Sterling Infrastructure, Inc.

Good morning, ladies and gentlemen, and welcome to the Sterling Infrastructure second quarter webcast and conference call. At this time, all 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 require immediate assistance, please press star zero for the operator. As a reminder, this call is being recorded on Tuesday, August 4, 2026. I would now like to turn the conference call over to Noelle Dilts, Vice President of Investor Relations and Corporate Strategy. Please go ahead.

Good morning to everyone joining us and welcome to Sterling Infrastructure's second quarter 2026 earnings conference call and webcast. I'm pleased to be here today to discuss our results with Joe Cutillo, Sterling's Chief Executive Officer, Nick Grindstaff, Sterling's Chief Financial Officer, and Dan Govin, Sterling's Chief Operating Officer. As a reminder, there are accompanying slides on the Investor Relations section of our website. These slides include details on our full-year 2026 financial guidance. Before turning the call over to Joe, I will read the State 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 obligation 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 operating income, 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 on our earnings release issued yesterday afternoon. I'll now turn the call over to our CEO, Joe Cutillo.

Thanks, Noelle. Good morning, everyone, and thank you for joining Sterling's second quarter 2026 earnings call. Sterling delivered another outstanding quarter with revenue growth of 90% and adjusted diluted EPS growth of 116%, from $2.69 to $5.00 and 80 Cents. These results reflect the strength of our strategy, accelerating demand across our markets, and the exceptional execution by our teams. Adjusted EBITDA more than doubled in the quarter, with margins expanding 150 basis points year over year to reach 22%. The current market demand allows us to be selective. Rather than chasing every opportunity, We are concentrating on the projects that strengthen our customer relationships, position us for future growth, and enhance our margins. Signed backlog at quarter end totaled $4.3 billion, up 116% year-over-year. And combined backlog increased 150% to reach $5.6 billion. In addition, We have visibility into high-probability future phase opportunities that exceed $1.4 billion. Together, our signed backlog, unsigned awards, and future phase opportunities provide visibility into a total addressable pool of work of more than $7 billion, an increase of more than $2.5 billion since year end. The growth in our backlog and future phase work in the quarter, together with our visibility into customers' multi-year capital plans, further strengthens our confidence in our multi-year outlook.