors from the American Road & Transportation Builders and Associated General Contractors of America. Our commitment to safety is unwavering, and we continue to foster a culture of care, ensuring our employees return home safely every day. Beyond our strong financial and safety performance, Sterling earned numerous industry recognitions in 2024. We ranked #12 in Forbes America s Best Mid-Cap Companies, #41 in Engineering News-Record s (ENR) Top 50 Domestic Heavy Contractors, #59 in ENR s Top 400 Contractors and #167 in ENR s Top 250 Global Contractors. Additionally, we received multiple project of the year and national association awards. Sustainability: A Core Pillar of Sterling s Success Sustainable and responsible business practices are fundamental to Sterling s long-term success. As we build America s future, we embrace our responsibility to develop sustainable infrastructure solutions that promote environmental stewardship, efficiency and equity. We are committed to fostering a diverse and inclusive workforce, driving innovation and integrating sustainable practices across our operations. By prioritizing these principles, we not only enhance long-term value for stakeholders but also contribute to a more resilient and sustainable future. POSITIONED FOR CONTINUED SUCCESS IN 2025 AND BEYOND We are incredibly proud of our accomplishments, but our journey is far from over. We believe the platform we have built and the end markets we serve offer significant potential for growth. By staying true to our strategic pillars and delivering on our commitments to our employees, stakeholders and communities, Sterling will continue to drive exceptional performance and create long-term value. Sincerely, We build and service the infrastructure that enables our economy to run, our people to move and our country to grow. Joseph A. Cutillo Chief Executive Officer Roger A. Cregg Chairman of the Board Sterling and S&P 500 price performance on page iii, 12/29/2023 to 12/31/2024 Sterling Infrastructure, Inc. 2024 Annual Report iv
2024 Results at a Glance1 With another year of record results in 2024, Sterling achieved a fourth consecutive year generating adjusted EPS growth of over 35%. Sterling s share price appreciated 91.6%, bringing the company s market capitalization to over $5 billion. Total Revenue Growth +7% Gross Profit Growth +26.2% Operating Income Growth +28.6% Net Income Growth +85.7% BILLION MILLION MILLION MILLION EBITDA2 Growth +59% Adjusted Diluted EPS3 Growth +36.8% $2.12 $410.9 MILLION $426 $6.10 $265 Generated $497.1 MILLION 4 In Cash Flow From Operations $257 Combined Backlog $1.83 BILLION 5 Our continuous drive, fueled by our team s entrepreneurial spirit and commitment to excellence, has delivered strong results year after year. 1. From Continuing Operations unless otherwise noted. 2. The Company defines EBITDA as GAAP net income from continuing operations of $257.5M + depreciation and amortization of $68.4M net interest income of $2.4M + taxes $87.4M for an EBITDA of $410.9M for the year ended December 31, 2024. The Company defines Adjusted EBITDA as EBITDA the net gain on deconsolidation of subsidiary of $91.3M + acquisition related costs of $0.4M for Adjusted EBITDA of $320.0M. 3. The Company defines adjusted net income from Continuing Operations as GAAP net income from Continuing Operations of $257.5M excluding the impact of the net gain on deconsolidation of subsidiary of $91.3M + acquisition related costs of $0.4M + the income tax impact of these adjustments of $23.3M for adjusted net income of $189.9M. The tax impact of adjustments is determined by using the Company s quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate. Adjusted net income of $189.9M diluted weighted average common shares outstanding of 31.146M for Adjusted EPS of $6.10. 4. Cash flow from operations for the twelve months ended December 31, 2024. 5. The Company defines Combined Backlog as Remaining Performance Obligations of $1.7B + Unsigned Awards of $137.9M at December 31, 2024. Sterling Infrastructure, Inc. 2024 Annual Report v
 • shareholder letter icon 3/25/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/24/2023 STRL Stockholder Letter
 • stockholder letter icon 3/26/2024 STRL Stockholder Letter
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 • Benford's Law Stocks icon STRL Benford's Law Stock Score = 76


STRL Shareholder/Stockholder Letter Transcript:

Building Tomorrow Today
ANNUAL REPORT
FOR THE YE AR ENDED DECEMBER 31, 2024
NASDAQ: STRL

