Key Highlights

  • Consensus EPS of 6.20 compares with second-quarter adjusted diluted EPS of 5.80 and GAAP diluted EPS of 5.00.
  • Consensus revenue of USD 1.19 billion compares with second-quarter revenue of USD 1,168,179 thousand, against USD 614,468 thousand.
  • Guidance for 2026 is revenue of USD 4 billion to USD 4.15 billion and adjusted EPS of 19.70 to 20.30.
  • Signed backlog was USD 4.3 billion and combined backlog was USD 5.6 billion at quarter end.

Sterling Infrastructure (NASDAQ:STRL) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 6.20 on revenue of USD 1.19 billion, and the company has a market capitalization of USD 11.03 billion.

Sterling Infrastructure builds e-infrastructure sites, transportation projects and residential building projects. Second-quarter revenue was USD 1,168,179 thousand against USD 614,468 thousand, and net income was USD 155,826 thousand against USD 70,991 thousand.

Estimates Against Second-Quarter Results and Raised Guidance

The EPS estimate of 6.20 is above the second-quarter adjusted diluted EPS of 5.80 and the GAAP diluted EPS of 5.00, which compared with 2.31 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 1.19 billion is above the USD 1,168,179 thousand reported.

Management raised 2026 guidance to revenue of USD 4 billion to USD 4.15 billion, adjusted diluted EPS of 19.70 to 20.30 and adjusted EBITDA of USD 891 million to USD 916 million. Capital expenditure guidance rose to USD 130 million to USD 140 million.

What Management Guided and What It Left Open

Management said third-quarter revenue burn and award timing could produce a sequential backlog decline in the third quarter, which it tied to award timing and not demand. It said it is being conservative on the fourth quarter because weather is unknown.

Management left open the residential market, saying it anticipates headwinds throughout 2026 for Building Solutions. It put the total addressable pool of work at over USD 7 billion.

E-Infrastructure, Transportation and Building Detail

Revenue rose 90%, including a USD 250.8 million contribution from recent acquisitions. E-Infrastructure revenue was USD 905 million, up 192%, with an adjusted operating margin of 24.1%. Transportation revenue was USD 156.7 million, down 20%, and Building Solutions revenue was USD 106.5 million, down 1%.

Gross profit was USD 289,957 thousand against USD 143,140 thousand, and gross margin was 24.8% against 23.3%. Adjusted EBITDA was USD 256.7 million with a 22% margin. General and administrative expenses were USD 53.1 million, or 4.5% of revenue.

Backlog, Cash and Credit Facility

Signed backlog was USD 4.3 billion, up 116%, and combined backlog was USD 5.6 billion, including USD 1.28 billion of unsigned awards. Book-to-burn ratios were 1.4x for signed backlog and 1.3x for combined backlog, excluding the Stone Ridge acquisition effect.

Operating cash flow was USD 328 million for six months, and the company repurchased USD 35 million of shares at an average of 511.18. Cash was USD 464 million and debt was USD 284 million. Revolving facilities were expanded to USD 1.5 billion with maturity in July 2031. The estimates table lists a market capitalization of USD 11.03 billion.

Markers for the Release

Reported EPS against 6.20 and revenue against USD 1.19 billion are the headline comparisons. Other markers are backlog movement, E-Infrastructure margins and the raised guidance ranges.