strl-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___


Commission File Number			1-31993



STERLING INFRASTRUCTURE, INC.
(Exact name of registrant as specified in its charter)

Delaware			25-1655321
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1800 Hughes Landing Blvd. The Woodlands, Texas			77380
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (281) 214-0777


Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $0.01 par value per share	STRL	NASDAQ
(Title of each class)	(Trading Symbol)	(Name of each exchange on which registered)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. þYes ¨ No


Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þ Yes ¨ No


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	¨	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			¨


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes þ No

The number of shares outstanding of the registrant’s common stock as of May 2, 2025 – 30,412,311

STERLING INFRASTRUCTURE, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS


			Page
PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements			3

Statements of Operations			3



Balance Sheets			4

Statements of Cash Flows			5

Statements of Changes in Stockholders’ Equity			6

Notes to the Condensed Consolidated Financial Statements			7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			20

Item 3. Quantitative and Qualitative Disclosures About Market Risk			26

Item 4. Controls and Procedures			27

PART II—OTHER INFORMATION

Item 1. Legal Proceedings			27

Item 1A. Risk Factors			27

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			28





Item 5. Other Information			28

Item 6. Exhibits			28

Signatures			29

PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)


	Three Months Ended March 31,
	2025		2024
Revenues	$	430,949	$	440,360
Cost of revenues	(336,109)		(363,456)
Gross profit	94,840		76,904
General and administrative expense	(34,631)		(27,298)
Intangible asset amortization	(4,503)		(4,297)
Acquisition related costs	(179)		(36)
Earn-out expense	(1,343)		(1,000)
Other operating income (expense), net	1,892		(2,148)
Operating income	56,076		42,125
Interest income	6,827		5,902
Interest expense	(5,232)		(6,664)

Income before income taxes	57,671		41,363
Income tax expense	(15,080)		(7,604)
Net income, including noncontrolling interests	42,591		33,759
Less: Net income attributable to noncontrolling interests	(3,114)		(2,711)
Net income attributable to Sterling common stockholders	$	39,477	$	31,048

Net income per share attributable to Sterling common stockholders:
Basic	$	1.29	$	1.00
Diluted	$	1.28	$	1.00

Weighted average common shares outstanding:
Basic	30,547		30,977
Diluted	30,881		31,186

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)


	March 31,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents ($100,095 and $97,796 related to variable interest entities (“VIEs”))	$	638,647	$	664,195
Accounts receivable ($30,532 and $17,851 related to VIEs)	285,751		247,050
Contract assets ($9 and $0 related to VIEs)	48,704		55,387
Receivables from and equity in construction joint ventures	6,912		5,811
Receivable from affiliate (Note 15)	—		32,054
Other current assets	17,720		17,383
Total current assets	997,734		1,021,880
Property and equipment, net	244,659		236,795
Investment in unconsolidated subsidiary	109,291		107,400
Operating lease right-of-use assets, net	48,264		52,668
Goodwill	283,664		264,597
Other intangibles, net	333,694		316,390

Other non-current assets, net	17,233		17,044
Total assets	$	2,034,539	$	2,016,774

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable ($21,334 and $23,964 related to VIEs)	$	128,885	$	130,420
Contract liabilities ($62,413 and $51,660 related to VIEs)	534,388		508,846
Current maturities of long-term debt	26,419		26,423
Current portion of long-term lease obligations	19,333		20,498
Accrued compensation	24,918		36,774
Other current liabilities	22,826		18,997
Total current liabilities	756,769		741,958
Long-term debt	283,603		289,898
Long-term lease obligations	29,334		32,455
Deferred tax liability, net	110,010		109,360
Other long-term liabilities	27,896		16,625
Total liabilities	1,207,612		1,190,296
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock, par value $0.01 per share; 58,000 shares authorized, 31,170 and 31,170 shares issued and 30,411 and 30,669 shares outstanding	312		312
Additional paid in capital	283,050		288,395
Treasury stock, at cost: 759 and 501 shares	(99,918)		(63,121)
Retained earnings	621,972		582,495

