Sterling Infrastructure Posts Record Q2 Earnings, EPS Surges 41%

Q: What were Sterling Infrastructure's (STRL) Q2 2025 earnings results?

Sterling reported Q2 2025 revenue of $614.5 million (up 21%), net income of $71.0 million (up 37%), and earnings per diluted share of $2.31 (up 38%). The company achieved a record gross margin of 23.3%.

Q: What is Sterling Infrastructure's (STRL) updated guidance for 2025?

Sterling raised its 2025 guidance to revenue of $2.10-2.15 billion , adjusted diluted EPS of $9.21-9.47 , and adjusted EBITDA of $438-453 million , representing significant year-over-year growth.

Q: How much cash does Sterling Infrastructure (STRL) have as of Q2 2025?

Sterling reported cash and cash equivalents of $699.4 million as of June 30, 2025, with strong operating cash flows of $170.3 million for the first six months of 2025.

Q: What is Sterling Infrastructure's (STRL) current backlog?

Sterling's backlog at June 30, 2025 was $2.01 billion , with combined backlog (including unsigned awards) of $2.25 billion . The book-to-burn ratio for H1 2025 was 1.5x.

Q: How is Sterling Infrastructure's (STRL) E-Infrastructure Solutions segment performing?

The E-Infrastructure Solutions segment achieved 29% revenue growth with adjusted operating margins expanding over 500 basis points to 28.3% , driven by large mission-critical projects in data centers and manufacturing.

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

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Insights

Sterling Infrastructure delivered impressive Q2 results with significant margin expansion and raised 2025 guidance, signaling continued operational momentum.

Sterling Infrastructure has delivered exceptional Q2 2025 results that demonstrate the company's strategic shift toward higher-margin business is paying off handsomely. Revenue grew 21% year-over-year (excluding the deconsolidated RHB joint venture) to $614.5 million, while gross margins expanded dramatically from 19.3% to 23.3%. This margin expansion is particularly noteworthy as it reflects Sterling's successful pivot toward more lucrative service offerings.

The bottom-line performance is even more impressive, with net income increasing 37% to $71.0 million and adjusted EPS surging 41% to $2.69. The company's E-Infrastructure Solutions segment was the star performer, growing revenue 29% with adjusted operating margins expanding over 500 basis points to reach 28.3%. This exceptional margin profile stems from Sterling's focus on large, mission-critical projects including data centers and manufacturing facilities.

The company's balance sheet strength is remarkable, with cash and equivalents of $699.4 million and strong cash flow generation of $170.3 million for the first half of 2025. The solid backlog of $2.01 billion (up 24% year-over-year on a comparable basis) provides excellent visibility into future revenue streams. The book-to-burn ratio of 1.4x for the first half of 2025 indicates continued momentum in securing new business.

Management's decision to raise full-year 2025 guidance reflects confidence in continued strong performance, now projecting revenue of $2.10-2.15 billion, adjusted net income of $285-294 million, and adjusted EBITDA of $438-453 million. The pending acquisition of CEC Facilities Group should further enhance Sterling's capabilities in electrical services for high-growth markets like semiconductors and data centers, though current guidance excludes any contribution from this acquisition.

The only soft spot appears to be the Building Solutions segment, which saw a 1% revenue decline and 28% drop in adjusted operating income due to housing market challenges. However, this weakness is being more than offset by strength in the company's other segments and their strategic shift toward higher-margin work.

08/04/2025 - 04:05 PM

THE WOODLANDS, Texas, Aug. 4, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or the "Company") today announced record financial results for the second quarter of 2025.

The financial comparisons herein are to the prior year quarter, unless otherwise noted.

Due to the deconsolidation of the RHB joint venture on December 31, 2024, RHB is no longer included in consolidated revenue or backlog. As such, prior-year comparisons for these metrics have been adjusted to exclude RHB. Please see the "Historical Quarterly Backlog Information" section below for reconciliations to historical figures.

Second Quarter听2025 Results

Revenues of $614.5 million. Revenues increased 21% excluding RHB from the prior year quarter
Gross margin of 23.3%, up from 19.3%
Net income of $71.0 million, or $2.31 per diluted share, increases of 37% and 38%, respectively, and a new second quarter record.
Adjusted net income⁽¹⁾ of $82.8 million, or $2.69 per diluted share, increases of 39% and 41%, respectively
EBITDA⁽¹⁾ of $116.2 million, an increase of 34% and a new second quarter record.
Adjusted EBITDA⁽¹⁾ of $125.6 million, an increase of 35%
Cash flows from operations totaled $170.3 million for the six months ended June 30, 2025
Cash and cash equivalents totaled $699.4 million at June 30, 2025
Backlog at June 30, 2025 was $2.01 billion. The book-to-burn ratio for the six months ended June 30, 2025 was 1.4x.
Combined backlog⁽²⁾ at June 30, 2025 was $2.25 billion. The book-to-burn ratio for the six months ended June 30, 2025 was 1.5x.

