STRL Sterling Infrastructure, Inc.

NASDAQ
$289.56

Sterling Reports Record Third Quarter Results and Raises Full Year 2026 Guidance

Wednesday, October 28, 2026 · 4:13 PM ET PR Newswire

THE WOODLANDS, Texas, Oct. 28, 2026 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or the "Company") today announced strong financial results for the third quarter of 2026.

Sterling Infrastructure, Inc.

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

Third Quarter 2026 Consolidated Results:

  • Revenues of $1.56 billion, an increase of 127%.
  • Net income of $214.9 million, or $6.92 per diluted share, both increases of 133%.
  • EBITDA(1) of $320.8 million, an increase of 124%.
  • Each of these third quarter 2026 metrics represent a new record.

Adjusted Results:

  • Adjusted net income(1) of $235.4 million, or $7.58 per diluted share, increases of 119% and 118%, respectively.
  • Adjusted EBITDA(1) of $337.8 million, an increase of 117%.

Cash Flow Metrics: 

  • Cash flows from operations totaled $427.1 million for the nine months ended September 30, 2026.
  • Cash and cash equivalents totaled $216.9 million at September 30, 2026.
  • Share repurchases totaled $107.3 million for the nine months ended September 30, 2026.

Backlog Metrics:

  • Signed Backlog at September 30, 2026 was $4.14 billion, an increase of 61% from the prior year period.
  • Combined Backlog(2) at September 30, 2026 was $6.14 billion, an increase of 78% from the prior year period.
  • Third quarter 2026 book-to-burn ratios were 0.9x for Backlog and 1.4x for Combined Backlog.

(1)

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

(2) 

Combined Backlog includes Unsigned Awards of $2.00 billion at September 30, 2026.

Third Quarter 2026 Segment Results: 

E-Infrastructure Solutions

  • E-Infrastructure Solutions revenues of $1.30 billion, an increase of 212%.
    • Revenues from Site Development operations increased 133%.
    • The CEC electrical business, which was acquired on September 1, 2025, contributed $425.6 million of revenues in the quarter, compared with $41.4 million during the partial ownership period of the third quarter of 2025. On a pro forma basis assuming a full quarter of ownership in the third quarter of 2025, CEC revenues increased 305% year-over-year.
  • E-Infrastructure Solutions operating income of $294.5 million, an increase of 176%. E-Infrastructure Solutions operating margin of 22.6% declined year-over-year and slightly sequentially due to the higher contribution from CEC.
    • Site Development operating margin was in line with levels achieved in the first half of the year.
    • CEC operating margin improved both year-over-year and sequentially.
  • E-Infrastructure Solutions adjusted operating income(1) of $302.4 million, an increase of 171%. E-Infrastructure Solutions adjusted operating margin of 23.2%.

Transportation Solutions

  • Transportation Solutions revenues of $165.2 million, a 3.1% decline, reflecting the reallocation of resources toward E-Infrastructure Solutions work.
  • Transportation Solutions operating income of $30.2 million, an increase of 24.0%. Transportation Solutions operating margin of 18.3%.
  • Transportation Solutions adjusted operating income(1) of $32.6 million, an increase of 22.2%. Transportation Solutions adjusted operating margin was 19.7%.

Building Solutions

  • Building Solutions revenues of $96.0 million, a decline of 5.4%. 
  • Building Solutions operating income of $5.7 million, a decline of 47.3%. Building Solutions operating margin of 5.9%.
  • Building Solutions adjusted operating income(1) of $7.7 million, a decline of 38.7%. Building Solutions adjusted operating margin of 8.0%.

CEO Remarks and Outlook

"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," stated Joe Cutillo, Sterling's Chief Executive Officer. "These results reflect the strength of our strategy and the disciplined execution of our teams."

"Demand remains strong, and our multi-year visibility continues to expand. Together, our signed backlog, unsigned awards, and next phases in design on our current projects represent nearly $8 billion of scoped work, up approximately 90% year-over-year. Importantly, these metrics do not capture the full potential for additional phases and expanded scopes as these large, multi-year projects advance."

Mr. Cutillo continued, "E-Infrastructure Solutions continued to deliver, with revenue increasing 212% and adjusted operating income growing 171%, driven by exceptional performance across both our site development and electrical operations. Site Development generated significant growth across all regions, while maintaining strong operating margin. Demand for CEC's electrical services remains extremely strong, and the business is scaling to capitalize on this opportunity. CEC revenue quadrupled on a pro forma year-over-year basis(2) and operating margin improved both year-over-year and sequentially. We now believe that CEC has the potential to generate over $1 billion in revenue in 2026.

