Sterling Q3 Earnings & Revenues Beat Estimates, '25 View Raised

Core Insights - Sterling Infrastructure, Inc. (STRL) reported strong third-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate, and both metrics showing year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) reached $3.48, surpassing the Zacks Consensus Estimate of $2.79 by 24.7%, and increased from $2.20 in the same quarter last year [3][9]. - Revenues totaled $689 million, exceeding the consensus mark of $612 million by 12.5%, and reflecting a 16% increase from $594 million in the prior year [3][9]. - Adjusted EBITDA rose 47% year over year to $155.8 million, with gross margin expanding by 280 basis points to 24.7% [6][9]. Segment Performance - E-Infrastructure Solutions generated revenues of $417.1 million, a 58% increase from $263.9 million year-over-year, with adjusted operating income rising 56.8% to $111.7 million [4]. - Transportation Solutions reported revenues of $170.5 million, up 10% from $155.1 million in the previous year, with adjusted operating income increasing to $26.7 million from $19.1 million [5]. - Building Solutions saw revenues of $101.4 million, a slight decline of 1.1% from $102.6 million year-over-year, but adjusted operating income increased by 9.6% to $12.6 million [5]. Outlook - The company raised its adjusted EPS guidance for 2025 to a range of $10.35 to $10.52, up from the previous expectation of $9.21 to $9.47 [8][9]. - Adjusted net income for the full year 2025 is now projected to be between $321 million and $326 million, compared to the prior estimate of $285 million to $294 million [8]. - Adjusted EBITDA for the year is expected to be between $486 million and $491 million, an increase from the previous forecast of $438 million to $453 million [10].