Sterling Reports Record Third Quarter 2025 Results and Increases Full Year Guidance

Rhea-AI Summary

Sterling Infrastructure (Nasdaq: STRL) reported record third quarter 2025 results and raised full-year guidance on Nov 5, 2025. Q3 revenue was $689.0M, up 32% excluding RHB; gross margin reached 24.7% (vs 21.9%). Net income was $92.1M or $2.97 diluted EPS; adjusted net income was $107.7M or $3.48 diluted EPS, increases of 50% and 57% respectively. Adjusted EBITDA was $155.8M, up 47%. Signed backlog was $2.58B and combined backlog was $3.44B; CEC acquisition added material backlog and revenue. Cash and equivalents were $306.4M and operating cash flow for nine months totaled $253.9M. Full-year 2025 guidance raised: revenue $2.375B–$2.390B; adjusted diluted EPS $10.35–$10.52; adjusted EBITDA $486M–$491M.

Positive

• Revenue +32% year-over-year (ex‑RHB) in Q3
• Adjusted diluted EPS +58% to $3.48 in Q3
• Adjusted EBITDA +47% in Q3 to $155.8M
• Signed backlog $2.58B; combined backlog $3.44B at Sept 30, 2025
• Nine‑month operating cash flow $253.9M; cash $306.4M at Sept 30, 2025

Negative

• Building Solutions revenue -1% and adjusted operating income -10% in Q3
• Planned downsizing of Texas low‑bid heavy highway business may reduce near‑term backlog and revenue

Insights

Capital Markets Strategist

Sterling reports strong Q3 2025 results, margin expansion, and raised full‑year guidance, driven by CEC acquisition and E‑Infrastructure strength.

Revenue reached $689.0 million, a 32% increase excluding RHB, with gross margin improving to 24.7% and adjusted diluted EPS of $3.48 (a 58% increase). The quarter benefited from the closed acquisition of CEC, which added $41.4 million to revenue and materially to backlog; signed backlog was $2.58 billion and combined backlog was $3.44 billion, with Unsigned Awards of $868.8 million.

Key dependencies and risks include integration execution of CEC and the company’s stated shift into higher‑margin service work; management reports adjusted operating income for E‑Infrastructure rose strongly, while Building Solutions showed softness. Cash from operations of $253.9 million (nine months) and cash of $306.4 million support liquidity, but near‑term backlog and revenue may be affected by the planned downsizing of the low‑bid Texas heavy highway business.

Concrete items to watch over the next 6–12 months: realization of synergies and margin contribution from CEC (management notes early customer discussions and initial adjusted operating income in line with expectations), conversion of Unsigned Awards into signed contracts, and trends in Building Solutions demand. Management raised full‑year 2025 guidance to revenue $2.375–2.390 billion, adjusted EBITDA $486–491 million, and adjusted diluted EPS $10.35–10.52, which serve as reference milestones to monitor execution against targets.

THE WOODLANDS, Texas, Nov. 3, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or the "Company") today announced record financial results for the third quarter of 2025.

The financial comparisons herein are to the prior year quarter, unless otherwise noted.

Due to the deconsolidation of the RHB joint venture on December 31, 2024, RHB is no longer included in consolidated revenue or backlog. As such, prior-year comparisons for these metrics have been adjusted to exclude RHB. Please see the "Historical Quarterly Backlog Information" section below for reconciliations to historical figures.

Third Quarter  2025 Results

• Revenues of $689.0 million. Revenues increased 32% excluding RHB from the prior year quarter. The CEC acquisition contributed $41.4 million to revenue in the quarter.
• Gross margin of 24.7%, up from 21.9%.
• Net income of $92.1 million, or $2.97 per diluted share, increases of 50% and 51%, respectively, and a new third quarter record.
• Adjusted net income⁽¹⁾ of $107.7 million, or $3.48 per diluted share, increases of 57% and 58%, respectively.
• EBITDA⁽¹⁾ of $143.1 million, an increase of 42% and a new third quarter record.
• Adjusted EBITDA⁽¹⁾ of $155.8 million, an increase of 47%.
• Cash flows from operations totaled $253.9 million for the nine months ended September 30, 2025.
• Cash and cash equivalents totaled $306.4 million at September 30, 2025.
• Backlog at September 30, 2025 was $2.58 billion. The CEC acquisition contributed $475.3 million to backlog.
• Combined backlog⁽²⁾ at September 30, 2025 was $3.44 billion. The CEC acquisition contributed $810.5 million to combined backlog.
• Share repurchases totaled $4.7 million in the quarter at an average price of $274.37 per share.