Within E-Infrastructure, our signed backlog, unsigned awards and next phases in design now approach $7 billion, an increase of more than 130% year-over-year. Mission-critical projects, including data center campuses, manufacturing and semiconductor facilities, represent approximately 95% of this opportunity.

In Transportation Solutions, revenue declined 3%, as we continued to reallocate resources from transportation projects toward higher-margin E-Infrastructure opportunities.  Adjusted operating income increased 22%, while adjusted operating margin expanded 410 basis points year-over-year to reach 19.7%, reflecting disciplined transportation project selection.

In Building Solutions, revenue declined 5%, reflecting slower homebuilder activity, while adjusted operating income decreased 39%. We expect market conditions to remain challenging through 2026 as housing affordability continues to weigh on demand, but remain optimistic about the long-term growth opportunities in key geographies."

"Our third quarter performance further strengthens our confidence in the outlook. Given the momentum across our business, we are raising our 2026 guidance. At the midpoint, our updated guidance represents 88% year-over-year revenue growth, 101% growth in adjusted diluted earnings per share, and 94% growth in adjusted EBITDA. More importantly, the strength of our backlog, expanding visibility, and deepening customer relationships reinforce our confidence in Sterling's ability to deliver significant profitable growth well beyond 2026," Mr. Cutillo concluded.

(1)

See "Non-GAAP Measures", "Adjusted Net Income Reconciliation", "Non-GAAP Segment Information", and "EBITDA Reconciliation" sections below for more information.

(2)

Pro Forma to reflect full quarter of CEC revenue in 3Q 2025.

Full Year 2026 Guidance

  • 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
  • EBITDA(1) of $905 million to $916 million

Full Year 2026 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 2025 results.

  • Adjusted Net Income(1) of $675 million to $683 million
  • Adjusted Diluted EPS(1) of $21.70 to $21.96
  • Adjusted EBITDA(1) of $970 million to $981 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 Thursday, October 29, 2026 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 www.strlco.com 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 www.strlco.com 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 and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, 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 – 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

Non-GAAP Measures

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 segment 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, operating income, segment operating 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 directly 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 anticipated benefits of the CEC and Stone Ridge acquisitions; our business strategy; our financial strategy; our industry outlook; our guidance; our expected earnings and margin growth; our pool of future work; our backlog, unsigned awards, next phases in design and other scoped work, and the timing of their conversion to revenue; the scope, timing and phasing of customer projects; our liquidity, capital resources, capital expenditures, capital allocation and share repurchases; potential future acquisitions and geographic expansion; our margin improvement initiatives, including at CEC, and the exit from non-core business lines; our long-term growth targets; our modeling assumptions, including our expected effective tax rate; 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

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)


Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Revenues

$    1,563,927

$      689,019

$    3,557,781

$    1,734,436

Cost of revenues

(1,186,648)

(518,803)

(2,696,249)

(1,326,240)

Gross profit

377,279

170,216

861,532

408,196

General and administrative expenses

(61,363)

(37,585)

(162,343)

(106,203)

Intangible asset amortization

(8,382)

(6,035)

(22,967)

(15,074)

Acquisition related costs

(2,136)

(5,349)

(16,071)

(8,023)

Earn-out expense

(2,487)

(1,343)

(7,463)

(4,029)

Other operating income, net

3,931

5,405

11,229

11,082

Operating income

306,842

125,309

663,917

285,949

Interest income

2,035

5,677

9,476

19,405

Interest expense

(1,874)

(4,140)

(8,982)

(14,367)

Loss on extinguishment of debt

(1,265)

—

(1,265)

—

Income before income taxes

305,738

126,846

663,146

290,987

Income tax expense

(76,059)

(30,517)

(161,056)

(72,959)

Net income, including noncontrolling interests

229,679

96,329

502,090

218,028

Less: Net income attributable to noncontrolling interests

(14,746)

(4,241)

(35,362)

(15,472)

Net income attributable to Sterling common
stockholders

$      214,933

$       92,088

$      466,728

$      202,556








Net income per share attributable to Sterling common
stockholders:






Basic

$          7.02

$          3.02

$         15.23

$          6.64

Diluted

$          6.92

$          2.97

$         15.01

$          6.56








Weighted average common shares outstanding:






Basic

30,609

30,519

30,650

30,491

Diluted

31,071

30,960

31,102

30,875

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(Unaudited)


