Con Dig (05-Nov-25) Texas-based civil contractor Sterling Infrastructure, Inc. reported record third-quarter 2025 results, driven by strong growth in its E-Infrastructure and Transportation Solutions segments and margin expansion across the business.
The company posted revenue of $689 million, up 32% year over year excluding the impact of its deconsolidated RHB joint venture. Net income rose 50% to $92.1 million, or $2.97 per diluted share, while adjusted net income climbed 57% to $107.7 million, or $3.48 per share—both third-quarter records. EBITDA increased 42% to $143.1 million, with adjusted EBITDA up 47% to $155.8 million.
CEO Joe Cutillo said the results reflect the company’s continued focus on higher-margin, mission-critical projects.
“Our outstanding third quarter results reflect the strength of our portfolio,” Cutillo said. “Gross margins reached 25%, a new company high, as we’ve shifted toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 47%.”
The company’s backlog reached $2.58 billion as of September 30, up 34% on a same-store basis, while combined backlog—including unsigned awards—grew 44% to $3.44 billion, surpassing $3 billion for the first time.
Sterling’s E-Infrastructure Solutions division led performance with 58% revenue growth and 57% adjusted operating income growth, driven by major data center and manufacturing projects. Transportation Solutions revenue rose 10%, with operating income up 40%, as demand remained strong in the Rocky Mountain and Arizona regions. The company continues to scale back lower-margin Texas highway work to improve profitability.
The Building Solutions segment saw a 1% revenue decline, reflecting continued weakness in residential construction amid affordability pressures.
During the quarter, Sterling completed its acquisition of CEC, contributing $41 million in revenue and $475 million in backlog, and enhancing the company’s capabilities in electrical infrastructure.
Cutillo said Sterling remains confident heading into year-end.
“We believe 2025 will be another record year as bottom-line growth continues to outpace top-line growth,” he said. “We’re raising our guidance to reflect strong year-to-date results and solid visibility into future opportunities.”
Sterling now expects 2025 revenue between $2.375 billion and $2.39 billion, with net income of $270–275 million and adjusted EBITDA of up to $491 million.