Sterling Infrastructure, Inc. announced record financial results for the third quarter of 2024, reporting a 6% increase in revenue to $593.7 million. Diluted earnings per share (EPS) surged by 56% to $1.97, demonstrating substantial profitability growth. The company achieved a new record gross profit margin of 21.9%, reflecting its strategic focus on margin expansion.
The E-Infrastructure Solutions segment was a primary driver of this performance, with operating income growing by 89% and operating margins expanding over 1,100 basis points to 25.8%. This segment's revenue increased by 4%, with data center-related revenue specifically rising by approximately 90% and now constituting over 50% of the segment's backlog. Transportation Solutions also contributed positively with 18% revenue growth and 28% operating profit growth.
Sterling closed the third quarter with a combined backlog of $2.37 billion and a pipeline of high-probability future phase work totaling over half a billion dollars. The company generated $152 million in operating cash flow during the quarter, contributing to a net cash position of $326 million, and executed $20 million in share repurchases. Based on these strong results, Sterling raised its full-year 2024 profitability guidance, projecting 10% revenue growth, 32% net income growth, and 21% EBITDA growth at the midpoint.
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