STERLING INFRASTRUCTURE INC

Previous wording

E-Infrastructure Solutions—Our E-Infrastructure Solutions business is driven by our customers’ investments in the development of data centers, advanced manufacturing centers, e-commerce distribution centers and warehouses. We foresee significant growth opportunities tied to the implementation of multi-year capital deployment plans by customers in the data center, electric vehicle (EV), battery, solar, food and semiconductor manufacturing markets. We have been awarded several large projects related to investments in EV and solar products. We anticipate continued strong demand from these and other technology sectors, supported by Federal government investment initiatives and incentives. Additionally, we continue to benefit from activity related to multiphase hyperscale data center development, driven by demand related to Artificial Intelligence (AI) and other emerging technologies. While the majority of our end customers are demonstrating strong performance, in 2023 we experienced a decline in large e-commerce distribution center and small warehouse activity. We expect these markets will remain subdued through 2024.

Current wording

E-Infrastructure Solutions—Our E-Infrastructure Solutions business is driven by our customers’ investments in the development of data centers, advanced manufacturing centers, e-commerce distribution centers and warehouses. We foresee significant growth opportunities tied to the implementation of multi-year capital deployment plans by customers in the data center, electric vehicle (EV), battery, solar, food and semiconductor manufacturing markets. In the data center market, we are benefiting from activity related to the development of multiphase hyperscale data centers, driven by demand related to Artificial Intelligence (AI) and other emerging technologies. Additionally, we have been awarded several large projects related to investments in EV and solar products. We anticipate continued strong demand from these and other technology sectors, supported by Federal government investment initiatives and incentives. While the majority of our end customers are demonstrating strong performance, in 2023 we experienced a decline in large e-commerce distribution center and small warehouse activity. We expect these markets will remain subdued through 2024.

Previous wording

Transportation Solutions—Our Transportation Solutions business is primarily driven by federal, state and municipal funding. Federal funds, on average, provide 50% of annual State Department of Transportation capital outlays for highway and bridge projects. We benefit from a number of federal, state and local infrastructure investment programs. At the state and local level, the November 2020 elections saw strong support for transportation initiatives with the passage of many ballot measures that secured, and in some cases increased, funding. At the Federal level, the November 2021 Infrastructure Investments and Jobs Act (“IIJA”) includes approximately $643 billion in funding for transportation programs ($432 billion for highways, $109 billion for transportation and $102 billion for rail), of which $284 billion is an increase over historic investment levels that will fund new transportation infrastructure. The IIJA also includes $25 billion of funding for airport modernization. As a result of the IIJA, we had an increase in bid activity and project awards which started in the third quarter of 2022 and continued through 2023. We expect this positive trend to continue for the foreseeable future. Aviation activity, which was slower to emerge following the passage of the IIJA, has begun to accelerate.

Current wording

Transportation Solutions—Our Transportation Solutions business is primarily driven by federal, state and municipal funding. Federal funds, on average, provide 50% of annual State Department of Transportation capital outlays for highway and bridge projects. We benefit from a number of federal, state and local infrastructure investment programs. At the state and local level, the November 2020 elections saw strong support for transportation initiatives with the passage of many ballot measures that secured, and in some cases increased, funding. At the Federal level, the November 2021 Infrastructure Investments and Jobs Act (“IIJA”) includes approximately $643 billion in funding for transportation programs ($432 billion for highways, $109 billion for transportation and $102 billion for rail), of which $284 billion is an increase over historic investment levels that will fund new transportation infrastructure. The IIJA also includes $25 billion of funding for airport modernization. As a result of the IIJA, we had an increase in bid activity and project awards which started in the third quarter of 2022 and continued through the third quarter of 2024. We expect this positive trend to continue for the foreseeable future. Aviation activity, which was slower to emerge following the passage of the IIJA, has begun to accelerate.

