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Dec 31, 2025
Sterling Q4 2025 Earnings Report
Sterling Infrastructure, Inc. reported strong financial results for the fourth quarter of 2025, marked by significant revenue growth and margin expansion.
Key Takeaways
Sterling delivered a record fourth quarter with revenue increasing 51% to $755.6 million and adjusted EBITDA growing 70%. The company benefited from the CEC acquisition and strong organic growth in E-Infrastructure and Transportation segments, despite softness in the residential housing market affecting Building Solutions.
Revenue grew 51% on a GAAP basis to $755.6 million, or 69% when excluding the deconsolidated RHB joint venture from the prior year.
Adjusted Diluted EPS rose 78% to $3.08, surpassing the upper end of previous guidance.
Backlog reached a record $3.01 billion, an increase of 78% year-over-year, driven by mission-critical work in data centers and semiconductors.
The company issued strong 2026 guidance, projecting revenue between $3.05 billion and $3.20 billion.
Revenue by Segment
Forward Guidance
Sterling expects 2026 to be another record year with significant growth in revenue and profitability.
Positive Outlook
- Projected 2026 revenue of $3.05 billion to $3.20 billion.
- Adjusted Diluted EPS expected to grow 26% at the midpoint.
- Adjusted EBITDA guidance of $626 million to $659 million.
- Strong visibility with a pool of work approaching $4.5 billion.
- High demand for mission-critical E-Infrastructure projects.
Challenges Ahead
- Soft market conditions in residential housing expected to persist.
- Building Solutions segment facing affordability challenges for homebuyers.
- Ongoing downsizing of low-bid Texas heavy highway business.
- Potential impact of interest rates on residential demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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