Three Months Ended September 30,

Nine Months Ended September 30,

Revenues

2026

% of
Revenue

2025

% of
Revenue

2026

% of
Revenue

2025

% of
Revenue

E-Infrastructure Solutions

$ 1,302,739

83 %

$  417,106

60 %

$ 2,805,472

79 %

$  945,775

55 %

Transportation Solutions

165,224

11 %

170,490

25 %

454,779

13 %

487,948

28 %

Building Solutions

95,964

6 %

101,423

15 %

297,530

8 %

300,713

17 %

Total Revenues

$ 1,563,927


$  689,019


$ 3,557,781


$ 1,734,436

















Operating Income














E-Infrastructure Solutions

$  294,515

22.6 %

$  106,614

25.6 %

$  639,128

22.8 %

$  237,023

25.1 %

Transportation Solutions

30,232

18.3 %

24,377

14.3 %

73,162

16.1 %

61,605

12.6 %

Building Solutions

5,666

5.9 %

10,752

10.6 %

20,371

6.8 %

32,959

11.0 %

Segment Operating
Income

330,413

21.1 %

141,743

20.6 %

732,661

20.6 %

331,587

19.1 %

Corporate G&A Expenses

(18,948)


(9,742)


(45,210)


(33,586)

Acquisition Related Costs

(2,136)


(5,349)


(16,071)


(8,023)

Earn-out Expense

(2,487)


(1,343)


(7,463)


(4,029)

Total Operating
Income

$  306,842

19.6 %

$  125,309

18.2 %

$  663,917

18.7 %

$  285,949

16.5 %

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)


September 30,

December 31,


2026

2025

Assets


Current assets:


Cash and cash equivalents

$          216,937

$          390,721

Accounts receivable

1,226,060

501,163

Contract assets

168,095

101,154

Receivables from and equity in construction joint ventures

9,422

6,179

Other current assets

30,173

35,245

Total current assets

1,650,687

1,034,462

Property and equipment, net

357,743

278,269

Investment in unconsolidated subsidiaries

99,017

105,813

Operating lease right-of-use assets, net

68,446

58,167

Goodwill

628,053

585,221

Other intangibles, net

659,335

554,702

Other non-current assets, net

18,699

17,197

Total assets

$        3,481,980

$        2,633,831

Liabilities and Stockholders' Equity


Current liabilities:


Accounts payable

$          387,993

$          226,810

Contract liabilities

917,425

652,357

Current maturities of long-term debt

143

15,146

Current portion of long-term lease obligations

14,743

18,679

Accrued compensation

108,046

62,657

Other current liabilities

163,879

46,805

Total current liabilities

1,592,229

1,022,454

Long-term debt

95,127

275,903

Long-term lease obligations

55,793

40,186

Deferred tax liability, net

134,911

123,145

Other long-term liabilities

48,976

65,708

Total liabilities

1,927,036

1,527,396

Stockholders' equity:


Common stock

315

315

Additional paid in capital

410,738

366,101

Treasury stock, at cost

(242,485)

(130,547)

Retained earnings

1,339,376

872,648

Total Sterling stockholders' equity

1,507,944

1,108,517

Noncontrolling interests

47,000

(2,082)

Total stockholders' equity

1,554,944

1,106,435

Total liabilities and stockholders' equity

$        3,481,980

$        2,633,831

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)


Nine Months Ended September 30,

2026

2025

Cash flows from operating activities:


Net income

$         502,090

$         218,028

Adjustments to reconcile net income to net cash provided by operating activities:


Depreciation and amortization

75,830

54,526

Amortization of debt issuance costs and non-cash interest

618

633

Gain on disposal of property and equipment

(1,795)

(2,500)

Changes in the fair value of earn-outs

7,463

4,029

Loss on extinguishment of debt

1,265

—

Distribution of earnings from unconsolidated subsidiaries

17,332

16,252

Equity in earnings from unconsolidated subsidiaries

(10,536)

(11,082)

Deferred taxes

11,766

9,256

Stock-based compensation

26,796

18,241

Changes in operating assets and liabilities

(203,734)

(53,446)

Net cash provided by operating activities

427,095

253,937

Cash flows from investing activities:


Acquisitions, net of cash acquired

(164,995)

(484,156)

Capital expenditures

(115,458)

(50,923)

Proceeds from sale of property and equipment

4,202

4,014

Net cash used in investing activities

(276,251)

(531,065)

Cash flows from financing activities:


Borrowings under the revolving credit facility

160,000

—

Repayments of the revolving credit facility

(65,000)