Total Sterling stockholders’ equity	805,416		808,081
Noncontrolling interests	21,511		18,397
Total stockholders’ equity	826,927		826,478
Total liabilities and stockholders’ equity	$	2,034,539	$	2,016,774

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income	$	42,591	$	33,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,991		16,258
Amortization of debt issuance costs and non-cash interest	256		305
Gain on disposal of property and equipment	(782)		(585)

Equity in earnings from unconsolidated subsidiary	(1,892)		—
Deferred taxes	650		1,517
Stock-based compensation	6,683		4,586

Changes in operating assets and liabilities (Note 14)	20,386		(6,249)
Net cash provided by operating activities	84,883		49,591
Cash flows from investing activities:
Acquisitions, net of cash acquired	(37,860)		(1,016)

Capital expenditures	(17,924)		(22,432)
Proceeds from sale of property and equipment	1,573		2,401
Net cash used in investing activities	(54,211)		(21,047)
Cash flows from financing activities:
Repayments of debt	(6,606)		(6,678)

Repurchase of common stock	(43,846)		—
Withholding taxes paid on net share settlement of equity awards	(5,768)		(13,015)

Net cash used in financing activities	(56,220)		(19,693)
Net change in cash, cash equivalents, and restricted cash	(25,548)		8,851
Cash, cash equivalents and restricted cash at beginning of period	664,195		471,563
Cash, cash equivalents and restricted cash at end of period	638,647		480,414
Less: restricted cash	—		—
Cash and cash equivalents at end of period	$	638,647	$	480,414

Non-cash items:
Capital expenditures	$	1,519	$	6,499

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)


	Three Months Ended March 31, 2025
	Common Stock			Additional Paid in Capital		Treasury Stock			Retained Earnings		Total Sterling Stockholders’ Equity		Noncontrolling Interests		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance at December 31, 2024	30,669	$	312	$	288,395	501	$	(63,121)	$	582,495	$	808,081	$	18,397	$	826,478
Net income	—	—		—		—	—		39,477		39,477		3,114		42,591
Stock-based compensation	—	—		6,976		—	—		—		6,976		—		6,976
Repurchase of common stock	(340)	—		—		340	(43,846)		—		(43,846)		—		(43,846)
Issuance of stock	129	—		(12,321)		(129)	12,817		—		496		—		496
Shares withheld for taxes	(47)	—		—		47	(5,768)		—		(5,768)		—		(5,768)

Balance at March 31, 2025	30,411	$	312	$	283,050	759	$	(99,918)	$	621,972	$	805,416	$	21,511	$	826,927


	Three Months Ended March 31, 2024
	Common Stock			Additional Paid in Capital		Retained Earnings		Total Sterling Stockholders’ Equity		Noncontrolling Interests		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2023	30,926	$	309	$	293,570	$	325,034	$	618,913	$	4,940	$	623,853
Net income	—	—		—		31,048		31,048		2,711		33,759
Stock-based compensation	—	—		7,248		—		7,248		—		7,248
Issuance of stock	358	2		370		—		372		—		372
Shares withheld for taxes	(124)	—		(13,015)		—		(13,015)		—		(13,015)
Balance at March 31, 2024	31,160	$	311	$	288,173	$	356,082	$	644,566	$	7,651	$	652,217

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

($ and share values in thousands, except per share data)

(Unaudited)


1.			NATURE OF OPERATIONS

Business Summary

Sterling Infrastructure, Inc., (“Sterling,” “the Company,” “we,” “our” or “us”), a Delaware corporation, 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, 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, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society’s quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.


2.			BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Presentation Basis—The accompanying Condensed Consolidated Financial Statements are presented in accordance with accounting policies generally accepted in the United States (“GAAP”) and reflect all wholly owned subsidiaries and those entities the Company is required to consolidate. See the “50% Owned Subsidiary” section of this Note, Note 4 - 50% Owned Subsidiary and Note 5 - Construction Joint Ventures for further discussion of the Company’s consolidation policy for those entities that are not wholly owned. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Values presented within the Notes (excluding per share data) are in thousands. Reclassifications have been made to historical financial data in the Consolidated Financial Statements to conform to the current year presentation.