Previous wording

Building Solutions—Our Building Solutions segment is comprised of our residential and commercial businesses. The segment is driven by new home starts in Dallas-Fort Worth, the segment’s largest market, and continued expansion in the Houston and Phoenix markets. Building Solutions’ core customer base includes top national, regional and custom home builders. In 2022, the residential market experienced significant price volatility and availability for key materials, including concrete, steel and lumber, as well as increases in subcontractor labor costs and decreased labor availability. The Company negotiated with customers to successfully recoup the increases in material and labor costs through price increases. We saw strong, consistent recovery in residential activity through 2023 and experienced volume growth across each geography. We believe the dynamics in our markets, including population growth and structural housing shortages, support continued growth in residential in 2024. For our commercial business, demand in the multi-family home market increased in the first three quarters of 2023 but slowed late in the year. We expect continued declines in this market in 2024.

Current wording

Building Solutions—Our Building Solutions segment is comprised of our residential slab, residential plumbing, and commercial businesses. The segment is driven by new home starts in Dallas-Fort Worth, the segment’s largest market, and continued expansion in the Houston and Phoenix markets. Building Solutions’ core customer base includes top national, regional and custom home builders. We believe the dynamics in our markets, including population growth and structural housing shortages, support growth opportunities over a multi-year period. In 2024, residential demand has been impacted by a slowdown in activity, particularly in the Dallas market. This lull in demand appears to be a function of prospective homebuyers taking a “wait-and-see” approach to potential additional interest rate cuts. We believe that activity will re-accelerate in 2025. For our commercial business, demand in the multi-family home market increased in the first three quarters of 2023 but slowed late in the year. We expect continued declines in this market in 2024.

Previous wording

Our remaining performance obligations on our projects, as defined in ASC 606, do not differ from what we refer to as “Backlog.” Our Backlog represents the amount of revenues we expect to recognize in the future from our contract commitments on projects. The contracts in Backlog are typically completed in 6 to 36 months. Our unsigned awards (“Unsigned Awards”) are excluded from Backlog until the contract is executed by our customer. We refer to the combination of our Backlog and

Current wording

Our remaining performance obligations on our projects, as defined in ASC 606, do not differ from what we refer to as “Backlog.” Our Backlog represents the amount of revenues we expect to recognize in the future from our contract commitments on projects. The contracts in Backlog are typically completed in 6 to 36 months. Our unsigned awards (“Unsigned Awards”) are excluded from Backlog until the contract is executed by our customer. We refer to the combination of our Backlog and Unsigned Awards as “Combined Backlog.” Our book-to-burn ratio is determined by taking our additions to Backlog and dividing it by revenue for the applicable period. This metric allows management to monitor the Company’s business development efforts to ensure we grow our Backlog and our business over time, and management believes that this measure is useful to investors for the same reason.

Previous wording

At June 30, 2024, our Backlog was $2.10 billion, as compared to $2.07 billion at December 31, 2023, with a book-to-burn ratio of 1.0X for the six months ended June 30, 2024. The Company’s margin in Backlog has increased to 16.0% at June 30, 2024 from 15.2% at December 31, 2023, driven by a greater mix of E-Infrastructure Solutions backlog and an improved backlog margin mix within Transportation Solutions.

Current wording

At September 30, 2024, our Backlog was $2.06 billion, as compared to $2.07 billion at December 31, 2023, with a book-to-burn ratio of 1.0X for the nine months ended September 30, 2024. The Company’s margin in Backlog has increased to 16.8% at September 30, 2024 from 15.2% at December 31, 2023, driven by a greater mix of E-Infrastructure Solutions backlog and an improved backlog margin mix within Transportation Solutions.

Previous wording

Unsigned Awards were $347.2 million at June 30, 2024 and $303.2 million at December 31, 2023. Combined Backlog totaled $2.45 billion and $2.37 billion at June 30, 2024 and December 31, 2023, respectively, with a book-to-burn ratio of 1.1X for the six months ended June 30, 2024.

Current wording

Unsigned Awards were $319.6 million at September 30, 2024 and $303.2 million at December 31, 2023. Combined Backlog totaled $2.37 billion at both September 30, 2024 and December 31, 2023, with a book-to-burn ratio of 1.0X for the nine months ended September 30, 2024.

