Sterling shares fall 4.6% after hours despite raised 2026 guidance

Sterling Infrastructure, Inc. (STRL) said on Oct. 28 in a press release furnished with a regulatory filing that its third-quarter 2026 results set records, and that it was raising its full-year 2026 guidance.

Shares fell 4.6% in after-hours trading as of 5:21 p.m. ET, from a regular-session close of $388.38.

Sterling operates through three segments, E-Infrastructure Solutions, Transportation Solutions and Building Solutions, primarily in the United States.

Here's how the company did:

• Revenue: $1.56 billion vs. $689.0 million a year earlier
• Adjusted diluted EPS: $7.58 vs. $3.48 a year earlier
• GAAP diluted EPS: $6.92 vs. $2.97 a year earlier

Net income attributable to common stockholders was $214.9 million. Adjusted EBITDA was $337.8 million, up 117% from a year earlier, and EBITDA was $320.8 million, up 124%.

The company said each of those third-quarter metrics was a record.

Chief Executive Officer Joe Cutillo said, “We delivered another exceptional quarter, with adjusted net income increasing 119%, adjusted diluted EPS reaching $7.58, and adjusted EBITDA more than doubling.” Revenue increased 127%, including 70% organic growth, he said.

Signed backlog was $4.14 billion at Sept. 30, up 61% from a year earlier. Combined backlog, which includes unsigned awards, was $6.14 billion, up 78%.

According to its SEC filings, revenue has risen in each of the last three quarters, from $689.0 million in the third quarter of 2025 to $1.17 billion in the second quarter of 2026.

2026 guidance

The company raised its full-year 2026 guidance. It now expects revenue of $4.63 billion to $4.73 billion, net income of $596 million to $604 million, diluted EPS of $19.16 to $19.42, and EBITDA of $905 million to $916 million.

On an adjusted basis, it expects adjusted net income of $675 million to $683 million, adjusted diluted EPS of $21.70 to $21.96, and adjusted EBITDA of $970 million to $981 million.

The filing does not restate the ranges the guidance replaced.

Segment results

E-Infrastructure Solutions revenue was $1.30 billion, an increase of 212%. Its adjusted operating income was $302.4 million, up 171%, with an adjusted operating margin of 23.2%.

The CEC electrical business, acquired on Sept. 1, 2025, contributed $425.6 million of revenue in the quarter.

Transportation Solutions revenue was $165.2 million, a decline of 3.1%. Its adjusted operating income was $32.6 million, an increase of 22.2%.

Building Solutions revenue was $96.0 million, a decline of 5.4%. Its adjusted operating income was $7.7 million, a decline of 38.7%.

Cash and capital returns

Cash flows from operations totaled $427.1 million for the nine months ended Sept. 30. Cash and cash equivalents were $216.9 million at Sept. 30.

Share repurchases totaled $107.3 million over the same nine months. As of Sept. 30, the company had $267 million of remaining availability under a $400 million authorization running through November 2027.

The company will hold a conference call on Oct. 29 at 9:00 a.m. ET to discuss the results and recent corporate developments.