Sterling Infrastructure, Inc. has recently released its 10-Q report, providing a detailed insight into its financial condition and operations. The company, formerly known as Sterling Construction Company, Inc., operates through three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The E-Infrastructure Solutions segment focuses on site development services for e-commerce distribution centers, data centers, manufacturing, warehousing, and power generation sectors. The Transportation Solutions segment is involved in infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems, while the Building Solutions segment provides residential and commercial concrete foundations and plumbing services.
In the 10-Q report, Sterling Infrastructure disclosed its financial highlights for the three and nine months ended September 30, 2024, and 2023. For the third quarter of 2024, the company reported revenues of $593.7 million, representing a 6.0% increase compared to the third quarter of 2023. The gross profit for the same period was $129.8 million, indicating a significant increase of 41.3% compared to the third quarter of 2023. The gross margin for the third quarter of 2024 was 21.9%, reflecting an improvement compared to the gross margin of 16.4% in the third quarter of 2023.
Sterling Infrastructure's Backlog, which represents the amount of revenues expected to be recognized in the future from contract commitments on projects, was reported at $2.06 billion as of September 30, 2024, slightly lower than the $2.07 billion reported at December 31, 2023. The company's Unsigned Awards, which are excluded from Backlog until the contract is executed, were $319.6 million at September 30, 2024, compared to $303.2 million at December 31, 2023. Combined Backlog, which includes both Backlog and Unsigned Awards, totaled $2.37 billion at both September 30, 2024, and December 31, 2023.
In terms of market outlook and trends, Sterling Infrastructure highlighted its strategic objectives, including growth in the E-Infrastructure Solutions segment, risk reduction in the Transportation Solutions business, growing market share in Building Solutions, and improving margins in each segment. The company also discussed the favorable opportunities for long-term growth across its business segments and its focus on sustainability and responsible operations.
The market has reacted to these announcements by moving the company's shares -0.3% to a price of $174.84. If you want to know more, read the company's complete 10-Q report here.
