Sterling Infrastructure rises after posting record Q2 results, raises outlook

Sterling Infrastructure (NASDAQ:STRL) delivered a strong second quarter, posting record revenue and earnings that handily beat Wall Street’s expectations. The company’s performance sent its shares up 4.5% in extended trading Monday. Sterling’s (NASDAQ:STRL) stock has more than doubled over the past 12 months.

For the second quarter of 2025, Sterling (STRL) reported adjusted earnings of $2.69 a share, crushing the consensus estimate of $2.25. Revenue climbed to $614.5 million, a 21% increase from the prior year (excluding the now-deconsolidated RHB joint venture) and well above analyst projections of $554.4 million.

Chief Executive Joe Cutillo credited the strong quarter to robust performance in the company’s e-infrastructure and transportation segments.

“We believe 2025 will be another record year for Sterling as we continue to drive bottom line growth that outpaces top line growth,” Cutillo said in a statement. He added that the company’s shift toward large-scale, high-margin, mission-critical projects, particularly in data centers and manufacturing, continues to pay off.

Gross margin rose to 23.3%, up from 19.3% a year ago, while adjusted earnings before interest, taxes, depreciation and amortization jumped 35% to $125.6 million. Net income attributable to shareholders came in at $71.0 million, or $2.31 per diluted share, a 38% year-over-year increase.

Sterling ended the quarter with a backlog of $2.01 billion and a book-to-burn ratio of 1.4 times for the first half of the year. Combined backlog, which includes unsigned awards, reached $2.25 billion. The book-to-burn ratio measures how much new business a company books (adds to its backlog) compared to how much backlog it “burns” (converts into revenue) over a given period.

Higher guidance

Looking ahead, Sterling (STRL) raised its full-year 2025 guidance. The company now expects revenue between $2.10 billion and $2.15 billion, with adjusted earnings in the range of $9.21 to $9.47 a share, representing a projected 32% increase over 2024. Adjusted ebitda is expected to reach $438 million to $453 million.

The upbeat results and guidance come as Sterling works toward closing its previously announced acquisition of CEC Facilities Group, a move expected to expand its presence in Texas and bolster its offerings in the high-growth semiconductor and data center sectors. The updated 2025 outlook does not yet include any contribution from CEC.

Despite some softness in its building solutions segment due to housing market headwinds, Sterling continues to benefit from long-term demand trends in its core infrastructure businesses.

“Our outstanding second quarter results reflect the strength and resilience of our portfolio,” Cutillo said.