(1) See "Non-GAAP Measures", "Adjusted Net Income Reconciliation", and "EBITDA Reconciliation" sections below for more information.

(2) Combined Backlog includes Unsigned Awards of $868.8 million at September 30, 2025, with $335.3 million of Unsigned Awards contributed from CEC.

CEO Remarks and Outlook

"Our outstanding third quarter results reflect the strength of our portfolio, as we delivered very strong top line growth of 32% and even better bottom-line growth, with adjusted diluted earnings per share reaching $3.48, a 58% increase," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth was again fueled by strong 58% growth in E-Infrastructure Solutions and 10% growth in Transportation Solutions, which more than offset softness in the Building Solutions market. Gross profit margins in the quarter of 25% marked a new high for the Company, as we have shifted the business toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 47%."

Mr. Cutillo continued, "We ended the quarter with signed backlog of $2.6 billion, which grew 34% year-over-year on a same-store basis. Combined backlog grew 44% and reached over $3 billion for the first time in our history. Third quarter book to burn ratios excluding the impact of CEC, were 1.23x for backlog and 1.76x for combined backlog. With the addition of CEC, the aggregate of our combined backlog and high-probability future phase work gives us visibility into a pool of work totaling more than $4 billion. Our operating cash flow generation in the third quarter was again excellent at $84 million, and we remain in a positive net cash position."

Mr. Cutillo added, "In E-Infrastructure Solutions, we achieved 58% revenue growth and 57% adjusted operating income growth in the third quarter. Revenue for the legacy Site Development business increased 42% and operating margins expanded both year over year and sequentially. The strength of our margin profile reflects our shift toward large, mission-critical projects, including data centers and manufacturing, where our scale, superior execution, and track record of delivering projects on time are extremely valuable to our customers. Notably, awards for our site development services remained strong in the quarter, outpacing the strong backlog burn.

We are pleased to have closed the CEC acquisition in the quarter, which contributed $41 million to revenue and adjusted operating income that was in-line with our expectations in September. As we have begun early discussions with our customers, we have even more confidence that the combination of CEC's leading electrical services to high-growth markets and Sterling's best-in-class site civil infrastructure services will allow us to accelerate project timelines and drive even more value.

Transportation Solutions revenue increased 10% and adjusted operating income grew 40%. We continue to see solid demand and project opportunities in our core Rocky Mountain and Arizona regions. The downsizing of our low-bid Texas heavy highway business is progressing to plan. This shift will weigh on backlog and revenue in the near term, but will continue to benefit margins as we move through 2025 and into 2026.

In Building Solutions, revenue declined 1% and adjusted operating income declined 10%. Our residential businesses continued to be impacted by the slowdown in the housing market, as prospective homebuyers are facing affordability challenges. We remain bullish on the multi-year demand trends in our key geographies, but expect soft market conditions to persist in the near term."

"We believe 2025 will be another record year for Sterling as we continue to drive bottom line growth that outpaces top line growth. We are raising our 2025 guidance to reflect our strong year-to-date performance, backlog, and visibility into future phase opportunities. The midpoints of our revised 2025 guidance would represent 27% year-over-year revenue growth as adjusted for RHB, 47% adjusted diluted earnings per share growth and 42% adjusted EBITDA growth," Mr. Cutillo concluded.

Full Year 2025 Guidance

• Revenue of $2.375 billion to $2.390 billion
• Net Income of $270 million to $275 million
• Diluted EPS of $8.73 to $8.87
• EBITDA⁽¹⁾ of $448 million to $453 million

Full Year 2025 Adjusted Guidance

Please see the "Adjusted Net Income Guidance Reconciliation" and "EBITDA Guidance Reconciliation" sections below for reconciliations of GAAP to non-GAAP measures and comparable 2024 results.

• Adjusted Net Income⁽¹⁾ of $321 million to $326 million
• Adjusted Diluted EPS⁽¹⁾ of $10.35 to $10.52
• Adjusted EBITDA⁽¹⁾ of $486 million to $491 million

(1) See "Non-GAAP Measures", "Adjusted Net Income Guidance Reconciliation" and "EBITDA Guidance Reconciliation" sections below for more information.

