Sterling Infrastructure, Inc. announced record financial results for the second quarter of 2025, with revenue growing 21% year-over-year (adjusted for RHB deconsolidation) and adjusted diluted earnings per share (EPS) increasing 41% to $2.69. The company achieved a new high for gross profit margins at 23%, driven by a strategic shift towards higher-margin service offerings. Adjusted EBITDA also saw a substantial increase of 35%.
The E-Infrastructure Solutions segment continued to be a primary growth engine, with revenue up 29% and adjusted operating income growing 57%, pushing adjusted operating margins to 28.3%. Awards in the E-Commerce distribution space increased meaningfully, and the combination of signed backlog and high-probability future phase work in E-Infrastructure now approaches $2 billion. The overall backlog stood at $2.0 billion, a 24% increase compared to the prior year second quarter on a like-for-like basis.
Sterling generated $85 million in operating cash flow during the quarter, contributing to a net cash position of $401 million. The company also provided an update on the CEC Facilities Group acquisition, stating that the transaction continues to progress towards closing. Based on its strong first-half performance and increased visibility, Sterling raised its full-year 2025 guidance, now projecting 13% revenue growth, 32% adjusted diluted EPS growth, and 30% adjusted EBITDA growth at the midpoint, all adjusted for RHB.
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