Will U.S. Onshoring and Chip Megaprojects Drive Sterling's Growth?

Sterling Infrastructure, Inc. STRL is increasingly aligned with the powerful shift toward U.S. onshoring and semiconductor megaproject development. As federal incentives and private capital flow into advanced manufacturing, data centers and chip facilities, Sterling’s focus on mission-critical infrastructure uniquely positions it to participate in these long-duration, high-value opportunities. The company’s expanding capabilities in complex site development and electrical infrastructure strengthen this alignment, particularly as project scopes grow more technically demanding.

In the third quarter of 2025, the company underscored the growing importance of its E-Infrastructure Solutions segment, which serves data centers, manufacturing facilities and other mission-critical projects. Revenues from this segment (representing roughly 60% of total revenues) reached $417.1 million, reflecting approximately 58% growth from the year-ago period, highlighting strong demand and the increasing scale of customer investments. The company indicated that data center work remains a major driver, but it also highlighted a substantial pipeline tied to upcoming semiconductor and manufacturing megaprojects expected in 2026 and 2027.

Sterling emphasized that U.S. chip-plant development continues to face permitting and utility-related delays, often stretching timelines well beyond pre-pandemic norms. Even so, these projects require extensive underground utilities, large-site preparation and integrated electrical services, areas in which Sterling is deliberately expanding capacity, aided by its recent CEC acquisition. 

With visibility into a sizable pool of future phase work and ongoing discussions with customers planning multiyear capital deployments, Sterling appears increasingly positioned to benefit from America’s push to bring semiconductor and advanced manufacturing production back onshore. As these megaprojects advance, they could become a significant catalyst for Sterling’s growth trajectory.

Key Competitors Positioned for U.S. Onshoring and Chip Megaprojects

Two notable competitors operating in markets closely aligned with Sterling’s onshoring and semiconductor opportunities are Quanta Services PWR and Jacobs Solutions J. Both companies participate in large-scale, mission-critical infrastructure projects and stand to benefit from the same structural trends driving Sterling’s growth prospects.

Quanta is a major player in electrical infrastructure, utility construction and grid modernization — critical components for semiconductor fabs and advanced manufacturing sites that require massive power capacity and complex underground electrical networks. Its strong presence in high-voltage transmission and substation work positions Quanta to compete for portions of the electrical scope tied to chip-plant megaprojects.

Jacobs, with expertise in engineering, design and program management, has long been involved in semiconductor facility planning, cleanroom environments and advanced manufacturing projects. As chipmakers expand U.S. footprints, Jacobs remains well positioned to capture early-stage design, environmental and technical services associated with these megaprojects.

Both firms operate in overlapping mission-critical markets, making them meaningful competitors to Sterling as onshoring accelerates.

STRL’s Price Performance, Valuation and Estimates

Shares of this Texas-based infrastructure services provider have surged 20.6% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 0.7% fall.

Price Performance

STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 30.79, as shown in the chart below.

P/E (F12M)

For 2025 and 2026, STRL’s earnings estimates have remained unchanged in the past 60 days at $9.57 and $10.98 per share, respectively. The revised estimated figures indicate 56.9% and 14.7% year-over-year growth, respectively.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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