STERLING INFRASTRUCTURE, INC.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
STRL$252.82+3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0000874238-25-000136
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0000874238-26-000055
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 78 current paragraphs.
50 unchanged; 22 reworded; 6 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
•our ability to obtain, maintain, and comply with governmental permits, licenses, and approvals;
Current report
At March 31, 2026, our Backlog was $3.80 billion, as compared to $3.01 billion at December 31, 2025, with a book-to-burn ratio of 2.1X for the three months ended March 31, 2026. Unsigned Awards were $1.36 billion at March 31, 2026 and $300.7 million at December 31, 2025. Combined Backlog totaled $5.15 billion and $3.31 billion at March 31, 2026 and December 31, 2025, respectively, with a book-to-burn ratio of 3.5X for the three months ended March 31, 2026.
Current report
Revenues—Revenues were $132.9 million for the first quarter of 2026, an increase of $12.2 million, or 10.1%, compared to the first quarter of 2025. The increase was driven by higher aviation and heavy highway revenue.
Current report
Operating Income—Operating income was $14.8 million, or 11.1% of revenue, for the first quarter of 2026, an increase of $3.5 million, compared to $11.3 million, or 9.3% of revenue, for the first quarter of 2025. The increase in operating income and margin were driven by the aforementioned revenue volume and an improved project margin mix.
Current report
Revenues—Revenues were $95.1 million for the first quarter of 2026, an increase of $3.1 million, or 3.3%, compared to the first quarter of 2025. The increase was driven by slightly higher residential and commercial volume compared to 2025. Our businesses specializing in residential concrete slabs and plumbing are still being affected by a market downturn, as affordability issues continue to impact potential homebuyers.
Current report
Operating Income—Operating income was $6.2 million, or 6.5% of revenue, for the first quarter of 2026, a decrease of $6.1 million, compared to $12.4 million, or 13.4% of revenue, for the first quarter of 2025. The decrease in operating income and margin were driven by a continued downturn in residential markets compared to the first quarter of 2025.
Removed paragraphs (11)
Previous report
RHB Deconsolidation—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.
Previous report
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 Condensed 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 backlog figures as of December 31, 2024 and thereafter, do not include RHB’s backlog.
Previous report
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 acquisition strengthens Sterling’s geographic footprint within the DFW metroplex and expands and deepens the customer base, given limited customer overlap with Tealstone. The purchase price was $25 million in cash plus a four year earn-out opportunity. The results of Drake are included in our Building Solutions segment.
Previous report
At September 30, 2025, our Backlog was $2.58 billion, as compared to $1.69 billion at December 31, 2024, with a book-to-burn ratio of 1.6X for the nine months ended September 30, 2025. Included in Backlog at September 30, 2025 is $475.3 million contributed from the electrical and mechanical business acquired late in the third quarter 2025. The Company’s margin in Backlog has increased to 18.0% at September 30, 2025 from 16.7% at December 31, 2024, driven by a greater mix of E-Infrastructure Solutions backlog and an improved backlog margin mix within Transportation Solutions.
Previous report
Unsigned Awards were $868.8 million at September 30, 2025 and $137.9 million at December 31, 2024. Included in Unsigned Awards at September 30, 2025 is $335.3 million contributed from the electrical and mechanical business acquired late in the third quarter 2025. Combined Backlog totaled $3.44 billion and $1.83 billion at September 30, 2025 and December 31, 2024, respectively, with a book-to-burn ratio of 2.1X for the nine months ended September 30, 2025.
Previous report
Revenues were $1.73 billion for the nine months ended September 30, 2025, compared to $1.62 billion for the nine months ended September 30, 2024. Excluding $184.6 million of RHB revenue from the nine months ended September 30, 2024, revenues increased $302.1 million, which was driven by a $256.1 million increase in E-Infrastructure Solutions and a $63.6 million increase in Transportation Solutions, partly offset by a $17.5 million decrease in Building Solutions.
