10-Q · August 4, 2026
Sterling delivered an exceptional Q2, with revenue up 90% to $1.168 billion, GAAP diluted EPS of $5.00, and operating margin expanding to 18.8%. E-Infrastructure was the central driver, with revenue up 192%, while…
Earnings analysis · 10-Q
STRL earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Sterling reported strong third-quarter momentum, with revenue of $1.564 billion and diluted EPS of $7.58, up substantially from both the prior quarter and prior year. The balance sheet included $216.9 million of cash…
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Sterling reported strong third-quarter momentum, with revenue of $1.564 billion and diluted EPS of $7.58, up substantially from both the prior quarter and prior year. The balance sheet included $216.9 million of cash and $95 million of variable-rate debt after repayment of the former term loan on July 2, 2026. The principal offsets are interest-rate and inflation sensitivity, while the filing states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $7.58
What stood out
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Revenue accelerated sharply
Third-quarter revenue was $1.564 billion, up from $1.17 billion in 2026 Q2 and $689 million in 2025 Q3, increases of approximately 33.7% sequentially and 127% year over year.
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EPS growth materially outpaced
Diluted EPS was $7.58, versus $5.00 in 2026 Q2 and $2.97 in 2025 Q3, representing approximately 51.6% sequential growth and 155% year-over-year growth.
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Cash position remains substantial
The company held $216.9 million of cash and cash equivalents at September 30, 2026, while variable-rate debt under the Revolving Credit Facility was $95 million.
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Term loan repayment completed
The former term loan facility was repaid on July 2, 2026, leaving $95 million of variable-rate Revolving Credit Facility debt outstanding at quarter end.
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Controls assessed as effective
Management concluded disclosure controls were effective at September 30, 2026; Stone Ridge, acquired in Q2 2026, represented 5.8% of consolidated assets and 2.3% of consolidated revenue.
What to watch
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Variable-rate debt exposure
A 100-basis-point change in interest rates would change annual interest expense by approximately $1.0 million on the $95 million of variable-rate debt, creating earnings sensitivity if rates rise.
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Cash yield sensitivity
The company disclosed that a 100-basis-point rate change would alter annual interest income by approximately $2.2 million on $216.9 million of cash; lower rates could reduce this offset to borrowing costs.
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Planned insider share sales
The CEO entered a Rule 10b5-1 plan to sell 190 thousand shares beginning December 23, 2026, with the plan scheduled to terminate by December 31, 2027, which may increase share-supply and governance attention.
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Inflation and input-cost pressure
The 10-Q states there were no material changes from the risk factors in the 2025 Form 10-K. It also notes that inflation and supply-chain volatility have increased costs of oil, fuel, lumber, concrete, steel and labor and may continue to negatively affect results.
Management's outlook
The supplied earnings disclosure reported raised full-year 2026 guidance of $4.63 billion-$4.73 billion revenue and $19.16-$19.42 diluted EPS; adjusted diluted EPS guidance was $21.70-$21.96. The 10-Q text provided does not include additional quantitative guidance.
Earlier filings 4
10-Q · May 5, 2026
Sterling Infrastructure, Inc. significantly outperformed expectations for Q1 2026, reporting revenues of $825.68 million and EPS of $3.59. This reflects a substantial 92% increase in revenue from the same quarter last…
10-K · February 26, 2026
Sterling’s 2025 10-K shows material backlog growth to $3.01 billion (from $1.69 billion at 12/31/24) and strategic expansion into higher‑margin E‑Infrastructure via the September 1, 2025 CEC acquisition (total purchase…
10-Q · August 5, 2025
Sterling reported a stronger Q2 with revenue of $614,468 (in thousands) and diluted EPS of $2.31, both up versus the prior-year quarter. Gross profit rose to $143,140 (in thousands) and operating income increased to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.