Sterling Revenue Jumps 127% to $1.56 Billion in Record Quarter
Key Facts
Sterling Infrastructure reported record results on October 28 for the third quarter ended September 30, with revenue of $1.56 billion, net income of $214.9 million and diluted earnings per share of $6.92. The company said revenue rose 127% year over year, while net income and diluted earnings per share each increased 133%, setting new quarterly records. Adjusted net income was $235.4 million, or adjusted diluted earnings per share of $7.58, up 119% and 118%, respectively. Adjusted EBITDA rose 117% to $337.8 million. In its coverage on the day of the announcement, Investing.com noted that adjusted earnings per share topped analysts’ consensus of $6.20 and revenue exceeded an estimate of $1.19 billion.
Most of the revenue growth came from the E-Infrastructure Solutions segment, which reported $1.30 billion, up 212% year over year, according to Investing.com. CEO Joe Cutillo said total revenue growth included organic growth of 70%. The coverage added that CEC’s electrical business contributed $425.6 million in quarterly revenue; Sterling acquired CEC in September 2025. Management said about 95% of E-Infrastructure Solutions opportunities are tied to mission-critical projects, including data centers, manufacturing and semiconductors. It also said CEC’s business has the potential to generate more than $1 billion in revenue in 2026. Sterling’s expansion in the segment is therefore central to its explanation of business growth, with acquired operations contributing to current revenue.
By contrast, revenue in the Transportation Solutions segment fell 3.1% to $165.2 million, while revenue in the Building Solutions segment declined 5.4% to $96.0 million, according to coverage published on results day. The company attributed the contraction in Transportation Solutions revenue to redirecting resources toward E-Infrastructure Solutions work. Despite lower revenue, adjusted operating income in the Transportation segment rose 22.2% to $32.6 million. For Building Solutions, management expects challenging market conditions to continue through 2026, with housing affordability continuing to weigh on demand. The company said slower activity by homebuilders and affordability pressures continue to challenge the market. The results highlight divergent performance across the company’s segments, with strong growth in electronic infrastructure alongside pressure in building and lower transportation revenue.
Sterling raised its fiscal 2026 revenue outlook to a range of $4.63 billion to $4.73 billion, with a midpoint of $4.68 billion, and forecast adjusted diluted earnings per share of $21.70 to $21.96. Investing.com’s coverage compared the revenue midpoint with analysts’ consensus of $4.12 billion at the time of publication. The midpoint of adjusted earnings per share guidance was $21.83, versus consensus of $20.03. At the midpoint of its new guidance, management expects year-over-year growth of 88% in revenue, 101% in adjusted diluted earnings per share and 94% in adjusted EBITDA. These figures outline the performance range the company is targeting for the year, while the comparison with analysts’ consensus puts the new guidance above estimates cited in the coverage.
Signed orders totaled $4.14 billion as of September 30, up 61% from the year-earlier period, while combined orders reached $6.14 billion, an increase of 78%. Management said signed orders, unsigned awards and next phases in design for current projects together represent nearly $8 billion of identified work, an increase of about 90% year over year. Cash flow from operations was $427.1 million in the nine months ended September 30. Over the same period, the company repurchased $107.3 million of shares. Cash and cash equivalents stood at $216.9 million at the end of September. These figures show the scale of work underway or tied to existing projects, alongside cash flow recorded during the first nine months of the year.
Sterling shares fell 4.9% in after-hours trading on Wednesday, October 28, according to Investing.com coverage published on the evening of the results announcement. The move followed the release of third-quarter figures and new annual guidance, and the coverage did not attribute the share decline to a specific cause. The company scheduled a call to discuss the results and corporate developments for Thursday, October 29, at 9 a.m. Eastern Time. It said a webcast of the call would be archived on its website for 30 days. The call is scheduled for the day after the announcement, giving the company a set time to present details of the results and outlook to investors.