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Sterling Infrastructure (NASDAQ: STRL) boosts 2026 guidance after record Q1 growth

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Sterling Infrastructure, Inc. reported record first quarter 2026 results and raised its full-year outlook. Revenue reached $825.7 million, up 92% from a year ago, with the acquired CEC business contributing $156.1 million and organic growth over 55%. Net income attributable to common stockholders rose to $96.0 million, or $3.09 diluted EPS, while adjusted diluted EPS increased to $3.59, up 120%.

Adjusted EBITDA was $166.6 million, up 107%, with margins just over 20%. Operating cash flow was strong at $165.6 million, and cash and cash equivalents were $511.9 million at March 31, 2026. Signed backlog reached $3.80 billion, up 78%, and combined backlog was $5.15 billion, up 131%, supported by large mission-critical E‑Infrastructure awards and contributions from CEC.

Management raised full-year 2026 guidance to revenue of $3.70–$3.80 billion, net income of $513–$533 million, diluted EPS of $16.50–$17.15, and adjusted EBITDA of $843–$873 million. At the midpoint, this implies year-over-year growth of 51% in revenue, 72% in adjusted diluted EPS, and 70% in adjusted EBITDA.

Positive

  • Q1 2026 earnings and margins surged: revenue grew 92% to $825.7 million, adjusted diluted EPS rose 120% to $3.59, and adjusted EBITDA increased 107% to $166.6 million with margins above 20%.
  • Backlog and growth visibility strengthened sharply: signed backlog reached $3.80 billion (up 78%) and combined backlog $5.15 billion (up 131%), supported by large mission-critical E‑Infrastructure awards and CEC contributions.
  • 2026 guidance raised materially: full-year revenue outlook increased to $3.70–$3.80 billion with adjusted EBITDA of $843–$873 million, implying 51% revenue and 70% adjusted EBITDA growth versus 2025 at the midpoint.
  • Balance sheet and cash generation remain strong: cash from operations was $165.6 million in Q1 and cash and cash equivalents totaled $511.9 million, supporting ongoing acquisitions, share repurchases, and growth investments.

Negative

  • Building Solutions segment under pressure: while revenue grew 3% year-over-year in Q1 2026, adjusted operating income declined 42% amid challenging housing affordability and weaker margins.
  • Integration and execution demands increasing: rapid expansion in E‑Infrastructure, including CEC integration and large multi-year mission-critical projects, raises the operational complexity the company must manage to sustain current growth and margin levels.

Insights

Blowout Q1 and higher 2026 guidance signal strong growth momentum.

Sterling Infrastructure delivered very strong Q1 2026 results. Revenue of $825.7 million grew 92%, with over 55% organic growth and significant contribution from the CEC acquisition. Net income reached $96.0 million and diluted EPS rose to $3.09, while adjusted diluted EPS climbed to $3.59.

Profitability expanded meaningfully. EBITDA increased to $155.2 million and adjusted EBITDA to $166.6 million, up 115% and 107% respectively, with margins above 20%. Cash flows from operations were robust at $165.6 million, and cash on hand was $511.9 million as of March 31, 2026, providing flexibility for investment and capital returns.

Growth visibility improved with signed backlog of $3.80 billion and combined backlog of $5.15 billion, up 78% and 131% year-over-year. Management raised 2026 guidance to revenue of $3.70–$3.80 billion and adjusted EBITDA of $843–$873 million, implying around 51% revenue and 70% adjusted EBITDA growth versus 2025. Future disclosures in company filings will show how execution tracks against this higher outlook, especially in E‑Infrastructure and the softer Building Solutions segment.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 2026 Revenue $825.7 million Three months ended March 31, 2026; up 92% year-over-year
Q1 2026 Net Income $96.0 million Net income attributable to Sterling common stockholders for Q1 2026
Q1 2026 Diluted EPS $3.09 per share Diluted earnings per share for Q1 2026 vs $1.28 in Q1 2025
Q1 2026 Adjusted EBITDA $166.6 million Adjusted EBITDA for Q1 2026; up 107% from Q1 2025
Operating Cash Flow $165.6 million Cash flows from operations for three months ended March 31, 2026
Cash and Equivalents $511.9 million Cash and cash equivalents balance at March 31, 2026
Signed Backlog $3.80 billion Backlog at March 31, 2026; up 78% from prior year period
2026 Revenue Guidance $3.70–$3.80 billion Full year 2026 revenue outlook raised by management
Adjusted EBITDA financial
"Adjusted EBITDA(1) of $166.6 million, an increase of 107%."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Combined backlog financial
"Combined backlog(2) at March 31, 2026 was $5.15 billion, up 131% from the prior year period."
Combined backlog is the total value of orders, contracts or work a company has accepted but not yet completed, summed across all its divisions, business lines or recently acquired units. For investors it serves as a pipeline indicator—like a queue of customer requests waiting to be filled—showing near-term revenue potential, production load and risks from delays or cancellations that can affect future sales and cash flow.
Earn-out expense financial
"Earn-out expense | (2,488) | | | (1,343) |"
Non-GAAP financial measures financial
"This press release contains “Non-GAAP” financial measures as defined under Regulation G..."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Mission-critical projects financial
"Mission-critical projects—including data centers, manufacturing, and semiconductor facilities—represented over 90% of our E-Infrastructure backlog..."
Book-to-burn ratios financial
"First quarter book-to-burn ratios were 2.1x for backlog and 3.5x for combined backlog."
The book-to-burn ratio compares the value of new sales or signed contracts (the “book” of orders) to the company’s cash burn over the same period. Investors use it to gauge whether a business is generating enough incoming work to cover how quickly it is spending cash — like checking whether new customer orders are filling the hole made by monthly expenses; a higher ratio suggests less need for outside funding.
Revenue $825.7 million +92% year-over-year
Net income attributable to common stockholders $96.0 million +143% net income; 141% diluted EPS
Diluted EPS $3.09 up from $1.28 in Q1 2025
Adjusted diluted EPS $3.59 +120% year-over-year
EBITDA $155.2 million +115% year-over-year
Adjusted EBITDA $166.6 million +107% year-over-year
Signed backlog $3.80 billion +78% year-over-year
Combined backlog $5.15 billion +131% year-over-year
Guidance

For full year 2026, Sterling guides to revenue of $3.70–$3.80 billion, net income of $513–$533 million, diluted EPS of $16.50–$17.15, EBITDA of $801–$831 million, and adjusted EBITDA of $843–$873 million, implying strong growth versus 2025.

