Sterling Infrastructure (Sterling Infrastructure (STRL)) just delivered a quarter that made investors very happy. The company reported first-quarter results that blew past expectations and raised its full-year guidance, sending shares up 29% in premarket trading on Tuesday.
Revenue came in at $825.7 million, a 92% jump from the same period last year and well above the $603.6 million analysts were looking for. The recently acquired CEC business contributed $156.1 million to that total, but even without it, the growth was impressive.
Adjusted earnings were $3.59 per share, nearly double the $2.01 consensus estimate. Operating cash flow was a healthy $165.6 million, and the company ended the quarter with $511.9 million in cash and equivalents.
Backlog — a key metric for infrastructure companies — climbed to $3.80 billion, up 78% year-over-year. That includes a $592 million contribution from CEC. Excluding CEC, backlog still rose 51%. The combined backlog (including CEC's full pipeline) surged 131% to $5.15 billion, or 46% on an organic basis.
During the quarter, Sterling also repurchased $12.3 million worth of its own shares at an average price of $305.14 — a move that looks pretty smart given the stock's current level.
Segment Strength Across the Board
The E-Infrastructure Solutions segment was the star, with revenue up 174% and adjusted operating income up 177%. That growth came from both organic expansion and the CEC acquisition. The legacy site development business also posted 102% revenue growth with margin expansion. Signed backlog in this segment rose 123% year-over-year (74% excluding CEC), and more than 90% of it is tied to mission-critical projects like data centers, manufacturing, and semiconductors.
Transportation Solutions revenue grew 10%, while adjusted operating income increased 26%, helped by strong performance in the Rocky Mountain region and a shift toward higher-margin projects.
Building Solutions revenue edged up 3% on a modest pickup in homebuilder activity, but adjusted operating income fell 42% due to a tough comparison with the prior year.
Guidance Gets a Big Boost
Sterling raised its full-year 2026 outlook significantly. The company now expects adjusted earnings of $18.40 to $19.05 per share, up from prior guidance of $13.45 to $14.05 and well above the $12.72 consensus estimate. Revenue is now projected at $3.7 billion to $3.8 billion, compared with previous guidance of $3.05 billion to $3.2 billion and a $3.10 billion consensus.
CEO Joe Cutillo said strong bidding and award activity early in 2026 has improved visibility into future growth. He noted that the company secured initial site development work for a large, multi-year semiconductor fabrication campus and that CEC won several large projects, contributing to a $1.2 billion increase in combined backlog.
Sterling shares were up 29.46% at $685.48 in premarket trading, hitting a new 52-week high.
