Sterling Infrastructure (STRL) AI Stock Analysis

• Market Cap: $11.53B
• Dividend Yield: N/A
• Average Volume (3M): 535.38K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 2.37
• Revenue Growth: 3.31%
• EPS Growth: 76.94%
• Country: US
• Employees: 3,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.69
• Shares Outstanding: 30,419,830
• 10 Day Avg. Volume: 443,771
• 30 Day Avg. Volume: 535,384
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 14.27
• Enterprise Value/Ebitda: 13.52
• 1Y Price Target: $351.50
• Price Target Upside: -6.70% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $415.00 ▲(10.16% Upside)

Sterling Construction's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust growth in key segments and raised financial guidance underscore its strategic momentum. However, the high P/E ratio and challenges in the Building Solutions segment slightly temper the overall outlook.

Positive Factors

Revenue Growth

The 21% revenue growth, driven by key segments, indicates strong market demand and effective business strategies, supporting long-term growth.

Acquisition of CEC Facilities Group

The acquisition of CEC Facilities Group enhances Sterling's capabilities in E-Infrastructure, potentially increasing revenue and market competitiveness.

Financial Guidance Increase

Increasing financial guidance reflects management's confidence in strategic execution and market conditions, supporting long-term investor confidence.

Negative Factors

Building Solutions Segment Challenges

Challenges in the Building Solutions segment, due to market conditions, could hinder overall growth and require strategic adjustments.

Decline in Transportation Backlog

A decline in the Transportation backlog suggests potential future revenue pressures, necessitating focus on new project acquisitions.

Free Cash Flow Growth Concern

Declining free cash flow growth could impact financial flexibility and investment capacity, requiring attention to cash management strategies.

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 Construction generates revenue primarily through contracts awarded for construction projects. The company engages in bidding for public sector projects, which typically include infrastructure improvements funded by government entities, as well as private sector contracts that may involve commercial developments or other construction needs. Key revenue streams come from project execution, which includes managing labor, materials, and equipment needed to complete construction tasks. Additionally, the company may enter joint ventures or partnerships with other firms to leverage resources and expertise, further enhancing its ability to win contracts and deliver projects efficiently. Factors contributing to earnings include the company's reputation for quality work, strong relationships with government agencies, and the ability to adapt to changing market conditions and regulatory environments.

Sterling Infrastructure Financial Statement Overview

Summary

Sterling Construction exhibits strong financial health with robust revenue growth, improving profitability margins, and a solid balance sheet. The company has effectively reduced its leverage, but attention should be given to enhancing free cash flow growth.

Income Statement

Sterling Construction has demonstrated strong revenue growth, with a TTM increase of 1.5% and consistent annual growth over the past years. The company maintains healthy profitability margins, with a TTM gross profit margin of 22.19% and a net profit margin of 13.33%. EBIT and EBITDA margins are robust at 20.15% and 23.42%, respectively, indicating efficient operational management. The consistent improvement in margins and revenue growth highlights the company's strong market position and operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.39 in the TTM period, showing a significant improvement from previous years. The return on equity is impressive at 35.49%, indicating effective use of shareholder funds. The equity ratio stands at 40.81%, suggesting a stable capital structure. However, the company should continue to monitor its debt levels to maintain financial flexibility.

Cash Flow

Sterling Construction's cash flow statement shows a slight decline in free cash flow growth at -4.39% in the TTM period, which could be a concern if it persists. However, the operating cash flow to net income ratio is healthy at 0.62, and the free cash flow to net income ratio is strong at 0.88, indicating good cash generation relative to earnings. The company should focus on improving free cash flow growth to enhance its cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.14B	2.12B	1.97B	1.77B	1.41B	1.23B
Gross Profit	474.46M	426.12M	337.64M	274.57M	192.07M	179.93M
EBITDA	500.68M	451.94M	277.34M	211.43M	142.32M	126.43M
Net Income	285.00M	257.46M	138.66M	106.46M	62.65M	42.31M
Balance Sheet
Total Assets	2.16B	2.03B	1.80B	1.47B	1.26B	982.39M
Cash, Cash Equivalents and Short-Term Investments	699.37M	664.20M	471.56M	185.26M	64.77M	72.69M
Total Debt	343.14M	369.27M	398.88M	491.16M	471.50M	385.23M
Total Liabilities	1.25B	1.21B	1.18B	991.13M	901.45M	713.66M
Stockholders Equity	881.75M	808.08M	618.91M	474.60M	358.77M	267.27M
Cash Flow
Free Cash Flow	434.54M	416.15M	414.20M	158.21M	112.28M	86.42M
Operating Cash Flow	495.44M	497.10M	478.58M	219.12M	158.93M	119.28M
Investing Cash Flow	-206.94M	-185.85M	-87.75M	-89.75M	-223.45M	-30.49M
Financing Cash Flow	-129.11M	-118.62M	-104.53M	-32.79M	80.57M	-70.33M

