The Top 5 Analyst Questions From Sterling's Q2 Earnings Call

Sterling delivered Q2 results that surpassed Wall Street’s revenue and non-GAAP profit expectations, driven by strong demand in its E-Infrastructure Solutions and Transportation segments. Management attributed the quarter’s performance to rapid growth in mission-critical data center projects, a favorable shift toward higher-margin services, and strong execution in project management. CEO Joseph Cutillo highlighted a 29% increase in E-Infrastructure revenue and noted, “Data centers are now 62% of our total backlog and E-Infrastructure.” The company’s ability to execute large, complex projects ahead of schedule was a recurring theme in management’s remarks.

Is now the time to buy STRL? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Sterling’s Q2 Earnings Call

• Michael Louie D DiPalma (William Blair) asked if Sterling can win large data center projects in Texas and the Northwest, and how quickly this expansion could occur. CEO Joseph Cutillo responded that wins in Texas could materialize by year-end, with the Northwest more likely in 12–18 months.
• Brent Edward Thielman (D.A. Davidson) questioned margin sustainability in E-Infrastructure as project complexity increases. Cutillo said larger, multi-phase projects allow for greater productivity and margin expansion, especially as clients seek faster, more reliable delivery.
• Julio Alberto Romero (Sidoti) inquired about pricing power and competitive dynamics as projects become more complex. Cutillo said Sterling receives a modest premium for reliability but focuses on productivity gains rather than aggressive pricing, and that integrating CEC will further differentiate the company.
• Brent Edward Thielman (D.A. Davidson) followed up on the timing of e-commerce project contributions. Cutillo noted execution has begun on early phases, with most projects ramping in the back half of the year and into 2026, and that project scale is increasing.
• Adam Robert Thalhimer (Thompson, Davis) asked about managing mega project timing and segment allocation. Cutillo explained that improved project management and asset utilization are driving higher margins, with more E-Infrastructure work coming from transportation subsidiaries.

Catalysts in Upcoming Quarters

In the upcoming quarters, our analysts will be watching (1) Sterling’s ability to secure and execute large data center and e-commerce projects in new markets such as Texas, (2) progress on closing and integrating the CEC Facilities Group acquisition, and (3) whether margin expansion in E-Infrastructure and Transportation can offset ongoing softness in Building Solutions. The evolution of the project pipeline and any further acquisition activity will also be important markers.

Sterling currently trades at $304.51, up from $272.50 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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