⁽¹⁾See "Non-GAAP Measures", "Adjusted Net Income Reconciliation", and "EBITDA Reconciliation" sections below for more information.

⁽²⁾ Combined Backlog includes Unsigned Awards of $237.3 million at June 30, 2025.

Acquisition Update

On June 17th, Sterling announced that it had reached an agreement to acquire all of the assets of CEC Facilities Group LLC ("CEC"), and the transaction continues to progress towards closing. Sterling's expectations for CEC's full year performance are unchanged. Sterling's updated guidance figures included in this earnings release do not include any contribution from CEC.

CEO Remarks and Outlook

"Our outstanding second quarter results reflect the strength and resilience of our portfolio, as we delivered very strong top line growth of 21% and even better bottom-line growth, with adjusted diluted earnings per share reaching $2.69, a 41% increase," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth was again fueled by strong 29% growth in E-Infrastructure Solutions and 24% growth in Transportation Solutions, which more than offset softness in the Building Solutions market. Gross profit margins in the quarter of 23% marked a new high for the company, as we have shifted the business toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 35%."

Mr. Cutillo continued, "We ended the quarter with backlog of $2.0 billion, a 24% increase compared to the prior year second quarter on a like-for-like basis. Our book-to-burn ratio in the quarter was 0.8x, reflecting the strong backlog burn in the quarter combined with the typical seasonal lull in Transportation awards in the second quarter. Notably, E-Infrastructure Solutions awards remained strong in the quarter, outpacing the strong backlog burn. The combination of our signed backlog and high-probability future phase work continues to give us visibility into a pool of E-Infrastructure work approaching $2 billion. Our operating cash flow generation in the second quarter was again excellent at $85 million, driving our net cash position to $401 million."

Mr. Cutillo added, "In E-Infrastructure Solutions, we achieved 29% revenue growth and 57% adjusted operating income growth in the second quarter as adjusted operating margins expanded over听500 basis points to reach 28.3%. This excellent margin profile reflects our shift toward large, mission-critical projects, including data centers and manufacturing, where our scale, superior execution, and track record of delivering projects on time are extremely valuable to our customers. Notably, awards in the E-Commerce distribution space increased meaningfully in the quarter. Large, mission-critical work continues to make up the majority of our backlog.

We are very excited about our previously announced agreement to acquire CEC. We continue to believe that the combination of CEC's leading electrical services to high-growth markets including semiconductor and data center and Sterling's best-in-class site civil infrastructure services will allow us to accelerate project timelines and become even more valuable to our customers. Additionally, we believe CEC will help accelerate our geographic expansion into Texas.

Transportation Solutions revenue increased 24% and adjusted operating income grew 78%. We continue to see solid demand and project opportunities in our core Rocky Mountain and Arizona regions. The downsizing of our low-bid Texas heavy highway business is progressing to plan. This shift will weigh on revenue and backlog in the near term, but will continue to benefit margins as we move through 2025.

In Building Solutions, revenue declined 1% and adjusted operating income declined 28%. Our residential businesses continued to be impacted by the slowdown in the housing market, as prospective homebuyers are facing affordability challenges. We remain bullish on the multi-year demand trends in our key geographies, but expect soft market conditions to persist in the near term."

"We believe 2025 will be another record year for Sterling as we continue to drive bottom line growth that outpaces top line growth. We are raising our 2025 guidance to reflect our strong first half performance, backlog, and visibility into future phase opportunities. The midpoints of our revised 2025 guidance would represent 13% revenue growth as adjusted for RHB, 32% adjusted diluted earnings per share growth and 30% adjusted EBITDA growth," Mr. Cutillo concluded.

Full Year 2025 Guidance

Revenue of $2.10 billion to $2.15 billion
Net Income of $243 million to $252 million
Diluted EPS of $7.87 to $8.13
EBITDA⁽¹⁾ of $406 million to $421 million

Full Year 2025 Adjusted Guidance

Please see the "Adjusted Net Income Guidance Reconciliation" and "EBITDA Guidance Reconciliation" sections below for reconciliations of GAAP to non-GAAP measures and comparable 2024 results.

Adjusted Net Income⁽¹⁾ of $285 million to $294 million
Adjusted Diluted EPS⁽¹⁾ of $9.21 to $9.47
Adjusted EBITDA⁽¹⁾ of $438 million to $453 million

⁽¹⁾See "Non-GAAP Measures", "Adjusted Net Income Guidance Reconciliation" and "EBITDA Guidance Reconciliation" sections below for more information.