Conference Call

Sterling's management will hold a conference call to discuss these results and recent corporate developments on Tuesday, November 4, 2025 at 9:00 a.m. ET/8:00 a.m. CT. Interested parties may participate in the call by dialing (800) 836-8184. Please call in 10 minutes before the conference call is scheduled to begin and ask for the Sterling Infrastructure call. To coincide with the conference call, Sterling will post a slide presentation at www.strlco.com on the Events & Presentations section of the Investor Relations tab. Following management's opening remarks, there will be a question and answer session.

To listen to a simultaneous webcast of the call, please go to the Company's website at www.strlco.com at least 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call webcast will be archived on the Company's website for 30 days.

About Sterling

Sterling 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."

Important Information for Investors and Stockholders

Non-GAAP Measures

This press release contains "Non-GAAP" financial measures as defined under Regulation G of the amended U.S. Securities Exchange Act of 1934. The Company reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), but the Company believes that certain Non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of those operations.

Non-GAAP measures may include adjusted net income, adjusted operating income, adjusted EPS, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that the Company does not consider to be representative of its normal operations. The Company believes that these measures are useful for investors to review, because they provide a consistent measure of the underlying financial results of the Company's ongoing business and, in the Company's view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, the Company uses each of these to measure the performance of the Company's operations for budgeting and forecasting, as well as for determining employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for net income, EPS, or other data prepared and reported in accordance with GAAP and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.

Reconciliations of Non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included within this press release.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains statements that are considered forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about: the anticipated benefits of the CEC acquisition; our business strategy; our financial strategy; our industry outlook; our guidance; our expected margin growth; and our plans, objectives, expectations, forecasts, outlook and intentions. All of these types of statements, other than statements of historical fact included in this press release, are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "guidance," "continue," the negative of such terms or other comparable terminology. The forward-looking statements contained in this press release are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management's assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this press release are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors listed in the "Risk Factors" section in our filings with the U.S. Securities and Exchange Commission and elsewhere in those filings. Additional factors or risks that we currently deem immaterial, that are not presently known to us or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

Company Contact:
Sterling Infrastructure, Inc.
Noelle Dilts, VP Investor Relations and Corporate Strategy
281-214-0795

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues	$       689,019		$       593,741		$    1,734,436		$    1,616,923
Cost of revenues	(518,803)		(463,942)		(1,326,240)		(1,297,477)
Gross profit	170,216		129,799		408,196		319,446
General and administrative expense	(37,585)		(30,672)		(106,203)		(85,826)
Intangible asset amortization	(6,035)		(4,280)		(15,074)		(12,857)
Acquisition related costs	(5,349)		(72)		(8,023)		(209)
Earn-out expense	(1,343)		(1,000)		(4,029)		(3,000)
Other operating income (expense), net	5,405		(6,283)		11,082		(15,203)
Operating income	125,309		87,492		285,949		202,351
Interest income	5,677		7,591		19,405		19,798
Interest expense	(4,140)		(6,286)		(14,367)		(19,463)
Income before income taxes	126,846		88,797		290,987		202,686
Income tax expense	(30,517)		(23,404)		(72,959)		(48,960)
Net income, including noncontrolling interests	96,329		65,393		218,028		153,726
Less: Net income attributable to noncontrolling interests	(4,241)		(4,072)		(15,472)		(9,478)
Net income attributable to Sterling common stockholders	$         92,088		$         61,321		$       202,556		$       144,248
Net income per share attributable to Sterling common stockholders:
Basic	$              3.02		$              2.00		$              6.64		$              4.67
Diluted	$              2.97		$              1.97		$              6.56		$              4.63
Weighted average common shares outstanding:
Basic	30,519		30,735		30,491		30,875
Diluted	30,960		31,070		30,875		31,184