—

Repayments of term loan and other financing agreements

(296,444)

(21,067)

Distributions to noncontrolling interest owners

(980)

—

Capital contributions from noncontrolling interest owners

14,700

—

Repurchase of common stock

(107,262)

(48,546)

Withholding taxes paid on net share settlement of equity awards

(15,991)

(9,650)

Payments of earn-outs

(7,767)

—

Debt issuance costs

(5,884)

(1,409)

Net cash used in financing activities

(324,628)

(80,672)

Net change in cash, cash equivalents, and restricted cash

(173,784)

(357,800)

Cash, cash equivalents and restricted cash at beginning of period

390,721

664,195

Cash, cash equivalents and restricted cash at end of period

216,937

306,395

Less: restricted cash

—

—

Cash and cash equivalents at end of period

$         216,937

$         306,395

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
ADJUSTED NET INCOME RECONCILIATION
(In thousands, except per share data)  
(Unaudited)


Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Net income attributable to Sterling common stockholders

$    214,933

$      92,088

$    466,728

$    202,556

Non-cash stock-based compensation

11,157

5,963

26,796

18,241

Intangible asset amortization (1)

10,254

7,906

28,581

20,688

Acquisition related costs

2,136

5,349

16,071

8,023

Earn-out expense

2,487

1,343

7,463

4,029

Loss on extinguishment of debt

1,265

—

1,265

—

Tax impact of adjustments

(6,791)

(4,947)

(19,472)

(12,782)

Adjusted net income attributable to Sterling common
stockholders (2)

$    235,441

$    107,702

$    527,432

$    240,755








Net income per share attributable to Sterling common
stockholders:






Basic

$         7.02

$         3.02

$       15.23

$         6.64

Diluted

$         6.92

$         2.97

$       15.01

$         6.56








Adjusted net income per share attributable to Sterling
common stockholders:






Basic

$         7.69

$         3.53

$       17.21

$         7.90

Diluted

$         7.58

$         3.48

$       16.96

$         7.80








Weighted average common shares outstanding:






Basic

30,609

30,519

30,650

30,491

Diluted

31,071

30,960

31,102

30,875








(1)  For each of the three and nine months ended September 30, 2026 and 2025, intangible asset amortization includes
     $1.87 million and $5.61 million, respectively, related to the basis difference recognized upon the deconsolidation of RHB on
     December 31, 2024.








(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 (income) expense, loss on extinguishment of debt, and the income tax impact of these adjustments.
     The tax impact of adjustments is determined by using the Company's annual effective tax rate, unless the nature of the item
     requires application of a specific tax rate.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
EBITDA RECONCILIATION
(In thousands)
(Unaudited)


Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Net income attributable to Sterling common stockholders

$    214,933

$      92,088

$    466,728

$    202,556

Depreciation and amortization (1)

29,965

22,059

82,269

60,965

Interest income, net

(161)

(1,537)

(494)

(5,038)

Income tax expense

76,059

30,517

161,056

72,959

EBITDA (2)

320,796

143,127

709,559

331,442

Non-cash stock-based compensation

11,157

5,963

26,796

18,241

Acquisition related costs

2,136

5,349

16,071

8,023

Earn-out expense

2,487

1,343

7,463

4,029

Loss on extinguishment of debt

1,265

—

1,265

—

Adjusted EBITDA (3)

$    337,841

$    155,782

$    761,154

$    361,735








(1)  For each of the three and nine months ended September 30, 2026 and 2025, depreciation and amortization includes
     $1.87 million and $5.61 million, respectively, of intangible asset amortization and $275 thousand and $825 thousand,
     respectively, of depreciation expense related to the basis difference recognized upon the deconsolidation of RHB.








(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.








(3) The Company defines adjusted EBITDA as EBITDA excluding the impact of non-cash stock-based compensation, acquisition
     related costs, earn-out expense, and loss on extinguishment of debt.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
NON-GAAP SEGMENT INFORMATION
(In thousands)
(Unaudited)


Three Months Ended September 30,

Nine Months Ended September 30,

Adjusted Operating Income

2026

% of
Revenue

2025

% of
Revenue

2026

% of
Revenue

2025

% of
Revenue

E-Infrastructure Solutions

$ 302,433

23.2 %

$ 111,697

26.8 %

$ 660,596

23.5 %

$ 249,998

26.4 %

Transportation Solutions

32,608

19.7 %

26,680

15.6 %

80,181

17.6 %

68,528

14.0 %

Building Solutions

7,715

8.0 %

12,594

12.4 %

26,518

8.9 %

38,625

12.8 %

Adjusted Segment Operating
Income

342,756

21.9 %

150,971

21.9 %

767,295

21.6 %

357,151

20.6 %

Corporate G&A Expenses

(9,881)


