Core Points - Sterling Infrastructure, Inc. has authorized a new stock repurchase program allowing for the repurchase of up to $400 million of its outstanding common stock over the next 24 months, replacing the previous program which had $81 million remaining [1][2] - The timing and amount of share repurchases will be at management's discretion and may occur through various means, including open market transactions and privately negotiated deals [2] - CEO Joe Cutillo expressed confidence in the company's outlook, highlighting a strong balance sheet and cash flow, which supports a balanced capital allocation strategy that includes investments in growth and returning capital to shareholders [3] Company Overview - Sterling operates through subsidiaries in three segments: E-Infrastructure, Transportation, and Building Solutions, primarily in the Southern, Northeastern, Mid-Atlantic, Rocky Mountain regions, and the Pacific Islands [4] - E-Infrastructure Solutions focuses on large-scale site development and electrical services for data centers and manufacturing [4] - Transportation Solutions includes infrastructure projects for highways, bridges, airports, and rail systems [4] - Building Solutions provides concrete foundations and plumbing services for residential and commercial projects [4]

Core Insights - Sterling Infrastructure, Inc. (STRL) reported strong third-quarter 2025 results, with earnings and revenues exceeding estimates by 24.7% and 12.5% respectively, showcasing robust year-over-year growth across key metrics [1][2] Financial Performance - Adjusted diluted earnings per share reached $3.48, a 58% increase from the prior year, while revenues totaled $689 million, reflecting a 32% rise [2] - The E-Infrastructure Solutions segment saw a 58% growth, with 42% being organic, and Transportation Solutions increased by 10% [2] - Gross margin expanded by 280 basis points to 24.7%, driven by a shift towards higher-margin projects [2] - Adjusted EBITDA grew 47% year-over-year to $156 million, with operating cash flow at $84 million [2] Market Performance - STRL shares gained 32.7% over the past three months, outperforming the Zacks Engineering - R and D Services industry and the S&P 500, which grew by 3.8% and 8.9% respectively [5] - The stock also outperformed the broader Construction sector's 1% rise during the same period [5] Growth Drivers - The data center market was a key growth driver, with revenues from this area increasing over 125% year-over-year [10] - A strong backlog of $2.6 billion, up 64% from the previous year, indicates solid visibility for future growth [12] - E-Infrastructure Solutions accounted for $1.8 billion of the backlog, reflecting a 97% year-over-year increase [12] - The company anticipates E-Infrastructure revenue growth of around 30% or higher on an organic basis for 2025 [11] Strategic Focus - Sterling's strategic focus on mission-critical projects, including data centers and e-commerce distribution, has strengthened its position in high-growth markets [9] - The Transportation Solutions segment showed steady progress, with adjusted operating profit increasing 40% year-over-year [14] Future Outlook - The company expects continued strong momentum in data centers into 2026, supported by a solid pipeline of new projects and healthy customer demand [11] - For 2025, STRL anticipates adjusted operating profit margins to rise to between 13.5% and 14% from 9.6% in 2024 [15] - Earnings estimates for 2025 and 2026 remain unchanged at $9.57 and $10.98 per share, indicating year-over-year growth of 56.9% and 14.7% respectively [16] Valuation - STRL is currently trading at a premium compared to industry peers, with a forward 12-month price-to-earnings (P/E) ratio above the five-year average [18] - The company is priced higher than competitors such as AECOM, Fluor, and KBR [20]

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].

Sterling Infrastructure (NasdaqGS:STRL) Q3 2025 Earnings Call November 04, 2025 09:00 AM ET Speaker0Morning, ladies and gentlemen, and welcome to the Sterling Infrastructure Third Quarter Webcast and Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. As a reminder, this call is being recorded on Tuesday, 11/04/2025. I would now like to turn the conference over to Noelle Dilts, Vice President of Investor Relations and ...