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES SEGMENT INFORMATION (In thousands) (Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
Revenues	2025		% of Revenue		2024		% of Revenue		2025		% of Revenue		2024		% of Revenue
E-Infrastructure Solutions	$   417,106		60 %		$   263,899		45 %		$   945,775		55 %		$   689,687		43 %
Transportation Solutions	170,490		25 %		227,251		38 %		487,948		28 %		608,995		37 %
Building Solutions	101,423		15 %		102,591		17 %		300,713		17 %		318,241		20 %
Total Revenues	$   689,019				$   593,741				$  1,734,436				$  1,616,923
Operating Income
E-Infrastructure Solutions	$   106,614		25.6 %		$     68,076		25.8 %		$   237,023		25.1 %		$   146,922		21.3 %
Transportation Solutions	24,377		14.3 %		18,573		8.2 %		61,605		12.6 %		42,154		6.9 %
Building Solutions	10,752		10.6 %		12,249		11.9 %		32,959		11.0 %		42,837		13.5 %
Segment Operating Income	141,743		20.6 %		98,898		16.7 %		331,587		19.1 %		231,913		14.3 %
Corporate G&A Expense	(9,742)				(10,334)				(33,586)				(26,353)
Acquisition Related Costs	(5,349)				(72)				(8,023)				(209)
Earn-out Expense	(1,343)				(1,000)				(4,029)				(3,000)
Total Operating Income	$   125,309		18.2 %		$     87,492		14.7 %		$   285,949		16.5 %		$   202,351		12.5 %

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited)
	September 30,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$                306,395		$                664,195
Accounts receivable	496,058		247,050
Contract assets	102,736		55,387
Receivables from and equity in construction joint ventures	5,204		5,811
Receivable from affiliate	—		32,054
Other current assets	52,755		17,383
Total current assets	963,148		1,021,880
Property and equipment, net	268,033		236,795
Investment in unconsolidated subsidiary	108,512		107,400
Operating lease right-of-use assets, net	64,232		52,668
Goodwill	580,564		264,597
Other intangibles, net	561,716		316,390
Other non-current assets, net	16,062		17,044
Total assets	$             2,562,267		$             2,016,774
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$                198,323		$                130,420
Contract liabilities	616,273		508,846
Current maturities of long-term debt	15,154		26,423
Current portion of long-term lease obligations	20,980		20,498
Accrued compensation	62,033		36,774
Other current liabilities	54,030		18,997
Total current liabilities	966,793		741,958
Long-term debt	279,479		289,898
Long-term lease obligations	43,588		32,455
Deferred tax liability, net	118,616		109,360
Other long-term liabilities	68,796		16,625
Total liabilities	1,477,272		1,190,296
Stockholders' equity:
Common stock	315		312
Additional paid in capital	369,505		288,395
Treasury stock, at cost	(103,745)		(63,121)
Retained earnings	785,051		582,495
Total Sterling stockholders' equity	1,051,126		808,081
Noncontrolling interests	33,869		18,397
Total stockholders' equity	1,084,995		826,478
Total liabilities and stockholders' equity	$             2,562,267		$             2,016,774

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	Nine Months Ended September 30,
	2025		2024
Cash flows from operating activities:
Net income	$               218,028		$               153,726
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	54,526		50,546
Amortization of debt issuance costs and non-cash interest	633		877
Gain on disposal of property and equipment	(2,500)		(3,280)
Distribution of earnings from unconsolidated subsidiary	16,252		—
Equity in earnings from unconsolidated subsidiary	(11,082)		—
Deferred taxes	9,256		6,107
Stock-based compensation	18,241		13,753
Changes in operating assets and liabilities	(49,417)		101,106
Net cash provided by operating activities	253,937		322,835
Cash flows from investing activities:
Acquisitions, net of cash acquired	(484,156)		(4,827)
Capital expenditures	(50,923)		(65,309)
Proceeds from sale of property and equipment	4,014		7,834
Net cash used in investing activities	(531,065)		(62,302)
Cash flows from financing activities:
Repayments of debt	(21,067)		(19,931)
Repurchase of common stock	(48,546)		(50,596)
Withholding taxes paid on net share settlement of equity awards	(9,650)		(13,408)
Debt issuance costs	(1,409)		—
Other	—		(34)
Net cash used in financing activities	(80,672)		(83,969)
Net change in cash, cash equivalents, and restricted cash	(357,800)		176,564
Cash, cash equivalents and restricted cash at beginning of period	664,195		471,563
Cash, cash equivalents and restricted cash at end of period	306,395		648,127
Less: restricted cash	—		—
Cash and cash equivalents at end of period	$               306,395		$               648,127

