Overview

* Sterling Q2 revenue rises 21% yr/yr, beating analyst expectations, per LSEG data

* Adjusted net income for Q2 increases 39%, adjusted EBITDA up 35%

* Company raises full-year 2025 guidance

Outlook

* Sterling raises 2025 revenue guidance to $2.10 bln-$2.15 bln

* Company expects 2025 adjusted EBITDA of $438 mln-$453 mln

* Sterling sees 2025 adjusted EPS of $9.21 to $9.47

* Company anticipates softness in Building Solutions market to persist

Result Drivers

* E-INFRASTRUCTURE GROWTH - Revenue from E-Infrastructure Solutions grew 29%, driven by large, mission-critical projects such as data centers and manufacturing

* TRANSPORTATION SOLUTIONS - Revenue increased 24% in Transportation Solutions, with solid demand in Rocky Mountain and Arizona regions

* BUILDING SOLUTIONS DECLINE - Revenue in Building Solutions fell 1% due to housing market slowdown impacting residential business

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $614.47 $554.40

Revenue mln mln (4

Analysts

)

Q2 Gross 23.3%

Margin

Q2 $116.20

EBITDA mln

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction & engineering peer group is "buy."

* Wall Street's median 12-month price target for Sterling Infrastructure Inc ( STRL ) is $254.00, about 3.6% below its August 1 closing price of $263.05

* The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)