Sterling Infrastructure (NASDAQ:STRL) reported what management called another “outstanding year” in 2025, driven by continued expansion in its E-Infrastructure and Transportation businesses, as executives highlighted record profitability metrics, strong cash generation, and a sharply higher backlog entering 2026.
Full-year 2025 performance and profitability
Chief Executive Officer Joe Cutillo said Sterling delivered revenue growth of more than 32% in 2025 and adjusted diluted EPS growth of more than 53%. He noted this marked the company’s fifth consecutive year with adjusted EPS growth above 35%.
Fourth-quarter results fueled by E-Infrastructure growth
In the fourth quarter, Cutillo said revenue increased 69%, led by 123% growth in E-Infrastructure Solutions and 24% growth in Transportation Solutions. He said organic growth in the quarter was 36%.
Adjusted earnings per share rose 78% to $3.08, and adjusted EBITDA increased 70% to $142 million, according to management. Operating cash flow in the quarter was $186 million.
Backlog expands, visibility approaches $4.5 billion
Management emphasized improving visibility into future work. Cutillo said signed backlog ended the quarter at $3.0 billion, up 78% from year-end 2024, and up roughly 50% on a same-store basis. He added Sterling also had $301 million of unsigned awards and a pipeline of “future phase” opportunities exceeding $1 billion, which he said brings visibility to a pool of work approaching $4.5 billion.
Chief Financial Officer Nick Grindstaff reiterated backlog strength, stating year-end backlog of $3.0 billion rose 78% year over year (49% excluding CEC). He also referenced “combined backlog” of $3.3 billion, up 81% year over year (42% excluding CEC). Grindstaff said fourth-quarter 2025 book-to-burn was 1.64x for backlog and 0.81x for combined backlog.
Segment commentary: mission-critical drives E-Infrastructure; mixed outlook in Building
E-Infrastructure Solutions: Cutillo said full-year E-Infrastructure revenue grew 59% (including 40% organic growth) and adjusted operating income grew 67%. Adjusted operating margins reached nearly 25%, up more than 120 basis points, which he linked to a shift toward larger mission-critical projects where Sterling’s project management and execution are highly valued.
In the fourth quarter, E-Infrastructure revenue rose 123% (67% organic growth), with data centers as the primary growth driver. Cutillo highlighted geographic expansion, including a Rocky Mountain site development operation focused on mission-critical work that grew more than 150% year over year in the quarter. He said adjusted E-Infrastructure operating income increased 91%.
Cutillo said the CEC acquisition “is performing very well,” with fourth-quarter CEC revenue up 21% versus its prior-year fourth quarter and margins in line with expectations. He called the Texas market “very strong” for both electrical and site development.
Management said mission-critical work—including data centers, large manufacturing projects, and semiconductors—represented 84% of E-Infrastructure signed backlog at year-end. Cutillo added that the aggregate of signed backlog, unsigned electrical awards, and future-phase site development opportunities in E-Infrastructure totaled more than $3 billion.
Transportation Solutions: For 2025, Cutillo said Transportation revenue grew 17% and adjusted operating profit increased 66%, aided by demand and a mix shift toward higher-margin services. Fourth-quarter Transportation revenue rose 24% and adjusted operating profit more than doubled. Transportation backlog ended the quarter at $1.1 billion, up 81% year over year, driven by award activity and conversion of unsigned backlog to signed backlog.
In response to an analyst question, management said the stronger Transportation awards did not reflect one large project, but rather steady “singles, doubles, and maybe a little triple.” Cutillo also noted that while the current federal funding cycle ends in September 2026, only about 50%–60% of total funding has been spent, and he said bid activity should remain solid through that period. He added that if a new funding bill is not in place, an extension of the existing bill is often used historically.
Building Solutions: Cutillo said full-year Building revenue declined 6% and adjusted operating profit declined 23%. Fourth-quarter revenue decreased 9%, and adjusted operating margins were 10%. He attributed demand pressure to affordability challenges for homebuyers. Looking ahead, Cutillo said Sterling expects the soft market conditions to persist near term, projecting Building revenue to decline in the high single to low double digits in 2026, while adjusted operating margins remain in the low double digits.
Capital allocation, balance sheet, and 2026 guidance
Grindstaff said 2025 investing cash flow included $77 million of capital expenditures and $482 million for acquisitions, including CEC. For 2026, Sterling forecasts CapEx of $100 million to $110 million, driven by investments supporting growth and productivity.
On capital returns, Grindstaff said financing cash flow was a $162 million outflow in 2025, primarily due to share repurchases of $74 million at an average price of $168.72 per share. In the fourth quarter, Sterling repurchased $26 million of stock at an average price of $310.09 per share. Remaining availability under the authorization is $374 million, and Grindstaff said the company will remain “opportunistic.”
Grindstaff also said Sterling ended the quarter with $391 million in cash and $291 million of debt, resulting in net cash of $100 million. The company’s $150 million revolving credit facility remained undrawn.
For 2026, management initiated guidance for:
- Revenue: $3.05 billion to $3.2 billion
- Diluted EPS: $11.65 to $12.25
- Adjusted diluted EPS: $13.45 to $14.05
- EBITDA: $587 million to $620 million
- Adjusted EBITDA: $626 million to $659 million
Grindstaff said the midpoints imply year-over-year growth of 25% or more across each metric. Cutillo added that the midpoint would represent 25% revenue growth, 26% adjusted EPS growth, and 28% adjusted EBITDA growth.
In additional outlook commentary, Cutillo said Sterling expects E-Infrastructure revenue growth of 40% or higher in 2026, including 20% or higher growth in the legacy business, with adjusted operating profit margins expected in the 23%–24% range. For Transportation Solutions, Sterling anticipates low- to mid-single-digit revenue growth in 2026 alongside continued margin expansion, while the company continues downsizing its low-bid heavy highway business in Texas.
Cutillo also discussed operational initiatives, including expanding CEC’s modular build capabilities, noting the company is signing a lease to triple the facility’s size to more than 300,000 square feet. He said increasing prefab and modular work can reduce labor needs in the field and improve productivity and cost structure.
On technology, Cutillo said Sterling has begun deploying AI-driven tools across estimating and project execution. He said the company ran three pilots in 2025 and has six AI projects underway, claiming the first AI initiative improved project manager capacity by roughly 15% to 20% and adding that the company is also pursuing AI applications to improve safety.
About Sterling Infrastructure (NASDAQ:STRL)
Sterling Infrastructure, Inc (NASDAQ: STRL) is a diversified manufacturer and distributor of essential infrastructure products serving municipal, utility and industrial customers across North America. Through its network of wholly owned subsidiaries, the company designs, engineers and produces a wide range of cast and fabricated solutions tailored to the needs of the waterworks, natural gas, telecommunications, electric, traffic safety and parks & recreation markets.
The company’s product portfolio encompasses ductile iron and composite fittings, valve boxes, manhole frames and covers, water and gas meter sets, street light poles and mounting accessories, traffic sign posts with breakaway systems, bollards and related system components.