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands)      (Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income attributable to Sterling common stockholders	$         92,088		$         61,321		$       202,556		$       144,248
Non-cash stock-based compensation	5,963		4,371		18,241		13,753
Intangible asset amortization (1)	7,906		4,280		20,688		12,857
Acquisition related costs	5,349		72		8,023		209
Earn-out expense	1,343		1,000		4,029		3,000
Income tax impact of adjustments	(4,947)		(2,563)		(12,782)		(7,203)
Adjusted net income attributable to Sterling common stockholders (2)	$       107,702		$         68,481		$       240,755		$       166,864
Net income per share attributable to Sterling common stockholders:
Basic	$              3.02		$              2.00		$              6.64		$              4.67
Diluted	$              2.97		$              1.97		$              6.56		$              4.63
Adjusted net income per share attributable to Sterling common stockholders:
Basic	$              3.53		$              2.23		$              7.90		$              5.40
Diluted	$              3.48		$              2.20		$              7.80		$              5.35
Weighted average common shares outstanding:
Basic	30,519		30,735		30,491		30,875
Diluted	30,960		31,070		30,875		31,184

(1)	For the three and nine months ended September 30, 2025, intangible asset amortization includes $1,871 and $5,614, respectively related to the basis difference recognized in the deconsolidation of RHB on December 31, 2024.
(2)	The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income attributable to Sterling common stockholders	$         92,088		$         61,321		$       202,556		$       144,248
Depreciation and amortization (1)	22,059		17,363		60,965		50,546
Interest income, net	(1,537)		(1,305)		(5,038)		(335)
Income tax expense	30,517		23,404		72,959		48,960
EBITDA(2)	143,127		100,783		331,442		243,419
Non-cash stock-based compensation	5,963		4,371		18,241		13,753
Acquisition related costs	5,349		72		8,023		209
Earn-out expense	1,343		1,000		4,029		3,000
Adjusted EBITDA(3)	$       155,782		$       106,226		$       361,735		$       260,381

(1)	For the three and nine months ended September 30, 2025, depreciation and amortization includes $1,871 and $5,614, respectively, of intangible asset amortization and $275 and $825, respectively, of depreciation expense related to the basis difference recognized in the deconsolidation of RHB on December 31, 2024.
(2)	The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders adjusted for depreciation and amortization, net interest income/expense and income tax expense.
(3)	The Company defines adjusted EBITDA as EBITDA excluding the impact of non-cash stock-based compensation, acquisition related costs, and earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES NON-GAAP SEGMENT INFORMATION (In thousands) (Unaudited)
The table below presents the three and nine months ended September 30, 2025 and 2024 revenue and operating income by segment as adjusted for the 2024 period to conform to our 2025 presentation reflecting the deconsolidation of RHB on revenue and to exclude the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense on operating income:
	Three Months Ended September 30,								Nine Months Ended September 30,
Revenues (Excluding RHB)	2025		% of Revenue		2024		% of Revenue		2025		% of Revenue		2024		% of Revenue
E-Infrastructure Solutions	$  417,106		60 %		$  263,899		51 %		$    945,775		55 %		$    689,687		48 %
Transportation Solutions	170,490		25 %		155,063		30 %		487,948		28 %		424,396		30 %
Building Solutions	101,423		15 %		102,591		19 %		300,713		17 %		318,241		22 %
Total Revenues (Excluding RHB) (1)	$  689,019				$  521,553				$ 1,734,436				$ 1,432,324
Adjusted Operating Income
E-Infrastructure Solutions	$  111,697		26.8 %		$    71,244		27.0 %		$    249,998		26.4 %		$    158,430		23.0 %
Transportation Solutions	26,680		15.6 %		19,070		12.3 %		68,528		14.0 %		43,456		10.2 %
Building Solutions	12,594		12.4 %		13,928		13.6 %		38,625		12.8 %		47,754		15.0 %
Adjusted Segment Operating Income	150,971		21.9 %		104,242		20.0 %		357,151		20.6 %		249,640		17.4 %
Corporate G&A Expense	(5,101)				(7,027)				(20,221)				(17,470)
Total Adjusted Operating Income (2)	$  145,870		21.2 %		$    97,215		18.6 %		$    336,930		19.4 %		$    232,170		16.2 %

