Sterling Infrastructure, Inc. (STRL) AI Stock Analysis

Headquartered in The Woodlands, Texas, Sterling Infrastructure, Inc. operates across the transportation, e-infrastructure, and building solutions markets. Originally established in 1955, the firm rebranded from Sterling Construction Company, Inc. in June 2022. It constructs and rehabilitates infrastructure projects such as highways, roads, bridges, airports, ports, light rail, and water and drainage systems for transportation departments and regional authorities. The company also provides site improvement services for clients in e-commerce, data center, distribution, warehousing, and energy sectors. Additionally, it offers residential and commercial concrete foundation services for home builders and developers.

Sterling Infrastructure expanded its annual revenue from $1.41B in FY2021 to $2.49B in FY2025, delivering a 5-year revenue CAGR of 15.2% from FY2020 to FY2025. Gross margin widened from 14.4% in FY2021 to 23.0% in FY2025, while operating margin rose from 7.6% to 16.6% over the same period. Net income climbed from $62.6M in FY2021 to $290.2M in FY2025, bringing diluted EPS to $10.70. Free cash flow totaled $362.7M in FY2025. Over the trailing twelve months, revenue reached $3.44B with an operating margin of 20.1% and EPS of $13.88. In the quarter ended June 30, 2026, revenue increased 90.1% year-over-year, while quarterly earnings grew 116.5%.

As of June 30, 2026, Sterling Infrastructure held $464.5M in cash and short-term investments against total debt of $336.8M, resulting in net cash of $127.6M. Shareholders' equity stood at $1.36B against total assets of $3.19B. The company recorded a current ratio of 1.11 and a debt-to-equity ratio of 0.25. During FY2025, operating cash flow was $440.0M, capital expenditures were $77.3M, and share buybacks totaled $74.2M. The 5-year share count change was 4.7%.

STRL trades at a trailing P/E of 30.6x and a forward P/E of 19.6x, compared to the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its enterprise value to EBITDA ratio is 22.1x versus the peer median of 13.9x, and its price-to-sales multiple is 3.8x against a peer median of 1.5x. Over the past 1 year, STRL returned 17.5% compared to 16.8% for the S&P 500 (SPY). Over 5 years, the stock returned 1737.1% versus 83.0% for SPY. At its last close of $424.36 on October 16, 2026, the stock traded 22.6% below its 200-day average.

All 8 analysts covering STRL rate the stock a StrongBuy. The mean price target is $836.71, representing an upside of 97.2% from the last close of $424.36. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $20.03 on revenue of $4.12B. For the following fiscal year, analysts expect EPS of $25.84 on revenue of $5.02B. Sterling Infrastructure beat EPS estimates in each of the last 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of Sterling Infrastructure, Inc. (STRL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: STRL income statement, STRL balance sheet, STRL key metrics, STRL analyst forecast, STRL chart. See the STRL stock overview for the latest quote and news.