Sterling Infrastructure, Inc. ((STRL Quick QuoteSTRL - Free Report) ) and Tutor Perini Corporation ((TPC Quick QuoteTPC - Free Report) ) are tapping into a robust infrastructure cycle with a clear focus on large-scale public and civil projects. From highways and bridges to mission-critical sites like data centers and complex transit systems, both companies are leveraging strong federal and state spending programs, including the Infrastructure Investment and Jobs Act (IIJA), to fuel multi-year project pipelines and drive top-line growth.

While Sterling has sharpened its strategy around high-margin design-build and e-infrastructure solutions in growth-heavy regions, Tutor Perini continues to expand its record backlog through major heavy civil and specialty contracting wins across key transportation and public works markets. For both players, a healthy backlog, consistent award wins, and disciplined project selection are central to sustaining long-term earnings momentum.

However, each company faces persistent headwinds tied to cost inflation, tariff-related cost pressures, project delays and execution risks that can impact near-term profitability. These factors highlight the importance of careful bidding and operational efficiency to protect margins as infrastructure spending remains elevated.

Let us dive deep and closely compare the fundamentals of the two stocks to determine which has the stronger growth potential now.

The Case for STRL

Sterling is steadily expanding its position as a diversified infrastructure provider, benefiting from strong demand across civil, transportation, building and e-infrastructure markets. This Texas-based company has focused on disciplined bidding, smart project selection and efficient execution to strengthen its role as a trusted partner for large, mission-critical developments, from major highways and aviation infrastructure to artificial intelligence (AI)-driven data centers and industrial sites.

In the first quarter of 2025, Sterling’s E-Infrastructure Solutions segment delivered standout results, with revenues up 18% year over year, adjusted operating income rising 61% and segment margins topping 23%. Data center and semiconductor work now make up more than 65% of the E-Infrastructure backlog, highlighting Sterling’s role in complex, multi-phase site development.

Sterling’s total backlog stood at $2.1 billion as of the end of the first quarter, with the E-Infrastructure portion alone at $1.2 billion, up 27% year over year. The gross margin on backlog improved 100 basis points to 17.7% from the end of 2024, reflecting a mix shift toward higher-margin, technically demanding projects. The company’s pivot away from low-bid highway work, and toward aviation, rail and industrial site development continues to lift profitability.

At the same time, Sterling’s Transportation Solutions segment remains on track for profitable growth, supported by a healthy backlog and steady bid activity as the company moves through the second half of the IIJA funding cycle. As of March 31, 2025, Transportation Solutions’ backlog stood at $861 million, up 11% year over year, providing clear revenue visibility.

Management expects the segment to deliver mid-single-digit revenue growth and mid-teen operating profit growth in 2025, underpinned by robust pipelines in the Rocky Mountain and Arizona markets and a disciplined focus on complex, higher-value infrastructure work.

Ongoing federal investment under the IIJA and progress on a potential follow-on infrastructure bill add to Sterling’s long-term growth prospects. With a book-to-burn ratio above 2X, strong demand from AI, onshoring and core transportation markets, Sterling appears well-positioned to sustain multi-year expansion, backed by disciplined execution and healthy project visibility.

The Case for TPC

Tutor Perini is capitalizing on robust infrastructure spending by expanding its portfolio of civil and specialty construction projects across high-demand markets. Well aligned with national funding priorities, the company is positioned to benefit from multi-year government investments that emphasize upgrading and expanding critical public infrastructure.

In the first quarter of 2025, Tutor Perini secured about $2 billion in new awards and contract adjustments, driving its backlog to a record $19.4 billion as of March 31, 2025, nearly doubling from the prior year. This momentum has continued into the second quarter, helped by a major new health care award and additional large-scale civil work now moving into construction. Key projects span transportation and building segments in the Northeast, Indo-Pacific and California, where the company’s expertise in managing complex, large-scale developments remains in high demand.

Backed by well-funded federal, state and local agencies, Tutor Perini is seeing steady commercial demand, particularly in healthcare, education, hospitality and gaming, adding balance and diversification to its backlog. The company expects strong awards to continue supporting robust backlog levels in 2025, which, in turn, provides healthy visibility for future earnings.

With this solid pipeline and sustained market demand, Tutor Perini raised its 2025 earnings guidance and reaffirmed its focus on disciplined bidding and execution efficiency. Looking ahead, the company’s broad capabilities, diversified project mix and multi-phase work approach position it well to pursue wins and drive profitable growth in 2026 and beyond.

Share Price Performance of STRL & TPC

As witnessed from the chart below, year to date, Tutor Perini’s share price performance stands above Sterling’s. The STRL stock has gained 43.5% in the year-to-date period, outperforming the broader Construction sector’s 2.7% rise. Meanwhile, Tutor Perini’s shares have skyrocketed 102.4% in the same time.

Image Source: Zacks Investment Research

Valuation of STRL & TPC Stocks

Considering valuation, Tutor Perini is trading below Sterling on a forward 12-month price-to-earnings (P/E) ratio basis.

Image Source: Zacks Investment Research

STRL & TPC Estimate Revision Trend

The Zacks Consensus Estimate for 2025 earnings per share has been unchanged over the past 30 days for both STRL and TPC, holding at $8.61 and $1.75, respectively. The Zacks Consensus Estimate still points to a 41.2% improvement for STRL’s bottom line in 2025, while TPC is projected to deliver a year-over-year upsurge of 155.9%.

For STRL Stock

Image Source: Zacks Investment Research

For TPC Stock

Image Source: Zacks Investment Research

Concluding Thoughts on Investment

With infrastructure spending holding strong and multi-year project pipelines gaining momentum, both Sterling and Tutor Perini appear well-positioned to benefit from steady demand across civil, transportation, and mission-critical sectors. Their expanding backlogs, disciplined bidding strategies, and alignment with long-term federal and state funding make them attractive options for investors looking for durable growth in the construction space.

Sterling, a Zacks Rank #3 (Hold) stock, remains a disciplined, higher-margin operator with a strong foothold in e-infrastructure and transportation solutions. Its balanced project mix, improving margins, and steady earnings growth outlook position it well for sustainable expansion. Tutor Perini, also a Zacks Rank #3 stock, stands out with its robust backlog momentum, diversified civil and commercial pipeline, and significantly stronger share price performance so far in 2025.

Given TPC’s more attractive valuation, robust share price momentum and stronger projected EPS growth for 2025, it currently appears to be the more compelling pick for investors seeking exposure in this infrastructure cycle.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.