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Sterling Infrastructure
(NASDAQ:STRL)
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Rating:71Outperform
Price Target:
$546.00
▼(-17.39% Downside)
Action:Reiterated
Date:07/08/26
STRL scores well on fundamentals and forward outlook: strong financial performance and a notably upbeat earnings update with raised guidance and expanding backlog are the biggest positives. Offsetting this, the stock’s technical setup is weak (bearish momentum, trading below key moving averages) and valuation is demanding (high P/E with no dividend support), which tempers the overall score.
Positive Factors
Large, expanding secured backlog
A multi-billion, rapidly expanding backlog provides durable revenue visibility across project cycles, supporting multi-quarter execution and margin planning. High book-to-burn ratios and a deep future-phase pipeline reduce near-term bid risk and underpin sustainable top-line growth if delivery capacity is maintained.
Negative Factors
Skilled labor and PM capacity constraints
Persistent shortages of electricians and project managers are structural bottlenecks for scaling execution on complex projects. Multi-quarter hiring or acquisition efforts are required; failure to ramp skills quickly could slow backlog conversion, increase subcontracting costs, and compress margins over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, expanding secured backlog
A multi-billion, rapidly expanding backlog provides durable revenue visibility across project cycles, supporting multi-quarter execution and margin planning. High book-to-burn ratios and a deep future-phase pipeline reduce near-term bid risk and underpin sustainable top-line growth if delivery capacity is maintained.
Read all positive factors
Sterling Infrastructure Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profitability across different business areas, helping investors assess which segments are driving earnings and where there might be challenges.
Shows profitability across different business areas, helping investors assess which segments are driving earnings and where there might be challenges.
Data provided by:
The Fly
The FlySterling Infrastructure (STRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.17B
Dividend YieldN/A
Average Volume (3M)782.22K
Price to Earnings (P/E)47.5
Beta (1Y)2.30
Revenue Growth36.96%
EPS Growth31.00%
CountryUS
Employees4,400
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)11.33
Shares Outstanding30,685,953
10 Day Avg. Volume628,979
30 Day Avg. Volume782,219
Financial Highlights & Ratios
PEG Ratio2.34
Price to Book (P/B)8.44
Price to Sales (P/S)3.76
P/FCF Ratio25.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$928.00Price Target Upside40.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)18.89
Revenue Forecast (FY)$3.75B
Sterling Infrastructure Business Overview & Revenue Model
Company Description
Sterling Infrastructure, Inc. (STRL) is a U.S.-based infrastructure and specialty construction company that provides services to public and private-sector customers. The company operates through construction-focused business lines that deliver lar...
How the Company Makes Money
Sterling Infrastructure makes money primarily by performing construction and infrastructure services under customer contracts and recognizing revenue as work is performed (typically based on project progress). Its key revenue streams come from: (1...
Sterling Infrastructure Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall: the company reported exceptional top-line and earnings growth, record margins for 1Q, substantial backlog expansion, a major semiconductor win, accelerated assimilation of the CEC acquisition, and materially raised full-year guidance. The primary negatives were sector-specific headwinds (residential), expected moderation in Transportation revenue, capacity constraints (electricians and PMs), and near-term timing/seasonality risks tied to project starts. On balance, the significant financial outperformance, backlog visibility, and upgraded guidance outweigh the challenges, though execution of capacity expansion and CEC margin improvement are key near-term execution risks.Positive Updates
Quarterly Financial Outperformance
Revenue grew 92% year-over-year in 1Q26 and adjusted diluted EPS grew 120%. Adjusted EBITDA more than doubled and adjusted EBITDA margin expanded over 150 basis points to a first-quarter record of 20%.
Negative Updates
Building Solutions Weakness and Residential Headwinds
Building Solutions revenue only grew 3% in 1Q26 with adjusted operating margins of 8.7%. Management expects Building Solutions revenue to be modestly down in 2026 and anticipates residential market headwinds throughout 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Financial Outperformance
Revenue grew 92% year-over-year in 1Q26 and adjusted diluted EPS grew 120%. Adjusted EBITDA more than doubled and adjusted EBITDA margin expanded over 150 basis points to a first-quarter record of 20%.
