Sterling Infrastructure, Inc. (STRL)
NASDAQ:STRL
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Sterling Infrastructure
(NASDAQ:STRL)
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Rating:82Outperform
Price Target:
$1,007.00
▲(117.19% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by strong fundamentals and a very bullish earnings update (materially raised guidance and rapidly expanding backlog/visibility). This is partly offset by premium valuation (P/E ~32.5 with no dividend yield provided) and an overbought technical setup (RSI/Stoch elevated) that can increase near-term volatility.
Positive Factors
Backlog and Visibility
Substantial signed and combined backlog materially increases multi‑quarter revenue visibility and reduces short‑term cyclicality. A $3.8B signed backlog and $5.2B combined backlog support predictable project execution, better resource planning, and sustained revenue recognition over coming quarters.
Negative Factors
Skilled Labor and PM Capacity Constraints
Chronic shortages of electricians and project managers pose a structural execution constraint: converting backlog into revenue requires skilled crews and leadership. Multi‑quarter hiring and acquisition levers are needed; persistent bottlenecks could delay projects, raise labor costs, and cap growth despite strong demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Visibility
Substantial signed and combined backlog materially increases multi‑quarter revenue visibility and reduces short‑term cyclicality. A $3.8B signed backlog and $5.2B combined backlog support predictable project execution, better resource planning, and sustained revenue recognition over coming quarters.
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
$23.65B
Dividend YieldN/A
Average Volume (3M)611.66K
Price to Earnings (P/E)32.5
Beta (1Y)2.33
Revenue Growth36.96%
EPS Growth31.00%
CountryUS
Employees3,200
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)11.33
Shares Outstanding30,685,953
10 Day Avg. Volume920,036
30 Day Avg. Volume611,657
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 Cap0.97
Enterprise Value/Revenue7.94
Enterprise Value/Gross Profit34.83
Enterprise Value/Ebitda38.83
Forecast
1Y Price Target
$780.00Price Target Upside68.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)17.48
Revenue Forecast (FY)$3.58B
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 u...
How the Company Makes Money
Sterling Infrastructure primarily makes money by performing contracted construction and specialty infrastructure services for customers and recognizing revenue as project work is executed (typically under contract structures such as lump-sum/fixed...
Sterling Infrastructure Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 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 | 657.56M | 550.13M | 426.12M | 337.64M | 274.57M | 203.53M |
| EBITDA | 589.88M | 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 | 438.84M | 362.68M | 416.15M | 414.20M | 158.21M | 112.28M |
| Operating Cash Flow | 517.86M | 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 | -129.25M | -161.54M | -118.62M | -104.53M | -32.79M | 80.57M |
Sterling Infrastructure Technical Analysis
Positive
463.65
Price Trends
529.88
Positive
452.24
Positive
391.07
Positive
Market Momentum
93.68
Positive
56.07
Neutral
33.89
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 463.65 is below the 20-day moving average (MA) of 683.24, below the 50-day MA of 529.88, and above the 200-day MA of 391.07, indicating a bullish trend. The MACD of 93.68 indicates Positive momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $23.65B | 32.52 | 32.77% | ― | 36.96% | 31.00% | |
76 Outperform | $6.50B | 169.22 | 13.68% | ― | 48.81% | 94.34% | |
72 Outperform | $6.01B | -31.29 | 16.70% | 0.45% | 14.93% | 49.81% | |
66 Neutral | $12.60B | 162.45 | 18.81% | ― | 17.95% | 21.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $5.89B | 111.18 | 15.21% | 0.25% | 13.40% | 19.67% | |
45 Neutral | $6.19B | 12.34 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
STRL
Sterling Infrastructure
752.00
569.91
312.98%
DY
Dycom
412.78
188.65
84.17%
FLR
Fluor
43.43
5.55
14.65%
GVA
Granite Construction
130.74
44.84
52.19%
PRIM
Primoris Services
106.69
32.40
43.61%
ROAD
Construction Partners
112.52
10.86
10.68%
Sterling Infrastructure Corporate Events
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 ...
Business Operations and StrategyFinancial Disclosures
Sterling Infrastructure Issues 2026 Sustainability and ESG Report
Positive
Apr 8, 2026
On April 8, 2026, Sterling Infrastructure released its 2026 Sustainability Report, an unaudited ESG overview covering company activities beginning in 2020 and outlining annual reporting plans. The report details how the group applies governance, r...
Business Operations and StrategyFinancial Disclosures
Sterling Infrastructure posts strong 2025 results, upbeat 2026 outlook
Positive
Feb 25, 2026
On February 25, 2026, Sterling reported strong fourth-quarter and full-year 2025 results marked by double-digit revenue, earnings and cash flow growth, supported by the CEC acquisition and a strategic shift toward higher-margin services. Revenue f...
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.