$STRL · STERLING INFRASTRUCTURE, INC.
Sterling Infrastructure filed its Q3 FY2026 10-Q, reporting revenue of $1.564B (+127% YoY), net income attributable to common stockholders of $214.9M, and diluted EPS of $6.92. The E-Infrastructure Solutions segment drove nearly all growth, surging from $417M to $1.30B in quarterly revenue. Combined Backlog swelled to $6.14B, nearly double the $3.31B at year-end 2025, with a nine-month book-to-burn ratio of 1.9X.
- Q3 FY2026 revenue of $1.564B, up 127% YoY from $689M, driven by E-Infrastructure Solutions which grew to $1.30B from $417M.
- Q3 diluted EPS of $6.92 vs $2.97 a year ago; nine-month diluted EPS of $15.01 vs $6.56.
- Combined Backlog (including Unsigned Awards) reached $6.14B at September 30, 2026, up from $3.31B at December 31, 2025.
- Gross margin compressed slightly to 24.1% in Q3 from 24.7% a year ago, while nine-month gross margin improved to 24.2% from 23.5%.
- Cash and equivalents fell to $216.9M from $390.7M at year-end 2025; $107.3M spent on share repurchases in the nine-month period.
Extended-hours trading shows STRL at $357.50, down 8.07% from the regular close of $388.87, suggesting profit-taking despite the massive revenue beat. The stock had already rallied 5.81% during the regular session ahead of the filing.
Revenue more than doubled year-over-year while backlog nearly doubled in nine months, confirming Sterling as a prime beneficiary of the AI/data-center infrastructure super-cycle.
Sterling's E-Infrastructure segment is riding the same hyperscale data-center capex wave benefiting peers like Quanta Services and MasTec, with revenue more than tripling YoY in that segment alone.
Gross margin in E-Infrastructure Solutions, the primary growth engine, faces pressure from project mix shifts and ramp-up costs on new large-scale data-center contracts. Unsigned Awards of $2.00B carry execution risk if not converted to formal contracts.