Cautionary Statement Regarding Forward-Looking Statements

Actual events, results and outcomes may differ materially from those anticipated, projected or assumed in the forward-looking statements due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, the following:

•changes in costs to lease, acquire or maintain our equipment;

•design/build contracts which subject us to the risk of design errors and omissions;

•our ability to obtain bonding or post letters of credit;

•potential disruptions, failures or security breaches of the information technology systems on which we rely to conduct our business;

•potential risks and uncertainties relating to the ongoing COVID-19 pandemic, and any future major public health crisis;

•our dependence on a limited number of significant customers;

•our ability to attract and retain key personnel;

•increased unionization of our workforce or labor costs and any work stoppages or slowdowns;

•federal, state and local environmental laws and regulations where non-compliance can result in penalties and/or termination of contracts as well as civil and criminal liability;

•citations issued by any governmental authority, including the Occupational Safety and Health Administration;

•our ability to qualify as an eligible bidder under government contract criteria;

•any prolonged shutdown of the government;

•our ability to successfully identify, finance, complete and integrate recent and potential acquisitions, including the Petillo Acquisition;

•our ability to raise additional capital in the future on favorable terms or at all;

•our ability to generate cash flows sufficient to fund our financial commitments and objectives;

•our ability to meet the terms and conditions of our debt obligations and covenants; and

Summary-For the second quarter of 2022, the Company had operating income of $41.1 million, income before income taxes of $36.6 million, net income attributable to Sterling common stockholders of $26.0 million and net income per diluted share attributable to Sterling common stockholders of $0.86.

LIQUIDITY AND SOURCES OF CAPITAL

The following tables set forth information about our cash flows and liquidity: (In thousands)

Financing Activities-During the six months ended June 30, 2022, net cash used in financing activities was $11.8 million, compared to net cash used of $42.6 million in the prior year. The financing cash outflow was driven by $11.8 million of repayments on the Term Loan Facility.

There have been no material changes to the Company's discussion of new accounting standards from those described in Note 2 - Basis of Presentation and Significant Accounting Policies of our 2021 Form 10-K.

There have been no material changes to the Company's discussion of critical accounting estimates from those described in Item 7 of our 2021 Form 10-K.

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