Estimates and Judgments—The preparation of the accompanying Condensed Consolidated Financial Statements in conformance with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Certain accounting estimates of the Company require a higher degree of judgment than others in their application. These include the recognition of revenue and earnings from construction contracts over time, the valuation of long-lived assets, goodwill and purchase accounting estimates. Management continually evaluates all of its estimates and judgments based on available information and experience; however, actual results could differ from these estimates.

Significant Accounting Policies

Consistent with Regulation S-X Rule 10-1(a), the Company has omitted significant accounting policies in this quarterly report that would duplicate the disclosures contained in the Company’s annual report on Form 10-K for the year ended December 31, 2024 under “Part II, Item 8. - Notes to Consolidated Financial Statements.” This quarterly report should be read in conjunction with the Company’s most recent annual report on Form 10-K.

Accounts Receivable—Receivables are generally based on amounts billed to the customer in accordance with contractual provisions. Receivables are written off based on the individual credit evaluation and specific circumstances of the customer, when such treatment is warranted. The Company performs a review of outstanding receivables, historical collection information and existing economic conditions to determine if there are potential uncollectible receivables. At March 31, 2025 and December 31, 2024, our allowance for our estimate of expected credit losses was zero.

Contracts in Progress—For performance obligations satisfied over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Typically, Sterling bills for advances or deposits from its customers before revenue is recognized, resulting in contract liabilities. However, the Company occasionally bills subsequent to revenue recognition, resulting in contract assets.

Many of the contracts under which the Company performs work also contain retainage provisions. Retainage refers to that portion of our billings held for payment by the customer pending satisfactory completion of the project. Unless reserved, the Company assumes that all amounts retained by customers under such provisions are fully collectible. At March 31, 2025 and December 31, 2024, contract assets included $30,590 and $38,111 of retainage, respectively, and contract liabilities included $97,717 and $91,917 of retainage, respectively. Retainage on active contracts is classified as current regardless of the term of the contract and is generally collected within one year of the completion of a contract. We anticipate collecting approximately 70% of our March 31, 2025 retainage during the next twelve months, and the balance thereafter. These assets and liabilities are reported on the Condensed Consolidated Balance Sheet within “Contract assets” and “Contract liabilities” on a contract-by-contract basis at the end of each reporting period.

Contract assets decreased by $6,683 compared to December 31, 2024, primarily due to a decrease in retainage, partly offset by higher unbilled revenue. Contract liabilities increased by $25,542 compared to December 31, 2024, due to the timing of advance billings and work progression, partly offset by an increase in retainage. Revenue recognized for the three months ended March 31, 2025 that was included in the contract liability balance on December 31, 2024 was $172,575. Revenue recognized for the three months ended March 31, 2024 that was included in the contract liability balance on December 31, 2023 was $148,951.

50% Owned Subsidiary—Since 2012, the Company has held a 50% ownership interest in Road and Highway Builders, LLC (“RHB”), with Rich Buenting holding the remaining 50% ownership interest. Historically, the Company fully consolidated the entity as a result of its exercise of control of the entity. On December 31, 2024, the parties executed an amendment to the RHB operating agreement to ensure the continuation of this mutually beneficial relationship while addressing the evolving needs and interest of both parties. Under GAAP, this contractual change required Sterling to no longer consolidate RHB’s results with its own and to use equity method accounting with respect to Sterling’s interest in the entity. Beginning January 1, 2025, the Company reports its portion of RHB’s income as a single line item (“Other operating income (expense), net”) in the Consolidated Statements of Operations and reports its interest in RHB at December 31, 2024, and thereafter, as a single line item (“Investment in unconsolidated subsidiary”) in the Consolidated Balance Sheets. RHB’s revenue is no longer included in Sterling’s consolidated revenue in 2025 and Sterling’s consolidated remaining performance obligations (“RPOs”) as of December 31, 2024, and thereafter, do not include RHB’s RPOs. See Note 4 - 50% Owned Subsidiary for more information.

Drake Acquisition—During the first quarter of 2025, Sterling acquired Drake Concrete, LLC (“Drake”) (the “Drake Acquisition”). Drake provides concrete slabs for residential home builders in the Dallas-Fort Worth market. The purchase price was $25,000 in cash plus a four year earn-out opportunity. The Drake Acquisition is accounted for using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The results of Drake are included in our Building Solutions segment.