Conference Call

Sterling's management will hold a conference call to discuss these results and recent corporate developments on Tuesday, August听5, 2025 at 9:00 a.m. ET/8:00 a.m. CT. Interested parties may participate in the call by dialing (800) 836-8184. Please call in 10 minutes before the conference call is scheduled to begin and ask for the Sterling Infrastructure call. To coincide with the conference call, Sterling will post a slide presentation at on the Events & Presentations section of the Investor Relations tab. Following management's opening remarks, there will be a question and answer session.

To listen to a simultaneous webcast of the call, please go to the Company's website at at least 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call webcast will be archived on the Company's website for 30 days.

About Sterling

Sterling operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services for manufacturing, data centers, distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society's quality of life. Caring for our people and our communities, our customers and our investors 鈥� that is The Sterling Way.

Joe Cutillo, CEO, "We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow."

Important Information for Investors and Stockholders

狈辞苍-骋础础笔听惭别补蝉耻谤别蝉

This press release contains "Non-GAAP" financial measures as defined under Regulation G of the amended U.S. Securities Exchange Act of 1934. The Company reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), but the Company believes that certain Non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of those operations.

Non-GAAP measures may include adjusted net income, adjusted operating income, adjusted EPS, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that the Company does not consider to be representative of its normal operations. The Company believes that these measures are useful for investors to review, because they provide a consistent measure of the underlying financial results of the Company's ongoing business and, in the Company's view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, the Company uses each of these to measure the performance of the Company's operations for budgeting and forecasting, as well as for determining employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for net income, EPS, or other data prepared and reported in accordance with GAAP and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.

Reconciliations of Non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included within this press release.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains statements that are considered forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about: the financial estimates or projections of CEC and the anticipated closing date and benefits of the potential acquisition; our business strategy; our financial strategy; our industry outlook; our guidance; our expected margin growth; and our plans, objectives, expectations, forecasts, outlook and intentions. All of these types of statements, other than statements of historical fact included in this press release, are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "guidance," "continue," the negative of such terms or other comparable terminology. The forward-looking statements contained in this press release are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management's assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this press release are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors listed in the "Risk Factors" section in our filings with the U.S. Securities and Exchange Commission and elsewhere in those filings. Additional factors or risks that we currently deem immaterial, that are not presently known to us or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

Company Contact:
Sterling Infrastructure, Inc.
Noelle Dilts, VP Investor Relations and Corporate Strategy
281-214-0795

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STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) 听鈥�
	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Revenues	$听听听听听听 614,468	$听听听听听听 582,822	$听听听 1,045,417	$听听听 1,023,182
Cost of revenues	(471,328)	(470,079)	(807,437)	(833,535)
Gross profit	143,140	112,743	237,980	189,647
General and administrative expense	(33,987)	(27,856)	(68,618)	(55,154)
Intangible asset amortization	(4,536)	(4,280)	(9,039)	(8,577)
Acquisition related costs	(2,495)	(101)	(2,674)	(137)
Earn-out expense	(1,343)	(1,000)	(2,686)	(2,000)
Other operating income (expense), net	3,785	(6,772)	5,677	(8,920)
Operating income	104,564	72,734	160,640	114,859
Interest income	6,901	6,305	13,728	12,207
Interest expense	(4,995)	(6,513)	(10,227)	(13,177)
Income before income taxes	106,470	72,526	164,141	113,889
Income tax expense	(27,362)	(17,952)	(42,442)	(25,556)
Net income, including noncontrolling interests	79,108	54,574	121,699	88,333
Less: Net income attributable to noncontrolling interests	(8,117)	(2,695)	(11,231)	(5,406)
Net income attributable to Sterling common stockholders	$听听听听听听听听 70,991	$听听听听听听听听 51,879	$听听听听听听 110,468	$听听听听听听听听 82,927
鈥�
Net income per share attributable to Sterling common stockholders:
Basic	$听听听听听听听听听听听听听 2.33	$听听听听听听听听听听听听听 1.68	$听听听听听听听听听听听听听 3.62	$听听听听听听听听听听听听听 2.68
Diluted	$听听听听听听听听听听听听听 2.31	$听听听听听听听听听听听听听 1.67	$听听听听听听听听听听听听听 3.59	$听听听听听听听听听听听听听 2.66
鈥�
Weighted average common shares outstanding:
Basic	30,408	30,914	30,477	30,945
Diluted	30,762	31,145	30,804	31,158

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STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(Unaudited)

