Sterling Infrastructure, Inc. reported a strong start to 2025, with first-quarter adjusted net income increasing by 28% and adjusted diluted EPS reaching $1.63. Revenue for the quarter was $430.9 million, representing a 7% increase on a pro forma basis, driven by robust growth in its E-Infrastructure and Transportation Solutions segments. The company maintained strong gross profit margins of 22% and saw adjusted EBITDA grow by 31%.
The E-Infrastructure Solutions segment continued its exceptional performance, with revenue up 18% and adjusted operating income growing 61%, leading to adjusted operating margins of 23.2%. Data centers now account for over 65% of the E-Infrastructure backlog, which itself grew 27% to over $1.2 billion. Sterling's overall backlog stood at $2.1 billion, a 17% increase year-over-year on a like-for-like basis, with a book-to-burn ratio of 2.2x.
During the first quarter, Sterling completed the acquisition of Drake Concrete, LLC for $25 million in cash plus an earn-out opportunity. This acquisition is expected to contribute approximately $55 million in revenue and $6.5 million in adjusted EBITDA in 2025, strengthening the Building Solutions segment's footprint in the Dallas-Fort Worth residential market. Based on these strong results and the acquisition, Sterling increased its full-year 2025 guidance, now projecting 12% revenue growth, 22% adjusted diluted EPS growth, and 23% adjusted EBITDA growth at the midpoint, all on a pro forma basis.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.