Sterling Infrastructure, Inc. reported a revenue increase of 7.3% for the fiscal year ending December 31, 2024, reaching $2.12 billion compared to $1.97 billion in 2023. The company's gross profit also rose significantly, up 26.2% to $426.1 million, resulting in a gross margin of 20.1%, an improvement from 17.1% in the previous year. This growth was primarily driven by a $152.8 million increase in the Transportation Solutions segment, which benefited from heightened federal and state infrastructure spending, while the E-Infrastructure Solutions segment experienced a slight decline of $13.7 million.
The company underwent significant strategic changes during the year, including the deconsolidation of its 50% owned subsidiary, Road and Highway Builders, LLC (RHB), which resulted in a non-cash gain of $91.3 million. This change was part of a broader strategy to reduce exposure to low-margin projects and focus on higher-margin opportunities. Additionally, Sterling completed the acquisition of Professional Plumbers Group, Incorporated (PPG) for approximately $57 million, enhancing its service offerings in the Dallas-Fort Worth market.
Operationally, Sterling's backlog decreased to $1.69 billion at the end of 2024, down from $2.07 billion in 2023, largely due to the exclusion of RHB's backlog. The company reported a gross margin in backlog of 16.7%, up from 15.2% the previous year, indicating a shift towards more profitable projects. The total employee count stood at approximately 3,000, with 20% represented by unions, reflecting the company's ongoing commitment to workforce management and safety.
Looking ahead, Sterling Infrastructure anticipates continued growth across its segments, driven by favorable market conditions and strategic investments. The company aims to capitalize on federal infrastructure funding and the increasing demand for E-Infrastructure services, particularly in data centers and advanced manufacturing. Management remains focused on improving margins and expanding market share, with expectations of recognizing approximately 74% of its backlog as revenue in 2025.
About STERLING INFRASTRUCTURE, INC.
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