Understanding 8-K Material Events →
FALSE000087423800008742382026-05-042026-05-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 4, 2026

Sterling Infra Inc Logo_4C.jpg
STERLING INFRASTRUCTURE, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3199325-1655321
(State or other jurisdiction of incorporation
or organization)		(Commission File Number)(I.R.S. Employer
Identification No.)
1800 Hughes Landing Blvd.
The Woodlands, Texas
 
77380
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:  (281) 214-0777
Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $0.01 par value per shareSTRLThe NASDAQ Stock Market LLC
(Title of Class)(Trading Symbol)(Name of each exchange on which registered)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR § 240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐



Item 2.02     Results of Operations and Financial Condition.
On May 4, 2026, Sterling Infrastructure, Inc. (the “Company”) issued a press release announcing financial results for the three months ended March 31, 2026 and providing updated full year 2026 guidance. The press release is being furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
 
The information provided in this Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be considered “filed” under the Exchange Act, nor shall it be incorporated by reference in any filing made by the Company pursuant to the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto.
Item 7.01     Regulation FD Disclosure.
On May 5, 2026, the Company will host a conference call to discuss the first quarter 2026 results as well as corporate developments. The slides to be used during the conference call are being furnished with this Current Report on Form 8-K as Exhibit 99.2 and are incorporated herein by reference.

The information provided in this Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be considered “filed” under the Exchange Act, nor shall it be incorporated by reference in any filing made by the Company pursuant to the Exchange Act or the Securities Act, other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto.

Item 9.01     Financial Statements and Exhibits.
(d)    Exhibits
Exhibit Number Description
99.1
Press release, dated May 4, 2026
99.2
Presentation slides, dated May 5, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 STERLING INFRASTRUCTURE, INC.
   
Date:
May 4, 2026
By:/s/ Nicholas Grindstaff
  Nicholas Grindstaff
  Chief Financial Officer





Exhibit 99.1

sterlinginfrainclogo_4c.jpg
NEWS RELEASE
For Immediate Release:
May 4, 2026
Sterling Reports Record First Quarter Results and Raises Full Year 2026 Guidance

THE WOODLANDS, TX – May 4, 2026 – Sterling Infrastructure, Inc. (NasdaqGS: STRL) (“Sterling” or the “Company”) today announced strong financial results for the first quarter of 2026.
The financial comparisons herein are to the prior year quarter, unless otherwise noted.
First Quarter 2026
Results:
•Revenues of $825.7 million increased by 92%. The recently acquired CEC business contributed $156.1 million to revenue in the quarter.
•Net income of $96.0 million, or $3.09 per diluted share, increases of 143% and 141% respectively.
•EBITDA(1) of $155.2 million, an increase of 115%.

Adjusted Results:
•Adjusted net income(1) of $111.3 million, or $3.59 per diluted share, increases of 122% and 120% respectively.
•Adjusted EBITDA(1) of $166.6 million, an increase of 107%.

Additional Financial Metrics:
•Cash flows from operations totaled $165.6 million for the three months ended March 31, 2026.
•Cash and cash equivalents totaled $511.9 million at March 31, 2026.
•Backlog at March 31, 2026 was $3.80 billion, up 78% from the prior year period. CEC contributed $592.0 million to backlog; excluding this contribution, backlog increased 51%.
•Combined backlog(2) at March 31, 2026 was $5.15 billion, up 131% from the prior year period. CEC contributed $1.88 billion to combined backlog; excluding this contribution, combined backlog increased 46%.
•Share repurchases totaled $12.3 million in the quarter at an average price of $305.14 per share.

CEO Remarks and Outlook
“We are off to an exceptional start in 2026, with first quarter adjusted net income increasing 122% to deliver adjusted diluted EPS of $3.59. Revenue grew 92%, including organic growth of over 55%, and adjusted EBITDA margins remained strong at over 20%. We also generated robust operating cash flow of $166 million,” stated Joe Cutillo, Sterling’s Chief Executive Officer. “We are incredibly proud of our teams for delivering another outstanding quarter.”
“Looking ahead, our confidence in our ability to continue generating exceptional results has only strengthened. Bid and award activity in early 2026 was strong, reinforcing our visibility into future growth. Notably, during the quarter, we were awarded the initial phase of site development work for a large, multi-year semiconductor fabrication campus. Additionally, CEC was awarded several large projects that contributed to a $1.2 billion increase in its combined backlog during the quarter.
(1) See “Non-GAAP Measures”, “Adjusted Net Income Reconciliation”, and “EBITDA Reconciliation” sections below for more information.
(2) Combined Backlog includes Unsigned Awards of $1.36 billion at March 31, 2026, with $1.29 billion of Unsigned Awards contributed from CEC.