Core Insights - Sterling Infrastructure, Inc. (STRL) is set to report its third-quarter 2025 results on November 3, 2025, after market close [1] Financial Performance - In the last reported quarter, Sterling achieved adjusted earnings per share (EPS) of $2.69, exceeding the Zacks Consensus Estimate by 19% and reflecting a 41% year-over-year increase [2] - Revenues reached $614.5 million, surpassing estimates by 10.7% and increasing by 21% compared to the previous year [2] - The gross margin expanded by 400 basis points to 23%, driven by a shift towards higher-margin projects [2] - Adjusted EBITDA rose by 35% from the same quarter last year, supported by solid revenue growth and improved margins [2] Earnings Estimates - The Zacks Consensus Estimate for the third-quarter EPS remains unchanged at $2.79, indicating a 41.6% growth from the year-ago figure [4] - The consensus revenue estimate for the third quarter is $612.4 million, reflecting a 3.1% year-over-year growth [4] - For the full year 2025, STRL is projected to register a 56.9% EPS growth compared to the previous year [5] Segment Performance - E-Infrastructure Solutions, accounting for 51% of second-quarter 2025 revenues, is expected to be the key growth driver, benefiting from strong demand in data center development [11] - The Transportation Solutions segment, which made up 32% of total second-quarter revenues, is anticipated to perform steadily, supported by solid backlog levels and federal funding [13] - The Building Solutions segment, contributing 17% of total second-quarter revenues, is expected to face mixed conditions due to elevated mortgage rates, although steady construction activity in key markets may provide some support [15] Market Position and Valuation - STRL shares have increased by 125% year-to-date, significantly outperforming the Zacks Engineering – R&D Services industry, which grew by 16.4% [18] - The stock currently trades at a forward 12-month price-to-earnings (P/E) ratio of 35.29, representing a 39.6% premium over the industry average of 25.28 [19] - Compared to peers like AECOM, Fluor, and KBR, STRL appears overvalued, with their forward P/E ratios at 23.44, 22.21, and 10.08, respectively [22] Growth Drivers - The company is expected to maintain growth momentum in Q3 2025, driven by high-margin markets and strategic acquisitions [10] - Expansion into new geographies and a healthy project pipeline are likely to provide multi-year visibility [10] - Continued focus on mission-critical infrastructure work, particularly in data centers and industrial markets, is expected to enhance profitability [17]

Core Insights - TE Connectivity (TEL) reported a revenue of $4.75 billion for the quarter ended September 2025, marking a year-over-year increase of 16.7% and exceeding the Zacks Consensus Estimate of $4.55 billion by 4.28% [1] - The company's EPS for the same period was $2.44, up from $1.95 a year ago, surpassing the consensus EPS estimate of $2.29 by 6.55% [1] Financial Performance - Net Sales in Industrial Solutions reached $2.34 billion, exceeding the average estimate of $2.17 billion by four analysts, representing a significant year-over-year increase of 98% [4] - Net Sales in Transportation Solutions amounted to $2.41 billion, slightly above the estimated $2.38 billion, reflecting a year-over-year growth of 4.4% [4] - Adjusted Operating Income for Industrial Solutions was reported at $475 million, surpassing the average estimate of $424.51 million [4] - Adjusted Operating Income for Transportation Solutions was $468 million, slightly below the average estimate of $475.69 million [4] Stock Performance - TE Connectivity's shares have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Points - Sterling Infrastructure, Inc. plans to release its financial results for Q3 2025 on November 3, 2025, after market close [1] - A conference call to discuss the results and 2025 outlook is scheduled for November 4, 2025, at 9:00 am ET [2] - The company operates through subsidiaries in three segments: E-Infrastructure, Transportation, and Building Solutions, primarily in the U.S. [4] Company Overview - Sterling Infrastructure specializes in advanced site development services, electrical services for data centers, and infrastructure projects for transportation [4] - The company is committed to sustainability and improving the quality of life for society [4] - CEO Joe Cutillo emphasizes the role of the company in building and servicing infrastructure that supports economic growth [5]

Core Insights - Sterling Infrastructure, Inc. is leveraging scale, execution, and diversification to maintain its competitive edge amid increasing competition in the construction and infrastructure sector [1] - The company is strategically positioned in high-demand areas such as data centers, e-commerce distribution, and critical transportation projects, where reliability and speed are prioritized over cost [1] Financial Performance - Sterling's E-Infrastructure Solutions segment has seen a 44% year-over-year increase in backlog, driven by mission-critical projects like data centers, which now constitute a majority of its pipeline [2] - The company reported double-digit revenue growth in its latest quarter, with gross margins expanding by 400 basis points to 23.3% [4] - Management has raised full-year EPS guidance, reflecting confidence in future performance [4] Segment Analysis - Transportation Solutions is supported by federal infrastructure funding and regional demand, although the winding down of low-margin Texas highway work may temporarily impact backlog but is expected to enhance profitability in the long run [3] - The Building Solutions segment is facing challenges due to housing affordability issues, with anticipated revenue declines through year-end [3] Competitive Landscape - Sterling's competitive advantage is bolstered by its ability to execute large-scale, multi-phase projects on time, which has resulted in repeat business and pricing power [2] - Competitors like Granite Construction and Tutor Perini are facing execution challenges, highlighting Sterling's relative strength in delivering mission-critical projects efficiently [6][7] Strategic Initiatives - To enhance its competitive position, Sterling is pursuing strategic acquisitions, such as the pending purchase of CEC Facilities Group, which will add mechanical and electrical services to its offerings [5] - The company aims to combine operational discipline with selective expansion to navigate a tightening construction market [5] Stock Performance and Valuation - Sterling's stock has surged by 50.4% over the past three months, significantly outperforming the Zacks Engineering - R and D Services industry's growth of 6.6% [9] - Earnings estimates for 2025 and 2026 have been revised upward to $9.57 and $10.98 per share, indicating year-over-year growth of 56.9% and 14.7%, respectively [12] - The company is currently trading at a forward 12-month P/E ratio of 32.46, reflecting a premium compared to industry peers [13]