Table of Contents
Message From Our Leaders
iii
2024 Results at a Glance
v
Strategic Execution
vi
Sterling Business Segments
vii
The Sterling Way
viii
Building Tomorrow Today
ix
2024 Form 10-K
1
About Sterling
Sterling Infrastructure, Inc. (   Sterling    or    the Company   ) operates through a variety of subsidiaries within three
segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily
across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands.
E-Infrastructure Solutions provides advanced, large-scale site development services
for data centers, manufacturing, e-commerce distribution centers, warehousing and more.
Transportation Solutions includes infrastructure and rehabilitation projects for highways,
roads, bridges, airports, ports, rail and storm drainage systems.
Building Solutions includes residential and commercial concrete foundations for single-family
and multi-family homes, parking structures, elevated slabs, other concrete work and plumbing
services and surveys for new single-family residential builds.
From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and
improve society   s quality of life. Caring for our people and our communities, our customers and our investors    
that is The Sterling Way.
Joe Cutillo, CEO,    We build and service the infrastructure that enables our economy to run, our people to move and our country to grow.   
WA
MT
OR
Geographic Footprint
ID
E-Infrastructure & Transportation
NV
Transportation
Transportation & Building
NY
WY
E-Infrastructure
CA
PA
NE
UT
CO
Transportation, E-Infrastructure & Building
AZ
NJ
DE
WV
KS
VA
KY
MD
NC
TN
NM
SC
MS
AL
GA
TX
FL
Sterling Infrastructure, Inc. 2024 Annual Report
ii

Message From Our Leaders
Dear Shareholders,
As we conclude 2024, we reflect on another year of tremendous progress and success at Sterling Infrastructure.
Our unwavering focus on high-margin growth, strategic market expansion and operational excellence has
strengthened our leadership position in the industry. Today, Sterling is driving industry-leading margins,
robust cash flow and sustainable long-term value for our stakeholders. At the core of this success is
The Sterling Way   our steadfast commitment to innovation, execution and responsibility to our people,
customers, investors and communities.
While we celebrate our accomplishments, our focus remains on the road ahead. Sterling plays a crucial role
in shaping America   s future   advancing the facilities necessary for artificial intelligence (AI) and other
emerging technologies, building domestic manufacturing infrastructure, strengthening critical
transportation networks and developing the homes in which we live. This infrastructure is the backbone of
tomorrow   s America. With strong end markets and margin expansion opportunities, we are well positioned
to drive significant bottom-line growth and create sustained value for our shareholders.
2024 HIGHLIGHTS AND ACCOMPLISHMENTS
Optimizing Margins and Returns To Drive Shareholder Value
Sterling delivered another outstanding year in 2024, achieving adjusted EPS growth of 37% and revenue
growth of 7%. This marks our fourth consecutive year generating adjusted EPS growth in excess of 35%. Our
disciplined approach to project selection and resource allocation   prioritizing high-margin, high-return
opportunities   remains a key driver of our success. In 2024, we reached a major milestone as gross margins
expanded 300 basis points to 20.1%, surpassing the 20% target we set a few years ago. Looking ahead, we see
continued opportunities for margin expansion and strong financial performance. Our outstanding execution
led to a 91.6% increase in Sterling   s share price in 2024, significantly outperforming the S&P 500   s 23% growth.
Multi-Year Investment Trends Driving Growth Across Our Segments
Our E-Infrastructure Solutions segment achieved a 44% increase in operating income in 2024 as our work
continued to shift toward large, mission-critical projects, including data centers. Our superior project
management capabilities and ability to finish jobs ahead of schedule are extremely valuable to our
customers in the mission-critical space. We continue to see significant opportunity over the next several
years associated with the reshoring of manufacturing to America. We ended the year with an E-Infrastructure
Solutions backlog of over $1 billion for the first time in our history, up 27% over the prior year period, at
strong margins. Additionally, our backlog does not yet capture nearly three-quarters of a billion dollars in
high-probability work tied to future project phases on our current jobs. The combination of our firm backlog
and these future phase opportunities provides us with clear visibility into future growth and profitability.
Our Transportation Solutions segment grew revenue by 24% and operating income by 21% in 2024,
benefiting from historic levels of state and federal infrastructure funding, including the Infrastructure
Investment and Jobs Act (IIJA). In our core Rocky Mountain and Arizona markets, demand for transportation
projects remains at very high levels, and we see growth opportunities for 2025 and 2026, albeit at more
modest rates than seen in 2024, as we have moved deeper into the funding cycle. Late in 2024, we made
the strategic decision to accelerate the wind down of our Texas low-bid operations. While this will moderate
top-line and backlog growth, we believe this will have a meaningful benefit to margins as we move through
the year. We believe we are positioned to deliver strong operating income growth in Transportation
Solutions in the coming years.
Our Building Solutions segment remains well positioned to deliver revenue and profitability growth over a
multi-year period, driven by population growth, housing needs and share gain in our Dallas-Fort Worth,
Houston and Phoenix markets. In 2024, demand for homes, particularly in DFW, has been impacted as
potential homebuyers struggle with affordability challenges. We are cautiously optimistic that activity will
accelerate in the second half of 2025. Additionally, we see opportunity for share gain in the Houston,
Phoenix and Fort Worth markets.
Sterling Infrastructure, Inc. 2024 Annual Report
iii