Sterling Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 376.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRL, the sentiment is Positive. The current price of 376.74 is above the 20-day moving average (MA) of 355.67, above the 50-day MA of 327.00, and above the 200-day MA of 216.77, indicating a bullish trend. The MACD of 10.41 indicates Positive momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 78.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRL.

Sterling Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRL	―	$11.53B	40.96	36.72%	―	3.31%	76.94%
DY	―	$8.45B	32.82	20.65%	―	12.61%	10.33%
FLR	―	$7.91B	2.00	102.24%	―	3.62%	943.43%
PRIM	―	$7.69B	32.33	17.01%	0.22%	15.08%	55.10%
GVA	―	$4.58B	34.96	15.89%	0.50%	7.18%	77.84%
ROAD	―	$6.62B	85.42	10.60%	―	39.18%	1.79%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sterling Infrastructure Corporate Events

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.

The most recent analyst rating on (STRL) stock is a Hold with a $348.00 price target. To see the full list of analyst forecasts on Sterling Construction stock, see the STRL Stock Forecast page.

Sterling Construction Highlights Strong Financial Performance

Sterling Infrastructure, Inc. presented its business and financial performance to investors, highlighting its strategic focus on high-margin projects and market expansion. The company reported strong financial performance, with an 8-year revenue CAGR of 20%, and emphasized its disciplined approach to project selection and resource allocation, which has built a foundation for success and future growth.

The most recent analyst rating on (STRL) stock is a Buy with a $355.00 price target. To see the full list of analyst forecasts on Sterling Construction stock, see the STRL Stock Forecast page.

Sterling Construction Completes Acquisition of CEC Facilities Group

On September 1, 2025, Sterling Infrastructure completed its acquisition of CEC Facilities Group, a specialty electrical and mechanical contractor based in Irving, Texas. This acquisition is expected to significantly enhance Sterling’s E-Infrastructure capabilities, with CEC projected to contribute $130 to $138 million in revenue and $17 to $18 million in adjusted EBITDA for the remainder of 2025. The move aligns with Sterling’s growth strategy, aiming to deliver more efficient project solutions and drive industry innovation.

The most recent analyst rating on (STRL) stock is a Buy with a $326.00 price target. To see the full list of analyst forecasts on Sterling Construction stock, see the STRL Stock Forecast page.

Sterling Infrastructure Reports Record Q2 2025 Results

Sterling Infrastructure, Inc., a prominent player in the infrastructure sector, specializes in E-Infrastructure, Transportation, and Building Solutions across the United States, focusing on sustainable and responsible operations.

Sterling Infrastructure Shines in Earnings Call

Sterling Infrastructure’s recent earnings call painted a picture of robust performance and promising future prospects. The company reported significant revenue growth, improved earnings and margins, and a strong backlog, indicating a solid position in the market. The acquisition of CEC Facilities Group and a strong cash position further enhance Sterling’s outlook. Despite some challenges in the Building Solutions segment and a sequential decline in Transportation backlog, the overall sentiment was overwhelmingly positive, suggesting a bright future for the company.

Sterling Construction Reports Record Q2 2025 Results

Sterling Infrastructure, Inc. reported record financial results for the second quarter of 2025, with a 21% increase in revenues and a 41% rise in adjusted diluted earnings per share. The company experienced significant growth in its E-Infrastructure and Transportation Solutions segments, despite a decline in its Building Solutions market. Sterling’s acquisition of CEC Facilities Group LLC is expected to enhance its service offerings and geographic expansion. The company raised its full-year guidance, anticipating continued growth in revenue and earnings.

The most recent analyst rating on (STRL) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Sterling Construction stock, see the STRL Stock Forecast page.