Sterling Infrastructure (STRL) AI Stock Analysis

• Market Cap: $9.72B
• Dividend Yield: N/A
• Average Volume (3M): 581.48K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 2.56
• Revenue Growth: 6.20%
• EPS Growth: 72.81%
• Country: US
• Employees: 3,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.48
• Shares Outstanding: 30,719,374
• 10 Day Avg. Volume: 564,291
• 30 Day Avg. Volume: 581,477
• PEG Ratio: 0.24
• Price to Book (P/B): 6.43
• Price to Sales (P/S): 2.45
• P/FCF Ratio: 12.48
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 4.66
• Enterprise Value/Gross Profit: 20.22
• Enterprise Value/Ebitda: 19.31
• 1Y Price Target: $455.00
• Price Target Upside: 43.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 10.28
• Revenue Forecast (FY): $2.38B

• Rating: 71 Outperform
• Price Target: $359.00 ▲(13.41% Upside)

Sterling Infrastructure's strong financial performance and positive earnings call are significant strengths, supporting a solid overall score. However, technical indicators suggest short-term weakness, and the high P/E ratio indicates valuation concerns. The stock repurchase program and strategic growth initiatives provide additional support.

Positive Factors

Revenue Growth

The significant revenue growth, particularly in high-margin segments, indicates strong market demand and effective business strategies, supporting long-term expansion.

Backlog Increase

A growing backlog suggests sustained demand for services and provides revenue visibility, enhancing the company's ability to plan and invest in future growth.

Stock Repurchase Program

The new stock repurchase program reflects management's confidence in the company's financial health and commitment to returning value to shareholders, strengthening investor trust.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth may limit the company's ability to invest in new projects or manage debt, potentially impacting long-term financial flexibility.

Building Solutions Segment Weakness

Weak performance in the Building Solutions segment could indicate challenges in market demand or competition, affecting overall profitability and growth potential.

Housing Market Affordability Issues

Affordability issues in the housing market may dampen demand for residential construction services, impacting revenue and growth in this segment.

Sterling Infrastructure Business Overview & Revenue Model

Company Description

Sterling Infrastructure, Inc. engages in the transportation, e-infrastructure, and building solutions primarily in the Southern United States, the Northeastern and Mid-Atlantic United States, the Rocky Mountain states, California, and Hawaii. It undertakes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail, water, wastewater, and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities and railroads. The company also provides specialty site infrastructure improvement contracting services for blue-chip end users in the e-commerce, data center, distribution center and warehousing, and energy sectors. In addition, it undertakes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, and other concrete work for national home builders, regional and custom home builders, and developers and general contractors in commercial markets. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.

How the Company Makes Money

Sterling Infrastructure generates revenue through a diverse range of services in the infrastructure sector. The primary revenue streams include government contracts for public works projects, private sector contracts for commercial construction, and specialized services such as utility maintenance and environmental cleanup. The company often engages in long-term contracts which provide a steady income stream. Additionally, Sterling Infrastructure benefits from strategic partnerships with government agencies and private companies, allowing them to secure large-scale projects and enhance their market presence. Factors such as increased government spending on infrastructure development, urbanization trends, and the need for infrastructure upgrades also contribute to the company's earnings.

Sterling Infrastructure Financial Statement Overview

Summary

Sterling Infrastructure shows strong financial health with impressive revenue and profit growth, efficient operations, and a solid balance sheet. However, cash flow generation has faced recent challenges, slightly impacting the overall score.

Income Statement

Sterling Infrastructure has demonstrated strong revenue growth with a TTM increase of 4.46% and consistent annual growth. The company maintains robust profitability metrics, with a TTM gross profit margin of 22.19% and a net profit margin of 13.33%. EBIT and EBITDA margins are also strong at 20.15% and 23.42%, respectively, indicating efficient operations. The upward trend in profitability and revenue growth supports a high score.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.39 in the TTM, reflecting manageable leverage. Return on equity is impressive at 35.49%, indicating effective use of equity to generate profits. The equity ratio stands at 41.01%, suggesting a solid capital structure. While the balance sheet is strong, the slight decrease in equity ratio over time suggests room for improvement.

