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Sterling beat Q1 estimates with an adjusted EPS of $3.59 and revenues of $825.7M.
STRL's E-Infrastructure (72% of sales) surged to $597.7M, boosted by CEC and mission-critical work.
STRL logged a $3.80B signed backlog and raised 2026 revenue, EBITDA and adjusted EPS guidance.
Sterling Infrastructure, Inc. (STRL - Free Report) delivered a strong first quarter of 2026, with adjusted earnings and revenues topping the Zacks Consensus Estimate and rising sharply year over year.
Results were powered by outsized growth in E-Infrastructure Solutions, supported by contributions from the CEC acquisition and solid execution on large, time-sensitive mission-critical work. Additionally, the Transportation Solutions segment benefited from strong performance in the Rocky Mountain market and a strategic shift toward higher-margin projects.
Despite record overall performance, the Building Solutions segment remained a headwind. Revenues increased modestly, but adjusted operating income declined sharply year over year due to tough prior-year comparisons and ongoing affordability pressures that continue to weigh on prospective homebuyers.
Inside Sterling’s Q1 Headlines
Adjusted earnings were $3.59 per share, beating the consensus mark of $2.29 by 56.8%. In the year-ago quarter, the company reported adjusted earnings per share of $1.63.
Sterling Infrastructure, Inc. Price, Consensus and EPS Surprise
Revenues of $825.7 million surpassed the consensus estimate of $585 million by 41.1% and increased 92% from $430.9 million in the year-ago quarter. The recently acquired CEC Facilities Group contributed $156.1 million to revenues during the quarter.
STRL Posts Record Profitability as Margins Expand
Operating leverage stood out in the quarter as profit growth outpaced the top line. Gross profit rose to $194.3 million from $94.8 million a year ago, and gross profit margin improved to 23.5% from 22%, an expansion of roughly 150 basis points.
Operating income reached $137.8 million versus $56.1 million in the prior-year quarter. Adjusted EBITDA rose 107% year over year to $166.6 million, and adjusted EBITDA margin improved to 20.2% from 18.6%, up roughly 150 basis points.
Q1 Segmental Discussion of Sterling
E-Infrastructure Solutions
E-Infrastructure Solutions was the clear catalyst, with segment revenues (which consist of 72% of total revenues) jumping to $597.7 million from $218.3 million in the year-ago quarter. Management attributed the performance to strong execution on large mission-critical projects and the added scale from the recently acquired CEC business.
Profitability in the segment also improved meaningfully. Adjusted operating income climbed to $140.3 million from $50.6 million, reflecting the margin profile of mission-critical work and improved mix.
Transportation Solutions
Transportation Solutions posted continued progress, supported by strong activity in the Rocky Mountain market and favorable project timing. Segment revenues (which amounted to 16% of total revenues) increased to $132.9 million from $120.7 million, and operating income rose to $17.1 million from $13.6 million.
Building Solutions
Building Solutions remained the softer spot. Revenues edged up to $95.1 million from $92 million, but operating income declined to $8.3 million from $14.2 million, as affordability constraints continued to weigh on end markets and pressured segment margins.
Sterling's Backlog Surge Lifts 2026 Visibility
Demand indicators strengthened early in 2026, highlighted by sizable awards and expanding future-phase opportunities. Signed backlog ended the quarter at $3.80 billion, while first-quarter book-to-burn ratios were 2.1x for backlog and 3.5x for combined backlog.
Beyond signed work, the company pointed to a growing pipeline of high-probability future phases that now exceeds $1.3 billion. Management also highlighted wins tied to large, multi-year projects, including an initial phase award for a major semiconductor fabrication campus.
Cash generation remained a notable support for the balance sheet. Net cash provided by operating activities totaled $165.6 million, up from $84.9 million a year ago. Cash and cash equivalents ended March at $511.9 million, up from $390.7 million at the 2025-end.
Sterling continued returning capital, repurchasing $12.3 million of stock during the quarter at an average price of $305.14 per share. Long-term debt stood at $272.3 million at quarter end against $275.9 million at the 2025-end, leaving the company with financial flexibility to fund growth initiatives and shareholder returns.
