Sterling Infrastructure revenue doubles on infrastructure push
The civil-construction company posted first-quarter adjusted earnings of $3.59 a share, up 120% from a year earlier.
Sterling Infrastructure (STRL) reported first-quarter revenue that more than doubled, as the civil-construction company’s push into high-margin infrastructure projects accelerated growth and lifted margins. The results marked a sharp inflection from prior quarters, driven by organic expansion and a recent acquisition that expanded its electrical-infrastructure footprint.
The quarter’s standout performance reflected a strategic pivot toward mission-critical projects, including data centers and semiconductor facilities, which now dominate the company’s backlog. Revenue rose 92% year-over-year to $825.7 million, up from 51% growth in the prior quarter and 32% in the third quarter of 2025. Adjusted earnings climbed 120% to $3.59 a share, outpacing revenue growth as margins expanded.
The E-Infrastructure Solutions segment led the charge, with revenue surging 174% year-over-year, accelerating from 123% growth in the prior quarter. Legacy site-development revenue rose 102%, while the electrical business, bolstered by the late-2025 acquisition of CEC, contributed $156.1 million. Adjusted operating income margins in the segment held steady at 23.5%, despite the rapid revenue growth, signaling scalable execution. Mission-critical projects now represent 90% of the segment’s backlog, up from 84% in the prior quarter, a record high for the company.
Transportation Solutions revenue grew 10% year-over-year, a deceleration from 24% in the prior quarter, though adjusted operating income margins expanded to 12.9% on a mix shift toward higher-margin projects. The Building Solutions segment continued to struggle, with revenue growth slowing to 3% from a 9% decline in the prior quarter, as housing-market softness weighed on margins, which compressed to 8.7%.
Backlog reached $3.8 billion, up 78% year-over-year, with the E-Infrastructure segment’s backlog rising 123%. Including unsigned awards, total backlog and pipeline visibility expanded to $6.5 billion, up from $4.5 billion in the prior quarter, as the company disclosed a $1.3 billion pipeline of high-probability future work.
Sterling raised its full-year guidance significantly in the quarter, lifting the midpoint for revenue to $3.75 billion from $3.125 billion at the start of the year, while adjusted earnings guidance rose to $18.73 a share from $13.75. The company also announced the acquisition of Stone Ridge Contracting, a move expected to add $180 million to $200 million in revenue this year and expand its E-Infrastructure segment into the Pacific Northwest.
Cash and cash equivalents fell to $511.9 million from $664.2 million in the prior quarter, reflecting acquisition activity and share repurchases, which totaled $12.3 million at an average price of $305.14.