| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 26 | 36.7x | 17.8x | Bottom tier | |
Growth | 88 | 60.8% | 7.1% | Top tier | |
Quality | 78 | 31.6% | 4.5% | Top tier | |
Safety | 84 | — | 2.6x | Top tier | |
Capital Return | 36 | — | 2.12% | Bottom tier | |
Momentum | 51 | 88.0% | 2.9% | Around median | |
Sentiment | 39 | 6 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sterling Infrastructure operates through three main segments: E-Infrastructure Solutions, which performs site development and electrical work for mission-critical projects such as data centers, semiconductor campuses, and large-scale manufacturing; Transportation Solutions, which focuses on selected transportation projects; and Building Solutions, which is tied to homebuilder activity. The company’s strategy is based on shifting resources toward higher-margin E-Infrastructure projects, combining electrical and site development work on the same project, and expanding operating capacity through equipment, workforce, and additional acquisitions.
In Q2 fiscal 2026, revenue was $1.2 billion, gross profit was $290.0 million, net income was $155.8 million, and earnings per share were $5.00, according to EDGAR data. On a year-over-year basis, management said revenue grew 90% and adjusted diluted earnings per share rose 116% from $2.69 to $5.80, while adjusted earnings before interest, taxes, depreciation, and amortization more than doubled and its margin increased 150 basis points to 22%. The latest trailing-twelve-month figures show revenue of $3.4 billion, gross profit of $818.6 million, and net income of $431.5 million.
Most of the momentum came from E-Infrastructure, where revenue grew 192% and the adjusted operating margin reached 24%, driven by data centers and semiconductor campuses; CEC revenue also increased 140%, and Rocky Mountain business revenue rose about 700%. In contrast, Transportation Solutions revenue declined 20%, but its adjusted operating margin increased by more than 500 basis points to 19.5%, and adjusted operating income rose 8%, while Building Solutions revenue declined 1% and its adjusted operating margin was 9.9%. These figures reflect a strong shift in the business mix toward E-Infrastructure, rather than balanced growth across the three segments.
The analyst consensus is Buy, with an average target of $731.20, but the dispersion is wide between a low target of $510 and a high target of $950. The average target is below the 52-week high of $1,005.68, and the high target itself is also below that peak, indicating that sustaining the strong valuation requires delivering the raised fiscal 2026 guidance and maintaining data center momentum. The context does not include a usable price-to-earnings multiple, so the valuation assessment is based on the target range, the 52-week range, and risks related to the business mix and execution capacity.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Sterling’s revenue increased 90%, and adjusted diluted earnings per share rose 116% from $2.69 to $5.80 in Q2 fiscal 2026. The primary driver was E-Infrastructure, where revenue grew 192%, supported by data centers and semiconductor campuses. CEC revenue also grew 140%, and the Rocky Mountain business grew about 700% as resources were shifted from transportation to E-Infrastructure. The adjusted earnings before interest, taxes, depreciation, and amortization margin reached 22% after expanding 150 basis points year over year.
Contracted backlog reached $4.3 billion at the end of Q2 fiscal 2026, up 116% from the comparable period. Combined backlog reached $5.6 billion, up 150%, while high-probability future phase opportunities exceeded $1.4 billion. Combining these sources, management said the visible pipeline exceeds $7 billion, an increase of more than $2.5 billion since the end of fiscal 2025. E-Infrastructure accounts for more than $6 billion of contracted backlog, unsigned electrical awards, and future phase opportunities.
Management raised the fiscal 2026 revenue range to $4.0–$4.15 billion and diluted earnings per share to $17.25–$17.85. Adjusted diluted earnings per share guidance ranges from $19.70 to $20.30, and adjusted earnings before interest, taxes, depreciation, and amortization guidance ranges from $891 million to $916 million. The company expects E-Infrastructure revenue growth exceeding 100% and an adjusted operating margin in the mid-twenties. In contrast, it expects Transportation Solutions revenue to decline 7–10% and Building Solutions to decline slightly during fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
CEC’s combined backlog reached about $2.4 billion in June 2026 after adding about $1.7 billion since the end of fiscal 2025. CEC revenue increased 140% in Q2 fiscal 2026, and the company had begun jointly performing electrical and site development work on three or four projects. Stone Ridge added about $140 million to contracted backlog and supports Sterling’s expansion in Pacific Northwest. The contributions from CEC and Stone Ridge are included in the expectation for E-Infrastructure revenue growth of more than 100% in fiscal 2026.
Yes, because the revenue mix between site development and electrical work is fundamentally different. In Q2 fiscal 2026, the adjusted margin of the site development business was in the high twenties, while CEC’s margin was about 12%, so faster CEC growth mathematically lowers the combined margin. However, management said that the margins of the individual components improved and that a change in CEC’s project mix could add 300–500 basis points over 12–18 months. The company is targeting an adjusted operating margin in the mid-twenties for the E-Infrastructure segment in fiscal 2026.
The key risk is executing rapid growth amid a shortage of electricians and tight capacity in the site development business; management stated that adding 1,000 or 2,000 electricians would have enabled faster growth. Mission-critical projects also account for more than 92% of contracted backlog in E-Infrastructure, increasing reliance on data center, manufacturing, and semiconductor spending plans. The backlog balance could decline sequentially in Q3 fiscal 2026 due to differences between award timing and the pace of revenue execution. In addition, increasing capacity requires expected capital expenditures of $130–$140 million and additional acquisitions to support geographic expansion.
