Sterling Q4 Earnings & Revenues Beat Estimates, Stock Up

Sterling Infrastructure, Inc. STRL reported impressive fourth-quarter 2025 results, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

The company’s fourth-quarter results were driven by the exceptional performance of its E-Infrastructure and Transportation segments, both of which delivered substantial growth in revenues and adjusted operating income. This success was fueled by robust organic progress, the successful integration of the CEC acquisition and strong project execution. Furthermore, strength in the Rocky Mountain market and a strategic shift toward higher-margin projects served as a key catalyst for the quarter's strong financial outcomes.

These positive drivers collectively offset the ongoing challenges in the Building Solutions segment due to the persistent slowdown in the residential housing market and the affordability issues faced by homebuyers.

Shares of Sterling rose 6.3% after trading hours yesterday, following the earnings release.

Inside Sterling’s Q4 Headlines

Sterling reported adjusted earnings of $3.08 per share, which topped the Zacks Consensus Estimate of $2.66 by 15.8%. In the year-ago quarter, the company reported adjusted earnings per share of $1.73.

Sterling Infrastructure, Inc. Price, Consensus and EPS Surprise

Sterling Infrastructure, Inc. price-consensus-eps-surprise-chart | Sterling Infrastructure, Inc. Quote

Revenues of $755.6 million also surpassed the consensus mark of $648 million by 16.4% and increased 51.5% from the year-ago figure of $498.8 million. Revenues increased 69% year over year, excluding RHB from the prior-year quarter.

In the fourth quarter of 2025, the company’s adjusted EBITDA rose 70% year over year to $142.1 million, reflecting strong operational performance. Gross margin expanded 30 basis points year over year to 21.7%, setting a record for the fourth quarter. The improvement reflects an ongoing shift toward higher-margin service offerings and a more favorable revenue mix.

Segmental Discussion of Sterling

E-Infrastructure Solutions: Revenues (which consist of 69% of total revenues) from the segment were $521 million, up from the year-ago figure of $234 million. Adjusted operating income was $115.4 million, up from $60.3 million in the year-ago quarter.

Transportation Solutions: For the reported quarter, the segment’s revenues (which amounted to 20% of total revenues) were $152.7 million, down 12.6% from $174.7 million in the year-ago period. Adjusted operating income was $18.6 million, indicating growth from the $9.2 million reported in the year-ago period.

Building Solutions: This segment’s revenues totaled $81.9 million, down 9.1% from $90.1 million in the year-ago period. Adjusted operating income of $8.1 million was down 35.7% from $12.6 million in the year-ago period.

Sneak Peek at Sterling’s Financials

At the end of the fourth quarter, cash equivalents were $390.7 million, down from $664.2 million at the end of 2024. Long-term debt was $275.9 million at the fourth-quarter end against $289.9 million at the 2024-end.

As of 2025, net cash provided by operating activities was $440 million, down from $497.1 million in the prior-year period.

STRL’s 2025 Highlights

Total revenues increased to $2.49 billion from $2.12 billion in 2024. Adjusted net income rose to $336.7 million compared with $220.7 million in the prior year.

Adjusted EPS improved to $10.88 from $7.09 reported in 2024. Adjusted EBITDA advanced to $503.8 million from $343.8 million a year earlier. Sterling delivered a strong financial performance in 2025, reflecting solid execution and operating leverage across its platform.

STRL’s Guidance for 2026

For 2026, Sterling projects revenues in the range of $3.05 billion to $3.20 billion, ahead of the Zacks Consensus Estimate of $2.83 billion. Adjusted net income is expected to be between $422 million and $441 million.

Adjusted earnings per share (EPS) are projected to be in the range of $13.45 to $14.05, higher than our estimate of $12.25. Sterling also anticipates adjusted EBITDA to be between $626 million and $659 million for the year.

STRL’s Zacks Rank & Peer Releases

Sterling currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masco Corporation MAS posted mixed fourth-quarter 2025 results, wherein the adjusted earnings surpassed the Zacks Consensus Estimate, while net sales missed the same. Both metrics tumbled on a year-over-year basis.

Masco’s fourth-quarter performance was largely in line with expectations as the company operated through a changing geopolitical and economic backdrop. It began restructuring actions to simplify operations, lower costs and reduce headcount. Masco also announced the integration of Liberty Hardware into the Delta Faucet business to better align brands and capabilities. For 2026, Masco expects demand across global repair and remodel markets to remain steady. Sales are projected to be flat to slightly higher on a currency-adjusted basis, with performance likely to outpace the broader market.

Jacobs Solutions Inc. J reported stellar first-quarter fiscal 2026 (ended Dec. 26, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and growing year over year.

Jacobs' quarterly results reflect stronger performance in the life sciences, data center, semiconductor, water and transportation sectors, alongside increased demand for digital consulting services, bolstering the quarter’s uptrend. With the announcement of acquiring the remaining stake in PA Consulting and favorable market fundamentals, Jacobs is optimistic about its performance in the remaining fiscal 2026. Adjusted net revenues are now expected to grow year over year between 6.5% and 10%, with adjusted EPS expected to be between $6.95 and $7.30.

Weyerhaeuser Company WY reported mixed fourth-quarter 2025 results, wherein its earnings topped the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both top and bottom lines decreased.

Weyerhaeuser’s fourth-quarter results were impacted by persistent market headwinds across key markets, characterized by softened pricing and volatile demand dynamics. Despite these challenges, the company continued to optimize its portfolio through disciplined, capital-efficient transactions. Looking ahead, Weyerhaeuser is well-positioned to navigate the current environment, supported by a strong balance sheet and flexible capital allocation framework as it executes its refreshed 2030 strategy to drive growth and capitalize on durable long-term demand fundamentals.

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