鈥屘�

Three Months Ended June 30,

Six Months Ended June 30,

Revenues

2025

% of
Revenue

2024

% of
Revenue

2025

% of
Revenue

2024

% of
Revenue

E-Infrastructure Solutions

$听听听听听听 310,406

51听%

$听听听听听听 241,312

41听%

$听 528,669

51听%

$听 425,788

42听%

Transportation Solutions

196,797

32听%

232,775

40听%

317,458

30听%

381,744

37听%

Building Solutions

107,265

17听%

108,735

19听%

199,290

19听%

215,650

21听%

Total Revenues

$听听听听听听 614,468

$听听听听听听 582,822

$听 1,045,417

$听 1,023,182

鈥�

Operating Income

E-Infrastructure Solutions

$听听听听听听听听 83,767

27.0听%

$听听听听听听听听 51,677

21.4听%

$听 130,409

24.7听%

$听听听 78,846

18.5听%

Transportation Solutions

25,975

13.2听%

15,449

6.6听%

37,228

11.7听%

23,581

6.2听%

Building Solutions

9,855

9.2听%

14,813

13.6听%

22,207

11.1听%

30,588

14.2听%

Segment Operating Income

119,597

19.5听%

81,939

14.1听%

189,844

18.2听%

133,015

13.0听%

Corporate G&A Expense

(11,195)

(8,104)

(23,844)

(16,019)

Acquisition Related Costs

(2,495)

(101)

(2,674)

(137)

Earn-out Expense

(1,343)

(1,000)

(2,686)

(2,000)

Total Operating Income

$听听听听听听 104,564

17.0听%

$听听听听听听听听 72,734

12.5听%

$听 160,640

15.4听%

$听 114,859

11.2听%

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STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) 听鈥�
	June 30,	December 31,
	2025	2024
Assets
Current assets:
Cash and cash equivalents	$听听听听听听听听听听听听听听听 699,373	$听听听听听听听听听听听听听听听 664,195
Accounts receivable	347,661	247,050
Contract assets	51,778	55,387
Receivables from and equity in construction joint ventures	7,968	5,811
Receivable from affiliate	2,540	32,054
Other current assets	22,979	17,383
Total current assets	1,132,299	1,021,880
Property and equipment, net	244,810	236,795
Investment in unconsolidated subsidiary	109,040	107,400
Operating lease right-of-use assets, net	44,470	52,668
Goodwill	283,664	264,597
Other intangibles, net	329,158	316,390
Other non-current assets, net	17,449	17,044
Total assets	$听听听听听听听听听听听听 2,160,890	$听听听听听听听听听听听听 2,016,774
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$听听听听听听听听听听听听听听听 159,259	$听听听听听听听听听听听听听听听 130,420
Contract liabilities	553,171	508,846
Current maturities of long-term debt	15,162	26,423
Current portion of long-term lease obligations	18,202	20,498
Accrued compensation	36,596	36,774
Other current liabilities	13,841	18,997
Total current liabilities	796,231	741,958
Long-term debt	283,050	289,898
Long-term lease obligations	26,729	32,455
Deferred tax liability, net	114,774	109,360
Other long-term liabilities	28,733	16,625
Total liabilities	1,249,517	1,190,296
Stockholders' equity:
Common stock	312	312
Additional paid in capital	287,596	288,395
Treasury stock, at cost	(99,126)	(63,121)
Retained earnings	692,963	582,495
Total Sterling stockholders' equity	881,745	808,081
Noncontrolling interests	29,628	18,397
Total stockholders' equity	911,373	826,478
Total liabilities and stockholders' equity	$听听听听听听听听听听听听 2,160,890	$听听听听听听听听听听听听 2,016,774

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STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) 鈥屘�
	Six Months Ended June 30,
	2025	2024
Cash flows from operating activities:
Net income	$听听听听听听听听听听听听听听 121,699	$听听听听听听听听听听听听听听听听 88,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,613	33,183
Amortization of debt issuance costs and non-cash interest	472	597
Gain on disposal of property and equipment	(1,340)	(2,964)
Distribution of earnings from unconsolidated subsidiary	10,319	鈥�
Equity in earnings from unconsolidated subsidiary	(5,677)	鈥�
Deferred taxes	5,414	3,517
Stock-based compensation	12,278	9,382
Changes in operating assets and liabilities	(7,467)	38,513
Net cash provided by operating activities	170,311	170,561
Cash flows from investing activities:
Acquisitions, net of cash acquired	(37,860)	(1,016)
Capital expenditures	(31,262)	(51,309)
Proceeds from sale of property and equipment	2,645	6,944
Net cash used in investing activities	(66,477)	(45,381)
Cash flows from financing activities:
Repayments of debt	(17,275)	(13,324)
Repurchase of common stock	(43,846)	(30,142)
Withholding taxes paid on net share settlement of equity awards	(6,126)	(13,264)
Debt issuance costs	(1,409)	鈥�
Other	鈥�	(28)
Net cash used in financing activities	(68,656)	(56,758)
Net change in cash, cash equivalents, and restricted cash	35,178	68,422
Cash, cash equivalents and restricted cash at beginning of period	664,195	471,563
Cash, cash equivalents and restricted cash at end of period	699,373	539,985
Less: restricted cash	鈥�	鈥�
Cash and cash equivalents at end of period	$听听听听听听听听听听听听听听 699,373	$听听听听听听听听听听听听听听 539,985

