Start Time: 09:00 January 1, 0000 9:40 AM ET

Sterling Infrastructure, Inc. (NASDAQ:STRL)
Q2 2024 Earnings Conference Call
August 06, 2024, 09:00 AM ET

Company Participants

Joe Cutillo - CEO
Sharon Villaverde - CFO
Noelle Dilts - VP, IR and Corporate Strategy

Conference Call Participants

Brent Thielman - D.A. Davidson
Adam Thalhimer - Thompson Davis
Julio Romero - Sidoti

Operator

Good morning, ladies and gentlemen, and welcome to the Sterling Infrastructure Second Quarter 2024 Conference Call and Webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. [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, Investor Relations and Corporate Strategy. Please go ahead.

Noelle Dilts

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. As a reminder, there are accompanying slides on the Investor Relations section of our website. These slides include details on our updated financial guidance.

Before turning the call over to Joe, I will read the Safe Harbor statement. The discussion today may include forward-looking statements. Actual results could differ materially from the statements made today. Please refer to Sterling's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligations to update forward-looking statements as a result of new information, future events, or otherwise.

Please also note that management may reference EBITDA, adjusted EBITDA, adjusted net income, or adjusted earnings per share on this call, which are all financial measures not recognized under U.S. GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in our earnings release issued yesterday afternoon.

I'll now turn the call over to our CEO, Joe Cutillo.

Joe Cutillo

Thanks, Noelle. Good morning, everyone, and thank you for joining Sterling's second quarter 2024 earnings call. Our second quarter results reflect our commitment to delivering strong bottom line growth in cash flow to our shareholders. For the quarter, we delivered EPS of $1.67, up 31% over prior year and a new second quarter record. Our continued focus on margin expansion helped drive gross profit margins to over 19%. We grew operating income 20% on revenue growth of 12% as we continue to shift our mix towards higher margin services.