Sterling Construction Company Stock Earnings Reports

Sterling Infrastructure reported a very strong start to 2026 with revenue up 92% year over year and adjusted diluted EPS up 120%. Adjusted EBITDA more than doubled and first-quarter adjusted EBITDA margin reached a record 20%. Signed backlog was $3.8 billion (up 78% YoY) and combined backlog was $5.2 billion (up 131% YoY), with high-probability future phase opportunities of over $1.3 billion—together providing visibility into about $6.5 billion of potential work. Management highlighted exceptional demand in E-Infrastructure (data centers, large manufacturing and semiconductor) with E-Infrastructure revenue up 174% and expected full-year E-Infrastructure growth of 80%+ and mid-20% adjusted operating margins. The company won the first phase of a multi-phase semiconductor campus (>$500 million, multi-decade opportunity) executed via a joint venture. CEC (electrical business) is assimilating well: CEC revenue grew 78% YoY with backlog increases and early cross-selling wins; management expects 300–500 bps margin expansion for CEC over 12–18 months as lower-margin work is exited and vertical integration expands. Transportation Solutions and Building Solutions remain cash-generative: Transportation grew 10% in Q1 with margins improving; Building revenue was modestly up but is expected to be modestly down for the year with low-double-digit margins. Liquidity is strong: $512M cash, $287M debt (net cash ~$224M), undrawn $150M revolver, and $362M remaining buyback authorization (company repurchased $12M in Q1). Management raised 2026 guidance materially: revenue $3.7–3.8B (midpoint +20% vs prior), adjusted diluted EPS $18.40–19.05 (midpoint +36% vs prior), adjusted EBITDA $843–873M. Strategy remains highly selective on project wins, focus on vertically integrated, mission-critical work, continued geographic expansion driven by customer demand, and opportunistic M&A to extend capabilities.