Cash, Cash Equivalents and Restricted Cash—Our cash and cash equivalents are comprised of highly liquid investments with maturities of three months or less. The Company maintains its cash and cash equivalents at major financial institutions. The cash and cash equivalents balance at one or more of these financial institutions exceeds the Federal Depository Insurance Corporation (“FDIC”) insurance coverage. The Company periodically assesses the credit risk associated with these financial institutions and believes that the risk of loss is minimal. There is no restricted cash included in “Other current assets” on the Condensed Consolidated Balance Sheets at March 31, 2025 and December 31, 2024, respectively. Restricted cash primarily represents cash deposited by the Company into separate accounts and designated as collateral for standby letters of credit in the same amount in accordance with contractual agreements.

New Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosure” which requires companies to disclose disaggregated information about a reporting entity’s effective tax rate reconciliation, using both percentages and reporting currency amounts for specific standardized categories. Separate disclosures will be required for any reconciling items that are equal to or greater than a specified quantitative threshold. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company plans to adopt the provisions of ASU 2023-09 in fiscal year 2025. This ASU affects financial statement disclosure only, and its adoption will not affect our results of operations or financial position.

In November 2024, the FASB issued ASU No. 2024-03, “Disaggregation of Income Statement Expenses” which requires companies to disclose disaggregated information for prescribed expense categories within relevant income statement expense line items. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard and plans to adopt the provisions of ASU 2024-03 in fiscal year 2027. This ASU affects financial statement disclosure only, and its adoption will not affect our results of operations or financial position.


3.			REVENUE FROM CUSTOMERS

Remaining Performance Obligations (“RPOs”)—RPOs represent the aggregate amount of our contract transaction price related to performance obligations that are unsatisfied or partially satisfied at the end of the period. RPOs include the entire expected revenue values for joint ventures we consolidate and our proportionate value for those we proportionately consolidate. RPOs may not be indicative of future operating results. Projects included in RPOs may be canceled or modified by customers; however, the customer would be obligated to compensate the Company for additional contractual costs for cancellation or modifications. The following table presents the Company’s RPOs, by segment:


	March 31, 2025		December 31, 2024
E-Infrastructure Solutions RPOs	$	1,216,775	$	1,032,109
Transportation Solutions RPOs	860,535		622,085
Building Solutions RPOs - Commercial	51,095		39,029
Total RPOs	$	2,128,405	$	1,693,223

The Company expects to recognize approximately 80% of its RPOs as revenue during the next twelve months, and the balance thereafter.

Revenue Disaggregation—The following tables present the Company’s revenue disaggregated by major end market and contract type:


	Three Months Ended March 31,
Revenues by major end market	2025		2024
E-Infrastructure Solutions Revenues	$	218,263	$	184,476

Heavy Highway	87,198		93,377
Aviation	11,511		18,140
Other Services	21,952		37,452
Transportation Solutions Revenues	120,661		148,969

Residential	76,766		83,769
Commercial	15,259		23,146
Building Solutions Revenues	92,025		106,915
Total Revenues	$	430,949	$	440,360

Revenues by contract type
Lump-Sum	$	224,188	$	224,161
Fixed-Unit Price	126,562		130,861
Residential and Other	80,199		85,338
Total Revenues	$	430,949	$	440,360

Variable Consideration

The Company has projects that it is in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with its customers. The Company is proceeding with its contractual rights to recoup additional costs incurred from its customers based on completing work associated with change orders, including change orders with pending change order pricing, or claims related to significant changes in scope which resulted in substantial delays and additional costs in completing the work. Unapproved change order and claim information has been provided to the Company’s customers and negotiations with the customers are ongoing. If additional progress with an acceptable resolution is not reached, legal action will be taken. Based upon the Company’s review of the provisions of its contracts, specific costs incurred and other related evidence supporting the unapproved change orders and claims, together in some cases as necessary with the views of the Company’s outside claim consultants, the Company concluded it was appropriate to include in project price amounts of $4,000 at both March 31, 2025 and December 31, 2024, relating to unapproved change orders and claims. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

Contract Estimates

Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes such profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that often span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials and the performance of subcontractors. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract penalty provisions and final contract settlements, may result in changes in revenue and are recognized in the period in which the changes are determined. Changes in contract estimates on performance obligations satisfied or partially satisfied in previous periods resulted in net revenue increases of $30,471 and $21,528 for the three months ended March 31, 2025 and 2024, respectively.


