Sterling Infrastructure (STRL) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with revenue up 90% year-over-year to $1.17 billion, driven by both organic growth and acquisitions, with adjusted diluted EPS up 116% to $5.80.

• Net income rose 120% to $155.8 million, with adjusted net income reaching $180.8 million.

• Adjusted EBITDA more than doubled to $256.7 million, with margin expansion to 22%.

• Backlog at quarter-end was $4.33 billion, up 116% year-over-year, with combined backlog (including unsigned awards) at $5.62 billion, up 150%.

• Major acquisitions, including Stone Ridge and CEC, significantly expanded E-Infrastructure Solutions and contributed to revenue and backlog growth.

Financial highlights

• Q2 2026 net income was $155.8 million, up from $71.0 million in Q2 2025; adjusted diluted EPS was $5.80.

• Gross margin improved to 24.8% in Q2 2026 from 23.3% in Q2 2025; operating income increased 110% to $219.3 million.

• Cash and cash equivalents at June 30, 2026 were $464.5 million; net cash position was $181 million.

• Book-to-burn ratios were 1.4x for backlog and 1.3x for combined backlog.

• Share repurchases of $35.3 million in H1 2026 at an average price of $511.18 per share; $339 million remaining under repurchase authorization.

Outlook and guidance

• Raised 2026 guidance: revenue $4.0–$4.15 billion, diluted EPS $17.25–$17.85, adjusted EPS $19.70–$20.30, adjusted EBITDA $891–$916 million.

• E-Infrastructure segment revenue expected to grow over 100% in 2026; legacy site development to grow ~70%.

• Transportation Solutions revenue to decline 7–10% in 2026, with margin expansion of 150–200 basis points.

• Building Solutions revenue to decline modestly, with margins in high single to low double digits.

• CapEx guidance increased to $130–$140 million for 2026.