Previous wording

Consolidated financial highlights for the three and six months ended June 30, 2024 and 2023 are as follows:

Current wording

Consolidated financial highlights for the three and nine months ended September 30, 2024 and 2023 are as follows:

Previous wording

Revenues—Revenues were $582.8 million for the second quarter of 2024, an increase of $60.5 million, or 11.6%, compared to the second quarter of 2023. The increase was driven by an $81.7 million increase in Transportation Solutions, partly offset by an $18.8 million decrease in E-Infrastructure Solutions and a $2.4 million decrease in Building Solutions.

Current wording

Revenues—Revenues were $593.7 million for the third quarter of 2024, an increase of $33.4 million, or 6.0%, compared to the third quarter of 2023. The increase was driven by a $34.3 million increase in Transportation Solutions and a $10.0 million increase in E-Infrastructure Solutions, partly offset by a $10.8 million decrease in Building Solutions.

Previous wording

Revenues were $1.02 billion for the six months ended June 30, 2024, an increase of $97.3 million, or 10.5%, compared to the six months ended June 30, 2023. The increase was driven by a $119.5 million increase in Transportation Solutions and an $18.0 million increase in Building Solutions, partly offset by a $40.2 million decrease in E-Infrastructure Solutions.

Current wording

Revenues were $1.62 billion for the nine months ended September 30, 2024, an increase of $130.7 million, or 8.8%, compared to the nine months ended September 30, 2023. The increase was driven by a $153.8 million increase in Transportation Solutions and a $7.1 million increase in Building Solutions, partly offset by a $30.2 million decrease in E-Infrastructure Solutions.

Previous wording

Gross profit and margin—Gross profit was $112.7 million for the second quarter of 2024, an increase of $20.5 million, or 22.2%, compared to the second quarter of 2023. The Company’s gross margin as a percentage of revenue increased to 19.3% in the second quarter of 2024, as compared to 17.7% in the second quarter of 2023.

Current wording

Gross profit and margin—Gross profit was $129.8 million for the third quarter of 2024, an increase of $37.9 million, or 41.3%, compared to the third quarter of 2023. The Company’s gross margin as a percentage of revenue increased to 21.9% in the third quarter of 2024, as compared to 16.4% in the third quarter of 2023.

Previous wording

Gross profit was $189.6 million for the six months ended June 30, 2024, an increase of $35.6 million, or 23.1%, compared to the six months ended June 30, 2023. The Company’s gross margin as a percentage of revenue increased to 18.5% for the six months ended June 30, 2024, as compared to 16.6% for the six months ended June 30, 2023. The increases were driven by the aforementioned higher volume, an improved project margin mix across all segments, and the inclusion of the Texas plumbing business acquired in late 2023.

Current wording

Gross profit was $319.4 million for the nine months ended September 30, 2024, an increase of $73.6 million, or 29.9%, compared to the nine months ended September 30, 2023. The Company’s gross margin as a percentage of revenue increased to 19.8% for the nine months ended September 30, 2024, as compared to 16.5% for the nine months ended September 30, 2023. The increases were driven by the aforementioned higher volume, an improved project margin mix across all segments, and the inclusion of the Texas plumbing business acquired in late 2023.

Previous wording

Contracts in progress that were not substantially complete totaled approximately 220 at both June 30, 2024 and 2023, respectively. These contracts are of various sizes, of different expected profitability and in various stages of completion. The nearer a contract progresses toward completion, the more visibility the Company has in refining its estimate of total revenues (including incentives, delay penalties and change orders), costs and gross profit. Thus, gross profit as a percentage of revenues can increase or decrease from comparable and subsequent quarters due to variations among contracts and depending upon the stage of completion of contracts.

Current wording

Contracts in progress that were not substantially complete totaled approximately 220 and 230 at September 30, 2024 and 2023, respectively. These contracts are of various sizes, of different expected profitability and in various stages of completion. The nearer a contract progresses toward completion, the more visibility the Company has in refining its estimate of total revenues (including incentives, delay penalties and change orders), costs and gross profit. Thus, gross profit as a percentage of revenues can increase or decrease from comparable and subsequent quarters due to variations among contracts and depending upon the stage of completion of contracts.