We ended the quarter with signed backlog of $3.8 billion, up 78%, and combined backlog of $5.15 billion, up 131%. First quarter book-to-burn ratios were 2.1x for backlog and 3.5x for combined backlog. In addition, our pipeline of high-probability future phase work continues to expand and now exceeds $1.3 billion. Taken together, our signed backlog, unsigned awards, and future phase opportunities provide visibility into a total addressable pool of work approaching $6.5 billion, an increase of approximately $2 billion since year-end 2025.”
Mr. Cutillo continued, “Taking a deeper look at our segment results in the first quarter, in E-Infrastructure Solutions, we achieved 174% revenue growth and 177% adjusted operating income growth, driven by a combination of strong organic growth and contributions from the CEC acquisition. Within our legacy site development business, revenue increased 102%, and operating margins expanded both year-over-year and sequentially. Trends in the electrical business remain positive, with revenue increasing 78% compared to the pre-acquisition first quarter and margins that were in line with expectations.
E-Infrastructure signed backlog increased 123% over the prior year first quarter, or 74% excluding CEC. Mission-critical projects—including data centers, manufacturing, and semiconductor facilities—represented over 90% of our E-Infrastructure backlog at quarter end. We are also gaining traction in our efforts to cross-sell CEC’s mission-critical electrical services and Sterling’s best-in-class site development services. We are now in active construction on two data center campuses where we are delivering site and electrical services in an integrated capacity.
Transportation Solutions revenue increased 10% and adjusted operating income grew 26%, driven by strong performance in our Rocky Mountain market, excellent execution, and favorable mix shift toward higher-margin projects. The planned downsizing of our low-bid Texas heavy highway business remains on track and is expected to support margin expansion as we progress through 2026.
In Building Solutions, revenue increased 3%, reflecting a modest acceleration in homebuilder activity, while adjusted operating income declined 42% against a challenging comparison in the year-ago quarter. Although we are encouraged by the year-over-year increase in revenue in the quarter, we anticipate that conditions will remain challenging through 2026 as affordability constraints weigh on prospective homebuyers. We remain bullish on the multi-year demand trends in our key geographies, but expect soft market conditions to persist in the near term.”
“Our strong first quarter results strengthen our conviction that 2026 will be another outstanding year for Sterling. We are raising our 2026 guidance to reflect the strong momentum across the business, our expanded backlog and future phase position, and increasing visibility into future opportunities. At the midpoint, our 2026 guidance would represent 51% year-over-year revenue growth, 72% growth in adjusted diluted earnings per share, and 70% growth in adjusted EBITDA—positioning us for another year of exceptional performance and sustained value creation,” Mr. Cutillo concluded.
Full Year 2026 Guidance
•Revenue of $3.70 billion to $3.80 billion
•Net Income of $513 million to $533 million
•Diluted EPS of $16.50 to $17.15
•EBITDA(1) of $801 million to $831 million
Full Year 2026 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 2025 results.
•Adjusted Net Income(1) of $572 million to $592 million
•Adjusted Diluted EPS(1) of $18.40 to $19.05
•Adjusted EBITDA(1) of $843 million to $873 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, May 5, 2026 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 earnings and margin growth; our pool of future work; 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 March 31,
20262025
Revenues$825,675 $430,949 
Cost of revenues(631,379)(336,109)
Gross profit194,296 94,840 
General and administrative expense(47,850)(34,631)
Intangible asset amortization(7,093)(4,503)
Acquisition related costs(1,407)(179)
Earn-out expense(2,488)(1,343)
Other operating income, net2,356 1,892 
Operating income137,814 56,076 
Interest income3,638 6,827 
Interest expense(4,014)(5,232)
Income before income taxes137,438 57,671 
Income tax expense(33,673)(15,080)
Net income, including noncontrolling interests103,765 42,591 
Less: Net income attributable to noncontrolling interests(7,796)(3,114)
Net income attributable to Sterling common stockholders$95,969 $39,477 
Net income per share attributable to Sterling common stockholders:
Basic$3.13 $1.29 
Diluted$3.09 $1.28 
Weighted average common shares outstanding:
Basic30,65230,547
Diluted31,03830,881



STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Three Months Ended March 31,
Revenues2026% of Revenue2025% of Revenue
E-Infrastructure Solutions$597,732 72%$218,263 51%
Transportation Solutions132,863 16%120,661 28%
Building Solutions95,080 12%92,025 21%
Total Revenues$825,675 $430,949 
Operating Income
E-Infrastructure Solutions$133,764 22.4%$46,642 21.4%
Transportation Solutions14,754 11.1%11,253 9.3%
Building Solutions6,215 6.5%12,352 13.4%
Segment Operating Income154,733 18.7%70,247 16.3%
Corporate G&A Expense
(13,024)(12,649)
Acquisition Related Costs(1,407)(179)
Earn-out Expense(2,488)(1,343)
Total Operating Income$137,814 16.7%$56,076 13.0%


STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
March 31,December 31,
20262025
Assets
Current assets:
Cash and cash equivalents$511,858 $390,721 
Accounts receivable513,903 501,163 
Contract assets131,724 101,154 
Receivables from and equity in construction joint ventures7,229 6,179 
Other current assets 29,977 35,245 
Total current assets1,194,691 1,034,462 
Property and equipment, net284,303 278,269 
Investment in unconsolidated subsidiary100,482 105,813 
Operating lease right-of-use assets, net53,941 58,167 
Goodwill584,821 585,221 
Other intangibles, net548,009 554,702 
Other non-current assets, net17,425 17,197 
Total assets$2,783,672 $2,633,831 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$234,475 $226,810 
Contract liabilities695,617 652,357 
Current maturities of long-term debt 15,138 15,146 
Current portion of long-term lease obligations16,200 18,679 
Accrued compensation 51,218 62,657 
Other current liabilities71,102 46,805 
Total current liabilities1,083,750 1,022,454 
Long-term debt 272,321 275,903 
Long-term lease obligations38,527 40,186 
Deferred tax liability, net125,055 123,145 
Other long-term liabilities68,750 65,708 
Total liabilities1,588,403 1,527,396 
Stockholders’ equity:
Common stock315 315 
Additional paid in capital367,469 366,101 
Treasury stock, at cost(146,846)(130,547)
Retained earnings968,617 872,648 
Total Sterling stockholders’ equity1,189,555 1,108,517 
Noncontrolling interests5,714 (2,082)
Total stockholders’ equity1,195,269 1,106,435 
Total liabilities and stockholders’ equity$2,783,672 $2,633,831 


STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March 31,
20262025
Cash flows from operating activities:
Net income$103,765 $42,591 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization23,034 16,991 
Amortization of debt issuance costs and non-cash interest169 256 
Gain on disposal of property and equipment(739)(782)
Distribution of earnings from unconsolidated subsidiary6,999 — 
Equity in earnings from unconsolidated subsidiary(1,668)(1,892)
Deferred taxes1,909 650 
Stock-based compensation7,497 6,683 
Changes in operating assets and liabilities24,602 20,386 
Net cash provided by operating activities165,568 84,883 
Cash flows from investing activities:
Acquisitions, net of cash acquired— (37,860)
Capital expenditures(19,629)(17,924)
Proceeds from sale of property and equipment1,945 1,573 
Net cash used in investing activities(17,684)(54,211)
Cash flows from financing activities:
Repayments of debt(3,793)(6,606)
Repurchase of common stock(12,275)(43,846)
Withholding taxes paid on net share settlement of equity awards(10,679)(5,768)
Net cash used in financing activities(26,747)(56,220)
Net change in cash, cash equivalents, and restricted cash121,137 (25,548)
Cash, cash equivalents and restricted cash at beginning of period390,721 664,195 
Cash, cash equivalents and restricted cash at end of period511,858 638,647 
Less: restricted cash— — 
Cash and cash equivalents at end of period$511,858 $638,647 


STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
ADJUSTED NET INCOME RECONCILIATION
(In thousands, except per share data)    
(Unaudited)
 Three Months Ended March 31,
 20262025
Net income attributable to Sterling common stockholders$95,969 $39,477 
Non-cash stock-based compensation7,497 6,683 
Intangible asset amortization (1)
8,964 6,374 
Acquisition related costs1,407 179 
Earn-out expense2,488 1,343 
Tax impact of adjustments(4,987)(3,812)
Adjusted net income attributable to Sterling common stockholders (2)
$111,338 $50,244 
Net income per share attributable to Sterling common stockholders:
Basic$3.13 $1.29 
Diluted$3.09 $1.28 
Adjusted net income per share attributable to Sterling common stockholders:
Basic$3.63 $1.64 
Diluted$3.59 $1.63 
Weighted average common shares outstanding:
Basic30,65230,547
Diluted31,03830,881
(1) For the three months ended March 31, 2026 and 2025, intangible asset amortization includes $1,871 in both periods, 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 (income) expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's annual effective tax rate, 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 March 31,
 20262025
Net income attributable to Sterling common stockholders$95,969 $39,477 
Depreciation and amortization (1)
25,180 19,137 
Interest expense (income), net376 (1,595)
Income tax expense33,673 15,080 
EBITDA (2)
155,198 72,099 
Non-cash stock-based compensation7,497 6,683 
Acquisition related costs1,407 179 
Earn-out expense2,488 1,343 
Adjusted EBITDA (3)
$166,590 $80,304 
(1) For the three months ended March 31, 2026 and 2025, depreciation and amortization includes $1,871, in each period, of intangible asset amortization and $275, in each period, of depreciation expense related to the basis difference recognized in the deconsolidation of RHB.
(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 (income) expense.


STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
NON-GAAP SEGMENT INFORMATION
(In thousands)
(Unaudited)

Three Months Ended March 31,
Adjusted Operating Income2026% of Revenue2025% of Revenue
E-Infrastructure Solutions$140,330 23.5%$50,583 23.2%
Transportation Solutions17,078 12.9%13,577 11.3%
Building Solutions8,266 8.7%14,234 15.5%
Adjusted Segment Operating Income165,674 20.1%78,394 18.2%
Corporate G&A Expense(7,504)(7,739)
Total Adjusted Operating Income (1)
$158,170 19.2%$70,655 16.4%
(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, 2026, GAAP operating income of $137,814 is adjusted to exclude $7,497 of non-cash stock-based compensation, $8,964 of intangible asset amortization (including $1,871 related to the basis difference of RHB), $1,407 of acquisition related costs, and $2,488 of earn-out expense.
For the three months ended March 31, 2025, GAAP operating income of $56,076 is adjusted to exclude $6,683 of non-cash stock-based compensation, $6,374 of intangible asset amortization (including $1,871 related to the basis difference of RHB), $179 of acquisition related costs, and $1,343 of earn-out expense.


STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
ADJUSTED NET INCOME GUIDANCE RECONCILIATION
(In millions, except per share data)    
(Unaudited)
 Full Year 2026 GuidanceFull Year
 LowHigh2025 Actual
Net income attributable to Sterling common stockholders$513 $533 $290 
Non-cash stock-based compensation32 32 24 
Intangible asset amortization (1)
36 36 30 
Acquisition related costs1 1 8 
Earn-out expense (income)9 9 (1)
Income tax impact of adjustments(19)(19)(15)
Adjusted net income attributable to Sterling common stockholders (2)
$572 $592 $337 
Net income per share attributable to Sterling common stockholders:
Diluted$16.50 $17.15 $9.38 
Adjusted net income per share attributable to Sterling common stockholders:
Diluted$18.40 $19.05 $10.88 
Weighted average common shares outstanding:
Diluted (2026 is approximate)31.031.030.9
(1) Full year 2026 guidance and full year 2025 actual include intangible asset amortization of approximately $7.5 million related to the basis difference recognized in the deconsolidation of RHB.
(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 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 annual effective tax rate, 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 2026 GuidanceFull Year 2025
 LowHighActual
Net income attributable to Sterling common stockholders$513 $533 $290 
Depreciation and amortization (1)
104 107 86 
Interest expense (income), net5 7 (3)
Income tax expense179 184 99 
EBITDA (2)
801 831 472 
Non-cash stock-based compensation32 32 24 
Acquisition related costs1 1 8 
Earn-out expense (income)9 9 (1)
Adjusted EBITDA(3)
$843 $873 $504 
(1) Full year 2026 guidance and full year 2025 actual include 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.
(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.