STRL Raises 2026 Guidance on Strong Award Activity
Confidence translated into higher full-year targets. Sterling raised 2026 revenue guidance to $3.70-$3.80 billion from its prior range of $3.05-$3.20 billion, reflecting sustained momentum and improved visibility from backlog and awards.
On profitability, diluted EPS is now expected to be $16.50 to $17.15, while adjusted diluted EPS is projected at $18.40 to $19.05, up from the prior adjusted EPS outlook of $13.45-$14.05. The company also lifted EBITDA guidance to $801-$831 million and adjusted EBITDA to $843-$873 million, compared with its earlier adjusted EBITDA forecast of $626-$659 million.
Vulcan Materials Company (VMC - Free Report) posted exceptional first-quarter 2026 results with adjusted earnings and total revenues beating the Zacks Consensus Estimate and increasing year over year. The quarter’s results reflect benefits realized from the aggregates-led business and consistent focus on its strategic disciplines. Besides, efforts to incorporate top-tier innovation and technology advancements also aided the quarter’s financial performance.
Vulcan reiterated its full-year adjusted EBITDA outlook of $2.4-$2.6 billion and cited a healthy backlog supported by large projects and public construction activity.
EMCOR Group, Inc. (EME - Free Report) reported impressive first-quarter 2026 results, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year on strong demand across its core markets.
EMCOR’s quarterly results reflect continued momentum across key end markets and customers’ confidence in the company’s ability to execute complex and mission-critical projects. Strong activity in sectors like Network and Communications, Institutional, Healthcare, and Water and Wastewater supported growth and drove higher remaining performance obligations.
EMCOR now expects revenues between $18.50 billion and $19.25 billion, and diluted earnings per share are projected in the range of $28.25 to $29.75.
Comfort Systems USA, Inc. (FIX - Free Report) delivered a sharp first quarter of 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year. The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers.
Comfort Systems also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets. The backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion on Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago.
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Sterling Q1 Earnings & Revenues Beat Estimates, Rise Y/Y
Key Takeaways
Sterling Infrastructure, Inc. (STRL - Free Report) delivered a strong first quarter of 2026, with adjusted earnings and revenues topping the Zacks Consensus Estimate and rising sharply year over year.
Results were powered by outsized growth in E-Infrastructure Solutions, supported by contributions from the CEC acquisition and solid execution on large, time-sensitive mission-critical work. Additionally, the Transportation Solutions segment benefited from strong performance in the Rocky Mountain market and a strategic shift toward higher-margin projects.
Despite record overall performance, the Building Solutions segment remained a headwind. Revenues increased modestly, but adjusted operating income declined sharply year over year due to tough prior-year comparisons and ongoing affordability pressures that continue to weigh on prospective homebuyers.
Inside Sterling’s Q1 Headlines
Adjusted earnings were $3.59 per share, beating the consensus mark of $2.29 by 56.8%. In the year-ago quarter, the company reported adjusted earnings per share of $1.63.
Sterling Infrastructure, Inc. Price, Consensus and EPS Surprise
Sterling Infrastructure, Inc. price-consensus-eps-surprise-chart | Sterling Infrastructure, Inc. Quote
Revenues of $825.7 million surpassed the consensus estimate of $585 million by 41.1% and increased 92% from $430.9 million in the year-ago quarter. The recently acquired CEC Facilities Group contributed $156.1 million to revenues during the quarter.
STRL Posts Record Profitability as Margins Expand
Operating leverage stood out in the quarter as profit growth outpaced the top line. Gross profit rose to $194.3 million from $94.8 million a year ago, and gross profit margin improved to 23.5% from 22%, an expansion of roughly 150 basis points.
Operating income reached $137.8 million versus $56.1 million in the prior-year quarter. Adjusted EBITDA rose 107% year over year to $166.6 million, and adjusted EBITDA margin improved to 20.2% from 18.6%, up roughly 150 basis points.
