Sterling's Momentum Continues with Robust Growth and Share Buyback Initiative

Sterling's FY 2025 revenue jumped 32.5%, EPS up 53%. E-Infrastructure segment revenue more than doubled. Company guides for strong 2026 growth and authorizes $400M share repurchase.

Sterling has delivered a powerful performance for its fourth quarter and full fiscal year 2025, surpassing market expectations by a significant margin. The company's outlook for 2026 remains bullish, supported by a substantial new share repurchase authorization and continued strength in its key growth division.

Full-Year and Q4 Financial Highlights

For the twelve months ending in 2025, Sterling reported a 32.5% increase in revenue. Adjusted earnings per share surged by more than 53% to $10.88. A major milestone was achieved as the company's adjusted EBITDA margin exceeded 20% for the first time. The order backlog expanded dramatically, growing 78% to $3.01 billion, which significantly enhances visibility for future projects.

The fourth quarter was particularly strong. Revenue climbed 69% year-over-year to $755.6 million on an adjusted basis. Profitability metrics showed impressive gains, with adjusted earnings per share advancing 78% to $3.08. Adjusted EBITDA saw a 70% increase, reaching $142.1 million.

E-Infrastructure Segment Powers Performance

The standout contributor to this growth was the E-Infrastructure segment, which more than doubled its revenue in Q4, posting a 123% increase. Large-scale data center projects served as the primary foundation for this expansion. While the Transport division also recorded a respectable 24% revenue gain, the Construction segment experienced a 9% decline.

Management is deploying the robust cash flow generated in 2025, which totaled $440 million for the year. Alongside ongoing investments in operations, the board has authorized a new share repurchase program of up to $400 million. In a separate development, filings from January and February 2026 show insider sales amounting to a total of 6,860 shares.

Upgraded Guidance for Fiscal 2026

Looking ahead, Sterling has provided an optimistic forecast for the current fiscal year. The company anticipates full-year revenue to land between $3.05 billion and $3.20 billion. Adjusted earnings per share are projected to be in the range of $13.45 to $14.05.

The E-Infrastructure business is expected to maintain its rapid pace, with management planning for at least 40% additional revenue growth. For 2026, adjusted EBITDA is forecast to be between $626 million and $659 million. The company enters the new year with a high planned utilization rate, supported by a total project pipeline that is approaching the $4.5 billion mark.