Previous report
Other operating income (expense), net—Other operating income (expense), net, includes the 50% portion of earnings related to our 50% owned subsidiary and occasionally other miscellaneous operating income or expense. In 2025, Sterling’s 50% portion of earnings are treated as income and increase the investment in unconsolidated subsidiary account. In 2024, the Members’ 50% portion of earnings was treated as an expense and an increase to the liability account. During the third quarter of 2025, Sterling’s 50% portion of earnings was $5.4 million (including step-up depreciation and amortization of $2.1 million), compared to $6.3 million of expense for the Members’ 50% portion of earnings in the third quarter of 2024. During the nine months ended September 30, 2025, Sterling’s 50% portion of earnings was $11.1 million (including step-up depreciation and amortization of $6.4 million), compared to $15.2 million of expense for the Members’ 50% portion of earnings in the nine months ended September 30, 2024.
Previous report
Revenues—Revenues were $170.5 million for the third quarter of 2025, compared to $227.3 million in the third quarter of 2024. Excluding $72.2 million of RHB revenue from the third quarter of 2024, revenues increased $15.4 million or 9.9%. Revenues were $487.9 million for the nine months ended September 30, 2025, compared to $609.0 million in the nine months ended September 30, 2024. Excluding $184.6 million of RHB revenue from the nine months ended September 30, 2024, revenues increased $63.6 million or 15.0%. The increases were driven by higher heavy highway and other non-highway service revenue, partly offset by lower aviation revenue.
Previous report
Operating Income—Operating income was $24.4 million, or 14.3% of revenue, for the third quarter of 2025, an increase of $5.8 million, compared to $18.6 million, or 8.2% of revenue, for the third quarter of 2024. Operating income was $61.6 million, or 12.6% of revenue, for the nine months ended September 30, 2025, an increase of $19.5 million, compared to $42.2 million, or 6.9% of revenue, for the nine months ended September 30, 2024. The increases in operating income and margin were driven by an improved project margin mix.
Previous report
Revenues—Revenues were $101.4 million for the third quarter of 2025, a decrease of $1.2 million, or 1.1%, compared to the third quarter of 2024. Revenues were $300.7 million for the nine months ended September 30, 2025, a decrease of $17.5 million, or 5.5%, compared to the nine months ended September 30, 2024. The decreases were driven by lower commercial volume compared to 2024. Our residential concrete slab and plumbing businesses have also been impacted by a slowdown in all markets in 2025, driven by prospective homebuyers struggling with affordability challenges.
Previous report
Operating income—Operating income was $10.8 million, or 10.6% of revenue, for the third quarter of 2025, a decrease of $1.5 million, compared to $12.2 million, or 11.9% of revenue, for the third quarter of 2024. Operating income was $33.0 million, or 11.0% of revenue, for the nine months ended September 30, 2025, a decrease of $9.9 million, compared to $42.8 million, or 13.5% of revenue, for the nine months ended September 30, 2024. The decreases in operating income and margin were driven by the aforementioned lower volume and the slowdown in residential markets in 2025.
Reworded paragraphs (22)
Previous wording
•cost escalations associated with our contracts, due to changes in availability, proximity and cost of materials such as steel, cement, concrete, aggregates, oil, fuel and other construction materials, changes in U.S. trade policies and retaliatory responses from other countries, and cost escalations associated with subcontractors and labor;
Current wording
•cost escalations associated with our contracts, due to changes in availability, proximity and cost of construction materials and fuel for our equipment, geopolitical conflicts (such as the conflicts in Eastern Europe and the Middle East) and related disruptions to the global energy markets, changes in U.S. trade policies and retaliatory responses from other countries, and cost escalations associated with subcontractors and labor;
Previous wording
•potential disruptions, failures or security breaches of the information technology systems on which we rely to conduct our business;
Current wording
•potential disruptions, failures or security breaches of the information technology systems on which we rely to conduct our business or failure to comply with laws and regulations regarding data privacy and cybersecurity;
Previous wording
•our ability to successfully identify, finance, complete and integrate recent and potential acquisitions;
Current wording
•our ability to successfully identify, finance, complete and integrate recent and potential acquisitions or our ability to identify all liabilities associated with an acquired business or asset prior to our acquisition;
Previous wording
CEC Acquisition—On September 1, 2025, the Company acquired substantially all of the assets of Irving, Texas-based CEC Facilities Group, LLC (“CEC”) a leading specialty electrical and mechanical contractor. The purchase price was $561 million, consisting primarily of $445 million in cash and $79 million in common stock. Additionally, CEC has an earn-out opportunity of up to an aggregate of $80 million, contingent upon achieving certain operating income targets. CEC is included in the Company’s E-Infrastructure Solutions segment.
