THE WOODLANDS, Texas, May 4, 2026, 17:03 (CDT)
Sterling Infrastructure shares surged roughly 19% in late Monday trading, after the company topped first-quarter profit forecasts and boosted its full-year guidance—fueled in part by strong demand from the data center and semiconductor sectors. The stock last traded at $631.05 as of 5:42 p.m. ET, up sharply from a $529.49 close, according to MarketBeat.
The report’s in focus thanks to Sterling’s role as a listed proxy for investors watching the surge in energy-intensive digital and advanced manufacturing builds—not only the usual highways and overpasses. The company said that mission-critical projects, including data centers, factories, and chip plants where holdups quickly get expensive, accounted for over 90% of its E-Infrastructure backlog at the end of the quarter.
Sterling posted net income attributable to common stockholders of $96.0 million for the quarter ended March 31, translating to $3.09 per diluted share. Revenue jumped 92% to $825.7 million, with $156.1 million of that coming from its newly acquired CEC business.
Sterling posted adjusted earnings of $3.59 a share, trouncing the $2.29 consensus from five Zacks-surveyed analysts. Revenue landed ahead of expectations too, clearing the $585.4 million analysts had penciled in, per the Associated Press.
The company bumped its 2026 revenue target up to a range of $3.70 billion to $3.80 billion, while the adjusted diluted earnings-per-share projection now sits between $18.40 and $19.05. Adjusted EBITDA—earnings before interest, taxes, depreciation and amortization, with select costs stripped out—is expected to land between $843 million and $873 million.
Chief Executive Joe Cutillo described the quarter as an “exceptional start,” noting that bid and award momentum in early 2026 had boosted the company’s visibility. Sterling secured the initial phase of site development for a major multi-year semiconductor fabrication campus. CEC landed multiple large contracts, bringing $1.2 billion to the combined backlog. SEC
E-Infrastructure led the charge, with revenue up 174% to $597.7 million—making up 72% of the company’s total. Transportation Solutions posted a 10% gain, while Building Solutions edged up 3%.
Backlog climbed to $3.80 billion—up a sharp 78% from last year. When including unsigned awards, combined backlog surged 131% to $5.15 billion. That hands management a fatter book of business as it ramps up large-site development and electrical services.
Not every division turned in solid numbers this quarter. Building Solutions saw adjusted operating income plunge 42%. Cutillo flagged ongoing housing affordability issues, calling out “soft market conditions” that could linger. Management also cautioned that the outlook is based on assumptions—like smooth CEC integration and project delivery—that aren’t guaranteed, with market conditions still in flux. SEC
Investors are eyeing construction and electrical infrastructure stocks tied to data-center growth, as the competitive read-through plays out. Back in March, Primoris Services announced plans to acquire PayneCrest Electric for $422 million, boosting its presence in data-center services. Everus Construction Group is next up, expected to release first-quarter numbers after the bell on May 5.
Sterling posted $165.6 million in operating cash flow and wrapped up March holding $511.9 million in cash and equivalents. Share buybacks totaled $12.3 million for the quarter. The company’s March 31 presentation listed net cash at $224 million.
Management will dial in with investors Tuesday at 9 a.m. ET. Top of mind: timeline specifics, the size of CEC’s role, and just how much of the backlog can realistically boost margins.
