Sterling Infrastructure (STRL) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 results with revenue up 92% year-over-year to $825.7 million, driven by strong organic growth and the CEC acquisition.

• Net income attributable to common stockholders rose to $96.0 million, up 143% year-over-year; adjusted net income increased 122% to $111.3 million.

• Gross profit margins expanded to 24%, with adjusted EBITDA more than doubling to $166.6 million and margins reaching a record 20% for the first quarter.

• Backlog reached $3.80 billion (up 78%), combined backlog $5.2 billion (up 131%), and total work visibility pool approached $6.5 billion.

• Raised full-year 2026 guidance, reflecting strong momentum, expanded backlog, and multi-decade project opportunities.

Financial highlights

• GAAP net income for Q1 2026 was $96.0M, up from $39.5M in Q1 2025; diluted EPS increased 141% to $3.09, and adjusted diluted EPS was $3.59.

• Gross profit more than doubled to $194.3M, operating income rose 146% to $137.8M, and adjusted EBITDA grew 107% to $166.6M.

• Cash and cash equivalents at quarter-end were $511.9M, with net cash $224M and $150M undrawn revolver.

• Operating cash flow was $166M in Q1; CapEx $20M in Q1, with full-year CapEx guidance of $100M–$110M.

• Share repurchases totaled $12.3M at $305.14/share; $362M remaining under authorization.

Outlook and guidance

• 2026 revenue guidance raised to $3.7B–$3.8B (midpoint +20% vs prior, +51% YoY), with adjusted EBITDA $843M–$873M and adjusted diluted EPS $18.40–$19.05.

• E-Infrastructure revenue expected to grow 80%+ in 2026, legacy business to grow ~60%+; adjusted operating margins in mid-20% range.

• Transportation Solutions revenue to grow low-to-mid single digits; Building Solutions revenue modestly down, margins in low double digits.

• Management expects continued growth in E-Infrastructure Solutions, driven by data center and advanced manufacturing demand.

• Building Solutions faces near-term softness from residential market headwinds but is expected to recover over the multi-year period.