Sterling Infrastructure stock surges on strong Q1 earnings, raised guidance

Published 05/05/2025, 22:24
Sterling Infrastructure stock surges on strong Q1 earnings, raised guidance

Investing.com -- Sterling Infrastructure, Inc. (NASDAQ:STRL) saw its stock jump 5% after reporting first quarter earnings that significantly beat analyst expectations and raising its full-year guidance.

The construction company reported adjusted earnings per share of $1.63 for Q1 2025, surpassing the analyst consensus of $1.00 by $0.63. Revenue came in at $430.9 million, beating estimates of $411.13 million and representing a 7% YoY increase excluding the deconsolidated RHB joint venture.

Sterling’s gross margin expanded to 22.0% from 17.5% in the year-ago quarter. Adjusted EBITDA grew 31% to $80.3 million.

"Sterling is off to a great start in 2025, as we grew our first quarter adjusted net income by 28% to deliver adjusted diluted EPS of $1.63," said CEO Joe Cutillo.

The company raised its full-year 2025 guidance, now expecting adjusted EPS of $8.40-$8.90, above the $8.03 analyst consensus. Revenue is projected at $2.05-2.15 billion, also topping estimates of $2.02 billion.

Sterling ended Q1 with a backlog of $2.13 billion, up 17% YoY on a comparable basis. The E-Infrastructure Solutions segment saw particularly strong growth, with backlog increasing 27% to over $1.2 billion.

The positive results and outlook drove the 5% stock gain, as investors reacted favorably to Sterling’s earnings beat and optimistic guidance for the year ahead.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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