(1)	Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, the Company reports RHB's operating income as a single line item ("Other operating income (expense), net") in the Consolidated Statements of Operations. RHB's revenue is no longer included in Sterling's consolidated revenue in 2025. For the three and nine months ended September 30, 2024, total GAAP revenue of $593,741 and $1,616,923, respectively, have been adjusted to exclude $72,188 and $184,599, respectively, of RHB revenue.
(2)	The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense. For the three months ended September 30, 2025, GAAP operating income of $125,309 is adjusted to exclude $5,963 of non-cash stock-based compensation, $7,906 of intangible asset amortization (including $1,871 related to the basis difference of RHB), $5,349 of acquisition related costs, and $1,343 of earn-out expense.
	For the nine months ended September 30, 2025, GAAP operating income of $285,949 is adjusted to exclude $18,241 of non-cash stock-based compensation, $20,688 of intangible asset amortization (including $5,614 related to the basis difference of RHB), $8,023 of acquisition related costs, and $4,029 of earn-out expense.
	For the three months ended September 30, 2024, GAAP operating income of $87,492 is adjusted to exclude $4,371 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $72 of acquisition related costs, and $1,000 of earn-out expense.
	For the nine months ended September 30, 2024, GAAP operating income of $202,351 is adjusted to exclude $13,753 of non-cash stock-based compensation, $12,857 of intangible asset amortization, $209 of acquisition related costs, and $3,000 of earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME GUIDANCE RECONCILIATION (In thousands)      (Unaudited)
	Full Year 2025 Guidance				Full Year
	Low		High		2024 Actual
Net income attributable to Sterling common stockholders	$   270,000		$   275,000		$   257,461
Gain on deconsolidation of subsidiary, net	—		—		(91,289)
Non-cash stock-based compensation	24,000		24,000		19,003
Intangible asset amortization (1)	30,000		30,000		17,037
Acquisition related costs	8,000		8,000		421
Earn-out expense	6,000		6,000		4,756
Income tax impact of adjustments	(17,000)		(17,000)		13,356
Adjusted net income attributable to Sterling common stockholders (2)	$   321,000		$   326,000		$   220,745
Net income per share attributable to Sterling common stockholders:
Diluted	$          8.73		$          8.87		$          8.27
Adjusted net income per share attributable to Sterling common stockholders:
Diluted	$        10.35		$        10.52		$          7.09
Weighted average common shares outstanding:
Diluted (2025 is approximate)	31,000		31,000		31,146

(1)	Full year 2025 guidance includes intangible asset amortization of approximately $7,500 related to the basis difference recognized in the deconsolidation of RHB on December 31, 2024.
(2)	The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited)
	Full Year 2025 Guidance				Full Year 2024
	Low		High		Actual
Net income attributable to Sterling common stockholders	$            270		$            275		$                257
Depreciation and amortization (1)	85		85		68
Interest income, net of interest expense	(3)		(4)		(2)
Income tax expense	96		97		87
EBITDA (2)	448		453		410
Gain on deconsolidation of subsidiary, net	—		—		(91)
Non-cash stock-based compensation	24		24		19
Acquisition related costs	8		8		—
Earn-out expense	6		6		5
Adjusted EBITDA(3)	$            486		$            491		$                343

(1)	Full year 2025 guidance includes depreciation and intangible asset amortization of approximately $1.1 million and $7.5 million, respectively, related to the basis difference recognized in the deconsolidation of RHB on December 31, 2024.
(2)	The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest income, and income tax expense.
(3)	The Company defines adjusted EBITDA as EBITDA excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, acquisition related costs and earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited)
The following tables present our 2024 quarterly revenue by segment as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB:
	2024 Quarters Ended (Unaudited)
Revenues (GAAP)	March 31		June 30		September 30		December 31		Total
E-Infrastructure Solutions	$        184,476		$        241,312		$        263,899		$        234,041		$        923,728
Transportation Solutions	148,969		232,775		227,251		174,664		783,659
Building Solutions	106,915		108,735		102,591		90,128		408,369
Total Revenues	$        440,360		$        582,822		$        593,741		$        498,833		$    2,115,756
Revenues (RHB)
E-Infrastructure Solutions	$                  —		$                  —		$                  —		$                  —		$                  —
Transportation Solutions	38,464		73,947		72,188		51,277		235,876
Building Solutions	—		—		—		—		—
Total Revenues	$          38,464		$          73,947		$          72,188		$          51,277		$        235,876
Revenues (Excluding RHB/Non-GAAP) (1)
E-Infrastructure Solutions	$        184,476		$        241,312		$        263,899		$        234,041		$        923,728
Transportation Solutions	110,505		158,828		155,063		123,387		547,783
Building Solutions	106,915		108,735		102,591		90,128		408,369
Total Revenues	$        401,896		$        508,875		$        521,553		$        447,556		$    1,879,880
(1) Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, RHB's revenue is no longer included in Sterling's consolidated revenue.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited)
The following tables present our 2024 quarterly operating income and adjusted operating income by segment:
	2024 Quarters Ended (Unaudited)
Operating Income (GAAP)	March 31		June 30		September 30		December 31		Total
E-Infrastructure Solutions	$          27,169		$          51,677		$          68,076		$          56,437		$        203,359
Transportation Solutions	8,132		15,449		18,573		8,715		50,869
Building Solutions	15,775		14,813		12,249		11,002		53,839
Segment Operating Income	51,076		81,939		98,898		76,154		308,067
Corporate G&A Expense	(7,915)		(8,104)		(10,334)		(11,915)		(38,268)
Acquisition Related Costs	(36)		(101)		(72)		(212)		(421)
Earn-out Expense	(1,000)		(1,000)		(1,000)		(1,756)		(4,756)
Total Operating Income	$          42,125		$          72,734		$          87,492		$          62,271		$        264,622
Adjusted Operating Income (Non-GAAP)
E-Infrastructure Solutions	$          31,345		$          55,841		$          71,244		$          60,316		$        218,746
Transportation Solutions	8,512		15,874		19,070		9,180		52,636
Building Solutions	17,403		16,423		13,928		12,632		60,386
Segment Operating Income	57,260		88,138		104,242		82,128		331,768
Corporate	(5,216)		(5,227)		(7,027)		(8,459)		(25,929)
Adjusted Operating Income (1)	$          52,044		$          82,911		$          97,215		$          73,669		$        305,839

