About Sterling Infrastructure

Sterling Infrastructure, Inc. (Sterling) provides e-infrastructure, transportation and building solutions. The company operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services for manufacturing, data centers, e-commerce distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, and plumbing services for new single-family residential builds. On November 16, 2023, the company completed the acquisition of Professional Plumbers Group, Incorporated (‘PPG’), a corporation headquartered in Wylie, Texas, near Dallas-Fort Worth. PPG’s business provides services for all the major plumbing phases required for new single-family residential builds, which expands the company’s suite of residential services in the Dallas-Fort Worth market to include the next critical phase of the build once the slab is complete. The results of PPG are included within the company’s Building Solutions segment. Business Strategy The company’s strategic elements include solidifying the base, growing high margin products and services, and expansion into adjacent markets. Segments, Markets and Customers The company’s operations consist of three reportable segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. E-Infrastructure Solutions The company’s E-Infrastructure Solutions segment serves large, blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors and more. The company is a leading provider of large-scale site development services in the Southeastern, Northeastern and Mid-Atlantic U.S. Four customers accounted for 40% of the segment’s revenue in 2023. Transportation Solutions The company’s Transportation Solutions segment is consisted of heavy highway, aviation and rail projects, and it relies heavily on federal and state infrastructure spending. The principal geographic markets of this segment are Arizona, Colorado, Nevada, Texas, Utah and the Pacific Islands. Within these principal markets, the company’s core customers are state Departments of Transportation (‘DOT(s)’) and regional transit, airport, port, water and railroad authorities. Four state DOTs accounted for 50% of the segment’s revenue in 2023. Building Solutions The company’s Building Solutions segment is consisted of the company’s residential and commercial businesses. The principal geographic market for the company’s residential business is Texas, specifically Dallas-Fort Worth, Houston and the surrounding communities. In 2021, the company expanded its residential business into the greater Phoenix area and continued this expansion in 2022 with the acquisition of the CCS (Concrete Construction Services of Arizona LLC and its affiliate, CCS Contracting Services LLC) business. In 2023, the company further expanded its services in the Dallas-Fort Worth market to include plumbing services for all the major plumbing phases required for new single-family residential builds with the company’s acquisition of PPG. The company’s core residential customer base is consisted of leading national, regional and custom home builders. The company’s commercial business focuses on concrete construction of multi-family foundations, parking structures, elevated slabs and other concrete work for leading developers and general contractors in commercial markets. Four customers, including their respective affiliates, accounted for 42% of the segment’s revenue in 2023. Seasonality Operations for the company’s segments are often affected by weather conditions, especially during the first and fourth quarters of the company’s fiscal year (year ended December 2023). Government and Environmental Regulations The company’s operations must comply with various regulatory requirements imposed by federal, state and local agencies and authorities, including safety, wage and hour regulations and other labor issues, immigration controls, vehicle and equipment operations and other aspects of the company’s business. For example, the company’s operations are subject to the requirements of the Occupational Safety and Health Act (‘OSHA’) and comparable state laws directed toward the protection of employees. History The company was founded in 1955. It was incorporated in 1991. The company was formerly known as Oakhurst Company, Inc. and changed its name to Sterling Construction Company, Inc. in 2001 and to Sterling Infrastructure, Inc. in 2022.