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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsSterling Construction Company is now Sterling Infrastructure, Inc. (NYSE: STRL). To assess its latest results, start with the company’s Q2 2026 Form 10-Q, then use the earnings release for management’s adjusted measures and outlook and the 2025 Form 10-K for definitions and longer-term risks. For the quarter ended June 30, 2026, Sterling reported GAAP diluted EPS of $5.00 and adjusted diluted EPS of $5.80; the two figures use different accounting bases. Its reported $4.33 billion backlog excludes $1.28 billion of unsigned awards, which Sterling includes only in its separate $5.62 billion combined-backlog figure.
Start with the latest filing, then verify the earnings release
The company’s current name is Sterling Infrastructure, Inc.; older material may call it Sterling Construction Company. Its ticker is NYSE: STRL. Sterling reports three operating segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions.
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Open Sterling’s Investor Relations Financials archive and locate the latest quarterly and annual materials.
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Read the latest Form 10-Q for GAAP results, segment performance, cash flow, debt, and the current backlog definition and table. The latest filing in the materials cited here covers the quarter ended June 30, 2026.
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Use the Form 10-K for the year ended December 31, 2025 to understand Sterling’s business, accounting, backlog, and recurring risk disclosures.
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Read the earnings release for management’s adjusted metrics and guidance. Check its non-GAAP reconciliations against the filed GAAP statements before comparing adjusted figures.
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Before comparing periods, check for acquisitions, deconsolidations, and definition changes that alter the reporting basis.
The source materials are Sterling Infrastructure’s 2026 second-quarter Form 10-Q, August 3, 2026 earnings release, 2025 Form 10-K, and Investor Relations Financials archive.
What Sterling reported for Q2 2026
For the three months ended June 30, 2026, Sterling reported GAAP diluted EPS of $5.00, up from $2.31 in the prior-year quarter. For the first six months of 2026, GAAP diluted EPS was $8.09, compared with $3.59 in the first half of 2025. The August 3 earnings release separately reported adjusted diluted EPS of $5.80 for Q2, revenue growth of 90%, approximately 50% organic growth, and adjusted EBITDA margins of 22%. Adjusted EPS and adjusted EBITDA margin are non-GAAP measures; they are not interchangeable with GAAP earnings or margins.
Sterling raised its full-year 2026 expectations after the Q2 report. These are company guidance, not completed results:
| Measure | 2026 company guidance after Q2 | Basis |
|---|---|---|
| Revenue | $4.00 billion–$4.15 billion | Company expectation |
| Diluted EPS | $17.25–$17.85 | GAAP |
| Adjusted diluted EPS | $19.70–$20.30 | Non-GAAP; check the release’s reconciliation when comparing |
Consolidated growth includes acquired businesses, so it should not be read as entirely organic. Sterling’s release discusses contributions from CEC and Stone Ridge; the Q2 filing also identifies substantial acquired electrical and mechanical work in E-Infrastructure Solutions. Comparisons with 2025 require another adjustment: RHB was deconsolidated on December 31, 2024, and its revenue and backlog are excluded from Sterling’s consolidated 2025 results and later backlog figures.
How to read Sterling’s backlog
Sterling’s backlog is based on remaining performance obligations (RPOs): revenue the company expects to recognize in the future from contract commitments. At June 30, 2026, the company reported $4.23 billion of RPOs and $100.0 million of master service agreements (MSAs), totaling $4.33 billion in backlog. It reported another $1.28 billion in unsigned awards. Sterling’s term “combined backlog” adds those unsigned awards to backlog, producing $5.62 billion at that date.
| June 30, 2026 measure | Amount | How to interpret it |
|---|---|---|
| Remaining performance obligations | $4.23 billion | Future revenue expected from contract commitments |
| MSAs | $100.0 million | Included in Sterling’s stated backlog total |
| Backlog | $4.33 billion | RPOs plus MSAs |
| Unsigned awards | $1.28 billion | Apparent-low-bid contracts not yet formally executed by the customer |
| Combined backlog | $5.62 billion | Backlog plus unsigned awards |
The six-month book-to-burn ratio through June 30, 2026 was 1.7x for backlog and 2.3x for combined backlog. These ratios describe bookings relative to work recognized over that period; they do not guarantee that awards will become executed contracts or that future results will match the ratio.
