Sterling Infrastructure, Inc. has recently released its 10-K report, providing an in-depth look into its operations and financial performance. The company operates through three main 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. The Building Solutions segment provides residential and commercial concrete foundations and plumbing services.
In the 10-K report, Sterling Infrastructure highlighted several significant transactions. Notably, the company sold its 50% ownership interest in a partnership with Myers for $18 million in cash, with additional payments due by the end of 2025 and 2027. This strategic shift aimed to reduce the portfolio of low-bid heavy highway and water containment projects and improve the company's margins. Furthermore, Sterling Infrastructure completed the acquisition of Professional Plumbers Group, Incorporated for approximately $57 million, expanding its suite of residential services in the Dallas-Fort Worth market.
The report also discussed the deconsolidation of the company's 50% owned subsidiary, Road and Highway Builders, LLC, resulting in changes to the way its results are accounted for. Sterling Infrastructure emphasized its commitment to sustainability and its focus on strategic objectives, including growth in E-Infrastructure Solutions, risk reduction in Transportation Solutions, geographic expansion in Building Solutions, and improving margins across all segments.
Sterling Infrastructure's market outlook and trends highlighted favorable opportunities for long-term growth across its business segments. The company anticipated significant growth opportunities in its E-Infrastructure Solutions business, driven by investments in data centers and advanced manufacturing centers. In the Transportation Solutions segment, strong state and federal funding were expected to drive elevated market levels, while the Building Solutions segment was anticipated to benefit from residential market recovery and expansion in key markets.
In terms of backlog, Sterling Infrastructure reported a backlog of $1.69 billion at the end of 2024, with a book-to-burn ratio of 1.02. The company's margin in backlog increased to 16.7% at the end of 2024 from 15.2% at the end of 2023. Additionally, unsigned awards were $137.9 million at the end of 2024, contributing to a combined backlog of $1.83 billion.
Financially, Sterling Infrastructure reported revenues of $2.12 billion in 2024, representing a 7.3% increase compared to the prior year. The company's gross profit increased by 26.2% to $426.1 million, with a gross margin of 20.1% in 2024, up from 17.1% in the prior year. General and administrative expenses amounted to $118.4 million, or 5.6% of revenue, reflecting incremental costs from the Texas plumbing business acquisition. Other operating expenses, net, increased by $8.6 million in 2024 compared to the prior year.
Today the company's shares have moved 3.8% to a price of $120.31. For the full picture, make sure to review Sterling Infrastructure's 10-K report.
