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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.
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