Read all positive updates
Company Guidance
Sterling raised its 2026 guidance to revenue $3.7–3.8B (midpoint +20% vs prior guide; >50% vs 2025), diluted EPS $16.50–17.15, adjusted diluted EPS $18.40–19.05 (midpoint +36% vs prior guide; +72% vs 2025), EBITDA $800–831M and adjusted EBITDA $843–873M, while maintaining CapEx guidance of $100–110M; the midpoints imply roughly 51% revenue growth, ~72% adjusted EPS growth and ~70% adjusted EBITDA growth. Key Q1 metrics supporting the raise: revenue +92%, adjusted diluted EPS +120%, adjusted EBITDA more than doubled with margins up >150 bps to a 1Q record 20%, signed backlog $3.8B (+78% YoY), combined backlog $5.2B (+131% YoY), future-phase opportunities >$1.3B and a total pool of work ≈$6.5B, book-to-burn 2.1x (backlog) and 3.5x (combined). Q1 cash flow from operations was $166M, Q1 CapEx $20M, cash $512M, debt $287M (net cash $224M), $150M revolver undrawn, $12M of buybacks in Q1 at an average $305.14/share and $362M remaining repurchase authority.Sterling Infrastructure Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.88B | 2.49B | 2.12B | 1.97B | 1.77B | 1.41B |
| Gross Profit | 671.77M | 572.31M | 426.12M | 337.64M | 274.57M | 203.53M |
| EBITDA | 589.97M | 505.38M | 451.94M | 277.34M | 212.82M | 142.32M |
| Net Income | 346.64M | 290.15M | 257.46M | 138.66M | 106.46M | 62.65M |
Balance Sheet | ||||||
| Total Assets | 2.78B | 2.63B | 2.03B | 1.80B | 1.47B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 511.86M | 390.72M | 664.20M | 471.56M | 185.26M | 64.77M |
| Total Debt | 342.19M | 349.91M | 369.27M | 398.88M | 491.16M | 471.50M |
| Total Liabilities | 1.59B | 1.53B | 1.21B | 1.18B | 991.13M | 901.45M |
| Stockholders Equity | 1.19B | 1.11B | 808.08M | 618.91M | 474.60M | 358.77M |
Cash Flow | ||||||
| Free Cash Flow | 440.25M | 362.68M | 416.15M | 414.20M | 158.21M | 112.28M |
| Operating Cash Flow | 519.26M | 439.99M | 497.10M | 478.58M | 219.12M | 158.93M |
| Investing Cash Flow | -515.40M | -551.92M | -185.85M | -87.75M | -89.75M | -223.45M |
| Financing Cash Flow | -130.66M | -161.54M | -118.62M | -104.53M | -32.79M | 80.57M |
Sterling Infrastructure Technical Analysis
Negative
660.94
Price Trends
766.52
Negative
645.03
Negative
502.59
Positive
Market Momentum
-31.60
Negative
41.85
Neutral
76.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRL, the sentiment is Negative. The current price of 660.94 is above the 20-day moving average (MA) of 656.04, below the 50-day MA of 766.52, and above the 200-day MA of 502.59, indicating a neutral trend. The MACD of -31.60 indicates Negative momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 76.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STRL.
Sterling Infrastructure Risk Analysis
Sterling Infrastructure disclosed 46 risk factors in its most recent earnings report. Sterling Infrastructure reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sterling Infrastructure Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $11.17B | 37.84 | 18.85% | ― | 29.76% | 33.40% | |
71 Outperform | $15.17B | 47.49 | 32.77% | ― | 36.96% | 31.00% | |
66 Neutral | $5.88B | 46.58 | 13.68% | ― | 48.81% | 94.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.06B | 17.19 | 15.21% | 0.37% | 13.40% | 19.67% | |
58 Neutral | $5.16B | 28.68 | -16.01% | 0.42% | 14.93% | 49.81% | |
50 Neutral | $6.54B | 23.95 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
STRL
Sterling Infrastructure
596.77
333.72
126.87%
DY
Dycom
401.07
137.78
52.33%
FLR
Fluor
50.17
8.75
21.13%
GVA
Granite Construction
120.97
29.08
31.65%
PRIM
Primoris Services
84.41
-6.49
-7.14%
ROAD
Construction Partners
103.35
8.39
8.84%
Sterling Infrastructure Corporate Events
Executive/Board Changes
Sterling Infrastructure Announces Upcoming General Counsel Retirement
Neutral
Jul 10, 2026
On July 6, 2026, Sterling Infrastructure, Inc. announced that Mark D. Wolf, its General Counsel, Chief Compliance Officer and Corporate Secretary, has notified the company of his intention to retire later this year. Wolf is expected to remain in h...
Business Operations and StrategyPrivate Placements and Financing
Sterling Infrastructure Expands Credit Facility, Enhancing Liquidity
Positive
Jul 8, 2026
On July 2, 2026, Sterling Infrastructure entered into a second amended and restated credit agreement that extends the maturity of its credit facility to July 2031 and expands total revolving borrowing capacity to $1.5 billion. The deal, led by BMO...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Sterling Infrastructure Completes Stone Ridge Acquisition to Expand Footprint
Positive
Jun 9, 2026
On June 9, 2026, Sterling Infrastructure announced it had closed the acquisition of Stone Ridge Contracting, a leading Pocatello, Idaho-based, non‑union site development contractor serving high‑growth sectors such as data centers, mini...
Business Operations and StrategyExecutive/Board Changes
Sterling Infrastructure Extends CEO Contract to 2027
Positive
May 21, 2026
On May 20, 2026, Sterling Infrastructure’s board approved an amendment to CEO Joseph A. Cutillo’s executive employment agreement, extending his term from January 1, 2027 through December 31, 2027. The move underscores the board’s...
Business Operations and StrategyRegulatory Filings and Compliance
Sterling Infrastructure Files New Shelf to Enhance Flexibility
Positive
May 12, 2026
On May 12, 2026, Sterling Infrastructure, Inc. filed a new shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission to replace an expired shelf registration. While the company noted it has no immediate plans to off...
Executive/Board ChangesShareholder Meetings
Sterling Infrastructure Shareholders Reaffirm Board and Governance
Positive
May 8, 2026
At its recent annual meeting, Sterling Infrastructure stockholders elected eight directors, including CEO Joseph A. Cutillo, to serve until the next annual meeting or until successors are chosen, reaffirming the company’s existing board lead...
Business Operations and StrategyFinancial Disclosures
Sterling Infrastructure Posts Record Q1 Results, Lifts Guidance
Positive
May 4, 2026
Sterling Infrastructure reported record first-quarter 2026 results on May 4, 2026, with revenue surging 92% to $825.7 million, boosted by strong organic growth and contributions from its recent CEC acquisition. Net income rose 143% to $96 million ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.