Sterling Infrastructure Q3 revenue, profit more than doubles, driven by E-Infrastructure growth
Overview
US infrastructure builder's Q3 revenue rose 127%, beating analyst expectations
Adjusted Q3 net income and EPS more than doubled year-over-year
Company raised full-year 2026 guidance for revenue, adjusted EPS, and adjusted EBITDA
Outlook
Sterling raises 2026 revenue guidance to $4.63 bln-$4.73 bln
Company now sees 2026 adjusted diluted EPS at $21.70-$21.96
Sterling expects 2026 adjusted EBITDA of $970 mln-$981 mln
Result Drivers
E-INFRASTRUCTURE GROWTH - Revenue surged 212% in E-Infrastructure Solutions, driven by strong site development and electrical operations, per CEO Joe Cutillo
CEC ACQUISITION IMPACT - CEC electrical business contributed $425.6 mln in Q3 revenue, with pro forma revenue up 305% year-over-year and improved margins
RESOURCE REALLOCATION - Transportation Solutions revenue declined 3% as resources shifted to higher-margin E-Infrastructure projects
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.56 bln | $1.19 bln (9 Analysts) |
Q3 EBITDA | $320.80 mln |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 10 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy."
Wall Street's median 12-month price target for Sterling Infrastructure, Inc. is $755.00, about 105.4% above its October 27 closing price of $367.50
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 42 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)