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STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands)听听听听听 (Unaudited) 听鈥�
	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Net income attributable to Sterling common stockholders	$听听听听听听听听 70,991	$听听听听听听听听 51,879	$听听听听听听 110,468	$听听听听听听听听 82,927
Non-cash stock-based compensation	5,595	4,796	12,278	9,382
Intangible asset amortization ⁽¹⁾	6,408	4,280	12,782	8,577
Acquisition related costs	2,495	101	2,674	137
Earn-out expense	1,343	1,000	2,686	2,000
Income tax impact of adjustments	(4,071)	(2,519)	(7,866)	(4,509)
Adjusted net income attributable to Sterling common stockholders ⁽²⁾	$听听听听听听听听 82,761	$听听听听听听听听 59,537	$听听听听听听 133,022	$听听听听听听听听 98,514
鈥�
Net income per share attributable to Sterling common stockholders:
Basic	$听听听听听听听听听听听听听 2.33	$听听听听听听听听听听听听听 1.68	$听听听听听听听听听听听听听 3.62	$听听听听听听听听听听听听听 2.68
Diluted	$听听听听听听听听听听听听听 2.31	$听听听听听听听听听听听听听 1.67	$听听听听听听听听听听听听听 3.59	$听听听听听听听听听听听听听 2.66
鈥�
Adjusted net income per share attributable to Sterling common stockholders:
Basic	$听听听听听听听听听听听听听 2.72	$听听听听听听听听听听听听听 1.93	$听听听听听听听听听听听听听 4.36	$听听听听听听听听听听听听听 3.18
Diluted	$听听听听听听听听听听听听听 2.69	$听听听听听听听听听听听听听 1.91	$听听听锟斤拷听听听听听听听听听 4.32	$听听听听听听听听听听听听听 3.16
鈥�
Weighted average common shares outstanding:
Basic	30,408	30,914	30,477	30,945
Diluted	30,762	31,145	30,804	31,158

⁽¹⁾	For the three and six months ended June 30, 2025, intangible asset amortization includes $1,872 and $3,743, respectively related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	鈥�
⁽²⁾	The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate.

听

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited) 听鈥�
	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Net income attributable to Sterling common stockholders	$听听听听听听听听 70,991	$听听听听听听听听 51,879	$听听听听听听 110,468	$听听听听听听听听 82,927
Depreciation and amortization ⁽¹⁾	19,769	16,925	38,906	33,183
Interest (income) expense, net	(1,906)	208	(3,501)	970
Income tax expense	27,362	17,952	42,442	25,556
EBITDA⁽²⁾	116,216	86,964	188,315	142,636
Non-cash stock-based compensation	5,595	4,796	12,278	9,382
Acquisition related costs	2,495	101	2,674	137
Earn-out expense	1,343	1,000	2,686	2,000
Adjusted EBITDA⁽³⁾	$听听听听听听 125,649	$听听听听听听听听 92,861	$听听听听听听 205,953	$听听听听听听 154,155

⁽¹⁾	For the three and six months ended June 30, 2025, depreciation and amortization includes $1,872 and $3,743, respectively, of intangible asset amortization and $275 and $550, respectively, of depreciation expense related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	鈥�
⁽²⁾	The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders adjusted for depreciation and amortization, net interest income/expense and income tax expense.
	鈥�
⁽³⁾	The Company defines adjusted EBITDA as EBITDA excluding the impact of non-cash stock-based compensation, acquisition related costs, and earn-out expense.

