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Investing.com -- Sterling Infrastructure, Inc. (NASDAQ:STRL) reported second-quarter earnings that significantly exceeded analyst expectations, driving shares up 4% as the company raised its full-year guidance on the back of robust performance in its E-Infrastructure and Transportation Solutions segments.
The infrastructure construction company posted adjusted earnings of $2.69 per share for the second quarter, handily beating the analyst estimate of $2.23. Revenue surged to $614.5 million, well above the consensus estimate of $550.55 million and representing a 21% increase YoY when excluding the deconsolidated RHB joint venture.
"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," stated Joe Cutillo, Sterling’s Chief Executive Officer.
The company’s E-Infrastructure Solutions segment led growth with a 29% revenue increase and a 57% jump in adjusted operating income, while Transportation Solutions saw revenue climb 24% with a 78% surge in adjusted operating income. Gross margin expanded to 23.3% from 19.3% in the prior-year quarter.
Sterling raised its full-year 2025 guidance, now expecting adjusted earnings of $9.21 to $9.47 per share, above the analyst consensus of $8.50. Revenue is projected to be between $2.10 billion and $2.15 billion, in line with the consensus of $2.12 billion.
The company ended the quarter with a backlog of $2.01 billion, up 24% from the same period last year on a comparable basis. Cash and cash equivalents stood at $699.4 million as of June 30, with operating cash flow of $170.3 million for the first half of the year.
Sterling also noted that its previously announced acquisition of CEC Facilities Group LLC is progressing toward closing, though the updated guidance does not include any contribution from this transaction.
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