Sterling Infrastructure Inc. ( STRL ) announced on Wednesday that its board of directors has authorized a new share repurchase program of up to $400 million over the next two years.

The new authorization takes effect immediately and replaces the company’s previous program, which was scheduled to expire on December 5, 2025.

At the time of replacement, approximately $81 million remained unused under the prior authorization.

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Flexible Repurchase Approach

Sterling said that the timing and amount of repurchases will be determined by management based on market conditions and other factors.

The company may repurchase shares through open-market transactions, privately negotiated agreements, or other methods allowed under applicable laws.

The program does not obligate Sterling to repurchase any specific amount of shares, and the board reserves the right to modify, suspend, or terminate the authorization at any time.

CEO Cites Confidence in Long-Term Outlook

“This expanded share repurchase authorization reflects our continued confidence in Sterling’s outlook,” said Joe Cutillo, Sterling’s Chief Executive Officer.

“With our strong balance sheet and cash flow, we are well-positioned to pursue a balanced capital allocation strategy that supports our investments in organic growth and strategic acquisitions, while returning capital to shareholders. We will continue to pursue an opportunistic approach to share repurchases.”

Recent Earnings

Earlier this month, Sterling reported stronger-than-expected third-quarter results, driven by solid performance across its key operating segments.

Earnings came in at $3.48 per share, surpassing analysts’ estimates of $2.48 and rising from $1.97 a year earlier. Revenue grew to $689.02 million from $593.7 million in the prior-year quarter, exceeding the consensus estimate of $621.27 million.

The company also raised its full-year 2025 guidance, projecting adjusted earnings per share of $10.35 to $10.52, up from a prior range of $9.43 to $9.71 and well ahead of Wall Street’s $8.10 consensus.

Sterling now expects revenue between $2.375 billion and $2.390 billion, compared with previous guidance of $2.23 billion to $2.29 billion.

Price Action: STRL shares were trading higher by 2.44% to $390.52 at last check Wednesday.

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