听

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES

NON-GAAP SEGMENT INFORMATION

(In thousands)

(Unaudited)

听

The table below presents the听three and six months ended June 30, 2025 and 2024 revenue and operating income by segment as adjusted for the 2024 period to conform to our 2025 presentation reflecting the deconsolidation of RHB on revenue and to exclude the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense on operating income:

鈥�

Three Months Ended June 30,

Six Months Ended June 30,

Revenues (Excluding RHB)

2025

% of
Revenue

2024

% of
Revenue

2025

% of
Revenue

2024

% of
Revenue

E-Infrastructure Solutions

$听 310,406

51听%

$听 241,312

47听%

$听听听 528,669

51听%

$听听听 425,788

47听%

Transportation Solutions

196,797

32听%

158,828

31听%

317,458

30听%

269,333

30听%

Building Solutions

107,265

17听%

108,735

22听%

199,290

19听%

215,650

23听%

Total Revenues (Excluding RHB) ⁽¹⁾

$听 614,468

$听 508,875

$ 1,045,417

$听听听 910,771

Adjusted Operating Income

E-Infrastructure Solutions

$听听听 87,718

28.3听%

$听听听 55,841

23.1听%

$听听听 138,301

26.2听%

$听听听听听 87,186

20.5听%

Transportation Solutions

28,271

14.4听%

15,874

10.0听%

41,848

13.2听%

24,386

9.1听%

Building Solutions

11,797

11.0听%

16,423

15.1听%

26,031

13.1听%

33,826

15.7听%

Adjusted Segment Operating Income

127,786

20.8听%

88,138

17.3听%

206,180

19.7听%

145,398

16.0听%

Corporate G&A Expense

(7,381)

(5,227)

(15,120)

(10,443)

Total Adjusted Operating Income ⁽²⁾

$听 120,405

19.6听%

$听听听 82,911

16.3听%

$听听听 191,060

18.3听%

$听听听 134,955

14.8听%

^(1)听听	Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, the Company will report RHB's operating income as a single line item ("Other operating income (expense), net") in the Consolidated Statements of Operations. RHB's revenue is no longer included in Sterling's consolidated revenue in 2025. For the three and six months ended June 30, 2024, total GAAP revenue of $582,822 and $1,023,182, respectively, have been adjusted to exclude $73,947 and $112,411, respectively, of RHB revenue.
	鈥�
⁽²⁾	The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense. For the three months ended June 30, 2025, GAAP operating income of $104,564 is adjusted to exclude $5,595 of non-cash stock-based compensation, $6,408 of intangible asset amortization (including $1,872 related to the fair value step up of RHB), $2,495 of acquisition related costs, and $1,343 of earn-out expense.
	鈥�
	For the six months ended June 30, 2025, GAAP operating income of $160,640 is adjusted to exclude $12,278 of non-cash stock-based compensation, $12,782 of intangible asset amortization (including $3,743 related to the fair value step up of RHB), $2,674 of acquisition related costs, and $2,686 of earn-out expense.
	鈥�
	For the three months ended June 30, 2024, GAAP operating income of $72,734 is adjusted to exclude $4,796 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $101 of acquisition related costs, and $1,000 of earn-out expense.
	鈥�
	For the six months ended June 30, 2024, GAAP operating income of $114,859 is adjusted to exclude $9,382 of non-cash stock-based compensation, $8,577 of intangible asset amortization, $137 of acquisition related costs, and $2,000 of earn-out expense.

听

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME GUIDANCE RECONCILIATION (In thousands)听听听听听 (Unaudited) 听
	Full Year 2025 Guidance		Full Year
	Low	High	2024 Actual
Net income attributable to Sterling common stockholders	$听听 243,000	$听听 252,000	$听听 257,461
Gain on deconsolidation of subsidiary, net	鈥�	鈥�	(91,289)
Non-cash stock-based compensation	23,000	23,000	19,003
Intangible asset amortization ⁽¹⁾	25,633	25,633	17,037
Acquisition related costs	2,674	2,674	421
Earn-out expense	6,000	6,000	4,756
Income tax impact of adjustments	(15,000)	(15,000)	13,356
Adjusted net income attributable to Sterling common stockholders ⁽²⁾	$听听 285,307	$听听 294,307	$听听 220,745

Net income per share attributable to Sterling common stockholders:
Diluted	$听听听听听听听听听 7.87	$听听听听听听听听听 8.13	$听听听听听听听听听 8.27
鈥�
Adjusted net income per share attributable to Sterling common stockholders:
Diluted	$听听听听听听听听听 9.21	$听听听听听听听听听 9.47	$听听听听听听听听听 7.09
鈥�
Weighted average common shares outstanding:
Diluted	31,000	31,000	31,146

^(1)听听	Intangible asset amortization includes approximately $7,500 related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	鈥�
⁽²⁾	The Company defines adjusted net income attributable to Sterling common stockholders as GAAP net income attributable to Sterling common stockholders excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, intangible asset amortization, acquisition related costs, earn-out expense, and the income tax impact of these adjustments. The tax impact of adjustments is determined by using the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item requires application of a specific tax rate.

