On November 6, 2023, Sterling Infrastructure Inc (STRL, Financial) announced its financial results for the third quarter of 2023. The company reported significant growth in revenues, net income, and backlog, demonstrating strong performance and positive momentum.
Financial Performance
The company reported revenues of $560.3 million, a 13.7% increase from the prior year quarter. The gross margin was 16.4%, a slight increase from 16.1% in the prior year quarter. Net income was $39.4 million, or $1.26 per diluted share, an increase of 28% and 25% respectively. EBITDA was $71.2 million, a 15.7% increase from the prior year quarter.
Financial Position
Cash flows from operations totaled $331.2 million for the nine months ended September 30, 2023. Cash and Cash Equivalents totaled $409.4 million at September 30, 2023. The company's backlog at September 30, 2023 was $2.01 billion, a 42% increase over December 31, 2022.
CEO Remarks and Outlook
CEO Joe Cutillo stated,
In the third quarter, we surpassed our internal projections by delivering diluted EPS of $1.26, a 25% increase from the corresponding period last year. As a result, we are raising our diluted EPS guidance to $4.10 to $4.23 from $4.00 to $4.20. Our quarter-end backlog of over $2 billion, a 42% increase from year-end 2022 levels, supports our expectation for continued momentum in 2024."
Full Year 2023 Guidance
The company raised its full year 2023 guidance to revenues of $1.99 billion to $2.05 billion, net income of $128 million to $132 million, diluted EPS of $4.10 to $4.23, and EBITDA of $252 million to $260 million.
Segment Information
The E-Infrastructure Solutions segment reported revenues of $253.9 million, the Transportation Solutions segment reported revenues of $192.9 million, and the Building Solutions segment reported revenues of $113.4 million.
Balance Sheet
As of September 30, 2023, the company had cash and cash equivalents of $409.4 million and total assets of $1.72 billion. The company had total liabilities of $1.13 billion and total stockholders' equity of $585.4 million.
Statement of Cash Flows
For the nine months ended September 30, 2023, the company reported net cash provided by operating activities of $331.2 million, net cash used in investing activities of $25.6 million, and net cash used in financing activities of $81.4 million.
Explore the complete 8-K earnings release (here) from Sterling Infrastructure Inc for further details.