Unsigned awards are not signed contracts
Sterling excludes apparent-low-bid work from backlog until the customer formally executes the contract. The $1.28 billion in unsigned awards therefore represents a less certain category than contracted backlog. Combined backlog is useful as a view of potential work, but it should not be described as signed backlog.
Backlog is not a revenue or profit guarantee
Sterling says backlog contracts are typically completed over six to 36 months, but the measure does not promise when revenue will be recognized or what profit a project will earn. Some Building Solutions revenue recognized at a point in time upon completion is never included in backlog. At December 31, 2025, substantially all backlog was on fixed-unit-price or lump-sum terms. Estimating errors, differing site conditions, input-cost changes, subcontractor execution, delays, and contract modifications can all affect realized economics.
Sterling reported that the gross margin embedded in year-end 2025 backlog was 17.8%, compared with 16.7% at year-end 2024. This is the company-defined margin on backlog at those dates, not a forecast of consolidated gross margin.
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Compare backlog periods only on a consistent basis
At December 31, 2025, Sterling reported $3.01 billion of backlog and $300.7 million of unsigned awards, or $3.31 billion of combined backlog. Its full-year 2025 book-to-burn ratios were 1.6x for backlog and 1.7x for combined backlog. The Q2 2026 filing says Sterling expanded the earlier backlog measure to include estimated orders from MSAs following the Stone Ridge acquisition. That change in definition, along with acquisitions and the RHB deconsolidation, means headline comparisons across dates are not automatically like-for-like.
Use segment results to find what is driving performance
Sterling’s three segments face different demand cycles, so consolidated growth alone can conceal diverging trends. Compare revenue growth with operating income and margin, organic versus acquired contribution, backlog composition and margin, and customer or end-market concentration.
| Segment | Q2 2026 performance | Context to investigate |
|---|---|---|
| E-Infrastructure Solutions | Revenue increased 192% year over year | Both existing operations and acquired electrical and mechanical work contributed. The earnings release said mission-critical work—including data centers, manufacturing, and semiconductor facilities—made up 92% of segment backlog at quarter end. |
| Transportation Solutions | Revenue declined 20% year over year; adjusted operating income increased 8% | Management attributed part of the revenue decline to moving resources from transportation projects toward higher-margin E-Infrastructure opportunities. Adjusted operating income is a non-GAAP measure. |
| Building Solutions | Revenue declined about 1% | Sterling cited relatively flat homebuilder activity and pressure from housing affordability. |
E-Infrastructure’s rapid growth is an opportunity as well as a concentration to monitor: its backlog was heavily weighted toward mission-critical projects in the named end markets. Transportation depends in part on public project activity and funding, while Building Solutions is exposed to housing conditions and affordability. Management described demand as strong in its August 3, 2026 release; that statement is management’s view, not independent confirmation of future awards.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Risks that can affect earnings and execution
Sterling’s 2025 Form 10-K identifies risks that may affect project awards, delivery, costs, or financial results. These are company-disclosed exposures, not predictions that any one event will occur.
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Project estimation and execution: bidding assumptions may prove wrong; site conditions can differ; delays, contract changes, or subcontractor performance can erode project economics, particularly on fixed-unit-price or lump-sum work.
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Cost and supply pressure: materials, fuel, labor, supply-chain disruption, subcontractor pricing, trade policy, and tariffs can raise costs or affect availability.
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Demand and funding cycles: economic or customer downturns, changes in government budgets and funding, interest-rate changes, and weaker housing affordability can weigh on awards or activity.
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Concentration and partners: customer concentration, competition, and the performance of joint-venture partners can affect execution and results. The high mission-critical share of E-Infrastructure backlog makes end-market trends particularly relevant to follow.
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Weather and seasonality: conditions and seasonal patterns can disrupt schedules and affect the timing of work.
Track cash conversion and debt using dated filings
The Q2 2026 Form 10-Q reported $285.0 million of variable-rate debt at June 30, 2026, and said the term loan was repaid on July 2, 2026. The June 30 balance is therefore a dated snapshot, not a statement that the term loan remained outstanding after repayment. The filing also notes that collections of receivables, contract assets and liabilities, and payment timing influence contract capital and operating cash flows. Reviewing those items alongside earnings can help distinguish reported profit from the cash generated as projects progress.
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