听

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) 听鈥�
	Full Year 2025 Guidance		Full Year 2024
	Low	High	Actual
Net income attributable to Sterling common stockholders	$听听听听听听听听听听听 243	$听听听听听听听听听听听 252	$听听听听听听听听听听听听听听听 257
Depreciation and amortization⁽¹⁾	79	80	68
Interest income, net of interest expense	(5)	(6)	(2)
Income tax expense	89	95	87
EBITDA⁽²⁾	406	421	410
Gain on deconsolidation of subsidiary, net	鈥�	鈥�	(91)
Non-cash stock-based compensation	23	23	19
Acquisition related costs	3	3	鈥�
Earn-out expense	6	6	5
Adjusted EBITDA⁽³⁾	$听听听听听听听听听听听 438	$听听听听听听听听听听听 453	$听听听听听听听听听听听听听听听 343

⁽¹⁾	Depreciation and intangible asset amortization includes approximately $1.1 million and $7.5 million, respectively, related to the fair value step up recognized in the deconsolidation of RHB on December 31, 2024.
	鈥�
⁽²⁾	The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest income, and income tax expense.
	鈥�
^(3)听	The Company defines adjusted EBITDA as EBITDA excluding the impact of the net gain on deconsolidation of subsidiary, non-cash stock-based compensation, acquisition related costs and earn-out expense.

听

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited) 鈥屘�
The following tables present our听2024 quarterly revenue by segment as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB:
		鈥�
	2024 Quarters Ended (Unaudited)
Revenues (GAAP)	March 31	June 30	September 30	December 31	Total
E-Infrastructure Solutions	$听听听听听听听 184,476	$听听听听听听听 241,312	$听听听听听听听 263,899	$听听听听听听听 234,041	$听听听听听听听 923,728
Transportation Solutions	148,969	232,775	227,251	174,664	783,659
Building Solutions	106,915	108,735	102,591	90,128	408,369
Total Revenues (GAAP)	$听听听听听听听 440,360	$听听听听听听听 582,822	$听听听听听听听 593,741	$听听听听听听听 498,833	$听听听听 2,115,756
鈥�
Revenues (RHB)
E-Infrastructure Solutions	$听听听听听听听听听听听听听听听听听鈥�	$听听听听听听听听听听听听听听听听听鈥�	$听听听听听听听听听听听听听听听听听鈥�	$听听听听听听听听听听听听听听听听听鈥�	$听听听听听听听听听听听听听听听听听鈥�
Transportation Solutions	38,464	73,947	72,188	51,277	235,876
Building Solutions	鈥�	鈥�	鈥�	鈥�	鈥�
Total Revenues (RHB)	$听听听听听听听听听 38,464	$听听听听听听听听听 73,947	$听听听听听听听听听 72,188	$听听听听听听听听听 51,277	$听听听听听听听 235,876
鈥�
Revenues (Excluding RHB)
E-Infrastructure Solutions	$听听听听听听听 184,476	$听听听听听听听 241,312	$听听听听听听听 263,899	$听听听听听听听 234,041	$听听听听听听听 923,728
Transportation Solutions	110,505	158,828	155,063	123,387	547,783
Building Solutions	106,915	108,735	102,591	90,128	408,369
Total Revenues (Excluding RHB) ⁽¹⁾	$听听听听听听听 401,896	$听听听听听听听 508,875	$听听听听听听听 521,553	$听听听听听听听 447,556	$听听听听 1,879,880

⁽¹⁾ Due to the deconsolidation of RHB on December 31, 2024, beginning on January 1, 2025, RHB's revenue is no longer included in Sterling's consolidated revenue.

听

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited) 听
The following tables present our听2024 quarterly operating income and adjusted operating income by segment:

	2024 Quarters Ended (Unaudited)
Operating Income (GAAP)	March 31	June 30	September 30	December 31	Total
E-Infrastructure Solutions	$听听听听听听听听听 27,169	$听听听听听听听听听 51,677	$听听听听听听听听听 68,076	$听听听听听听听听听 56,437	$听听听听听听听 203,359
Transportation Solutions	8,132	15,449	18,573	8,715	50,869
Building Solutions	15,775	14,813	12,249	11,002	53,839
Segment Operating Income	51,076	81,939	98,898	76,154	308,067
Corporate G&A Expense	(7,915)	(8,104)	(10,334)	(11,915)	(38,268)
Acquisition Related Costs	(36)	(101)	(72)	(212)	(421)
Earn-out Expense	(1,000)	(1,000)	(1,000)	(1,756)	(4,756)
Total Operating Income (GAAP)	$听听听听听听听听听 42,125	$听听听听听听听听听 72,734	$听听听听听听听听听 87,492	$听听听听听听听听听 62,271	$听听听听听听听 264,622
鈥�
Adjusted Operating Income
E-Infrastructure Solutions	$听听听听听听听听听 31,345	$听听听听听听听听听 55,841	$听听听听听听听听听 71,244	$听听听听听听听听听 60,316	$听听听听听听听 218,746
Transportation Solutions	8,512	15,874	19,070	9,180	52,636
Building Solutions	17,403	16,423	13,928	12,632	60,386
Segment Operating Income	57,260	88,138	104,242	82,128	331,768
Corporate	(5,216)	(5,227)	(7,027)	(8,459)	(25,929)
Adjusted Operating Income⁽¹⁾	$听听听听听听听听听 52,044	$听听听听听听听听听 82,911	$听听听听听听听听听 97,215	$听听听听听听听听听 73,669	$听听听听听听听 305,839

