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Sterling Bolsters E-Infrastructure With Acquisition of CEC Group

Core Insights - Sterling Infrastructure, Inc. (STRL) has successfully acquired CEC Facilities Group, LLC, a specialized electrical and mechanical contractor, enhancing its service portfolio in mission-critical contracting [1][2] Group 1: Acquisition Impact - The acquisition of CEC Facilities is expected to expand Sterling's E-Infrastructure Solutions segment, allowing for more comprehensive end-to-end solutions for clients [2] - CEC Facilities is projected to generate revenues between $130 million and $138 million, with an adjusted EPS contribution of 22 to 24 cents, and an adjusted EBITDA contribution of approximately $17 to $18 million [3] Group 2: E-Infrastructure Growth - The E-Infrastructure Solutions segment is driving growth into 2025, fueled by increased demand for data centers and e-commerce distribution facilities [4] - The backlog for the E-Infrastructure segment increased by 44% year over year to $1.2 billion, contributing to a total backlog of $2 billion, which is up 24% [5] Group 3: Strategic Focus - Sterling's management is focused on long-term growth through both organic and inorganic opportunities, with plans for further small- to mid-sized acquisitions that align with strategic goals [6] - The company has demonstrated resilience in the face of challenges in the residential housing market, maintaining a diversified portfolio and focusing on high-margin markets [7][8] Group 4: Stock Performance - Sterling's shares have increased by 43.6% over the past three months, significantly outperforming the Zacks Engineering - R and D Services industry's 8% rise [7][8]