4.			50% OWNED SUBSIDIARY

Financial amounts of RHB and the Company’s share of such amounts which are included in the Company’s Condensed Consolidated Financial Statements are shown below:


	March 31, 2025		December 31, 2024
Current assets - RHB	$	110,530	$	126,177
Current liabilities - RHB	$	124,538	$	135,550
Investment in unconsolidated subsidiary - Sterling (1)	$	109,291	$	107,400

(1) Includes the fair value step up recognized as a result of the deconsolidation of RHB. The fair value step up was $92,079 and $94,225 at March 31, 2025 and December 31, 2024, respectively.


	Three Months Ended March 31,
	2025		2024
RHB’s Statements of Operations
Revenues	$	43,446	$	38,464
Income before tax	$	8,075	$	5,091
Sterling’s Statements of Operations
Revenues	$	—	$	38,464
Income before tax (1)	$	1,892	$	2,546

(1) For the three months ended March 31, 2025, Sterling’s portion of income before tax includes $1,871 of intangible asset amortization and $275 of depreciation expense related to the basis difference in the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.


5.			CONSTRUCTION JOINT VENTURES

Joint Ventures with a Controlling Interest—We consolidate any venture that is determined to be a VIE for which we are the primary beneficiary, or which we otherwise effectively control. The equity held by the remaining owners and their portions of net income (loss) are reflected in stockholders’ equity on the Condensed Consolidated Balance Sheets line item “Noncontrolling interests” and in the Condensed Consolidated Statements of Operations line item “Net income attributable to noncontrolling interests,” respectively.

Summary VIE information is as follows:


	Three Months Ended March 31,
	2025		2024
Revenues	$	49,857	$	28,625
Operating income	$	5,936	$	5,250
Net income	$	6,859	$	5,772

Joint Ventures with a Noncontrolling Interest—The Company accounts for unconsolidated joint ventures using a pro-rata basis in the Condensed Consolidated Statements of Operations and as a single line item (“Receivables from and equity in construction joint ventures”) in the Condensed Consolidated Balance Sheets. This method is a permissible modification of the equity method of accounting which is a common practice in the construction industry. Combined financial amounts of joint ventures in which the Company has a noncontrolling interest and the Company’s share of such amounts which are included in the Company’s Condensed Consolidated Financial Statements are shown below:


	March 31, 2025		December 31, 2024
Current assets	$	33,283	$	56,545
Current liabilities	$	(16,001)	$	(33,306)
Receivables from and equity in construction joint ventures	$	6,912	$	5,811


	Three Months Ended March 31,
	2025		2024
Revenues	$	19,626	$	13,281
Income before tax	$	163	$	1,622
Sterling’s noncontrolling interest:
Revenues	$	7,850	$	6,413
Income before tax	$	65	$	747

The caption “Receivables from and equity in construction joint ventures” includes undistributed earnings and receivables owed to the Company. Undistributed earnings are typically released to the joint venture partners after the customer accepts the project as completed and the warranty period, if any, has passed.

Other—The use of joint ventures exposes us to a number of risks, including the risk that our partners may be unable or unwilling to provide their share of capital investment to fund the operations of the venture or complete their obligations to us, the venture, or ultimately, the customer. Differences in opinions or views among joint venture partners could also result in delayed decision-making or failure to agree on material issues, which could adversely affect the business and operations of the joint venture. In addition, agreement terms may subject us to joint and several liability for our venture partners, and the failure of our venture partners to perform their obligations could impose additional performance and financial obligations on us. The aforementioned factors could result in unanticipated costs to complete the projects, liquidated damages or contract disputes, including claims against our partners.


6.			PROPERTY AND EQUIPMENT

Property and equipment are summarized as follows:

March 31, 2025

SEC Form 10-Q filed by Sterling Infrastructure Inc.