Previous wording

General and administrative expense—General and administrative expenses were $27.9 million, or 4.8% of revenue, for the second quarter of 2024, compared to $24.0 million, or 4.6% of revenue, for the second quarter of 2023. General and administrative expenses were $55.2 million, or 5.4% of revenue, for the six months ended June 30, 2024, compared to $47.4 million, or 5.1% of revenue, for the six months ended June 30, 2023. The increases reflect incremental G&A from the Texas plumbing business acquired in late 2023, growth, and inflation. The Company anticipates that general and administrative expense will be approximately 5% of revenue for the full year 2024.

Current wording

General and administrative expense—General and administrative expenses were $30.7 million, or 5.2% of revenue, for the third quarter of 2024, compared to $25.2 million, or 4.5% of revenue, for the third quarter of 2023. General and administrative expenses were $85.8 million, or 5.3% of revenue, for the nine months ended September 30, 2024, compared to $72.6 million, or 4.9% of revenue, for the nine months ended September 30, 2023. The increases reflect incremental G&A from the Texas plumbing business acquired in late 2023, growth, and inflation. The Company anticipates that general and administrative expense will be approximately 5% of revenue for the full year 2024.

Previous wording

The change in other operating expense, net, for the second quarter of 2024 was an increase of $3.6 million over the prior year second quarter. Members’ interest earnings increased by $2.6 million during the second quarter of 2024 to $6.8 million from $4.2 million in the second quarter of 2023 and earn-out expense increased to $1.0 million during the second quarter of 2024, compared to none in the second quarter of 2023.

Current wording

The change in other operating expense, net, for the third quarter of 2024 was an increase of $1.6 million over the prior year third quarter. Members’ interest earnings increased by $0.6 million during the third quarter of 2024 to $6.3 million from $5.7 million in the third quarter of 2023 and earn-out expense increased to $1.0 million during the third quarter of 2024, compared to none in the third quarter of 2023.

Previous wording

The change in other operating expense, net, for the six months ended June 30, 2024 was an increase of $4.9 million over the prior year six months. Members’ interest earnings increased by $2.9 million during the six months ended June 30, 2024 to $8.9 million from $6.0 million in the prior year six months and earn-out expense increased to $2.0 million during the six months ended June 30, 2024, compared to none in the prior year six months.

Current wording

The change in other operating expense, net, for the nine months ended September 30, 2024 was an increase of $6.5 million over the prior year nine months. Members’ interest earnings increased by $3.5 million during the nine months ended September 30, 2024 to $15.2 million from $11.7 million in the prior year nine months and earn-out expense increased to $3.0 million during the nine months ended September 30, 2024, compared to none in the prior year nine months.

Previous wording

Interest, net—Combined interest expense and income was a net expense of $0.2 million for the second quarter of 2024, compared to a net expense of $5.5 million for the second quarter of 2023, and was a net expense of $1.0 million for the six months ended June 30, 2024, compared to a net expense of $11.1 million for the six months ended June 30, 2023. The three and six months ended June 30, 2024 decreases were driven by higher interest income due to increased interest rates in 2024 on our growing cash balance.

Current wording

Interest, net—Combined interest expense and income was net income of $1.3 million for the third quarter of 2024, compared to net expense of $3.1 million for the third quarter of 2023, and net income of $0.3 million for the nine months ended September 30, 2024, compared to net expense of $14.2 million for the nine months ended September 30, 2023. The three and nine months ended September 30, 2024 decreases in net expense were driven by higher interest income due to increased interest rates in 2024 on our growing cash balance.

Previous wording

Income taxes—The effective income tax rate was 24.8% for the second quarter of 2024 and 22.4% for the six months ended June 30, 2024. The rates varied from the statutory rate primarily as a result of non-deductible compensation, state income taxes and other permanent differences. The Company incurred a $0.5 million and $3.4 million tax rate benefit for the three and six months ended June 30, 2024, respectively, for increased tax deductions related to stock compensation. The Company anticipates an effective income tax rate for the full year 2024 of approximately 25%. See Note 11 - Income Taxes for more information.