Current wording
CEC Acquisition—On September 1, 2025, the Company acquired substantially all of the assets of Irving, Texas-based CEC Facilities Group, LLC (“CEC”) a leading specialty electrical and mechanical contractor. The purchase price was $561.6 million, consisting primarily of $442.9 million in cash and $79.5 million in common stock. Additionally, CEC has an earn-out opportunity of up to an aggregate of $80 million, contingent upon achieving certain operating income targets. CEC is included in the Company’s E-Infrastructure Solutions segment.
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 data center customers, including hyperscalers, colocation providers and others. These investments are driven by the need to support the increasing use of cloud computing applications, increasing adoption and complexity of artificial intelligence applications and digital transformation across industries. Additionally, we continue to see significant opportunity related to the construction of manufacturing capacity in the U.S., including semiconductor fabrication. Following a decline in activity that began in 2023, awards in the e-commerce distribution sector began to strengthen in late 2024 and early 2025. Small warehouse activity, which began to decline in 2023 and remained soft in 2024, is slowly recovering.
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 data center customers, including hyperscalers, colocation providers and others. These investments are driven by the need to support the increasing use of cloud computing applications, increasing adoption and complexity of artificial intelligence applications and digital transformation across industries. Additionally, we continue to see significant opportunity related to the construction of manufacturing capacity in the U.S., including semiconductor fabrication. Following a decline that began in 2023, the e-commerce distribution sector began to strengthen in 2025 and we expect this momentum to continue in 2026.
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 Infrastructure Investments and Jobs Act (“IIJA”), which establishes funding for the 2022 through 2026 time period, drove significant increases in transportation funding relative to the previous five-year law. The 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 saw an increase in bid activity and project awards which started in the third quarter of 2022 and continued through 2023 and 2024. We expect that the combination of strong state and federal funding will allow the transportation market to remain elevated relative to historical levels in 2025 and 2026.
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 Federal level, the Infrastructure Investments and Jobs Act (“IIJA”), which establishes funding for the fiscal 2022 through 2026 time period, drove significant increases in transportation funding relative to the previous five-year law. The 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 saw an increase in bid activity and project awards which started in the third quarter of 2022 and continued through 2025. In 2026, we expect that the combination of strong state-level funding in our core geographies and elevated federal funding will allow the transportation market to remain strong relative to historical levels.
Previous wording
Revenues—Revenues were $689.0 million for the third quarter of 2025, compared to $593.7 million in the third quarter of 2024. Excluding $72.2 million of RHB revenue from the third quarter of 2024, revenues increased $167.5 million, which was driven by a $153.2 million increase in E-Infrastructure Solutions and a $15.4 million increase in Transportation Solutions, partly offset by a $1.2 million decrease in Building Solutions.
Current wording
Revenues—Revenues were $825.7 million for the first quarter of 2026, an increase of $394.7 million, or 92%, compared to the first quarter of 2025. The increase was driven by a $379.5 million increase in E-Infrastructure Solutions, a $12.2 million increase in Transportation Solutions, and a $3.1 million increase in Building Solutions.
Previous wording
Gross profit and margin—Gross profit was $170.2 million for the third quarter of 2025, an increase of $40.4 million, or 31.1%, compared to the third quarter of 2024. The Company’s gross margin as a percentage of revenue increased to 24.7% in the third quarter of 2025, as compared to 21.9% in the third quarter of 2024. Gross profit was $408.2 million for the nine months ended September 30, 2025, an increase of $88.8 million, or 27.8%, compared to the nine months ended September 30, 2024. The Company’s gross margin as a percentage of revenue increased to 23.5% for the nine months ended September 30, 2025, as compared to 19.8% for the nine months ended September 30, 2024. The increases were driven by the aforementioned higher revenue volume and an improved project margin mix across our E-Infrastructure and Transportation Solutions segments.
Current wording
Gross profit and margin—Gross profit was $194.3 million for the first quarter of 2026, an increase of $99.5 million, or 105%, compared to the first quarter of 2025. The Company’s gross margin as a percentage of revenue increased to 23.5% in the first quarter of 2026, as compared to 22.0% in the first quarter of 2025. The increases were driven by the aforementioned higher revenue volume and an improved project margin mix in our Transportation Solutions segment.
