STRL · Sterling Infrastructure, Inc.

Sterling Infrastructure delivered a record first quarter in 2026, with revenue doubling year-over-year to $825.7 million, driven by a combination of robust organic growth exceeding 55% and contributions from the recently acquired CEC business. The E-Infrastructure Solutions segment was the primary growth engine, posting 174% revenue growth, fueled by strong demand for mission-critical projects such as data centers and semiconductor fabrication facilities. The company successfully integrated CEC's electrical services, which contributed $156.1 million to quarterly revenue and significantly expanded the segment's backlog.

Profitability metrics surged, with Adjusted EBITDA increasing 107% to $166.6 million and margins expanding by over 150 basis points to 20.2%. This margin expansion reflects favorable mix shift towards higher-margin projects, excellent execution, and the strategic wind-down of lower-margin heavy highway work in Texas. The Transportation Solutions segment also contributed to profitability, with adjusted operating income growing 26% on 10% revenue growth, while the Building Solutions segment faced headwinds from challenging market conditions.

The company's liquidity position remains robust, ending the quarter with $511.9 million in cash and a net cash position of $224 million. Operating cash flow was strong at $165.6 million. Management raised full-year 2026 guidance, now projecting Adjusted Diluted EPS of $18.40 to $19.05 and Adjusted EBITDA of $843 to $873 million, reflecting confidence in the sustained momentum across the business. The total addressable pool of work, comprising signed backlog, unsigned awards, and future phase opportunities, approached $6.5 billion, providing significant visibility into future growth.