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Can Sterling's Backlog Explosion Fuel Another EPS Breakout in 2026?
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Key Takeaways
Sterling Q1 revenues jumped 92% and adjusted EPS surged 120% on AI infrastructure demand.
STRL backlog climbed 78% to $3.8B, with visible work nearing $6.5B, including future phases.
Sterling raised its 2026 adjusted EPS outlook to $18.40-$19.05 amid strong data center activity.
Sterling Infrastructure, Inc. (STRL - Free Report) is proving that its AI and mission-critical infrastructure strategy is firing on all cylinders. The company delivered a blockbuster first-quarter 2026 performance, with revenues soaring 92% year over year to $825.7 million and adjusted EPS jumping 120% to $3.59. Yet the biggest headline may be the massive expansion in backlog and future work visibility, which could set the stage for another earnings breakout ahead.
Sterling exited the first quarter of 2026 with a signed backlog of $3.8 billion, up 78% year over year, while combined backlog surged 131% to $5.15 billion. More importantly, management highlighted an additional $1.3 billion in high-probability future phase opportunities, taking the total visible work pipeline close to $6.5 billion. Such momentum reflects booming demand for AI-driven data center campuses, semiconductor fabrication projects and other mission-critical infrastructure developments.
The E-Infrastructure segment remains the key growth engine. The segment’s revenues skyrocketed 174% in the first quarter of 2026 to $597.7 million, fueled by hyperscale data center activity and contributions from the recently acquired CEC business. Sterling also secured the first phase of a massive semiconductor fabrication campus project, opening a potentially multi-decade growth avenue beyond data centers. Management expects margins to improve further as larger, more complex projects enhance productivity and vertical integration benefits. Sterling now forecasts adjusted EPS between $18.40 and $19.05 for 2026, implying roughly 72% growth year over year.
With AI infrastructure spending accelerating, backlog visibility expanding and operational execution remaining strong, Sterling appears well-positioned to sustain its remarkable earnings momentum through 2026 and beyond.
Earnings Estimate Revision for STRL
STRL’s earnings estimates for 2026 and 2027 have moved upward in the past seven days to $16.81 and $21.30 per share, respectively. The estimated figures for 2026 and 2027 imply year-over-year growth of 54.5% and 26.7%, respectively.
Image Source: Zacks Investment Research
Sterling, Primoris Services or Quanta: Who Rules the AI Build Boom?
Sterling is rapidly emerging as one of the biggest beneficiaries of the AI-driven data center construction boom, outpacing many peers in growth and margin expansion, including Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) .
Quanta remains the scale leader in AI infrastructure, leveraging surging electricity demand from hyperscale data centers and grid modernization projects. Quanta’s record $44 billion backlog and broad utility exposure provide unmatched visibility, though its growth profile appears steadier compared with Sterling’s explosive expansion.
Meanwhile, Primoris Services is also benefiting from growing data center and power infrastructure spending, but near-term execution challenges in renewables and weaker Energy segment performance pressured earnings and backlog trends. Primoris Services reported a slight sequential backlog decline to $11.6 billion and softer 2026 guidance, even as management remains optimistic about long-term demand tied to utilities, natural gas generation and data centers.
STRL Stock’s Price Performance & Valuation Trend
Shares of this Texas-based infrastructure services provider soared 175.9% year to date, significantly outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 45.86, as shown in the chart below.
View the Zacks #1 Rank List
Image: Bigstock
Can Sterling's Backlog Explosion Fuel Another EPS Breakout in 2026?
Key Takeaways
Sterling Infrastructure, Inc. (STRL - Free Report) is proving that its AI and mission-critical infrastructure strategy is firing on all cylinders. The company delivered a blockbuster first-quarter 2026 performance, with revenues soaring 92% year over year to $825.7 million and adjusted EPS jumping 120% to $3.59. Yet the biggest headline may be the massive expansion in backlog and future work visibility, which could set the stage for another earnings breakout ahead.
Sterling exited the first quarter of 2026 with a signed backlog of $3.8 billion, up 78% year over year, while combined backlog surged 131% to $5.15 billion. More importantly, management highlighted an additional $1.3 billion in high-probability future phase opportunities, taking the total visible work pipeline close to $6.5 billion. Such momentum reflects booming demand for AI-driven data center campuses, semiconductor fabrication projects and other mission-critical infrastructure developments.
The E-Infrastructure segment remains the key growth engine. The segment’s revenues skyrocketed 174% in the first quarter of 2026 to $597.7 million, fueled by hyperscale data center activity and contributions from the recently acquired CEC business. Sterling also secured the first phase of a massive semiconductor fabrication campus project, opening a potentially multi-decade growth avenue beyond data centers. Management expects margins to improve further as larger, more complex projects enhance productivity and vertical integration benefits. Sterling now forecasts adjusted EPS between $18.40 and $19.05 for 2026, implying roughly 72% growth year over year.
With AI infrastructure spending accelerating, backlog visibility expanding and operational execution remaining strong, Sterling appears well-positioned to sustain its remarkable earnings momentum through 2026 and beyond.
Earnings Estimate Revision for STRL
STRL’s earnings estimates for 2026 and 2027 have moved upward in the past seven days to $16.81 and $21.30 per share, respectively. The estimated figures for 2026 and 2027 imply year-over-year growth of 54.5% and 26.7%, respectively.
Image Source: Zacks Investment Research
Sterling, Primoris Services or Quanta: Who Rules the AI Build Boom?
Sterling is rapidly emerging as one of the biggest beneficiaries of the AI-driven data center construction boom, outpacing many peers in growth and margin expansion, including Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) .
Quanta remains the scale leader in AI infrastructure, leveraging surging electricity demand from hyperscale data centers and grid modernization projects. Quanta’s record $44 billion backlog and broad utility exposure provide unmatched visibility, though its growth profile appears steadier compared with Sterling’s explosive expansion.
Meanwhile, Primoris Services is also benefiting from growing data center and power infrastructure spending, but near-term execution challenges in renewables and weaker Energy segment performance pressured earnings and backlog trends. Primoris Services reported a slight sequential backlog decline to $11.6 billion and softer 2026 guidance, even as management remains optimistic about long-term demand tied to utilities, natural gas generation and data centers.
STRL Stock’s Price Performance & Valuation Trend
Shares of this Texas-based infrastructure services provider soared 175.9% year to date, significantly outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 45.86, as shown in the chart below.
Image Source: Zacks Investment Research
Sterling stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.