Sterling Infrastructure (STRL) AI Stock Analysis

• Market Cap: $12.61B
• Dividend Yield: N/A
• Average Volume (3M): 455.05K
• Price to Earnings (P/E): 40.7
• Beta (1Y): 2.44
• 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: 535,323
• 30 Day Avg. Volume: 455,052
• 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: 1.06
• Enterprise Value/Revenue: 6.00
• Enterprise Value/Gross Profit: 26.03
• Enterprise Value/Ebitda: 24.86
• 1Y Price Target: $449.50
• Price Target Upside: 3.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $395.00 ▼(-9.30% Downside)
• Action: Reiterated Date: 12/09/25
• Date: Action: Reiterated 12/09/25

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

Large Backlog & Visible Pipeline

A $2.6B backlog and >$4B pipeline provide multiyear revenue visibility and reduce near-term bidding volatility. This steady workbook supports capacity planning, utilization, and predictable cash conversion, underpinning durable revenue growth as infrastructure projects progress.

Expanded Margins & Profitability

Sustained margin expansion and rising adjusted EBITDA reflect improved pricing, mix shift into higher‑margin E-Infrastructure, and operational leverage. Higher structural margins strengthen cash generation potential and resilience to input cost pressure across contract cycles.

Conservative Leverage & Capital Headroom

Low leverage and a solid equity ratio give the company financial flexibility to bid large contracts, fund working capital swings, pursue selective M&A, or execute capital returns. A conservative capital structure reduces refinancing risk during multi‑year projects.

Negative Factors

Declining Free Cash Flow Growth

A meaningful drop in FCF growth alongside OCF below net income signals pressure on cash conversion from profits. Persisting declines could constrain investment, raise reliance on credit for working capital, and limit flexibility for buybacks or cash M&A over the medium term.

Building Solutions Segment Weakness

A sizable residential decline and weaker Building Solutions margins expose the firm to housing affordability cycles. Structural softness in key markets can compress segment profitability and slow organic growth, reducing diversification benefits from non‑residential work.

Longer Permitting Timelines

Extended permitting materially delays revenue recognition and can increase working capital needs and bid carry costs. Persistent permitting slowdowns raise execution risk, lengthen project cycles, and can magnify exposure to input cost inflation before site work begins.

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: Positive
• Last Price: 435.50
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 435.5 is above the 20-day moving average (MA) of 394.81, above the 50-day MA of 350.36, and above the 200-day MA of 301.28, indicating a bullish trend. The MACD of 22.93 indicates Negative momentum. The RSI at 65.39 is Neutral, neither overbought nor oversold. The STOCH value of 50.58 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
DY	83 Outperform	$11.95B	41.30	21.90%	―	13.19%	33.58%
PRIM	75 Outperform	$8.67B	31.70	18.56%	0.25%	21.45%	67.31%
ROAD	72 Outperform	$7.37B	59.98	13.71%	―	54.20%	38.64%
STRL	71 Outperform	$12.61B	40.71	35.73%	―	6.20%	72.81%
GVA	70 Outperform	$5.78B	36.56	17.59%	0.45%	6.87%	64.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	55 Neutral	$8.16B	-42.11	-1.42%	―	-1.81%	1228.51%

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.

The most recent analyst rating on (STRL) stock is a Buy with a $450.00 price target. To see the full list of analyst forecasts on Sterling Infrastructure stock, see the STRL Stock Forecast page.