Sterling Infrastructure's Margin Surge Raises Concerns About Future Growth

Sterling Infrastructure (STRL) reported 14.4% annual revenue growth, outpacing the US market average, and a 71.2% YoY earnings surge, partly due to an $82m one-off gain. However, future growth is forecast at 9.4% YoY, slower than the broader US market. The company's backlog reached $1.2 billion, supporting multi-year growth and mitigating revenue drop risk. Nevertheless, profit margins rose to 14.1% but are expected to shrink to 10.6% over the next three years, constrained by rising costs, competition, and reduced government stimulus.