Previous wording
Contracts in progress that were not substantially complete totaled approximately 370 and 220 at September 30, 2025 and 2024, 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 the stage of completion of contracts.
Current wording
Our 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 the stage of completion of contracts.
Previous wording
General and administrative expense—General and administrative expenses were $37.6 million, or 5.5% of revenue, for the third quarter of 2025, compared to $30.7 million, or 5.2% of revenue, for the third quarter of 2024. General and administrative expenses were $106.2 million, or 6.1% of revenue, for the nine months ended September 30, 2025, compared to $85.8 million, or 5.3% of revenue, for the nine months ended September 30, 2024. The increases in expense reflects higher performance based compensation, one-time severance costs, increased headcount to support growth, and inflation in 2025. The Company anticipates that general and administrative expense will be approximately 6.3% of revenue for the full year 2025.
Current wording
General and administrative expense—General and administrative expenses were $47.9 million, or 5.8% of revenue, for the first quarter of 2026, compared to $34.6 million, or 8.0% of revenue, for the first quarter of 2025. The increase in expense reflects higher performance based compensation, increased headcount to support growth, and inflation in 2026.
Previous wording
Interest, net—Combined interest expense and income was net interest income of $1.5 million for the third quarter of 2025, compared to net interest income of $1.3 million for the third quarter of 2024, and net interest income of $5.0 million for the nine months ended September 30, 2025, compared to net interest income of $0.3 million for the nine months ended September 30, 2024. The higher interest income was due to increased interest rates on our higher average cash balance.
Current wording
Interest, net—Combined interest expense and income was net interest expense of $0.4 million for the first quarter of 2026, compared to net interest income of $1.6 million for the first quarter of 2025. The lower interest income was due to decreased interest rates on our lower average cash balance compared to the first quarter of 2025.
Previous wording
Income taxes—The effective income tax rate was 24.1% for the third quarter of 2025 and 25.1% for the nine months ended September 30, 2025. The rate varied from the statutory rate primarily as a result of non-deductible compensation, state income taxes and other permanent differences. On July 4, 2025, the One Big Beautiful Bill Act was enacted into law, introducing changes to the U.S. tax code. The changes did not have a material impact on our effective tax rate. The Company anticipates an effective income tax rate for the full year 2025 of approximately 25%. See Note 12 - Income Taxes for more information.
Current wording
Income taxes—The effective income tax rate was 24.5% for the first quarter of 2026. The rate varied from the statutory rate primarily as a result of non-deductible compensation, state income taxes and other permanent differences. See Note 12 - Income Taxes for more information.
Previous wording
Revenues—Revenues were $417.1 million for the third quarter of 2025, an increase of $153.2 million, or 58.1%, compared to the third quarter of 2024. Revenues were $945.8 million for the nine months ended September 30, 2025, an increase of $256.1 million, or 37.1%, compared to the nine months ended September 30, 2024. The increases were primarily driven by higher volume from data centers and the inclusion of $41.4 million of revenue from the electrical and mechanical business acquired late in the third quarter 2025, partly offset by lower volume from warehouses and the timing of advanced manufacturing projects.
Current wording
Revenues—Revenues were $597.7 million for the first quarter of 2026, an increase of $379.5 million, or 173.9%, compared to the first quarter of 2025. The increase was primarily driven by higher volume from data centers and the inclusion of $156.1 million of revenue from the electrical and mechanical business acquired late in the third quarter of 2025.
Previous wording
Operating income—Operating income was $106.6 million, or 25.6% of revenue, for the third quarter of 2025, an increase of $38.5 million, compared to $68.1 million, or 25.8% of revenue, for the third quarter of 2024. Operating income was $237.0 million, or 25.1% of revenue, for the nine months ended September 30, 2025, an increase of $90.1 million, compared to $146.9 million, or 21.3% of revenue, for the nine months ended September 30, 2024. The increase in operating income is partly attributable to a $4.1 million (inclusive of $0.8 million of intangible amortization) contribution from the electrical and mechanical business acquired late in the third quarter 2025, and the remaining increases in operating income and margin were driven by a project mix shift toward large mission-critical projects, partly offset by lower volume from warehouses and the timing of advanced manufacturing projects.