Q1 2026 EARNINGS CALL May 5, 2026

 

2Sterling | STRL: First Quarter 2026 DISCLOSURE: Forward-Looking Statements This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward- looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. 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 earnings and margin growth; our pool of future work; and our plans, objectives, expectations, forecasts, outlook and intentions. All of these types of statements, other than statements of historical fact included in this presentation, 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 presentation 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 presentation 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. This presentation may contain the financial measures: adjusted net income, adjusted operating income, EBITDA, adjusted EBITDA, and adjusted EPS, which are not calculated in accordance with U.S. GAAP. When presented, a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure will be provided in the Appendix to this presentation.

 

Sterling | STRL: First Quarter 2026 3 (1) At March 31, 2026. (2) Shares outstanding and Market Cap as of May 1, 2026. (3) Midpoints of Full Year 2026 Revenue and Adjusted EBITDA Guidance. See 2026 Modeling Considerations and EBITDA Guidance Reconciliation in the Appendix. We offer a customer-centric, market-focused portfolio of goods and services geographically positioned in the right markets STERLING, A Leading Infrastructure Services Provider E-Infrastructure Solutions Largest, highest- margin segment Site Development and Electrical & Mechanical services for large, mission- critical projects Markets: • Mission–Critical Markets: ◦ Data Centers ◦ Semiconductor Fabrication ◦ Next Generation Manufacturing • E-Commerce Distribution Centers • Warehousing Transportation Solutions Strong markets with attractive margin opportunities Infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail and storm drainage systems Markets: • Alternative Delivery • Aviation • Rail • Low-bid Heavy Highway Building Solutions Strong cash generation and flexible cost structure Residential and Commercial concrete slabs, Plumbing and Surveying Markets: • Dallas/Fort Worth • Houston • Phoenix • Oklahoma NASDAQ: STRL | HQ: The Woodlands, TX | Employees: ~5,000 Shares Outstanding(2):30.7M | Market Cap(2): $16.35B Revenue(3): $3.75B | Adjusted EBITDA(3): $858M Total Backlog(1): $3.80B | Projects Underway: ~360 Select Projects

 

+18% REVENUE CAGR 2019-2025 4 R ev en ue (I n m ill io ns )* O p erating m arg in % * (4.9)% (2.0)% 2.2% 4.0% 3.4% 7.5% 7.6% 9.0% 10.4% 12.5% 16.3% E-Infrastructure Solutions Transportation Solutions Building Solutions Operating Margin 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $(1,000) $(500) $— $500 $1,000 $1,500 $2,000 $2,500 (6)% (4)% (2)% 0% 2% 4% 6% 8% 10% 12% 14% 16% 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform Transformation Built the Foundation for Success (*) Revenue and Operating margin from continuing operations Sterling | STRL: First Quarter 2026

 

+44% EPS CAGR 2019-2025 5 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform Transformation Built the Foundation for Success (*) Diluted EPS from continuing operations. See Adjusted Net Income Guidance Reconciliation in the Appendix for the reconciliation of GAAP to non-GAAP measures. Sterling | STRL: First Quarter 2026 D ilu te d E PS * $5.16 $7.09 $10.88 $(2.40) $(0.66) $0.10 $0.60 $1.24 $1.53 $2.11 $3.16 $4.44 $8.27 $9.38 GAAP Diluted EPS Adjusted Diluted EPS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $(3.00) $(2.00) $(1.00) $— $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00

 

+ First Quarter 2026 Results Sterling | STRL: First Quarter 2026 6

 

A d ju st ed E B IT D A * ($ M ill io ns ) $80.3 $166.6 Q1 2025 Q1 2026 $0 $25 $50 $75 $100 $125 $150 $175 D ilu te d E PS * $1.63 $3.59 Q1 2025 Q1 2026 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 EB IT D A * ($ M ill io ns ) $72.1 $155.2 Q1 2025 Q1 2026 $0 $25 $50 $75 $100 $125 $150 $175 D ilu te d E PS $1.28 $3.09 Q1 2025 Q1 2026 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 Re ve nu e ($ M ill io ns ) $430.9 $825.7 Q1 2025 Q1 2026 $0 $100 $200 $300 $400 $500 $600 $700 $800 Re ve nu e ($ M ill io ns ) $430.9 $825.7 Q1 2025 Q1 2026 $0 $100 $200 $300 $400 $500 $600 $700 $800 GAAP REPORTED RESULTS All comparisons are to the prior year quarter First Quarter 2026 Results Highlights • Revenue increased 92% year- over-year. Organic growth was over 55%. • Gross profit margins of 24%. • Adjusted EPS of $3.59 increased 120% year-over- year and reached a new record. • Adjusted EBITDA grew 107% year-over-year and adjusted EBITDA margins expanded over 150 basis points to reach 20.2%. (*) See the Adjusted Net Income and EBITDA reconciliations in the Appendix for reconciliations of GAAP to Non- GAAP measures. Sterling | STRL: First Quarter 2026 7 92% 92% 141% 115% 120% 107% Revenue EPS EBITDA ADJUSTED RESULTS

 

