STERLING INFRASTRUCTURE, INC. (STRL) FY2025 10-K Annual Report

Filed: Feb 26, 2026
Industrials
Heavy Construction Other Than Bldg Const - ContractorsSEC EDGAR

STERLING INFRASTRUCTURE, INC. (STRL) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

STERLING INFRASTRUCTURE, INC. FY2025 10-K Analysis

Business Overview

  • Core business: Infrastructure construction and development focused on E-Infrastructure, Transportation, and Building Solutions segments
  • New emphasis on multi-year capital deployment in data centers driven by cloud, AI, and semiconductor manufacturing expansion in E-Infrastructure
  • Strategic acquisition of electrical and mechanical business in 3Q 2025 adding $489 million to backlog and $226 million to unsigned awards
  • Backlog growth to $3.01 billion at 12/31/2025 from $1.69 billion at 12/31/2024, book-to-burn ratio steady at ~1.6-1.7X
  • Backlog gross margin improved to 17.8% in 2025 vs 16.7% in 2024 due to higher E-Infrastructure and improved Transportation mix

Management Discussion & Analysis

  • Revenue $2.49B in 2025, up $374.3M YoY, excluding $235.9M RHB revenue from 2024 revenue increased $610.2M
  • Gross margin 23.0% in 2025 vs 20.1% in 2024; Operating margin 16.3% vs 12.5%, driven by higher volume and improved project mix
  • Best segment: E-Infrastructure Solutions revenue $1.47B (+58.8%), operating margin 23.6% vs 22.0%; Worst: Building Solutions revenue $382.6M (-6.3%), margin 10.2% vs 13.2%
  • Cash flow from operations $440.0M (-$57.1M); Capex $77.3M; Acquisitions $482.3M; Repurchased stock $74.2M; Ending cash $390.7M vs $664.2M
  • 2026 Capex guidance $100-$110M; Management notes liquidity sufficient for next year; Key risks include project mix, contract capital fluctuations, and surety bond market conditions

Risk Factors

  • Contract mix risk with majority Backlog in fixed-unit price or lump sum contracts exposing profits to labor cost variances
  • Termination for convenience clauses in most contracts risking cancellation despite compensation for work performed
  • Joint venture reliance for project execution increasing operational complexity and dependency on partner performance

STERLING INFRASTRUCTURE, INC. FY2025 Key Financial Metrics
XBRL

Revenue

$2.5B

+17.7% YoY

Net Income

$290M

+12.7% YoY

Gross Margin

23.0%

+284bp YoY

Operating Margin

16.3%

+379bp YoY

Net Margin

11.7%

-52bp YoY

ROE

26.2%

-569bp YoY

Total Assets

$2.6B

+30.6% YoY

EPS (Diluted)

$9.38

+13.4% YoY

Operating Cash Flow

$440M

-11.5% YoY

Source: XBRL data from STERLING INFRASTRUCTURE, INC. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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