STRL Earnings Prediction
The chart below shows how STRL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STRL sees a -0.75% change in stock price 10 days leading up to the earnings, and a +9.46% change 10 days following the report. On the earnings day itself, the stock moves by +1.43%. This data can give you a slight idea of what to expect for the next quarter's release.
STRL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
498.83M
2.65%
-15.98%
Gross Margin
20.55%
13.85%
-2.79%
Operating Margin
12.53%
8.20%
-15.05%
Net Margin
23.49%
169.07%
113.35%
EPS
3.65
187.40%
85.28%
No Data Available
STRL Earnings Analysis
Sterling Infrastructure Inc Corporation (STRL.O) Earnings Conference Call
Positive
Strong EPS and Revenue Growth: 2024 was another great year for Sterling, achieving 37% adjusted EPS growth and 7% topline growth.
Gross Profit Margin Achievement: Gross profit margin reached 20.1%, exceeding the target set a few years ago.
Strong Operating Cash Flow: Generated nearly $500 million of operating cash flow, indicating strong financial health.
E-Infrastructure Backlog Milestone: E-Infrastructure backlog reached over $1 billion for the first time in company history, showcasing growth in this segment.
E-Infrastructure Operating Income Growth: E-Infrastructure segment operating income grew 44% with operating margins reaching 22%, driven by large mission-critical projects.
E-Infrastructure Revenue Surge: Data center market drove E-Infrastructure revenue growth, increasing more than 50% over the prior year period.
Transportation Revenue Growth: Transportation Solutions revenue grew 24% for the full year, driven by strong market demand in the Rocky Mountain region.
Backlog Increase Analysis: Fourth quarter backlog totaled $1.69 billion, a 1.9% increase over the year-ago period, excluding RHB backlog.
Operating Cash Flow Increase: Cash flow from operating activities for 2024 was strong at $497.1 million, compared to $478.6 million in 2023.
Strong Liquidity Position: Strong liquidity position with $664.2 million of cash and a cash net of debt balance of $347.9 million.
2025 Revenue and EPS Guidance: 2025 guidance includes revenue of $2 billion to $2.15 billion and adjusted EPS of $7.90 to $8.40, indicating expected growth.
E-Infrastructure Revenue and Profit Growth: E-Infrastructure revenue growth in 2025 is expected to exceed 10% with operating profit growth north of 25%.
Operating Profit Growth Forecast: Transportation Solutions anticipates operating profit growth in the low to mid-teens on an adjusted basis for 2025.
Negative
Backlog Decline in Transportation: Transportation Solutions backlog decreased by 20% year-over-year on a Pro Forma basis, indicating potential challenges in securing new projects.
Building Solutions Decline: Building Solutions segment experienced a revenue decline of 3% in the fourth quarter and a 17% decline in operating income, highlighting struggles in this area.
Residential Slab Revenue Decline: The residential slab business saw a significant 14% revenue decline, primarily due to softness in the DFW market, reflecting broader issues in the housing market.
Home Buyer Affordability Challenges: The company noted that potential home buyers are facing affordability challenges, which could impact future demand for residential construction.
Strategic Shift Impacting Revenue: The shift away from low bid work in Texas for Transportation Solutions is expected to moderate top line growth, indicating a strategic retreat that may affect revenue in the short term.
Revenue Reporting Changes: The amendment to the RHB operating agreement will result in a non-cash gain but will also mean that RHB's revenue will no longer be included in Sterling's consolidated revenue, potentially affecting perceived growth metrics.
