Sterling Infrastructure 2Q adj EPS $5.80, est. $4.99

Sterling Infrastructure, Inc. (NasdaqGS: STRL) reported adjusted EPS of $5.80, surpassing the estimated $4.99. The company's financial performance reflects strong operational and strategic momentum, driven by robust revenue growth and improved margins across its segments.

Revenues for the quarter reached $825.7 million, a 92% increase compared to the prior year period, with the recently acquired CEC business contributing $156.1 million to the top line. Adjusted net income rose to $111.3 million, or $3.59 per diluted share, marking a 122% increase year-over-year. The company also reported adjusted EBITDA of $166.6 million, up 107% from the same period in 2025.

Sterling’s E-Infrastructure Solutions segment led the growth, with revenue increasing by 174% and adjusted operating income rising by 177%. The segment’s backlog grew significantly, with over 90% mission-critical projects such as data centers and semiconductor facilities. Transportation Solutions also delivered strong results, with revenue up 10% and adjusted operating income increasing by 26%. Meanwhile, Building Solutions saw a 3% revenue increase, though adjusted operating income declined 42% due to challenging market conditions.

The company’s cash flow generation remained robust, with operating cash flow totaling $165.6 million for the quarter. Sterling also ended the period with $511.9 million in cash and cash equivalents. The company raised its full-year 2026 guidance, reflecting confidence in continued growth and operational performance.

Sterling’s management highlighted the strength of its backlog, which reached $3.80 billion at the end of the quarter, up 78% year-over-year. Combined backlog, including unsigned awards, totaled $5.15 billion, up 131% from the prior year. The company’s updated guidance for 2026 now anticipates adjusted diluted EPS $18.40 to $19.05, with adjusted EBITDA expected to reach $843 million to $873 million.

The results underscore Sterling’s ability to execute on its strategic initiatives and deliver value to shareholders, supported by a strong backlog and expanding market opportunities.