^(1)听听	The Company defines adjusted operating income as GAAP operating income excluding the impact of non-cash stock-based compensation, intangible asset amortization, acquisition related costs, and earn-out expense.

	For the three months ended March 31, 2024, GAAP operating income of $42,125 is adjusted to exclude $4,586 of non-cash stock-based compensation, $4,297 of intangible asset amortization, $36 of acquisition related costs, and $1,000 of earn-out expense.

	For the three months ended June 30, 2024, GAAP operating income of $72,734 is adjusted to exclude $4,796 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $101 of acquisition related costs, and $1,000 of earn-out expense.

	For the three months ended September 30, 2024, GAAP operating income of $87,492 is adjusted to exclude $4,371 of non-cash stock-based compensation, $4,280 of intangible asset amortization, $72 of acquisition related costs, and $1,000 of earn-out expense.

	For the three months ended December 30, 2024, GAAP operating income of $62,271 is adjusted to exclude $5,250 of non-cash stock-based compensation, $4,180 of intangible asset amortization, $212 of acquisition related costs, and $1,756 of earn-out expense.

	For the year ended December 30, 2024, GAAP operating income of $264,622 is adjusted to exclude $19,003 of non-cash stock-based compensation, $17,037 of intangible asset amortization, $421 of acquisition related costs, and $4,756 of earn-out expense.

听

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY BACKLOG INFORMATION (In thousands) (Unaudited) 听
The following table presents our听2024 backlog as adjusted to conform to our 2025 presentation reflecting the deconsolidation of RHB:

	2024 Quarters Ended (Unaudited)
Backlog	March 31	June 30	September 30	December 31
Backlog (GAAP)	$听听听听 2,352,126	$听听听听 2,098,781	$听听听听 2,055,081	$听听听听 2,184,478
Less: RHB Backlog	(528,043)	(476,842)	(485,050)	(491,255)
Backlog excluding RHB	$听听听听 1,824,083	$听听听听 1,621,939	$听听听听 1,570,031	$听听听听 1,693,223

听

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FAQ

What were Sterling Infrastructure's (STRL) Q2 2025 earnings results?

Sterling reported Q2 2025 revenue of $614.5 million (up 21%), net income of $71.0 million (up 37%), and earnings per diluted share of $2.31 (up 38%). The company achieved a record gross margin of 23.3%.

What is Sterling Infrastructure's (STRL) updated guidance for 2025?

Sterling raised its 2025 guidance to revenue of $2.10-2.15 billion, adjusted diluted EPS of $9.21-9.47, and adjusted EBITDA of $438-453 million, representing significant year-over-year growth.

How much cash does Sterling Infrastructure (STRL) have as of Q2 2025?

Sterling reported cash and cash equivalents of $699.4 million as of June 30, 2025, with strong operating cash flows of $170.3 million for the first six months of 2025.

What is Sterling Infrastructure's (STRL) current backlog?

Sterling's backlog at June 30, 2025 was $2.01 billion, with combined backlog (including unsigned awards) of $2.25 billion. The book-to-burn ratio for H1 2025 was 1.5x.

How is Sterling Infrastructure's (STRL) E-Infrastructure Solutions segment performing?

The E-Infrastructure Solutions segment achieved 29% revenue growth with adjusted operating margins expanding over 500 basis points to 28.3%, driven by large mission-critical projects in data centers and manufacturing.

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

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What were Sterling Infrastructure's (STRL) Q2 2025 earnings results?

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What is Sterling Infrastructure's (STRL) current backlog?

How is Sterling Infrastructure's (STRL) E-Infrastructure Solutions segment performing?

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

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What were Sterling Infrastructure's (STRL) Q2 2025 earnings results?

What is Sterling Infrastructure's (STRL) updated guidance for 2025?

How much cash does Sterling Infrastructure (STRL) have as of Q2 2025?

What is Sterling Infrastructure's (STRL) current backlog?

How is Sterling Infrastructure's (STRL) E-Infrastructure Solutions segment performing?

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