Sterling Reports Record Third Quarter 2025 Results and Increases Full Year Guidance

Core Insights - Sterling Infrastructure, Inc. reported record financial results for Q3 2025, with a 32% increase in revenue and a 58% increase in adjusted diluted earnings per share, reaching $3.48 [5][13][14] - The company achieved significant growth in E-Infrastructure Solutions, with a 58% revenue increase, while Transportation Solutions grew by 10% [5][7] - The total backlog reached $2.6 billion, a 34% year-over-year increase, with combined backlog exceeding $3 billion for the first time [5][13] Financial Performance - Revenues for Q3 2025 were $689 million, a 32% increase compared to the prior year, excluding RHB [13][29] - Gross margin improved to 24.7%, up from 21.9% in the previous year [13] - Net income for the quarter was $92.1 million, or $2.97 per diluted share, marking increases of 50% and 51% respectively [13][21] Segment Performance - E-Infrastructure Solutions accounted for 60% of total revenue, with $417.1 million in Q3 2025, up from 51% in Q3 2024 [27] - Transportation Solutions generated $170.5 million, representing 25% of total revenue, while Building Solutions contributed $101.4 million, or 15% [27] - Adjusted operating income for E-Infrastructure Solutions was $106.6 million, with a margin of 25.6% [27][29] Backlog and Future Outlook - The signed backlog at the end of Q3 2025 was $2.6 billion, with a combined backlog of $3.44 billion, reflecting strong demand [5][13] - The company anticipates continued growth in 2025, raising guidance to reflect strong year-to-date performance, projecting 27% revenue growth and 47% adjusted diluted earnings per share growth [8][14] Acquisition Impact - The acquisition of CEC contributed $41 million to revenue and $475.3 million to backlog in Q3 2025 [6][13] - The integration of CEC is expected to enhance project timelines and value through combined services [6]