Sterling Infrastructure Surges 9.14% on Strong Earnings and $505M Acquisition as $390M Volume Ranks 308th

On August 5, 2025, Sterling Infrastructure (STRL) surged 9.14% as trading volume spiked 61.76% to $390 million, ranking it 308th in market activity. The rally followed a strong Q2 earnings report and a $505 million acquisition of CEC Facility Services, a high-margin electrical contractor specializing in mission-critical sectors like data centers and semiconductors.

Second-quarter results exceeded expectations, with adjusted EPS of $2.69 (41% above 2024) and revenue of $614.5 million. E-Infrastructure Solutions, the fastest-growing segment, saw 29% revenue growth and a 28.3% operating margin, driven by demand for data center infrastructure. Transportation Solutions also outperformed, with 24% revenue growth and a 14.4% margin, reflecting a strategic shift away from low-margin highway contracts. Backlog rose 24% year-over-year to $2.01 billion, with high-probability contracts adding $240 million in visibility.

The CEC acquisition, valued at 9.6x 2025 EBITDA, is expected to close in Q3 and add $0.63–$0.70 of accretion to 2025 adjusted EPS. CEC’s 80% exposure to mission-critical markets aligns with Sterling’s growth strategy, while its $390–$415 million 2025 revenue guidance and 1.9x backlog-to-revenue ratio reinforce long-term potential. Management raised full-year adjusted EPS guidance to $9.21–$9.47, up from prior estimates of $8.50, citing improved margins and execution.

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