Current wording
Operating Income—Operating income was $133.8 million, or 22.4% of revenue, for the first quarter of 2026, an increase of $87.1 million, compared to $46.6 million, or 21.4% of revenue, for the first quarter of 2025. The increase in operating income is primarily driven by higher volume from large mission-critical projects, and partly attributable to a $12.3 million (inclusive of $2.3 million of intangible amortization) contribution from the electrical and mechanical business acquired late in the third quarter of 2025.
Previous wording
Operating Activities—During the nine months ended September 30, 2025, net cash provided by operating activities was $253.9 million, compared to net cash provided by operating activities of $322.8 million for the nine months ended September 30, 2024. Cash flows provided by operating activities were primarily driven by higher operating income, the collection of receivables from affiliate, distributions of earnings from our unconsolidated subsidiary, 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 three months ended March 31, 2026, net cash provided by operating activities was $165.6 million, compared to net cash provided by operating activities of $84.9 million for the three months ended March 31, 2025. Cash flows provided by operating activities were primarily driven by higher operating income, the collection of receivables from affiliate, distributions of earnings from our unconsolidated subsidiary, 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 nine months ended September 30, 2025 and 2024 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 three months ended March 31, 2026 and 2025 were as follows:
Previous wording
During the nine months ended September 30, 2025, the change in Contract Capital was $113.6 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.
Current wording
During the three months ended March 31, 2026, the change in Contract Capital was $3.0 million. 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 nine months ended September 30, 2025, net cash used in investing activities was $531.1 million, compared to net cash used of $62.3 million in the nine months ended September 30, 2024. The net cash used during the period was primarily driven by $484.2 million for acquisitions (including $444.8 million for the CEC Acquisition and $25 million for the Drake Acquisition) and $50.9 million for purchases of capital equipment, partly offset by $4.0 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 three months ended March 31, 2026, net cash used in investing activities was $17.7 million, compared to net cash used of $54.2 million in the three months ended March 31, 2025. The net cash used during the current period was driven by $19.6 million for purchases of capital equipment, partly offset by $1.9 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.
Previous wording
Financing Activities—During the nine months ended September 30, 2025, net cash used in financing activities was $80.7 million, compared to net cash used of $84.0 million for the nine months ended September 30, 2024. The financing cash outflow during the period was primarily driven by $48.5 million for the repurchase of common stock, $20.9 million of repayments on the Term Loan Facility, and $9.7 million for withholding taxes paid on the net share settlement of vested equity awards.
Current wording
Financing Activities—During the three months ended March 31, 2026, net cash used in financing activities was $26.7 million, compared to net cash used of $56.2 million for the three months ended March 31, 2025. The financing cash outflow during the period was primarily driven by $12.3 million for the repurchase of common stock, $10.7 million for withholding taxes paid on the net share settlement of vested equity awards, and $3.8 million of repayments on the Term Loan Facility.
Previous wording
Capital Strategy—The Company will continue to explore additional revenue growth and capital alternatives to improve leverage and strengthen its financial position in order to take advantage of trends in the civil infrastructure and E-infrastructure markets. The Company also expects to continue to pursue strategic uses of its cash, such as investing in projects or businesses that meet its gross margin and overall profitability targets, managing its debt balances and repurchasing shares of its common stock.
Current wording
Capital Strategy—The Company will continue to explore additional revenue growth and capital alternatives to improve leverage and strengthen its financial position in order to take advantage of trends in the markets in which we operate. The Company also expects to continue to pursue strategic uses of its cash, such as investing in projects or businesses that meet its gross margin and overall profitability targets, managing its debt balances and repurchasing shares of its common stock.
Previous wording
At September 30, 2025, there was approximately $10 million of construction work to be completed on unconsolidated construction joint venture contracts, of which approximately $4 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, 2025, 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 March 31, 2026, there was approximately $375 million of construction work to be completed on unconsolidated construction joint venture contracts, of which approximately $150 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 March 31, 2026, 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.
Previous wording
See Note 2 - Basis of Presentation and Significant Accounting Policies for a discussion of new accounting standards.
Current wording
See the applicable section of Note 2 - Basis of Presentation and Significant Accounting Policies for a discussion of new accounting standards.