Sterling Infrastructure Inc

Latest Results (15.05.2026):

Sterling Infrastructure, Inc. reported results for the quarter ended March 31, 2026 (Q1 2026). Revenue rose to $825.7 million (up ~91.6% year-over-year), driven principally by the E‑Infrastructure segment and the September 2025 CEC acquisition; net income attributable to Sterling common stockholders was $96.0 million ($3.13 basic EPS, $3.09 diluted), operating cash flow was $165.6 million, and the company ended the quarter with $511.9 million of cash and cash equivalents and a remaining performance obligation (RPO) of $3.796 billion.

Revenue and growth

Total revenue for Q1 2026 was $825.675 million versus $430.949 million in Q1 2025, an increase of approximately 91.6%. E‑Infrastructure was the primary driver of growth.

Profitability and margins

Gross profit was $194.296 million (gross margin ~23.5%) versus $94.840 million in Q1 2025. Operating income was $137.814 million (operating margin ~16.7%), up from $56.076 million a year earlier. Net income (including noncontrolling interests) was $103.765 million; net income attributable to Sterling common stockholders was $95.969 million (up ~143% YoY).

Earnings per share and shares

Basic EPS was $3.13 and diluted EPS was $3.09 for Q1 2026 (basic $1.29 / diluted $1.28 in Q1 2025). Weighted average shares — basic 30,652; diluted 31,038. Outstanding shares reported as of May 1, 2026: 30,685,954.

Segment performance

Q1 revenue by segment: E‑Infrastructure $597.732M (large YoY gain vs $218.263M), Transportation $132.863M, Building Solutions $95.080M. E‑Infrastructure drove the majority of the quarter’s revenue and profit expansion.

Backlog / Remaining performance obligations (RPO)

RPOs totaled $3,795.8 million at March 31, 2026, up from $3,010.9 million at year-end 2025. The company expects ~70% of RPO to be recognized as revenue within the next 12 months.

Acquisition impact (CEC)

The September 1, 2025 acquisition of CEC Facilities Group contributed meaningfully to E‑Infrastructure growth. Purchase price was $561.6M (cash + equity + earn‑out). Preliminary allocation: identifiable intangibles $227.8M, goodwill $308.9M. Q1 includes higher intangible amortization ($7.093M total this quarter) and acquisition-related and earn‑out expenses ($1.407M and $2.488M, respectively).

Cash flow and liquidity

Net cash provided by operating activities was $165.568M in Q1 2026 (vs $84.883M in Q1 2025). Cash and cash equivalents were $511.858M at March 31, 2026 (up from $390.721M at December 31, 2025). The revolving credit facility ($150M) was undrawn at quarter end; the Term Loan Facility balance was ~$288.8M and the company reports covenant compliance.

Debt, leases and capital returns

Total debt was $289.089M (Term Loan ~$288.75M); scheduled maturity of Credit Facility is June 5, 2028. The company made $3.8M of term loan principal payments during the quarter. Share repurchase activity: 40k shares repurchased for $12.3M in Q1 2026 under the Board‑authorized $400M repurchase program; treasury stock balance (cost) ~$146.8M.

Taxes, noncontrolling interests and other items

Effective tax rate for Q1 2026 was 24.5% (income tax expense $33.673M). Net income attributable to noncontrolling interests was $7.796M. The company recorded an uncertain tax position (UTP) liability with related penalties/interest that is fully offset by an indemnification receivable. The Company also received a $7.0M distribution from its 50% unconsolidated subsidiary during the quarter.