Sterling Infrastructure (STRL) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 results with revenue up 92% year-over-year to $825.7 million, driven by strong organic growth and the CEC acquisition.

• Net income rose to $96.0 million, with adjusted net income up 122% to $111.3 million and adjusted diluted EPS up 120% to $3.59.

• Gross profit margin improved to 23.5%–24%, and adjusted EBITDA margin reached a record 20%–20.2%.

• Backlog reached $3.8 billion (up 78% YoY), combined backlog $5.2 billion (up 131% YoY), with total work visibility near $6.5 billion.

• Awarded first phase of a multi-phase semiconductor fabrication campus ($500M+), marking entry into the U.S. semiconductor market.

Financial highlights

• GAAP net income for Q1 2026 was $96.0 million, up from $39.5 million in Q1 2025.

• Operating income rose to $137.8 million, and gross profit more than doubled to $194.3 million.

• Cash and cash equivalents at quarter-end were $511.9 million, with net cash position at $224 million.

• Cash flow from operations was $165.6 million; capital expenditures totaled $19.6–$20 million.

• Share repurchases totaled $12.3 million at $305.14/share; $362 million remains under authorization.

Outlook and guidance

• Raised 2026 guidance: revenue $3.7–$3.8 billion (midpoint up 20% from prior, 50%+ YoY), adjusted diluted EPS $18.40–$19.05 (midpoint up 36% from prior, 72% YoY), adjusted EBITDA $843–$873 million.

• Net income expected at $513–$533 million; adjusted net income $572–$592 million.

• E-Infrastructure revenue expected to grow 80%+ in 2026, with legacy business up 60%+; adjusted operating margins in mid-20% range.

• Transportation Solutions revenue to grow low/mid-single digits; Building Solutions revenue modestly down, with low double-digit margins.

• Guidance implies 51% revenue growth, 72% adjusted EPS growth, and 70% adjusted EBITDA growth YoY.