Current wording

Income taxes—The effective income tax rate was 26.4% for the third quarter of 2024 and 24.2% for the nine months ended September 30, 2024. The rates varied from the statutory rate primarily as a result of non-deductible compensation, state income taxes and other permanent differences. The Company incurred a $0.1 million and $3.5 million tax rate benefit for the three and nine months ended September 30, 2024, respectively, for increased tax deductions related to stock compensation. The Company anticipates an effective income tax rate for the full year 2024 of approximately 24%. See Note 11 - Income Taxes for more information.

Previous wording

Revenues—Revenues were $241.3 million for the second quarter of 2024, a decrease of $18.8 million, or 7.2%, compared to the second quarter of 2023, and revenues were $425.8 million for the six months ended June 30, 2024, a decrease of $40.2 million, or 8.6%, compared to the six months ended June 30, 2023. The decreases were primarily driven by lower volume from warehouses and other small projects, the timing of advanced manufacturing projects, and delays due to inclement weather in the first quarter, partly offset by higher volume from data centers.

Current wording

Revenues were $689.7 million for the nine months ended September 30, 2024, a decrease of $30.2 million, or 4.2%, compared to the nine months ended September 30, 2023. The decrease was primarily driven by the timing of advanced manufacturing projects, lower volume from warehouses and other small projects, and delays due to inclement weather in the first quarter, partly offset by higher volume from data centers.

Previous wording

Operating income—Operating income was $51.7 million, or 21.4% of revenue, for the second quarter of 2024, an increase of $8.5 million, compared to $43.2 million, or 16.6% of revenue, for the second quarter of 2023. Operating income was $78.8 million, or 18.5% of revenue, for the six months ended June 30, 2024, an increase of $11.4 million, compared to $67.4 million, or 14.5% of revenue, for the six months ended June 30, 2023. The increases in operating income and margin were driven by a mix shift toward large mission-critical projects, partly offset by lower volume from warehouses and other small commercial projects.

Current wording

Operating income—Operating income was $68.1 million, or 25.8% of revenue, for the third quarter of 2024, an increase of $32.1 million, compared to $35.9 million, or 14.2% of revenue, for the third quarter of 2023. Operating income was $146.9 million, or 21.3% of revenue, for the nine months ended September 30, 2024, an increase of $43.5 million, compared to $103.4 million, or 14.4% of revenue, for the nine months ended September 30, 2023. The increases in operating income and margin were driven by a mix shift toward large mission-critical projects, partly offset by lower volume from warehouses and other small commercial projects and by the timing of advanced manufacturing projects.

Previous wording

Revenues—Revenues were $232.8 million for the second quarter of 2024, an increase of $81.7 million, or 54.1%, compared to the second quarter of 2023, and revenues were $381.7 million for the six months ended June 30, 2024, an increase of $119.5 million, or 45.6%, compared to the six months ended June 30, 2023. The increases were driven by higher heavy highway, aviation and other non-highway services revenue.

Current wording

Revenues—Revenues were $227.3 million for the third quarter of 2024, an increase of $34.3 million, or 17.7%, compared to the third quarter of 2023, and revenues were $609.0 million for the nine months ended September 30, 2024, an increase of $153.8 million, or 33.8%, compared to the nine months ended September 30, 2023. The increases were driven by higher heavy highway, aviation and other non-highway services revenue.

Previous wording

Operating Income—Operating income was $15.4 million, or 6.6% of revenue, for the second quarter of 2024, an increase of $5.6 million, compared to $9.9 million, or 6.5% of revenue, for the second quarter of 2023. Operating income was $23.6 million, or 6.2% of revenue, for the six months ended June 30, 2024, an increase of $8.4 million, compared to $15.2 million, or 5.8% of revenue, for the six months ended June 30, 2023. The increases in operating income and margin were driven by an improved project margin mix and the aforementioned higher revenue.

