Sterling Infrastructure Third-Quarter Revenue Jumps 127% To $1.56 Billion, Guidance Raised
Electrical and site work drove record results while the homebuilding-linked segment shrank, and the 2026 revenue outlook now runs $4.63 billion to $4.73 billion.
Sterling Infrastructure, a construction contractor focused on data-center site work, electrical services, highways and home foundations, posted record third-quarter results Wednesday: revenue of $1.56 billion, up 127% from a year earlier. It also raised its 2026 guidance.
Record profit on electrical muscle
Net income was $214.9 million, or $6.92 per diluted share, both up 133%, according to the earnings release. Adjusted net income reached $235.4 million, or $7.58 a share, and EBITDA (earnings before interest, taxes, depreciation and amortization) was $320.8 million, up 124%. The company called each of the quarter's headline metrics a record.
CEO Joe Cutillo said the revenue gain included 70% organic growth. The CEC electrical business, bought on September 1, 2025, contributed $425.6 million of revenue, against $41.4 million in the partial ownership period a year earlier.
"We now believe that CEC has the potential to generate over $1 billion in revenue in 2026," Cutillo said.
Data centers up, homebuilding down
E-Infrastructure Solutions, which does site development and electrical work for data centers, chip plants and similar projects, brought in $1.30 billion, up 212%. Its operating margin slipped to 22.6% from 25.6%, which the company attributed to the heavier CEC mix.
Transportation Solutions revenue fell 3.1% to $165.2 million as resources shifted to E-Infrastructure work, though operating income rose 24.0%. Building Solutions revenue fell 5.4% to $96.0 million and operating income fell 47.3%, which Cutillo tied to slower homebuilder activity. He expects market conditions to stay challenging through 2026 as housing affordability weighs on demand.
Backlog and the raised outlook
Signed backlog stood at $4.14 billion at September 30, up 61%. Adding $2.00 billion of unsigned awards brings combined backlog to $6.14 billion, up 78%.
Full-year guidance now calls for revenue of $4.63 billion to $4.73 billion, diluted earnings per share of $19.16 to $19.42, and adjusted diluted earnings per share of $21.70 to $21.96. At the midpoint, Cutillo said, that implies 88% revenue growth and 101% growth in adjusted diluted earnings per share.
For the first nine months, operating cash flow was $427.1 million, the company repurchased $107.3 million of stock, and cash stood at $216.9 million.
Management hosts its earnings call Thursday at 9:00 a.m. ET.
Sources
- 8-K Filing — STERLING INFRASTRUCTURE, INC. (STRL) — SEC EDGAR
- Exhibit a20261028ex991earningsrele.htm — STERLING INFRASTRUCTURE, INC. 8-K exhibit — SEC EDGAR
- Exhibit q32026earningsrelease_ir.htm — STERLING INFRASTRUCTURE, INC. 8-K exhibit — SEC EDGAR
- Sterling Reports Record Third Quarter Results and Raises Full Year 2026 Guidance — prnewswire.com
