Sterling Announces Acquisition of Stone Ridge Contracting, LLC.
Sterling (NasdaqGS: STRL) closed the acquisition of Stone Ridge Contracting, a Pocatello, Idaho-based site development contractor that will join Sterling's E-Infrastructure Solutions segment.
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Rhea-AI Summary
Sterling (NasdaqGS: STRL) closed the acquisition of Stone Ridge Contracting, a Pocatello, Idaho-based site development contractor that will join Sterling's E-Infrastructure Solutions segment.
Stone Ridge is expected to generate 2026 revenue of $180–$200 million with mid-teens EBITDA margins, expanding Sterling's footprint across the Pacific Northwest and Texas.
Positive
- Acquisition adds $180–$200 million expected 2026 revenue with mid-teens EBITDA margins
- Expands E-Infrastructure geographic footprint across Idaho, Oregon, North Dakota, Washington, and Texas
- Upfront consideration within Sterling's typical purchase price multiple range for site development assets
- Leadership team of Stone Ridge remains in place following the transaction
Negative
- Upfront purchase price includes Sterling common stock, implying potential shareholder dilution
- Future earn-out contingent on EBITDA targets may create additional long-term payment obligations
Details
News Market Reaction – STRL
On Jun 9, the day this news came out, STRL closed 5.59% below the previous close.
Data tracked by StockTitan Argus for the Jun 9 session.
Key Figures
- Stone Ridge 2026 revenue
- $180–200 million
- Expected full-year 2026 revenue contribution from Stone Ridge
- EBITDA margins
- Mid-teens
- Expected 2026 EBITDA margins for Stone Ridge
- Earn-out period end
- December 31, 2031
- Deadline to meet EBITDA targets for Stone Ridge earn-out opportunity
Previous Acquisition Reports
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Closed acquisition of CEC Facilities Group to enhance E‑Infrastructure segment.
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Signed definitive agreement to acquire CEC Facilities Group with EPS accretion.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
ebitda financial
earn out financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Acquisition Expands Sterling's E-Infrastructure Site Development Services Into the Pacific Northwest
Stone Ridge is a leading, non-union contractor delivering heavy civil, concrete, and construction management services across high-growth sectors including data centers, mining, and industrial infrastructure. The transaction strengthens Sterling's E-Infrastructure geographic footprint across the Pacific Northwest and
Stone Ridge is expected to generate full-year 2026 revenue in the range of
The purchase price multiple paid for Stone Ridge is within Sterling's typical range for site development assets. The upfront purchase price consists of a combination of cash and Sterling common stock. Additionally, Stone Ridge has an earn out opportunity, contingent upon meeting certain EBITDA targets on or before December 31, 2031.
Management Commentary
"We are excited to welcome Stone Ridge to the Sterling family. The team at Stone Ridge has built an exceptional company through a relentless focus on customers, operational excellence, and entrepreneurial leadership," stated Joe Cutillo, Sterling's Chief Executive Officer. "Just as important, they share Sterling's culture and long-term approach to creating value. We are pleased that the leadership team will remain in place following the transaction to guide the business through its next chapter of growth."
"This acquisition strengthens our ability to serve existing customers across a broader geographic footprint while also adding new, attractive end markets and customer relationships," continued Mr. Cutillo. "Further, we believe that by leveraging Sterling's broad platform and financial resources, there is a compelling opportunity to accelerate growth and drive margin expansion at Stone Ridge. We look forward to building on the strong foundation already in place and capitalizing on the significant opportunities ahead."
About Sterling
Sterling Infrastructure, Inc., ("Sterling," "the Company," "we," "our" or "us") operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society's quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.
Joe Cutillo, CEO, "We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow."
Company Contact:
Sterling Infrastructure, Inc.
Noelle Dilts, VP of Investor Relations and Corporate Strategy
281-214-0795
Noelle.Dilts@strlco.com
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SOURCE Sterling Infrastructure, Inc.
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