Sterling Infrastructure Q3 Revenue Jumps 127% on E-Infrastructure Growth

Sterling Infrastructure Inc. (NASDAQ: STRL) reported a 127% increase in third-quarter 2026 revenue as demand for mission-critical site development and electrical services drove rapid expansion in its E-Infrastructure Solutions segment. Adjusted diluted earnings per share more than doubled to a record, while the company’s roughly $8 billion of scoped work provided multi-year visibility into potential future activity.

Revenue for the quarter ended September 30 rose to $1.56 billion from $689.0 million a year earlier, including organic growth of approximately 70%. Net income attributable to Sterling common stockholders increased to $214.9 million from $92.1 million, and GAAP diluted EPS climbed 133% to $6.92 from $2.97.

Adjusted diluted EPS rose 118% to $7.58. Adjusted EBITDA increased 117% to $337.8 million, with an adjusted EBITDA margin of 21.6%. The margin was about 100 basis points lower year over year, which Sterling attributed to the higher contribution from electrical contractor CEC, which was included for only one month of the prior-year quarter.

GAAP operating income increased 145% to $306.8 million, lifting the operating margin to 19.6% from 18.2%. For the first nine months of 2026, Sterling generated $3.56 billion of revenue, $466.7 million of net income and $761.2 million of adjusted EBITDA.

E-Infrastructure drives growth

E-Infrastructure Solutions remained the principal growth engine, generating $1.30 billion of quarterly revenue, up 212% from $417.1 million. The segment accounted for 83% of consolidated third-quarter revenue, reflecting strong demand for both site development and electrical services.

E-Infrastructure operating income rose 176% to $294.5 million. Adjusted operating income increased 171% to $302.4 million, representing an adjusted margin of 23.2%. Sterling said site development margins were consistent with first-half 2026 levels, while CEC’s margins improved both sequentially and from a year earlier.

Transportation Solutions revenue declined 3% to $165.2 million as Sterling reallocated resources to higher-margin E-Infrastructure opportunities. Despite the lower revenue, segment operating income increased 24% to $30.2 million, while adjusted operating income rose 22% to $32.6 million. The company cited selective project pursuit and execution for the earnings improvement.

Building Solutions revenue fell 5% to $96.0 million, reflecting lower homebuilder activity. Operating income declined 47% to $5.7 million, and adjusted operating income decreased 39% to $7.7 million. Sterling said challenging market conditions continued to affect the segment.

Scoped work reaches about $8 billion

Sterling ended September with $4.14 billion of signed backlog, up from $3.01 billion at the end of 2025. E-Infrastructure accounted for $3.14 billion of the total, compared with $963.7 million for Transportation Solutions and $35.0 million for commercial Building Solutions.

Including $2.0 billion of unsigned awards and approximately $1.7 billion of upcoming site-development phases in design, total scoped work stood at roughly $8 billion. That amount increased approximately 90% year over year and 11% sequentially, with the company reporting continued strong bidding activity.

Management said the quantified figures do not fully capture potential additional phases on active mission-critical campuses. Customer-owned acreage not yet in design or formally scoped represents more than five years of additional development runway, according to the presentation. Such opportunities remain dependent on project timing, phasing and conversion into contracted revenue.

Full-year outlook and capital allocation

For full-year 2026, Sterling expects revenue of $4.63 billion to $4.73 billion and net income of $596 million to $604 million. GAAP diluted EPS is projected at $19.16 to $19.42, while EBITDA is expected to range from $905 million to $916 million.

On an adjusted basis, the company forecasts net income of $675 million to $683 million, diluted EPS of $21.70 to $21.96 and adjusted EBITDA of $970 million to $981 million. At the midpoint, the outlook represents year-over-year growth of 88% in revenue, 101% in adjusted diluted EPS and 94% in adjusted EBITDA. Sterling also anticipates approximately $140 million of capital expenditures for the year.

Sterling had $122 million of net cash at September 30, with $342 million of cash and cash equivalents and $217 million of total debt. During July, it expanded its revolving credit facility to $1.5 billion and extended the maturity to July 2031, using proceeds to repay its existing term loan.

Capital priorities include fleet expansion, a larger electrical prefabrication facility, employee recruitment and training, and organic growth in existing and new markets. Sterling is also targeting small- and mid-sized acquisitions that could add capabilities, geographic reach, customer relationships or capacity. Its share-repurchase authorization had $267 million remaining as of September 30 and runs through November 2027.

The company cautioned that its outlook and longer-term opportunities depend on factors including acquisition integration, customer project scope and timing, the conversion of backlog and unsigned awards into revenue, margin initiatives, capital availability and broader execution risks. Sterling also noted that its forward-looking assumptions may change and that projected results are not guarantees of future performance.