Core Insights - Alger Weatherbie Specialized Growth Fund's second-quarter 2025 investor letter highlights the impact of trade policy uncertainty and subsequent market recovery, with the S&P 500 achieving a 10.94% gain by the end of Q2 [1] - Sterling Infrastructure, Inc. (NASDAQ:STRL) is a key holding in the fund, showing significant stock performance with a one-month return of 28.50% and a 52-week gain of 154.79% [2] - The company operates in three main business areas: Transportation Solutions, E-Infrastructure Solutions, and Building Solutions, with the E-Infrastructure segment experiencing rapid growth [3] Company Performance - Sterling Infrastructure, Inc. closed at $371.84 per share on September 23, 2025, with a market capitalization of $11.311 billion [2] - The company reported stronger-than-expected operating results, particularly in the E-Infrastructure and Transportation segments, while Building Solutions slightly underperformed [3] - Management has increased revenue guidance for the full year, citing growth in the backlog of future projects within the E-Infrastructure Solutions segment [3]

Core Insights - Sterling Infrastructure, Inc. (STRL) and AECOM (ACM) are pivotal players in the U.S. infrastructure sector, with STRL focusing on execution and project delivery, while AECOM excels in planning and program management [1][2] - Both companies are positioned to benefit from trends such as increased data center construction, transportation upgrades, and the energy transition, creating diverse opportunities within the infrastructure value chain [2] - The Federal Reserve's recent rate cut to a target of 4-4.25% may enhance public and private infrastructure investments, further supporting demand for both companies [3] Sterling Infrastructure (STRL) - STRL is concentrating on high-value markets, including data centers and e-commerce distribution, leading to a 21% year-over-year revenue increase in Q2 2025, with E-Infrastructure Solutions growing by 29% and Transportation Solutions by 24% [4][5] - Adjusted earnings per share rose 41% to $2.69, and gross margins expanded by 400 basis points to 23.3%, indicating strong profitability and long-term visibility [4] - The total backlog reached $2 billion, up 24% from the previous year, with E-Infrastructure backlog growing 44% to $1.2 billion, reflecting sustained demand [7][8] - Despite a sequential backlog decline due to seasonal factors, STRL's growth outlook remains robust, supported by a strong project pipeline [6][7] AECOM (ACM) - AECOM reported a 6% year-over-year growth in net service revenues (NSR) to $1.94 billion in the first nine months of fiscal 2025, driven by strong performance in the Americas and international markets [10][11] - The Americas segment saw an 8% increase in NSR, highlighting robust activity in transportation and environmental projects [11] - AECOM's total backlog stood at $24.6 billion, up 5% from the prior year, providing long-term growth prospects and multi-year visibility [13] - The company faces challenges from political changes and funding delays in international markets, which may impact near-term results [12] Stock Performance & Valuation - STRL's share price has significantly outperformed AECOM and the broader Zacks Engineering - R and D Services industry over the past three months [14] - Historically, STRL has traded at a higher forward 12-month price-to-earnings (P/E) ratio compared to AECOM [15] - The Zacks Consensus Estimate for STRL's 2025 EPS indicates a 56.9% year-over-year growth, while ACM's estimate suggests a 15.9% increase [18][20] Investment Outlook - STRL is emerging as a growth leader in the infrastructure space, supported by its focus on high-value markets and a solid backlog, leading to raised 2025 guidance [23] - AECOM benefits from steady demand across various projects but faces greater exposure to international risks and limited movement in earnings estimates [24] - Given STRL's stronger share price performance, upward estimate revisions, and robust earnings growth, it presents a better investment opportunity compared to AECOM [25]