Strengthening Our Balance Sheet and Strategic Capital Allocation
Sterling   s strong operating cash flow generation of nearly $500 million in 2024 resulted in a net cash position
of $348 million at year end. Our disciplined approach to capital allocation prioritizes strategic acquisitions
that expand our services, enhance our market position and drive long-term value. Additionally, we are
taking an opportunistic approach to share repurchases. During the year, we repurchased $71 million of
stock at an average price of approximately $117 per share. There remained $129 million available under our
existing authorization at year end. We remain committed to deploying capital in a disciplined manner to
maximize shareholder value.
  At Sterling, protecting our employees
remains our top priority.
Commitment to Safety and Our People
In 2024, our industry-leading safety initiatives maintained an incident rate 45% below the national average.
We received multiple industry accolades for our safety culture, including ten safety awards, two of which were
first-place honors from the American Road & Transportation Builders and Associated General Contractors of
America. Our commitment to safety is unwavering, and we continue to foster a culture of care, ensuring our
employees return home safely every day.
Beyond our strong financial and safety performance, Sterling earned numerous industry recognitions in
2024. We ranked #12 in Forbes America   s Best Mid-Cap Companies, #41 in Engineering News-Record   s
(ENR) Top 50 Domestic Heavy Contractors, #59 in ENR   s Top 400 Contractors and #167 in ENR   s Top 250
Global Contractors. Additionally, we received multiple project of the year and national association awards.
Sustainability: A Core Pillar of Sterling   s Success
Sustainable and responsible business practices are fundamental to Sterling   s long-term success. As we
build America   s future, we embrace our responsibility to develop sustainable infrastructure solutions that
promote environmental stewardship, efficiency and equity. We are committed to fostering a diverse and
inclusive workforce, driving innovation and integrating sustainable practices across our operations. By
prioritizing these principles, we not only enhance long-term value for stakeholders but also contribute to a
more resilient and sustainable future.
POSITIONED FOR CONTINUED SUCCESS IN 2025 AND BEYOND
We are incredibly proud of our accomplishments, but our journey is far from over. We believe the platform
we have built and the end markets we serve offer significant potential for growth. By staying true to our
strategic pillars and delivering on our commitments to our employees, stakeholders and communities,
Sterling will continue to drive exceptional performance and create long-term value.
Sincerely,
We build and service the
infrastructure that enables our
economy to run, our people to
move and our country to grow.
Joseph A. Cutillo
Chief Executive Officer
Roger A. Cregg
Chairman of the Board
Sterling and S&P 500 price performance on page iii, 12/29/2023 to 12/31/2024
Sterling Infrastructure, Inc. 2024 Annual Report
iv

2024 Results at a Glance1
With another year of record results in 2024, Sterling achieved a fourth consecutive
year generating adjusted EPS growth of over 35%. Sterling   s share price appreciated
91.6%, bringing the company   s market capitalization to over $5 billion.
Total Revenue
Growth +7%
Gross Profit
Growth +26.2%
Operating Income
Growth +28.6%
Net Income
Growth +85.7%
BILLION
MILLION
MILLION
MILLION
EBITDA2
Growth +59%
Adjusted
Diluted EPS3
Growth +36.8%
$2.12
$410.9
MILLION
$426
$6.10
$265
Generated
$497.1
MILLION
4
In Cash Flow From
Operations
$257
Combined
Backlog
$1.83
BILLION
5
Our continuous drive, fueled by our team   s entrepreneurial spirit and
commitment to excellence, has delivered strong results year after year.
1. From Continuing Operations unless otherwise noted.
2.  The Company defines EBITDA as GAAP net income from continuing operations of $257.5M + depreciation and amortization of $68.4M     net interest income of
$2.4M + taxes $87.4M for an EBITDA of $410.9M for the year ended December 31, 2024. The Company defines Adjusted EBITDA as EBITDA     the net gain on
deconsolidation of subsidiary of $91.3M + acquisition related costs of $0.4M for Adjusted EBITDA of $320.0M.
3.  The Company defines adjusted net income from Continuing Operations as GAAP net income from Continuing Operations of $257.5M excluding the impact of
the net gain on deconsolidation of subsidiary of $91.3M + acquisition related costs of $0.4M + the income tax impact of these adjustments of $23.3M for
adjusted net income of $189.9M. The tax impact of adjustments is determined by using the Company   s quarterly and annual effective tax rate, as applicable,
unless the nature of the item requires application of a specific tax rate. Adjusted net income of $189.9M    diluted weighted average common shares outstanding
of 31.146M for Adjusted EPS of $6.10.
4. Cash flow from operations for the twelve months ended December 31, 2024.
5.  The Company defines Combined Backlog as Remaining Performance Obligations of $1.7B + Unsigned Awards of $137.9M at December 31, 2024.
Sterling Infrastructure, Inc. 2024 Annual Report
v



shareholder letter icon 3/25/2025 Letter Continued (Full PDF)
 

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