Key Highlights

  • Revenue reached a record USD 1.56 billion in Q3 2026, an increase of 127% from USD 689.0 million.
  • Adjusted diluted EPS climbed 118% to USD 7.58, while GAAP diluted EPS rose to USD 6.92.
  • E-Infrastructure Solutions revenue grew 212% to USD 1.30 billion, led by site development and the CEC electrical business.
  • Signed backlog reached USD 4.14 billion, up 61%, and combined backlog including unsigned awards was USD 6.14 billion.

Sterling Infrastructure, Inc. (NASDAQ:STRL) posted third-quarter 2026 revenue of USD 1.56 billion, up 127% from USD 689.0 million a year earlier and above a consensus estimate of USD 1.19 billion. Adjusted diluted earnings per share were USD 7.58, compared with a consensus estimate of USD 6.20, and GAAP diluted EPS was USD 6.92 versus USD 2.97 in the prior-year quarter.

Net income attributable to common stockholders was USD 214.9 million, up 133%, and adjusted net income was USD 235.4 million. EBITDA reached USD 320.8 million and adjusted EBITDA USD 337.8 million, an increase of 117%. Operating income rose to USD 306.8 million from USD 125.3 million, and gross profit climbed to USD 377.3 million from USD 170.2 million. CEO Joe Cutillo said the 127% revenue increase included 70% organic growth.

Segment Results and Margin Mix

E-Infrastructure Solutions revenue was USD 1.30 billion, up 212%, and operating income was USD 294.5 million. Its operating margin was 22.6%, down from 25.6% a year earlier because of the larger share from CEC, the electrical business acquired on September 1, 2025. CEC contributed USD 425.6 million of revenue, against USD 41.4 million in the partial-ownership period last year, and its margin improved both year over year and sequentially.

Transportation Solutions revenue declined 3.1% to USD 165.2 million as resources shifted toward E-Infrastructure work, yet operating income rose 24.0% to USD 30.2 million and the margin reached 18.3%. Building Solutions revenue fell 5.4% to USD 96.0 million, with operating income down 47.3% to USD 5.7 million. The CEO attributed the weakness to slower homebuilder activity and housing affordability pressure.

Full-Year Guidance and Capital Position

The company raised its 2026 guidance. Revenue is guided to USD 4.63 billion to USD 4.73 billion, GAAP diluted EPS to USD 19.16 to USD 19.42, and EBITDA to USD 905 million to USD 916 million. On an adjusted basis, diluted EPS is guided to USD 21.70 to USD 21.96 and adjusted EBITDA to USD 970 million to USD 981 million. At the midpoint, the revised outlook implies 88% revenue growth.

Operating cash flow was USD 427.1 million for the nine months, and cash stood at USD 216.9 million at September 30, 2026. Long-term debt fell to USD 95.1 million from USD 275.9 million at the end of 2025. Share repurchases totaled USD 107.3 million over nine months. The CEO said the company now believes CEC could generate more than USD 1 billion of revenue in 2026.

Measures to Follow

Four datapoints frame the next report. Backlog conversion is first: book-to-burn was 0.9x for signed backlog and 1.4x for combined backlog, including USD 2.00 billion of unsigned awards. Scoped work is second, with signed backlog, unsigned awards and next phases in design nearing USD 8 billion, and about 95% of the E-Infrastructure share tied to mission-critical projects such as data centers and semiconductor sites. The third is the E-Infrastructure margin of 22.6% as CEC mix grows. The fourth is Building Solutions, where adjusted margin of 8.0% reflects housing demand that management described as challenging through 2026.