Sterling Infrastructure, Inc.

Second-quarter revenue increased 90% year over year, and adjusted diluted EPS increased 116% from $2.69 to $5.80. Adjusted EBITDA more than doubled, with margins expanding 150 basis points year over year to 22%. Signed backlog ended at $4.3 billion, up 116% year over year; combined backlog was $5.6 billion, up 150% year over year. For the first half of 2026, cash flow from operating activities was $328 million, capital expenditures were $70 million, and the company ended with $464 million of cash and $284 million of debt. Full-year 2026 guidance was raised to revenue of $4.0 billion to $4.15 billion, diluted EPS of $17.25 to $17.85, adjusted diluted EPS of $19.70 to $20.30, EBITDA of $829 million to $854 million, and adjusted EBITDA of $891 million to $916 million. CapEx guidance was increased to $130 million to $140 million, up $30 million from prior guidance.

Joe Cutillo struck a very upbeat tone, saying demand is accelerating, projects are getting larger and longer, and Sterling is being selective about the work it takes. He emphasized that the company is choosing projects that strengthen customer relationships and margins, and said the pipeline now looks larger than previously anticipated. He repeatedly framed the outlook as multi-year and highlighted mission-critical markets, especially data centers, semiconductors and manufacturing.

Nick Grindstaff focused on backlog, cash generation and balance sheet flexibility. He said first-half operating cash flow was $328 million, CapEx was $70 million, and the company increased full-year CapEx guidance to $130 million to $140 million because of higher revenue expectations and visibility into demand. He also noted $35 million of share repurchases at an average price of $511.18, remaining buyback authorization of $339 million, and quarter-end cash of $464 million versus debt of $284 million for a net cash position of $181 million. He added that the revolver was upsized to $1.5 billion and extended to July 2031, giving more flexibility for growth and M&A.

Analysts focused on why revenue growth in the back half of the year would not step up more despite the much larger backlog, and management said the forecast is conservative, especially for Q4 weather, rather than reflecting any slowdown in demand. Questions also centered on CEC margins, cross-selling between electrical and site development, and the large mix-driven margin impact; management said CEC growth has been faster than expected and that margins should improve as the business shifts away from lower-margin legacy work and toward larger data-center jobs. Another key topic was capacity and M&A: management said electricians are the tightest constraint, the company is adding people and equipment, and it expects more acquisitions to add geographic and labor capacity. Analysts also pressed on data-center policy risk and competition; management said it has not seen schedule impacts or a major influx of large new competitors.