Sterling Infrastructure, Inc.

Good morning, ladies and gentlemen, and welcome to the Sterling Infrastructure's second quarter webcast and conference call. At this time, our lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Tuesday, August 5th, 2025. I would now like to turn the conference over to Noelle Diltz. Please go ahead.

Good morning to everyone joining us and welcome to Sterling Infrastructure's 2025 second quarter earnings conference call and webcast. I'm pleased to be here today to discuss our results with Joe Cotillo, Sterling's Chief Executive Officer, and Nick Grindstaff, Sterling's Chief Financial Officer. Joe will open the call with an overview of the company and its performance in the quarter. Nick 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 full year 2025 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 EPS on this call, which are all financial measures not recognized under U.S. gaps. As required by SEC rules and regulations, these non-gap financial measures are reconciled to their most comparable gap financial measures in our earnings release issued yesterday afternoon. Our discussion of all results today, including revenue and backlog, refer to figures that adjust prior period results to conform to the current accounting of our RHB JV unless otherwise noted. As a reminder, at year-end 2024, there was a change in the accounting treatment for this JV such that we no longer consolidate revenue and backlog, but it does not change our share of EBITDA that we recognize from the JV. Our press release and filings also include a reconciliation of these adjustments. All comparisons are to the prior year quarter unless otherwise noted. Please also note that our guidance does not include any contributions from the previously announced planned acquisition of CEC facilities group, which has not yet closed. I'll now turn the call over to our CEO, Joe Cotillo.

Thanks, Noel. Good morning, everyone, and thank you for joining today's call. I'm excited to talk about another great performance by the Sterling team as we continue to drive bottom-line growth at a rate roughly double top-line growth. Revenue grew 21% in the quarter, fueled by growth of over 29% in our e-infrastructure solution segment and 24% in our transportation segment. We grew adjusted earnings per share by 41% to $2.69 and delivered adjusted EBITDA of $126 million, an increase of 35%. Our gross profit margin expanded 400 basis points from the prior year to reach 23.3%. Additionally, operating cash flow generation in the quarter was again very strong at $85 million. Looking to the future, we remain extremely positive on our outlook. We are in the markets and geographies that we believe have strong, sustainable growth that will continue over the next several years. We will further build upon the strong base we have established and remain focused on pursuing the most attractive and highest return opportunities. Our backlog position and visibility support our confidence in the future. Backlog at the end of the quarter totaled $2 billion, a 24% -over-year increase. The infrastructure solutions backlog of $1.2 billion was up a very strong 44%. Our multi-year visibility is further supported by our pipeline of future phase opportunities tied to our current projects, which remain at approximately three-quarters of a billion dollars. When you take both our signed backlog and future phase work, we have visibility into a pool of infrastructure revenue approaching $2 billion. Adding to our excitement is our previously announced agreement to acquire CEC Facilities Group. CEC will add mission-critical electrical and mechanical services to the Sterling portfolio. Combined with our -in-class site development capabilities, this addition will allow us to deliver higher value -to-end e-infrastructure solutions to our customers. We believe that this service combination will allow us to capture even more value across the full life cycle of a facility, accelerate project timelines, create stickier customer relationships, and expand our geographic footprint. The Sterling way, which is our commitment to take care of our people, our environment, our investors, and our communities while we work to build America's infrastructure, remains our guiding principle as we execute our strategy and grow the company. Now, I'd like to discuss our segment results in more detail. In e-infrastructure, second-quarter revenue grew 29% over prior year and over 42% sequentially. The data center market was again the primary growth driver in the quarter as revenue from this market more than doubled -over-year. Adjusted segment operating income grew 57% and adjusted operating margins reached 28%, an increase of over 500 basis points. This was driven by our continued shift towards large, mission-critical projects, including data centers, where our superior project management and ability to finish jobs on or ahead of schedule are extremely valuable to our customers. Mission-critical data centers and manufacturing work continues to represent the vast majority of our e-infrastructure backlog. However, we saw very strong growth in e-commerce distribution backlog in the quarter. Moving to transportation solutions, second-quarter revenue grew 24% and adjusted operating profit grew 78%, driven by strong market demand and the benefit of mixed shift towards higher margin services. We ended the quarter with transportation solutions backlog of $715 million, a 5% -over-year increase. Sequentially, segment backlog declined 17%, which reflects the strong revenue burn in the second quarter, combined with the seasonally slower awards in the second quarter, which has historically been the low point of the year. Additionally, the wind down of our Texas low-bid heavy highway operation will impact backlog, but ultimately benefit segment margins. Shifting to building solutions, in the second quarter, segment revenue declined 1% and adjusted operating income declined 28%. Adjusted operating margins in the quarter were 11%. Overall demand for homes has been impacted as potential buyers struggle with affordability challenges. Revenue from our legacy residential business declined 11%, driven by softness in the overall housing market. Even with these headwinds in building solutions, the strength of Sterling's diversified portfolio and strategy to focus on growth in high margin and markets enabled us to deliver another record quarter. With that, I'd like to turn it over to Nick to give you more details on some of our financial metrics and full-year guidance. Nick?