Sterling Infrastructure Q4 EPS Up 78%, Backlog Jumps to $3.3B
Sterling Infrastructure posted Q4 adjusted EPS of $3.08, a 78% increase, and adjusted EBITDA of $142 million, up 70%. Signed backlog rose 78% to $3.0 billion and combined backlog climbed 81% to $3.3 billion, and 2026 guidance targets over 25% revenue growth to $3.05–3.2 billion with $626–659 million in adjusted EBITDA.
1. Q4 Financial Performance
In the fourth quarter, revenue increased 69% driven by 123% growth in E-Infrastructure Solutions and 24% growth in Transportation Solutions, with organic growth of 36%. Adjusted EPS rose 78% to $3.08, adjusted EBITDA grew 70% to $142 million, and operating cash flow reached $186 million.
2. Backlog and Pipeline Growth
Signed backlog ended the quarter at $3.0 billion, up 78% year over year, while combined backlog climbed 81% to $3.3 billion. Sterling also reported $301 million of unsigned awards and over $1 billion in future-phase pipeline opportunities, providing visibility to a total opportunity pool of $4.5 billion.
3. 2026 Guidance and Business Outlook
Management initiated 2026 guidance calling for revenue of $3.05–3.2 billion, adjusted EPS of $13.45–14.05 and adjusted EBITDA of $626–659 million, all implying at least 25% growth. E-Infrastructure Solutions is expected to grow over 40% with margins of 23%–24%, while Transportation Solutions targets low- to mid-single-digit growth and margin expansion as the federal funding cycle continues.
4. Capital Allocation and Balance Sheet
Sterling invested $77 million in CapEx and $482 million in acquisitions in 2025, repurchased $74 million of stock at an average price of $168.72 and $26 million in Q4 at $310.09, leaving $374 million remaining authorization. The company ended the quarter with $391 million in cash, $291 million of debt and an undrawn $150 million revolving credit facility.