Sterling Infrastructure — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenues reached $1.56 billion in Q3 2026, a 127% increase year-over-year.
• Net income was $214.9 million ($6.92 per diluted share), representing a 133% year-over-year increase.
• EBITDA totaled $320.8 million, up 124% year-over-year.
• Adjusted net income was $235.4 million ($7.58 per diluted share), an increase of 119% and 118% respectively year-over-year.
• Adjusted EBITDA was $337.8 million, up 117% year-over-year.
• Cash flows from operations for the nine months ended September 30, 2026, totaled $427.1 million.
• Cash and cash equivalents stood at $216.9 million as of September 30, 2026.
• Share repurchases totaled $107.3 million for the nine months ended September 30, 2026.
• Total assets increased to $3.48 billion as of September 30, 2026, from $2.63 billion as of December 31, 2025.
• Total liabilities were $1.93 billion as of September 30, 2026, compared to $1.53 billion at year-end 2025.
• Long-term debt decreased to $95.1 million as of September 30, 2026, from $275.9 million at December 31, 2025.

Guidance and Future Outlook:

• Raised full-year 2026 guidance to revenue of $4.63 billion to $4.73 billion.
• Updated full-year 2026 net income guidance to $596 million to $604 million.
• Updated full-year 2026 diluted EPS guidance to $19.16 to $19.42.
• Updated full-year 2026 EBITDA guidance to $905 million to $916 million.
• Updated full-year 2026 adjusted net income guidance to $675 million to $683 million.
• Updated full-year 2026 adjusted diluted EPS guidance to $21.70 to $21.96.
• Updated full-year 2026 adjusted EBITDA guidance to $970 million to $981 million.
• Management projects 88% year-over-year revenue growth, 101% growth in adjusted diluted EPS, and 94% growth in adjusted EBITDA at the midpoint of the new guidance.
• Scoped work including signed backlog, unsigned awards, and next phases in design represents nearly $8 billion, up approximately 90% year-over-year.
• Mission-critical projects, including data center campuses, manufacturing, and semiconductor facilities, represent approximately 95% of the E-Infrastructure backlog opportunity.
• Management expects market conditions in Building Solutions to remain challenging through 2026 due to housing affordability issues but remains optimistic about long-term growth opportunities.

Business Segments and Product Lines:

• E-Infrastructure Solutions:
  • Revenues of $1.30 billion, up 212% year-over-year.
  • Operating income of $294.5 million, up 176% year-over-year.
  • Operating margin of 22.6%, down from prior year due to higher CEC contribution.
  • Adjusted operating income of $302.4 million, up 171% year-over-year.
  • Adjusted operating margin of 23.2%.
  • Site Development operations revenues increased 133% year-over-year.
  • CEC electrical business contributed $425.6 million in Q3 2026 (acquired September 1, 2025), compared to $41.4 million in the partial ownership period of Q3 2025.
  • On a pro forma basis assuming full quarter ownership in Q3 2025, CEC revenues increased 305% year-over-year.
  • CEC operating margin improved both year-over-year and sequentially.
  • Signed backlog, unsigned awards, and next phases in design for E-Infrastructure approach $7 billion, an increase of more than 130% year-over-year.
  • CEC has the potential to generate over $1 billion in revenue in 2026.
• Transportation Solutions:
  • Revenues of $165.2 million, a 3.1% decline year-over-year, reflecting resource reallocation toward E-Infrastructure.
  • Operating income of $30.2 million, up 24.0% year-over-year.
  • Operating margin of 18.3%.
  • Adjusted operating income of $32.6 million, up 22.2% year-over-year.
  • Adjusted operating margin of 19.7%, up 410 basis points year-over-year.
• Building Solutions:
  • Revenues of $96.0 million, a 5.4% decline year-over-year.
  • Operating income of $5.7 million, down 47.3% year-over-year.
  • Operating margin of 5.9%.
  • Adjusted operating income of $7.7 million, down 38.7% year-over-year.
  • Adjusted operating margin of 8.0%.

Market and Competitive Landscape:

• Demand for CEC's electrical services remains extremely strong.
• Demand for E-Infrastructure Solutions remains strong with expanding multi-year visibility.
• Housing affordability continues to weigh on demand for Building Solutions.
• Signed Backlog at September 30, 2026, was $4.14 billion, up 61% year-over-year.
• Combined Backlog (including $2.00 billion in Unsigned Awards) was $6.14 billion, up 78% year-over-year.
• Third quarter 2026 book-to-burn ratios were 0.9x for Backlog and 1.4x for Combined Backlog.

Risks and Challenges:

• Market conditions in Building Solutions are expected to remain challenging through 2026.
• Forward-looking statements involve risks including the timing of project conversion to revenue, scope changes, capital allocation, and potential future acquisitions.
• Actual results may differ materially from forward-looking statements due to factors listed in the "Risk Factors" section of SEC filings.

Management Commentary and Tone:

• CEO Joe Cutillo described the quarter as "exceptional," citing strong strategy and disciplined execution.
• Management expressed confidence in the outlook, noting momentum across the business and deepening customer relationships.
• Management highlighted the ability to deliver significant profitable growth well beyond 2026.
• CEC is scaling to capitalize on strong demand, with revenue quadrupling on a pro forma year-over-year basis.
• Transportation Solutions adjusted operating margin expanded significantly due to disciplined project selection.

Other Key Points:

• CEC electrical business was acquired on September 1, 2025.
• The company operates in the United States across Southern, Northeastern, Mid-Atlantic, Rocky Mountain regions, and the Pacific Islands.
• E-Infrastructure Solutions provides site development and mission-critical electrical services for data centers, semiconductor fabrication, and manufacturing.
• Transportation Solutions includes infrastructure projects for highways, roads, bridges, airports, ports, rail, and storm drainage.
• Building Solutions includes residential and commercial concrete foundations and related services.
• The company maintains a commitment to sustainability and responsible operations.
• A conference call was held on October 29, 2026, to discuss results.
• The press release includes reconciliations for Non-GAAP measures including Adjusted Net Income and Adjusted EBITDA.