O pe ra tin g In co m e ($ M ill io ns ) $46.6 $133.8 Q1 2025 Q1 2026 $0 $50 $100 $150 O pe ra tin g In co m e ($ M ill io ns ) $11.3 $14.8 Q1 2025 Q1 2026 $0 $10 $20 O pe ra tin g In co m e ($ M ill io ns ) $12.4 $6.2 Q1 2025 Q1 2026 $0 $10 $20 Re ve nu e ($ M ill io ns ) $218.3 $597.7 Q1 2025 Q1 2026 $0 $200 $400 $600 Re ve nu e ($ M ill io ns ) $120.7 $132.9 Q1 2025 Q1 2026 $0 $50 $100 $150 Re ve nu e ($ M ill io ns ) $92.0 $95.1 Q1 2025 Q1 2026 $0 $50 $100 First Quarter 2026 Segment Results Sterling | STRL: First Quarter 2026 8 Transportation Solutions Building Solutions 174% E-Infrastructure Solutions 10% 3% 187% 31% (50)% All comparisons are to the prior year quarter, GAAP and NON-GAAP Segment Information* REVENUE OPERATING INCOME E-Infrastructure Solutions • Revenue grew 174% over prior year (102% excluding CEC). • Strong execution on large, time- sensitive mission critical projects is the primary driver of margin expansion. Transportation Solutions • Revenue increased 10% driven by strong activity in the core Rocky Mountain market, which benefited from favorable weather and the timing of project starts. • Margins are benefitting from favorable mix shift, strong execution, and the wind-down of Texas low-bid work. Building Solutions • Revenue increased 3% reflecting modest acceleration in homebuilder activity. We anticipate that prevailing affordability-related market headwinds will persist through the year. • Operating margins have been impacted by challenging market conditions. ADJUSTED OPERATING INCOME* O pe ra tin g In co m e ($ M ill io ns ) $50.6 $140.3 Q1 2025 Q1 2026 $0 $50 $100 $150 O pe ra tin g In co m e ($ M ill io ns ) $13.6 $17.1 Q1 2025 Q1 2026 $0 $10 $20 O pe ra tin g In co m e ($ M ill io ns ) $14.2 $8.3 Q1 2025 Q1 2026 $0 $10 $20177% 26% (42)% (*) See NON-GAAP Segment Information in the Appendix for reconciliations of GAAP to Non-GAAP measures.

 

Sterling | STRL: First Quarter 2026 9 (1) As a result of the RHB deconsolidation, Sterling no longer consolidates RHB's backlog of $348M, $331M, $383M, $433M $488M and $491M at March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, respectively. B ac kl o g ($ m ill io ns ) E-Infrastructure Solutions Transportation Solutions Building Solutions RHB(1) 4Q23 1Q24 2Q24 Q324 Q424 Q125 Q225 Q325 Q425 Q126 $— $1,000 $2,000 $3,000 $4,000 Due to the deconsolidation of RHB, Sterling's reported backlog figures as of December 31, 2024 and forward no longer include RHB and are therefore not directly comparable to prior periods. BACKLOG Signed Backlog by Segment Signed backlog increased + 78% and + 51% The acquisition of CEC contributed $592 million to signed backlog and $1.29 billion to unsigned awards at March 31, 2026 year-over-year excluding contributions from CEC year-over-year

 

Sterling | STRL: First Quarter 2026 10 (*) Backlog and Unsigned Awards from continuing operations (1) As a result of the RHB deconsolidation, Sterling no longer consolidates RHB's backlog of $348M, $331M, $383M, $433M $488M and $491M at March 31, 2026, December 31, 2025, September 30, 2025,June 30, 2025, March 31, 2025 and December 31, 2024, respectively. B ac kl o g a nd U ns ig ne d A w ar d s ($ m ill io ns )* Backlog Unsigned Awards RHB Backlog(1) 4Q23 1Q24 2Q24 Q324 Q424 Q125 Q225 Q325 Q425 Q126 — 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 Backlog does not include BACKLOG Signed and Combined Backlog ~$1.3 billion of future phases of work associated with current projects Due to the deconsolidation of RHB, Sterling's reported backlog figures as of December 31, 2024 and forward no longer include RHB and are therefore not directly comparable to prior periods. Strong award activity in early 2026

 

Sterling | STRL: First Quarter 2026 11(1) 2018-2020 includes cash and debt from discontinued operations, 2021-2026 is continuing operations only. (in m ill io ns ) $94 $46 $66 $61 $182 $472 $664 $391 $512 $82 $433 $369 $452 $431 $342 $316 $291 $287 Cash and cash equivalents Total debt 2018 2019 2020 2021 2022 2023 2024 2025 Q1 2026 $0 $100 $200 $300 $400 $500 $600 $700 Total Debt and Cash Positions (1) Balance Sheet with Significant Firepower to Support Future Growth Considerations: • We expect to pursue strategic uses of our liquidity, including acquisitions, stock repurchases, and managing leverage • 3-Year Credit Facility as of March 31, 2026: ◦ $289M Term Loan Borrowings ◦ $150M Revolving Credit Facility (Undrawn) • Net cash position as of March 31, 2026: ◦ $224M, or $7.23 per diluted share

 

12 Sterling, A Leading Provider of Infrastructure Services in the U.S. Sterling | STRL: First Quarter 2026 Successful strategic foundation with strong, diversified platform Robust, multi-year, secular growth drivers Continued opportunity for margin expansion Robust balance sheet, free cash flow Strong historical stock performance Through high-value service and low execution risk, we are building the infrastructure foundation needed today for tomorrow's way of life

 

We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. Sterling | STRL: First Quarter 2026 13 Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com

 

+ Appendix Sterling | STRL: First Quarter 2026 14

 

