Short answer
STERLING INFRASTRUCTURE, INC. (STRL) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $2.5B (+17.7% year over year) and net income of $290M.
- Top risk flagged: Contract mix risk with majority Backlog in fixed-unit price or lump sum contracts exposing profits to labor cost variances
FY2025 key financial metrics · XBRL
- Revenue
- $2.5B
- +17.7% YoY
- Net income
- $290M
- +12.7% YoY
- Operating margin
- 16.3%
- +3.8 pp YoY
- Gross margin
- 23.0%
- +2.8 pp YoY
- EPS (diluted)
- $9.38
- +13.4% YoY
- ROE
- 26.2%
- −5.7 pp YoY
- Operating cash flow
- $440M
- −11.5% YoY
Source: XBRL data from the STERLING INFRASTRUCTURE, INC. (STRL) FY2025 10-K on SEC EDGAR. USD.
STERLING INFRASTRUCTURE, INC. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
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