(1)	The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense.
	For the three months ended March 31, 2024, GAAP operating income of $42,125 is adjusted to exclude $4,586 of non-cash stock-based compensation, $4,297 of intangible asset amortization, $36 of acquisition related costs, and $1,000 of earn-out expense.
	For the three months ended June 30, 2024, GAAP operating income of $72,734 is adjusted to exclude $4,796 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $101 of acquisition related costs, and $1,000 of earn-out expense.
	For the three months ended September 30, 2024, GAAP operating income of $87,492 is adjusted to exclude $4,371 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $72 of acquisition related costs, and $1,000 of earn-out expense.
	For the three months ended December 30, 2024, GAAP operating income of $62,271 is adjusted to exclude $5,250 of non-cash stock-based compensation, $4,180 of intangible asset amortization, $212 of acquisition related costs, and $1,756 of earn-out expense.
	For the year ended December 30, 2024, GAAP operating income of $264,622 is adjusted to exclude $19,003 of non-cash stock-based compensation, $17,037 of intangible asset amortization, $421 of acquisition related costs, and $4,756 of earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY BACKLOG INFORMATION (In thousands) (Unaudited)
The following table presents our 2024 backlog as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB:
	2024 Quarters Ended (Unaudited)
Backlog	March 31		June 30		September 30		December 31
Backlog (GAAP)	$     2,352,126		$     2,098,781		$     2,055,081		$     2,184,478
Less: RHB Backlog	(528,043)		(476,842)		(485,050)		(491,255)
Backlog excluding RHB	$     1,824,083		$     1,621,939		$     1,570,031		$     1,693,223

 

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SOURCE Sterling Infrastructure, Inc.

FAQ

What were Sterling Infrastructure's Q3 2025 revenue and adjusted EBITDA (STRL)?

Q3 2025 revenue was $689.0M and adjusted EBITDA was $155.8M.

How much did the CEC acquisition contribute to Sterling's Q3 2025 results (STRL)?

CEC contributed $41.4M to Q3 revenue and $475.3M to signed backlog on closing.

What guidance did Sterling (STRL) raise for full‑year 2025 revenue and adjusted EPS?

Full‑year 2025 revenue guidance was raised to $2.375B–$2.390B and adjusted diluted EPS to $10.35–$10.52.

How large is Sterling's signed and combined backlog at Sept 30, 2025 (STRL)?

Signed backlog was $2.58B and combined backlog was $3.44B at Sept 30, 2025.

What drove Sterling's margin expansion and higher profitability in Q3 2025 (STRL)?

Gross margin expansion to 24.7% was driven by a shift toward higher‑margin service offerings and stronger E‑Infrastructure performance.

Are there near‑term risks for Sterling's 2025 revenue growth (STRL)?

Yes. Softness in the housing market hurt Building Solutions and the planned downsizing of the Texas heavy highway business may weigh on near‑term backlog and revenue.