Sterling Infrastructure Soars 3.35% as CEC Acquisition, Strong Q2 Earnings Drive Momentum

Sterling Infrastructure, Inc. (NASDAQ: STRL) surged 3.35% on Wednesday, marking its third consecutive day of gains. The stock has climbed 12.80% over the past three days, reaching an intraday high of 4.16% and hitting its highest level since September 2025. This rally reflects growing investor confidence in the company’s strategic direction and financial performance.

The acquisition of CEC Facilities Group in July 2025 has been a pivotal driver of STRL’s momentum. By integrating CEC’s expertise in electrical infrastructure for data centers and industrial clients, Sterling expanded its footprint in the high-margin e-infrastructure sector. Analysts highlight that this move is expected to enhance earnings per share and gross profit margins, aligning with the company’s long-term goal of leveraging surging demand for digital infrastructure.

Record Q2 2025 results further fueled the stock’s rise, with revenue growing 21% year-over-year to $522.33 million and gross profit margins hitting 23.3%. Earnings per share of $1.27 exceeded expectations, driven by strong demand for e-infrastructure projects and efficient cost management. The CEC acquisition contributed $424 million in new bookings during the quarter, reinforcing revenue projections for the remainder of the year.

Analyst sentiment has shifted positively, with earnings estimates revised upward to a range of $4.00–$4.20 for FY 2025. This optimism is underscored by Sterling’s leadership in the e-infrastructure sector and its ability to secure large-scale contracts. A $216 million transportation design-build award in July 2025 is expected to bolster earnings in the second half of the year, while the company’s robust backlog provides a foundation for sustained revenue growth.

Despite these strengths, risks remain. The sustainability of demand for e-infrastructure projects and effective integration of CEC’s operations are critical to maintaining momentum. Competitive pressures and macroeconomic uncertainties could also impact long-term growth. However, Sterling’s diverse client base and geographic reach position it to navigate challenges while capitalizing on federal infrastructure spending initiatives.