2026 Modeling Considerations(1) Sterling | STRL: First Quarter 2026 15 (1) In millions except for EPS and percentages (2) See the Adjusted Net Income Guidance Reconciliation in the Appendix (3) See the EBITDA Guidance Reconciliation in the Appendix FY 2026 Expectations FY 2025 Actual Revenue $3,700 to $3,800 $2,490 Gross Margin 25.5% to 26.0% 23% G&A Expense as % of Revenue (Excluding Intangible Amortization) 5.5% to 6.0% 6.2% Other Operating Income $16 to $19 $18.2 JV Non-Controlling Interest Expense ~$33 $19.6 Effective Income Tax Rate ~24.5% 24.2% Diluted EPS $16.50 to $17.15 $9.38 Adjusted Diluted EPS(2) $18.40 to $19.05 $10.88 Expected Dilutive Shares Outstanding ~31.0 30.9 EBITDA(3) $801 to $831 $472 Adjusted EBITDA(3) $843 to $873 $504 Non-Cash Items Depreciation (Includes $1.1M of RHB basis difference depreciation in each year) $68 to $71 $56.0 Intangible Amortization (Includes $7.5M of RHB basis difference amortization in each year) ~$36 $29.7 Stock-based Compensation ~$32 $24.2 Deferred Taxes $10 to $12 $13.8 Other Cash Flow Items Interest (Expense) Income, Net ($5) to ($7) $2.6 CAPEX $100 to $110 $77.3

 

Consolidated Results Three Months Ended March 31, ($ in millions, except per share data) 2026 2025 % Change Revenues $825.7 $430.9 92% Gross Profit 194.3 94.8 105% G&A Expense (47.9) (34.6) Intangible Asset Amortization (7.1) (4.5) Acquisition Related Costs (1.4) (0.2) Earn-out Expense (2.5) (1.3) Other Operating Income, Net 2.4 1.9 Operating Income 137.8 56.1 146% Interest, Net (0.4) 1.6 Income Tax Expense (33.7) (15.1) Less: Net Income Attributable to NCI (7.8) (3.1) Net Income $96.0 $39.5 Diluted EPS $ 3.09 $ 1.28 141% EBITDA (1) $ 155.2 $ 72.1 115% (1) See the EBITDA reconciliation in the Appendix for a reconciliation of GAAP to Non-GAAP measures. Sterling | STRL: First Quarter 2026 16

 

Three Months Ended March 31, ($ in thousands) 2026 % of Revenue 2025 % of Revenue Revenues E-Infrastructure Solutions $ 597,732 72% $ 218,263 51% Transportation Solutions 132,863 16% 120,661 28% Building Solutions 95,080 12% 92,025 21% Total Revenues $ 825,675 $ 430,949 Operating Income E-Infrastructure Solutions 133,764 22.4% 46,642 21.4% Transportation Solutions 14,754 11.1% 11,253 9.3% Building Solutions 6,215 6.5% 12,352 13.4% Segment Operating Income 154,733 18.7% 70,247 16.3% Corporate G&A Expense (13,024) (12,649) Acquisition Related Costs (1,407) (179) Earn-out Expense (2,488) (1,343) Total Operating Income 137,814 16.7% 56,076 13.0% Segment Information Sterling | STRL: First Quarter 2026 17

 

(Unaudited) Three Months Ended March 31, ($ in thousands) 2026 % of Revenue 2025 % of Revenue Adjusted Operating Income E-Infrastructure Solutions $ 140,330 23.5% $ 50,583 23.2% Transportation Solutions 17,078 12.9% 13,577 11.3% Building Solutions 8,266 8.7% 14,234 15.5% Adjusted Segment Operating Income 165,674 20.1% 78,394 18.2% Corporate G&A Expense (7,504) (7,739) Total Adjusted Operating Income (1) $ 158,170 19.2% $ 70,655 16.4% (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, 2026, GAAP operating income of $137,814 is adjusted to exclude $7,497 of non-cash stock-based compensation, $8,964 of intangible asset amortization (including $1,871 related to the basis difference of RHB), $1,407 of acquisition related costs, and $2,488 of earn-out expense. For the three months ended March 31, 2025, GAAP operating income of $56,076 is adjusted to exclude $6,683 of non-cash stock-based compensation, $6,374 of intangible asset amortization (including $1,871 related to the basis difference of RHB), $179 of acquisition related costs, and $1,343 of earn-out expense. NON-GAAP Segment Information Sterling | STRL: First Quarter 2026 18

 

Sterling | STRL: First Quarter 2026 19 (Unaudited) Three Months Ended March 31, (In thousands, except per share data) 2026 2025 Net income attributable to Sterling common stockholders $ 95,969 $ 39,477 Non-cash stock-based compensation 7,497 6,683 Intangible asset amortization(1) 8,964 6,374 Acquisition related costs 1,407 179 Earn-out expense 2,488 1,343 Tax impact of adjustments (4,987) (3,812) Adjusted net income attributable to Sterling common stockholders(2) $ 111,338 $ 50,244 Net income per share attributable to Sterling common stockholders: Basic $ 3.13 $ 1.29 Diluted $ 3.09 $ 1.28 Adjusted net income per share attributable to Sterling common stockholders: Basic $ 3.63 $ 1.64 Diluted $ 3.59 $ 1.63 Weighted average common shares outstanding: Basic 30,652 30,547 Diluted 31,038 30,881 (1) For the three months ended March 31, 2026 and 2025, intangible asset amortization includes $1,871 in both periods, 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 (income) expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's annual effective tax rate, unless the nature of the item requires application of a specific tax rate. Adjusted Net Income Reconciliation

 

