Q2 2024 Sterling Infrastructure Inc Earnings Call Transcript
Key Points
- Sterling Infrastructure Inc (STRL) reported a record second-quarter EPS of $1.67, marking a 31% increase over the prior year.
- The company's gross profit margins expanded to over 19%, driven by a strategic shift towards higher-margin services.
- Backlog at the end of the quarter increased by 21% year-over-year, totaling $2.1 billion, indicating strong future demand.
- Operating cash flow was robust at $121 million, contributing to a strong net cash position of $211 million.
- The e-infrastructure segment, the largest and highest-margin segment, saw operating profit grow by 20% with margins expanding to 21.4%.
- Revenue from the small commercial and warehouse markets declined by over $30 million compared to the second quarter of 2023.
- The manufacturing market faced challenging revenue comparisons due to the start-up of a large project in early 2023.
- Building solutions segment revenue declined by 2% in the quarter, impacted by heavy rainfall in Texas and land availability challenges.
- General and administrative expenses increased by $3.8 million due to the PPG acquisition, general inflation, and growth.
- The company anticipates that the e-commerce and small warehouse markets will remain soft throughout 2024.
Good morning, ladies and gentlemen, and welcome to the Sterling Infrastructure second-quarter 2024 conference call and webcast. (Operator Instructions)
As a reminder, this call is being recorded on Tuesday, August 6, 2024. I would now like to turn the conference call over to Noelle Dilts, Vice President in Investor Relations and Corporate Strategy. Please go ahead.
Thank you. Good morning to everyone joining us, and welcome to Sterling infrastructure's 2024 second-quarter earnings conference call and webcast. I'm pleased to be here today to discuss our results with Joe Cutillo, Sterling's Chief Executive Officer, and Sharon Villaverde, Sterling's Chief Financial Officer.
Joe will open the call with an overview of the company and its performance in the quarter. Sharon will then discuss our financial results and guidance, after which Joe will provide a market and full-year outlook. We will then open the call up for questions.
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