Sterling Construction earnings surpass expectations, strong guidance drives stock price soaring

LootboxPhobia · 2026-02-26T02:16:28+00:00

Sterling Infrastructure Inc. exceeded expectations in Q4, with an adjusted EPS of $3.08 and revenue of $755.6 million, both surpassing analyst estimates. The 2026 guidance shows an expected adjusted EPS of $13.75, significantly higher than market expectations, with revenue projected to grow 25% year-over-year.

LootboxPhobia

2026-02-26 02:16:28

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Investing.com – Sterling Infrastructure Inc. (NASDAQ:STRL) announced Q4 results that exceeded analyst expectations and issued 2026 guidance well above Wall Street forecasts, with shares rising 7.6% after hours on Wednesday.

The company reported adjusted earnings per share of $3.08 for the quarter, beating the consensus estimate of $2.52 by $0.56. Revenue reached $755.6 million, surpassing the expected $634.73 million, and grew 69% year-over-year excluding the RHB joint venture that was no longer consolidated. The CEC acquisition contributed $129.1 million to quarterly revenue.

Adjusted EBITDA for the quarter increased 70% to $142.1 million, with a gross margin of 22%, setting a new record for Q4. The company’s year-end backlog reached $3.01 billion, up 78% from the previous year, with the CEC acquisition contributing $488.9 million. Excluding acquisition effects, backlog grew 49%.

Sterling CEO Joe Cutillo said, “2025 was another outstanding year for Sterling, with adjusted net income up 53% and adjusted diluted EPS reaching $10.88, exceeding the upper end of our previous guidance range.”

For fiscal 2026, Sterling issued guidance of $13.45 to $14.05 for adjusted EPS, with a midpoint of $13.75, significantly higher than the analyst consensus of $12.07. The company expects revenue of $3.05 billion to $3.2 billion, compared to the market expectation of $2.824 billion. The midpoint of revenue guidance represents a 25% year-over-year increase.

E-Infrastructure Solutions performed strongly, with revenue up 123% and adjusted operating income up 91%, benefiting from organic growth and the CEC acquisition. Key projects in data centers, manufacturing, and semiconductors accounted for 84% of E-Infrastructure backlog.

Sterling generated $440 million in operating cash flow in 2025, with cash and cash equivalents at the end of the quarter totaling $390.7 million.

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