Sterling Infrastructure raises guidance as E-Infrastructure revenue jumps 192%
The company reported second-quarter revenue of $1.17 billion, a 90% increase from the prior year.
Sterling Infrastructure (STRL), the specialty contracting firm, reported second-quarter revenue that rose 90% year-over-year to $1.17 billion.
The result followed a period of aggressive expansion through acquisitions and a strategic pivot toward high-growth sectors. The company's E-Infrastructure Solutions segment drove the bulk of the growth, with revenue increasing 192% and adjusted operating income rising 148%.
Net income for the quarter increased 120% to $155.8 million, while adjusted EBITDA rose 104% to $256.7 million. Acquisitions of CEC and Stone Ridge contributed $250.8 million to the total revenue.
Growth within the E-Infrastructure segment was broad, as legacy site development revenue grew 111% and CEC electrical services revenue increased 140% compared to the pre-acquisition second quarter.
Other segments faced headwinds. Transportation Solutions revenue declined 20%, though adjusted operating income rose 8% as the company reallocated resources toward higher-margin E-Infrastructure opportunities. Building Solutions revenue fell 1% and adjusted operating income decreased 11% due to flat homebuilder activity and housing affordability pressures.
Sterling raised its full-year 2026 guidance to reflect current momentum and the June 9 closing of the Stone Ridge Contracting, LLC acquisition. The company now expects full-year revenue between $4.00 billion and $4.15 billion, with adjusted EBITDA between $891 million and $916 million. At the midpoint, this represents 64% year-over-year revenue growth and 84% growth in adjusted diluted EPS.
Backlog metrics indicated continued demand. Signed backlog increased 116% to $4.33 billion, while combined backlog rose 150% to $5.62 billion as of June 30. Organic growth for signed and combined backlogs was 50% and 36%, respectively.
To support its expanded scale, the company increased its borrowing capacity on July 8, 2026, expanding its credit facility to $1.5 billion.