Current wording

Operating Income—Operating income was $18.6 million, or 8.2% of revenue, for the third quarter of 2024, an increase of $4.1 million, compared to $14.5 million, or 7.5% of revenue, for the third quarter of 2023. Operating income was $42.2 million, or 6.9% of revenue, for the nine months ended September 30, 2024, an increase of $12.5 million, compared to $29.6 million, or 6.5% of revenue, for the nine months ended September 30, 2023. The increases in operating income and margin were driven by an improved project margin mix and the aforementioned higher revenue.

Previous wording

Revenues—Revenues were $108.7 million for the second quarter of 2024, a decrease of $2.4 million, or 2.1%, compared to the second quarter of 2023. The decrease was primarily driven by lower commercial volume and fewer residential slabs completed in the Texas markets compared to the second quarter of 2023. Texas was impacted by inclement weather and builders had a shortage of developed land in the quarter. The decrease was partly offset by the inclusion of $16.7 million from the Texas plumbing business acquired in late 2023 and an increase in residential slabs completed in the Arizona market compared to the second quarter of 2023.

Current wording

Revenues—Revenues were $102.6 million for the third quarter of 2024, a decrease of $10.8 million, or 9.5%, compared to the third quarter of 2023. The decrease was primarily driven by lower commercial volume and fewer residential slabs completed compared to the third quarter of 2023. Our residential concrete slab and plumbing businesses were impacted by a slowdown in the Dallas market in the quarter, as prospective homebuyers appear to be waiting on the sidelines in expectation of future interest rate reductions. The decrease was partly offset by the inclusion of $14.8 million from the Texas plumbing business acquired in late 2023.

Previous wording

Revenues were $215.7 million for the six months ended June 30, 2024, an increase of $18.0 million, or 9.1%, compared to the six months ended June 30, 2023. The increase was primarily driven by the inclusion of $32.9 million from the Texas plumbing business acquired in late 2023 and an increase in residential slabs completed in the Arizona market compared to 2023, partly offset by the aforementioned second quarter impact.

Current wording

Revenues were $318.2 million for the nine months ended September 30, 2024, an increase of $7.1 million, or 2.3%, compared to the nine months ended September 30, 2023. The increase was primarily driven by the inclusion of $47.7 million from the Texas plumbing business acquired in late 2023 and an increase in residential slabs completed in the Arizona market compared to 2023, partly offset by fewer residential slabs completed in the Texas markets compared to 2023.

Previous wording

Operating income—Operating income was $13.8 million, or 12.7% of revenue, for the second quarter of 2024, an increase of $0.3 million, compared to $13.5 million, or 12.1% of revenue, for the second quarter of 2023. Operating income was $28.6 million, or 13.3% of revenue, for the six months ended June 30, 2024, an increase of $6.4 million, compared to $22.2 million, or 11.2% of revenue, for the six months ended June 30, 2023. The increases in operating income and margin were driven by the inclusion of the Texas plumbing business and a mix shift towards residential, which has higher margins than commercial.

Current wording

Operating income was $39.8 million, or 12.5% of revenue, for the nine months ended September 30, 2024, an increase of $4.8 million, compared to $35.0 million, or 11.3% of revenue, for the nine months ended September 30, 2023. The increases in operating income and margin were driven by the inclusion of the Texas plumbing business and a mix shift towards residential, which has higher margins than commercial.

Previous wording

Operating Activities—During the six months ended June 30, 2024, net cash provided by operating activities was $170.6 million, compared to net cash provided by operating activities of $181.1 million for the six months ended June 30, 2023. Cash flows provided by operating activities were primarily driven by higher operating income and changes in our accounts receivable, net contracts in progress and accounts payable balances (collectively, “Contract Capital”), as discussed below.

Current wording

Operating Activities—During the nine months ended September 30, 2024, net cash provided by operating activities was $322.8 million, compared to net cash provided by operating activities of $331.2 million for the nine months ended September 30, 2023. Cash flows provided by operating activities were primarily driven by higher operating income and changes in our accounts receivable, net contracts in progress and accounts payable balances (collectively, “Contract Capital”), as discussed below.