Cash Flow

Sterling Infrastructure's cash flow performance is stable, with a TTM operating cash flow to net income ratio of 0.62 and a free cash flow to net income ratio of 0.88. However, the free cash flow growth rate has declined by 16.78% in the TTM, indicating potential challenges in cash generation. Despite this, the company maintains a solid cash flow position relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.12B	1.97B	1.77B	1.41B	1.23B
Gross Profit	514.87M	426.12M	337.64M	274.57M	203.53M	179.63M
EBITDA	539.13M	451.94M	277.34M	212.82M	142.32M	125.25M
Net Income	315.77M	257.46M	138.66M	106.46M	62.65M	42.31M
Balance Sheet
Total Assets	2.56B	2.03B	1.80B	1.47B	1.26B	982.39M
Cash, Cash Equivalents and Short-Term Investments	306.39M	664.20M	471.56M	185.26M	64.77M	72.69M
Total Debt	359.20M	369.27M	398.88M	491.16M	471.50M	385.23M
Total Liabilities	1.48B	1.21B	1.18B	991.13M	901.45M	713.66M
Stockholders Equity	1.05B	808.08M	618.91M	474.60M	358.77M	267.27M
Cash Flow
Free Cash Flow	360.23M	416.15M	414.20M	158.21M	112.28M	90.03M
Operating Cash Flow	426.80M	497.10M	478.58M	219.12M	158.93M	122.90M
Investing Cash Flow	-654.61M	-185.85M	-87.75M	-89.75M	-223.45M	-30.49M
Financing Cash Flow	-113.92M	-118.62M	-104.53M	-32.79M	80.57M	-70.33M

Sterling Infrastructure Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 316.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRL, the sentiment is Neutral. The current price of 316.55 is below the 20-day moving average (MA) of 320.08, below the 50-day MA of 344.89, and above the 200-day MA of 258.56, indicating a neutral trend. The MACD of -8.55 indicates Negative momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 62.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STRL.

Sterling Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	80 Outperform	$10.07B	34.23	21.90%	―	13.19%	33.58%
PRIM	75 Outperform	$6.98B	25.52	18.56%	0.25%	21.45%	67.31%
STRL	71 Outperform	$9.72B	31.04	35.73%	―	6.20%	72.81%
ROAD	71 Outperform	$6.39B	61.99	13.70%	―	54.20%	38.64%
GVA	70 Outperform	$5.21B	35.08	16.87%	0.45%	6.87%	64.56%
FLR	64 Neutral	$6.58B	2.07	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sterling Infrastructure Corporate Events

Sterling Infrastructure Announces New Stock Repurchase Program

On November 12, 2025, Sterling Infrastructure announced a new stock repurchase program authorized by its Board of Directors, allowing the company to buy back up to $400 million of its common stock over the next 24 months. This program replaces a previous one set to expire in December 2025, with $81 million remaining. The initiative reflects Sterling’s confidence in its financial outlook, aiming to balance capital allocation between growth investments and shareholder returns.

Sterling Infrastructure Reports Record Q3 2025 Results

Sterling Infrastructure reported record financial results for the third quarter of 2025, with significant revenue and net income growth. The company’s revenue increased by 32% excluding RHB, and the CEC acquisition contributed notably to both revenue and backlog. Sterling’s CEO highlighted strong growth in E-Infrastructure and Transportation Solutions, despite challenges in the Building Solutions market. The company raised its full-year guidance, projecting continued growth driven by a robust backlog and strategic acquisitions.

Sterling Construction EVP Ronald Ballschmiede Retires

Ronald A. Ballschmiede, Executive Vice President of Sterling Infrastructure, Inc., has announced his retirement from all positions with the company and its subsidiaries, effective September 24, 2025. This announcement marks a significant transition in the company’s leadership as it prepares for his departure in 2025.