Sterling Infrastructure, Inc. (STRL)
NASDAQ:STRL
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Sterling Infrastructure
(NASDAQ:STRL)
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Rating:76Outperform
Price Target:
$432.00
▲(2.54% Upside)
Action:ReiteratedDate:02/27/26
STRL scores well on financial performance and an optimistic, backlog-supported 2026 outlook, reinforced by strong technical momentum. The main constraint on the overall score is premium valuation (high P/E) and the absence of a dividend yield, with additional watch items around cash-flow variability and segment concentration/building softness.
Positive Factors
Consistent multi-year revenue and margin expansion
Sterling has delivered sustained top-line expansion and materially higher profitability over several years, improving gross and net margins. This trend reflects stronger project mix and execution, supporting durable earnings power and greater resilience in a project-based business across economic cycles.
Negative Factors
Building Solutions segment weakness
Persistent softness in residential and commercial building activity due to affordability pressures creates a multi-quarter headwind. Segment declines reduce diversification and may pressure consolidated margins and utilization until housing demand and building activity recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent multi-year revenue and margin expansion
Sterling has delivered sustained top-line expansion and materially higher profitability over several years, improving gross and net margins. This trend reflects stronger project mix and execution, supporting durable earnings power and greater resilience in a project-based business across economic cycles.
Read all positive factors
Sterling Infrastructure (STRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.06B
Dividend YieldN/A
Average Volume (3M)520.92K
Price to Earnings (P/E)32.2
Beta (1Y)2.28
Revenue Growth6.20%
EPS Growth72.81%
CountryUS
Employees3,200
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)3.08
Shares Outstanding30,644,110
10 Day Avg. Volume480,549
30 Day Avg. Volume520,924
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/Revenue4.69
Enterprise Value/Gross Profit20.68
Enterprise Value/Ebitda23.03
Forecast
1Y Price Target
$489.33Price Target Upside16.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)13.52
Revenue Forecast (FY)$3.06B
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 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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based financial and operational momentum—notably large revenue and EPS growth, record margins, robust operating cash flow, a materially expanded backlog and confident 2026 guidance driven by E-Infrastructure and data-center opportunities. Key near-term headwinds include weakness in Building Solutions, concentration in mission-critical work, federal funding timing for transportation, and increased near-term capital and acquisition deployment. Management emphasized margin improvement, modular/AI productivity initiatives, and disciplined capital allocation which underpin the company's upbeat outlook.Positive Updates
Strong Full-Year Revenue and EPS Growth
Full-year 2025 revenue grew over 32% year-over-year and adjusted diluted EPS increased over 53%, marking the fifth consecutive year of adjusted EPS growth greater than 35%.
Negative Updates
Building Solutions Weakness
Building Solutions full-year revenue declined 6% and adjusted operating profit fell 23%. In Q4, segment revenue declined 9% and adjusted operating margins were ~10%. Management expects 2026 Building revenue to decline in the high single to low double digits due to near-term housing affordability headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue and EPS Growth
Full-year 2025 revenue grew over 32% year-over-year and adjusted diluted EPS increased over 53%, marking the fifth consecutive year of adjusted EPS growth greater than 35%.
Read all positive updates
Company Guidance
Sterling provided 2026 guidance for revenue of $3.05–$3.20 billion, GAAP diluted EPS of $11.65–$12.25 and adjusted diluted EPS of $13.45–$14.05; EBITDA of $587–$620 million and adjusted EBITDA of $626–$659 million — midpoints imply roughly 25%+ revenue growth, ~26% adjusted EPS growth and ~28% adjusted EBITDA growth year‑over‑year. Management expects E‑Infrastructure revenue growth of 40%+ (20%+ in the legacy business) with adjusted operating margins of 23–24%; Transportation Solutions growth is forecast at low‑ to mid‑single digits with continued margin expansion; Building Solutions is expected to see revenue decline of high‑single to low‑double digits with adjusted operating margins in the low double digits. CapEx is guided to $100–$110 million, operating cash flow is expected to remain strong after $440 million in 2025 (free‑cash‑flow conversion conservatively ~80% of EBITDA), and the guidance is supported by signed backlog of $3.0 billion ($3.3B combined), signed backlog growth of 78% y/y (49% ex‑CEC), combined backlog up 81% (42% ex‑CEC), $301 million of unsigned awards and >$1 billion of future‑phase opportunities; Q4 book‑to‑burn was 1.64x (backlog) and 0.81x (combined). Balance‑sheet metrics cited include $391 million cash, $291 million debt (net cash ~$100 million), an undrawn $150 million revolver and $374 million of remaining share‑repurchase authorization.Sterling Infrastructure Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.49B | 2.12B | 1.97B | 1.77B | 1.41B |
| Gross Profit | 550.13M | 426.12M | 337.64M | 274.57M | 203.53M |
| EBITDA | 505.38M | 451.94M | 277.34M | 212.82M | 142.32M |
| Net Income | 290.15M | 257.46M | 138.66M | 106.46M | 62.65M |
Balance Sheet | |||||
| Total Assets | 2.63B | 2.03B | 1.80B | 1.47B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 390.72M | 664.20M | 471.56M | 185.26M | 64.77M |
| Total Debt | 349.91M | 369.27M | 398.88M | 491.16M | 471.50M |
| Total Liabilities | 1.53B | 1.21B | 1.18B | 991.13M | 901.45M |
| Stockholders Equity | 1.11B | 808.08M | 618.91M | 474.60M | 358.77M |
Cash Flow | |||||
| Free Cash Flow | 362.68M | 416.15M | 414.20M | 158.21M | 112.28M |
| Operating Cash Flow | 439.99M | 497.10M | 478.58M | 219.12M | 158.93M |
| Investing Cash Flow | -551.92M | -185.85M | -87.75M | -89.75M | -223.45M |
| Financing Cash Flow | -161.54M | -118.62M | -104.53M | -32.79M | 80.57M |
Sterling Infrastructure Technical Analysis
Negative
421.29
Price Trends
409.86
Negative
368.70
Positive
335.57
Positive
Market Momentum
-0.35
Positive
45.26
Neutral
41.33
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 421.29 is above the 20-day moving average (MA) of 416.15, above the 50-day MA of 409.86, and above the 200-day MA of 335.57, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 41.33 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $12.06B | 32.23 | 30.17% | ― | 6.20% | 72.81% | |
74 Outperform | $7.93B | 24.39 | 17.49% | 0.25% | 21.45% | 67.31% | |
70 Outperform | $5.27B | 26.09 | 17.58% | 0.45% | 6.87% | 64.56% | |
66 Neutral | $10.45B | 37.65 | 18.81% | ― | 13.19% | 33.58% | |
64 Neutral | $6.15B | 88.02 | 13.78% | ― | 54.20% | 38.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $6.75B | -131.50 | -1.14% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
STRL
Sterling Infrastructure
393.71
279.88
245.88%
DY
Dycom
348.63
207.94
147.80%
FLR
Fluor
46.98
16.12
52.24%
GVA
Granite Construction
121.22
49.65
69.37%
PRIM
Primoris Services
146.68
93.07
173.62%
ROAD
Construction Partners
108.88
39.35
56.59%
Sterling Infrastructure Corporate Events
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.