Previous wording

Changes in Contract Capital—The change in operating assets and liabilities varies due to fluctuations in operating activities and investments in Contract Capital. The changes in components of Contract Capital during the six months ended June 30, 2024 and 2023 were as follows:

Current wording

Changes in Contract Capital—The change in operating assets and liabilities varies due to fluctuations in operating activities and investments in Contract Capital. The changes in components of Contract Capital during the nine months ended September 30, 2024 and 2023 were as follows:

Previous wording

During the six months ended June 30, 2024, the change in Contract Capital was $29,784, which was primarily driven by the E-Infrastructure Solutions segment due to the increased size and duration of its projects in progress. The Company’s Contract Capital fluctuations are impacted by the mix of projects in Backlog, seasonality, the timing of new awards and related payments for work performed and the contract billings to the customer as projects are completed. Contract Capital is also impacted at period-end by the timing of accounts receivable collections and accounts payable payments for projects.

Current wording

During the nine months ended September 30, 2024, the change in Contract Capital was $76.3 million, which was primarily driven by the E-Infrastructure Solutions segment due to the increased size and duration of its projects in progress. The Company’s Contract Capital fluctuations are impacted by the mix of projects in Backlog, seasonality, the timing of new awards and related payments for work performed and the contract billings to the customer as projects are completed. Contract Capital is also impacted at period-end by the timing of accounts receivable collections and accounts payable payments for projects.

Previous wording

Investing Activities—During the six months ended June 30, 2024, net cash used in investing activities was $45.4 million, compared to net cash used of $16.3 million in the six months ended June 30, 2023. The net cash used was driven by $51.3 million for purchases of capital equipment, partly offset by $6.9 million of cash proceeds from the sale of property and equipment. Capital equipment is acquired as needed to support changing levels of production activities and to replace retiring equipment.

Current wording

Investing Activities—During the nine months ended September 30, 2024, net cash used in investing activities was $62.3 million, compared to net cash used of $25.6 million in the nine months ended September 30, 2023. The net cash used during this year was primarily driven by $65.3 million for purchases of capital equipment, partly offset by $7.8 million of cash proceeds from the sale of property and equipment. Capital equipment is acquired as needed to support changing levels of production activities and to replace retiring equipment.

Previous wording

Financing Activities—During the six months ended June 30, 2024, net cash used in financing activities was $56.8 million, compared to net cash used of $71.9 million for the six months ended June 30, 2023. The financing cash outflow was primarily driven by $30.1 million for the repurchase of common stock, $13.3 million for withholding taxes paid on the net share settlement of vested equity awards, and $13.1 million of repayments on the Term Loan Facility.

Current wording

Financing Activities—During the nine months ended September 30, 2024, net cash used in financing activities was $84.0 million, compared to net cash used of $81.4 million for the nine months ended September 30, 2023. The financing cash outflow during this year was primarily driven by $50.6 million for the repurchase of common stock, $19.7 million of repayments on the Term Loan Facility, and $13.4 million for withholding taxes paid on the net share settlement of vested equity awards.

Previous wording

At June 30, 2024, there was approximately $195 million of construction work to be completed on unconsolidated construction joint venture contracts, of which approximately $96 million represented our proportionate share. Due to the joint and several liability under our joint venture arrangements, if one of our joint venture partners fails to perform, we and the remaining joint venture partners would be responsible for completion of the outstanding work. As of June 30, 2024, we are not aware of any situation that would require us to fulfill responsibilities of our joint venture partners pursuant to the joint and several liability under our contracts.

Current wording

At September 30, 2024, there was approximately $174 million of construction work to be completed on unconsolidated construction joint venture contracts, of which approximately $85 million represented our proportionate share. Due to the joint and several liability under our joint venture arrangements, if one of our joint venture partners fails to perform, we and the remaining joint venture partners would be responsible for completion of the outstanding work. As of September 30, 2024, we are not aware of any situation that would require us to fulfill responsibilities of our joint venture partners pursuant to the joint and several liability under our contracts.