Sterling Infrastructure, Inc. reported fourth‑quarter 2025 revenue of $755.6 million, a 78% year‑over‑year increase, and an adjusted diluted earnings per share of $3.08, up 78% from $1.46 in Q4 2024. The earnings beat consensus estimates of $2.66 per share by $0.42, driven by disciplined cost management and a favorable mix of high‑margin service contracts.
E‑Infrastructure Solutions, the company’s largest and highest‑margin segment, delivered a 123% revenue jump and a 91% rise in adjusted operating income. The growth was fueled by robust demand from data‑center and semiconductor customers and the integration of the CEC acquisition. CEO Joe Cutillo said, "Taking a deeper look at our segment results in the fourth quarter, in E‑Infrastructure Solutions, we achieved 123% revenue growth and 91% adjusted operating income growth, driven by a combination of strong organic growth and contributions from the CEC acquisition."
For the full year, Sterling raised its outlook to $2.49 billion in revenue and $10.88 in adjusted diluted EPS, both above the upper end of the previously guided range. The company also reported that its adjusted EBITDA margin exceeded 20% for the first time in history and generated $440 million in operating cash flow. Cutillo noted, "2025 was another outstanding year for Sterling as we grew adjusted net income by 53% to deliver adjusted diluted EPS of $10.88, surpassing the upper end of our previously guided range. Additionally, we grew revenue by 32% as adjusted for RHB, and adjusted EBITDA margin exceeded 20% for the first time in Sterling's history. Further, we generated strong operating cash flow of $440 million."
Sterling raised its FY2026 guidance to a revenue range of $3.05‑$3.20 billion and an adjusted diluted EPS range of $13.45‑$14.05, reflecting confidence in continued growth across its E‑Infrastructure, Transportation, and Building Solutions segments. The company’s signed backlog grew to $3.0 billion, a 78% increase from the end of 2024, providing a robust pipeline that underpins the revised guidance. "Gross profit margins in the quarter of 22% marked a new fourth quarter record, as we have shifted the business toward higher‑margin service offerings," Cutillo added.
While the E‑Infrastructure segment continues to expand, the Building Solutions division faces headwinds from a slowing housing market and affordability challenges. Nevertheless, the company’s strategic shift toward high‑margin services and its growing backlog position it well for sustained profitability. The CEC acquisition has further bolstered the company’s service portfolio and backlog, reinforcing its transformation from a traditional contractor to a leading infrastructure services provider.
The overall picture shows a company that has successfully re‑engineered its business model, achieved record margin expansion, and secured a strong backlog that supports a higher‑growth outlook for FY2026. The earnings beat, guidance lift, and strategic focus on high‑margin segments signal robust execution and a positive trajectory for long‑term growth.
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