Sterling Infrastructure (STRL) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1,563.9M, up 127% YoY with ~70% organic growth; adjusted diluted EPS reached a record $7.58, up 118%.

• Scoped work approached $8B, up ~90% YoY; September 30 signed backlog was $4.14B and combined backlog including unsigned awards was $6.14B.

Financial highlights

• Q3 gross profit was $377.3M, operating income $306.8M and net income attributable to common stockholders $214.9M; diluted EPS was $6.92.

• Adjusted EBITDA rose 117% to $337.8M, with a 21.6% margin; adjusted net income was $235.4M and adjusted diluted EPS was $7.58 versus $3.48 a year earlier.

• Nine-month revenue was $3,557.8M, up 105%; operating income was $663.9M, net income was $466.7M and operating cash flow was $427.1M.

• Q3 operating margin was 19.6% versus 18.2% a year earlier; gross margin was 24.1% versus 24.7%.

Outlook and guidance

• FY2026 guidance: revenue $4.63B–$4.73B, net income $596M–$604M, diluted EPS $19.16–$19.42 and EBITDA $905M–$916M.

• Adjusted FY2026 guidance: adjusted net income $675M–$683M, adjusted diluted EPS $21.70–$21.96 and adjusted EBITDA $970M–$981M.

• Guidance midpoints imply 88% revenue growth, 101% adjusted diluted EPS growth and 94% adjusted EBITDA growth; assumptions include a greater Q4 weather impact than in 2025.

• CEC is expected to generate more than $1B of 2026 revenue; 2027 growth is expected to continue, supported by backlog and customer projects.

• Long-term targets include 20%–30% annual organic profitability growth; 2027 is expected to meet or exceed the organic framework, with M&A supporting an aspiration to grow earnings ~50% annually.