Sterling | STRL: First Quarter 2026 20 (Unaudited) Three Months Ended March 31, (In thousands) 2026 2025 Net income attributable to Sterling common stockholders $ 95,969 $ 39,477 Depreciation and amortization (1) 25,180 19,137 Interest expense (income), net 376 (1,595) Income tax expense 33,673 15,080 EBITDA (2) 155,198 72,099 Non-cash stock-based compensation 7,497 6,683 Acquisition related costs 1,407 179 Earn-out expense 2,488 1,343 Adjusted EBITDA (3) $ 166,590 $ 80,304 (1) For the three months ended March 31, 2026 and 2025, depreciation and amortization includes $1,871, in each period, of intangible asset amortization and $275, in each period, of depreciation expense related to the basis difference recognized in the deconsolidation of RHB. (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 (income) expense. EBITDA Reconciliation

 

Sterling | STRL: First Quarter 2026 21 (1) Full year 2026 guidance and full year 2025 actual include intangible asset amortization of approximately $7.5 million related to the basis difference recognized in the deconsolidation of RHB. (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. (Unaudited) Full Year 2026 Guidance Full Year (In millions, except per share data) Low High 2025 Actual 2024 Actual 2023 Actual Net income attributable to Sterling common stockholders $ 513 $ 533 $ 290 $ 257 $ 139 Gain on deconsolidation of subsidiary, net — — — (91) — Non-cash stock-based compensation 32 32 24 19 15 Intangible asset amortization (1) 36 36 30 17 15 Acquisition related costs 1 1 8 — 1 Earn-out expense (income) 9 9 (1) 5 (1) Income tax impact of adjustments (19) (19) (15) 13 (8) Adjusted net income attributable to Sterling common stockholders (2) $ 572 $ 592 $ 337 $ 221 $ 161 Net income per share attributable to Sterling common stockholders: Diluted $ 16.50 $ 17.15 $ 9.38 $ 8.27 $ 4.44 Adjusted net income per share attributable to Sterling common stockholders: Diluted $ 18.40 $ 19.05 $ 10.88 $ 7.09 $ 5.16 Weighted average common shares outstanding: Diluted (Approximate for 2026) 31.0 31.0 30.9 31.1 31.2 Adjusted Net Income Guidance Reconciliation

 

Sterling | STRL: First Quarter 2026 22 (1) Full year 2026 guidance and full year 2025 actual include 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. (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. (Unaudited) Full Year 2026 Guidance Full Year 2025 (In millions) Low High Actual Net income attributable to Sterling common stockholders $ 513 $ 533 $ 290 Depreciation and amortization(1) 104 107 86 Interest expense (income), net 5 7 (3) Income tax expense 179 184 99 EBITDA (2) 801 831 472 Non-cash stock-based compensation 32 32 24 Acquisition related costs 1 1 8 Earn-out expense (income) 9 9 (1) Adjusted EBITDA(3) $ 843 $ 873 $ 504 EBITDA Guidance Reconciliation

 

Sterling | STRL: First Quarter 2026 23 Remaining Performance Obligations (RPOs)(1) (In millions) March 31, 2026 December 31, 2025 E-Infrastructure Solutions RPOs $ 2,711.3 $ 1,843.5 Transportation Solutions RPOs 1,035.1 1,124.4 Building Solutions RPOs - Commercial 49.3 43.0 Total RPOs $ 3,795.8 $ 3,010.9 (1) Our remaining performance obligations do not differ from what we refer to as “Backlog,” and represent the amount of revenues we expect to recognize in the future from our contract commitments on projects.

 

We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. THANK YOU

 

Source: View Original Filing on SEC EDGAR

FAQ

How did Sterling Infrastructure (STRL) perform in Q1 2026?

Sterling delivered very strong Q1 2026 results, with revenue of $825.7 million, up 92% year-over-year. Net income was $96.0 million and diluted EPS reached $3.09, while adjusted diluted EPS climbed to $3.59 on higher margins and strong execution.

What were Sterling Infrastructure’s key profitability metrics for Q1 2026?

Profitability improved significantly in Q1 2026. EBITDA rose to $155.2 million and adjusted EBITDA to $166.6 million, increases of 115% and 107% respectively. Adjusted EBITDA margins were just over 20%, supported by strong performance in mission-critical E‑Infrastructure projects and CEC contributions.

How strong is Sterling Infrastructure’s backlog after Q1 2026?

Backlog expanded sharply. Signed backlog was $3.80 billion at March 31, 2026, up 78% from the prior year period. Combined backlog, which includes unsigned awards, reached $5.15 billion, up 131%, reflecting strong awards in E‑Infrastructure and additional work from the CEC acquisition.

Did Sterling Infrastructure raise its 2026 financial guidance?

Yes. Sterling raised full-year 2026 guidance to revenue of $3.70–$3.80 billion and net income of $513–$533 million. It now expects diluted EPS of $16.50–$17.15 and adjusted EBITDA of $843–$873 million, implying strong growth versus 2025 levels at the midpoint.

How did Sterling Infrastructure’s segments perform in Q1 2026?

E‑Infrastructure Solutions led growth with 174% revenue and 177% adjusted operating income increases. Transportation Solutions revenue grew 10% and adjusted operating income 26%. Building Solutions revenue rose 3%, but adjusted operating income fell 42% amid challenging housing affordability conditions.

What was Sterling Infrastructure’s cash flow and cash position in Q1 2026?

Sterling generated $165.6 million of cash flows from operations in Q1 2026. Cash and cash equivalents totaled $511.9 million at March 31, 2026, giving the company substantial financial flexibility for acquisitions, capital expenditures, and share repurchases.

What are Sterling Infrastructure’s 2026 adjusted earnings expectations?

For 2026, Sterling expects adjusted net income of $572–$592 million and adjusted diluted EPS of $18.40–$19.05. It also targets adjusted EBITDA of $843–$873 million, compared with $504 million of adjusted EBITDA in 2025, reflecting anticipated strong growth across its core markets.

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