Q1 Segmental Discussion of Sterling
E-Infrastructure Solutions
E-Infrastructure Solutions was the clear catalyst, with segment revenues (which consist of 72% of total revenues) jumping to $597.7 million from $218.3 million in the year-ago quarter. Management attributed the performance to strong execution on large mission-critical projects and the added scale from the recently acquired CEC business.
Profitability in the segment also improved meaningfully. Adjusted operating income climbed to $140.3 million from $50.6 million, reflecting the margin profile of mission-critical work and improved mix.
Transportation Solutions
Transportation Solutions posted continued progress, supported by strong activity in the Rocky Mountain market and favorable project timing. Segment revenues (which amounted to 16% of total revenues) increased to $132.9 million from $120.7 million, and operating income rose to $17.1 million from $13.6 million.
Building Solutions
Building Solutions remained the softer spot. Revenues edged up to $95.1 million from $92 million, but operating income declined to $8.3 million from $14.2 million, as affordability constraints continued to weigh on end markets and pressured segment margins.
Sterling's Backlog Surge Lifts 2026 Visibility
Demand indicators strengthened early in 2026, highlighted by sizable awards and expanding future-phase opportunities. Signed backlog ended the quarter at $3.80 billion, while first-quarter book-to-burn ratios were 2.1x for backlog and 3.5x for combined backlog.
Beyond signed work, the company pointed to a growing pipeline of high-probability future phases that now exceeds $1.3 billion. Management also highlighted wins tied to large, multi-year projects, including an initial phase award for a major semiconductor fabrication campus.
Sterling's Cash Generation Supports Buybacks & Liquidity
Cash generation remained a notable support for the balance sheet. Net cash provided by operating activities totaled $165.6 million, up from $84.9 million a year ago. Cash and cash equivalents ended March at $511.9 million, up from $390.7 million at the 2025-end.
Sterling continued returning capital, repurchasing $12.3 million of stock during the quarter at an average price of $305.14 per share. Long-term debt stood at $272.3 million at quarter end against $275.9 million at the 2025-end, leaving the company with financial flexibility to fund growth initiatives and shareholder returns.
STRL Raises 2026 Guidance on Strong Award Activity
Confidence translated into higher full-year targets. Sterling raised 2026 revenue guidance to $3.70-$3.80 billion from its prior range of $3.05-$3.20 billion, reflecting sustained momentum and improved visibility from backlog and awards.
On profitability, diluted EPS is now expected to be $16.50 to $17.15, while adjusted diluted EPS is projected at $18.40 to $19.05, up from the prior adjusted EPS outlook of $13.45-$14.05. The company also lifted EBITDA guidance to $801-$831 million and adjusted EBITDA to $843-$873 million, compared with its earlier adjusted EBITDA forecast of $626-$659 million.
STRL’s Zacks Rank & Peer Releases
Sterling currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vulcan Materials Company (VMC - Free Report) posted exceptional first-quarter 2026 results with adjusted earnings and total revenues beating the Zacks Consensus Estimate and increasing year over year. The quarter’s results reflect benefits realized from the aggregates-led business and consistent focus on its strategic disciplines. Besides, efforts to incorporate top-tier innovation and technology advancements also aided the quarter’s financial performance.
Vulcan reiterated its full-year adjusted EBITDA outlook of $2.4-$2.6 billion and cited a healthy backlog supported by large projects and public construction activity.
EMCOR Group, Inc. (EME - Free Report) reported impressive first-quarter 2026 results, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year on strong demand across its core markets.
EMCOR’s quarterly results reflect continued momentum across key end markets and customers’ confidence in the company’s ability to execute complex and mission-critical projects. Strong activity in sectors like Network and Communications, Institutional, Healthcare, and Water and Wastewater supported growth and drove higher remaining performance obligations.
EMCOR now expects revenues between $18.50 billion and $19.25 billion, and diluted earnings per share are projected in the range of $28.25 to $29.75.
Comfort Systems USA, Inc. (FIX - Free Report) delivered a sharp first quarter of 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year. The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers.
Comfort Systems also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets. The backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion on Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago.