Sterling Infrastructure, Inc. reported significant financial growth for the third quarter and the first nine months of 2024, with revenues reaching $593.7 million for the three months ended September 30, 2024, a 6.0% increase from $560.3 million in the same period of 2023. For the nine months, revenues totaled $1.6 billion, up 8.8% from $1.5 billion year-over-year. The company’s gross profit for Q3 2024 was $129.8 million, reflecting a 41.3% increase from $91.9 million in Q3 2023, while gross margins improved to 21.9% from 16.4%. For the nine-month period, gross profit rose to $319.4 million, a 29.9% increase from $245.9 million in 2023.

Operating income also saw substantial growth, with Q3 2024 operating income at $87.5 million, compared to $57.1 million in Q3 2023. For the nine months, operating income increased to $202.4 million from $150.0 million. Net income attributable to Sterling common stockholders for Q3 2024 was $61.3 million, up from $39.4 million in the prior year, translating to earnings per share of $2.00, compared to $1.28 in Q3 2023. For the nine months, net income attributable to common stockholders was $144.2 million, up from $98.5 million.

The company’s current assets increased to $1.1 billion as of September 30, 2024, from $848.0 million at the end of 2023, while total assets rose to $2.0 billion from $1.8 billion. Total stockholders’ equity also improved, reaching $730.9 million, up from $623.9 million.

Strategically, Sterling Infrastructure completed the acquisition of Professional Plumbers Group, Incorporated on November 16, 2023, for $56.7 million, with potential earn-out payments of up to $20 million based on performance. This acquisition is expected to enhance the company’s capabilities in the plumbing sector.

The company reported a backlog of $2.06 billion as of September 30, 2024, slightly down from $2.07 billion at the end of 2023, with a book-to-burn ratio of 1.0X. The margin in backlog increased to 16.8% from 15.2%. The E-Infrastructure Solutions segment generated $263.9 million in Q3 2024, a 3.9% increase, while Transportation Solutions revenues surged by 17.7% to $227.3 million. However, Building Solutions revenues decreased by 9.5% to $102.6 million.

Overall, Sterling Infrastructure's financial performance reflects robust growth across its segments, driven by strategic acquisitions and increased demand in key markets, despite challenges such as inflation and supply chain volatility.