Sterling Construction (NASDAQ: STRL) saw its stock surge 5.66% in after-hours trading on Monday, following the release of its impressive third-quarter 2025 financial results and raised full-year guidance. The company's performance significantly exceeded analyst expectations, driven by strong growth across its business segments.
Sterling reported record Q3 revenue of $689.019 million, representing a 32% year-over-year increase and beating the analyst consensus estimate of $618.8 million by 10.90%. The company's adjusted earnings per share (EPS) came in at $3.48, surpassing the analyst estimate of $2.48 by 40.21% and marking a 76.65% increase from the same period last year. Gross margin improved to 24.7%, up from 21.9% in the prior year quarter.
The stellar performance was largely attributed to the company's E-Infrastructure Solutions segment, which saw revenue growth of 58%, driven by large, mission-critical projects. The Transportation Solutions segment also contributed to the strong results, with revenue increasing by 10% and adjusted operating income growing by 40%. In light of these achievements, Sterling raised its full-year 2025 guidance, projecting revenue between $2.375 billion and $2.390 billion, and adjusted EBITDA of $486 million to $491 million. The company now expects full-year adjusted EPS to range from $10.35 to $10.52, reflecting its strong operational performance and growing backlog.
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