Overview
Sterling Construction Company Inc (NASDAQ:STRL) announced its third‑quarter 2026 results, which surpassed analyst expectations on both earnings per share and revenue, yet the stock declined in after‑hours trading.
Financial Performance
The company posted adjusted earnings per share of $7.58, exceeding the consensus estimate of $6.20 by $1.38. Revenue for the quarter was $1.56 billion, well above the $1.19 billion forecast and representing a 127% increase compared with the same quarter a year earlier. Net income totaled $214.9 million, or $6.92 per diluted share, marking a 133% year‑over‑year rise. Cash flows from operations for the nine months ended September 30, 2026 amounted to $427.1 million.
Segment Performance
The E‑Infrastructure Solutions segment generated $1.30 billion in revenue, up 212% YoY. The CEC electrical business, acquired in September 2025, contributed $425.6 million; on a pro‑forma basis, CEC revenues grew 305% YoY. Transportation Solutions revenue declined 3.1% to $165.2 million, while Building Solutions revenue fell 5.4% to $96.0 million.
Guidance
Sterling raised its full‑year 2026 outlook, now projecting adjusted EPS in the range of $21.70 to $21.96, with a midpoint of $21.83, above the analyst consensus of $20.03. Revenue guidance was increased to $4.63 billion‑$4.73 billion, with a midpoint of $4.68 billion, surpassing the consensus estimate of $4.12 billion.
Backlog and Cash Flow
Signed backlog as of September 30, 2026 reached $4.14 billion, a 61% increase YoY. Combined backlog stood at $6.14 billion, up 78% from the prior year period.
Market Reaction
Despite the earnings beat and raised guidance, Sterling’s shares fell approximately 4.9% in after‑hours trading on Wednesday.
Management Commentary
Chief Executive Officer Joe Cutillo said, "We delivered another exceptional quarter, with adjusted net income increasing 119%, adjusted diluted EPS reaching $7.58, and adjusted EBITDA more than doubling. Revenue increased 127%, including 70% organic growth."