Sterling Infrastructure (STRL) Q4 2025 earnings summary

Executive summary

• Achieved record revenue and profitability in 2025, with over 32% revenue growth and 53% adjusted diluted EPS growth, driven by E-Infrastructure and Transportation Solutions, and margin expansion across core segments.

• Adjusted EPS and adjusted EBITDA reached all-time highs, with adjusted EBITDA up 47% to $504M and adjusted EPS up 53% to $10.88.

• Backlog at year-end totaled $3.01B, up 78% year-over-year, providing strong visibility into $4.5B in future work.

• CEC acquisition contributed significantly to revenue and backlog growth, with expansion of modular build facility to over 300,000 sq ft.

• Deconsolidation of RHB JV impacted reported results and comparability to prior periods, resulting in a one-time pre-tax gain of $91M.

Financial highlights

• Full-year 2025 revenue was $2.49B, up 18% GAAP and 32% adjusted for RHB; Q4 revenue was $756M, up 51% GAAP and 69% adjusted.

• Adjusted EBITDA grew 47% to $504M, with margins expanding to 20.2%; Q4 adjusted EBITDA up 70% to $142M.

• Adjusted EPS increased 53% to $10.88; Q4 adjusted EPS up 78% to $3.08.

• Operating cash flow for 2025 was $440M; year-end cash and equivalents were $390.7M.

• Share repurchases totaled $74M in 2025, with $26M in Q4.

Outlook and guidance

• 2026 guidance: revenue of $3.05B–$3.2B, adjusted EPS of $13.45–$14.05, adjusted EBITDA of $626M–$659M.

• Guidance midpoints imply 25% revenue, 26% adjusted EPS, and 28% adjusted EBITDA growth year-over-year.

• E-Infrastructure revenue expected to grow 40%+ in 2026, with adjusted operating margins of 23–24%.

• Transportation Solutions revenue to grow low to mid-single digits, with continued margin expansion.

• Building Solutions revenue expected to decline high single to low double digits in 2026; margins to remain in low double digits.