(5,101)


(24,467)


(20,221)

Total Adjusted Operating
Income (1)

$ 332,875

21.3 %

$ 145,870

21.2 %

$ 742,828

20.9 %

$ 336,930

19.4 %
















(1) 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
    September 30, 2026, GAAP operating income of $306.8 million is adjusted to exclude $11.2 million of non-cash stock-based
    compensation, $10.3 million of intangible asset amortization (including $1.9 million related to the basis difference of RHB),
    $2.1 million of acquisition related costs, and $2.5 million of earn-out expense.

















For the nine months ended September 30, 2026, GAAP operating income of $663.9 million is adjusted to exclude $26.8
million of non-cash stock-based compensation, $28.6 million of intangible asset amortization (including $5.6 million related
to the basis difference of RHB), $16.1 million of acquisition related costs, and $7.5 million of earn-out expense.
















For the three months ended September 30, 2025, GAAP operating income of $125.3 million is adjusted to exclude $6.0 million
of non-cash stock-based compensation, $7.9 million of intangible asset amortization (including $1.9 million related to the
basis difference of RHB), $5.3 million of acquisition related costs, and $1.3 million of earn-out expense.

















For the nine months ended September 30, 2025, GAAP operating income of $285.9 million is adjusted to exclude $18.2
million of non-cash stock-based compensation, $20.7 million of intangible asset amortization (including $5.6 million related
to the basis difference of RHB), $8.0 million of acquisition related costs, and $4.0 million of earn-out expense.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
ADJUSTED NET INCOME GUIDANCE RECONCILIATION
(In millions, except per share data)     
(Unaudited)


Full Year 2026 Guidance

Full Year

Low

High

2025 Actual

Net income attributable to Sterling common stockholders

$       596

$       604

$       290

Non-cash stock-based compensation

38

38

24

Intangible asset amortization (1)

39

39

30

Acquisition related costs

16

16

8

Earn-out expense (income)

10

10

(1)

Loss on extinguishment of debt

1

1

—

Income tax impact of adjustments

(25)

(25)

(15)

Adjusted net income attributable to Sterling common stockholders (2)

$       675

$       683

$       337






Net income per share attributable to Sterling common stockholders:




Diluted

$     19.16

$     19.42

$      9.38






Adjusted net income per share attributable to Sterling common stockholders:




Diluted

$     21.70

$     21.96

$     10.88






Weighted average common shares outstanding:




Diluted (2026 is approximate)

31.1

31.1

30.9






(1)  Full year 2026 guidance and full year 2025 actual include intangible asset amortization of approximately $7.5 million related
     to the basis difference recognized in the deconsolidation of RHB.






(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 non-cash stock-based compensation, intangible asset amortization,
     acquisition related costs, earn-out expense (income), loss on extinguishment of debt, and the income tax impact of these
     adjustments. The tax impact of adjustments is determined by using the Company's annual effective tax rate, unless the nature
     of the item requires application of a specific tax rate.

 

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES
EBITDA GUIDANCE RECONCILIATION
(In millions)
(Unaudited)


Full Year 2026 Guidance

Full Year 2025

Low

High

Actual

Net income attributable to Sterling common stockholders

$       596

$       604

$          290

Depreciation and amortization (1)

111

113

86

Interest expense (income), net

(2)

(4)

(3)

Income tax expense

200

203

99

EBITDA (2)

905

916

472

Non-cash stock-based compensation

38

38

24

Acquisition related costs

16

16

8

Earn-out expense (income)

10

10

(1)

Loss on extinguishment of debt

1

1

—

Adjusted EBITDA(3)

$       970

$       981

$          504






(1) Full year 2026 guidance and full year 2025 actual include depreciation and intangible asset amortization of approximately
     $1.1 million and $7.5 million, respectively, related to the basis difference recognized in the deconsolidation of RHB.






(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.






(3) The Company defines adjusted EBITDA as EBITDA excluding the impact of non-cash stock-based compensation, acquisition
     related costs, earn-out expense (income), and the loss on extinguishment of debt.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/sterling-reports-record-third-quarter-results-and-raises-full-year-2026-guidance-302922700.html

SOURCE Sterling Infrastructure, Inc.

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