Sterling Infrastructure, Inc. STRL is turning its Texas footprint into a powerful growth engine as the state’s data-center and industrial infrastructure boom gathers momentum. With demand for mission-critical facilities surging, Sterling’s local expertise, expanding capabilities and strong customer relationships could help it capture an outsized share of the opportunity.
The company’s second-quarter 2026 performance underscores this momentum. Revenues jumped 90% year over year to $1.17 billion, with organic growth of roughly 50%. Adjusted EPS soared 116% to a record $5.80, while adjusted EBITDA climbed 104% to $256.7 million, pushing the margin up more than 150 basis points to 22%. E-Infrastructure remained the star performer, with revenues skyrocketing 192% and adjusted operating income advancing 148%.
STRL’s Texas operations are benefiting from robust data-center construction, while its CEC electrical business is gaining traction. Management noted that CEC filled its capacity in Texas in roughly 90 days, far faster than the previously expected one-year timeframe. Backlog provides another reason for optimism. E-Infrastructure backlog stood at $3.31 billion at June 2026-end, up from $1.84 billion at year-end 2025. Moreover, 92% of this backlog comprises mission-critical projects spanning data centers, manufacturing and semiconductor facilities.
However, Sterling’s opportunity is bigger than Texas. It is reallocating resources toward higher-margin E-Infrastructure work and expanding geographically through acquisitions, including CEC and Stone Ridge. Total combined backlog reached $5.6 billion, while future-phase opportunities exceeded $1.4 billion. Management now expects 2026 adjusted EPS of $19.70-$20.30 compared with $10.88 in 2025. With strong demand, expanding margins and $1.5 billion of revolver capacity supporting further investment, Texas is emerging as a key differentiator within Sterling’s broader infrastructure growth story.
Sterling vs. EMCOR and KBR: Who Benefits From the Data-Center Boom?
The U.S. data-center and industrial infrastructure boom is creating a sizable opportunity for Sterling, alongside big names like EMCOR Group, Inc. EME and KBR, Inc. KBR. Sterling is increasingly differentiated by its rapid exposure to mission-critical infrastructure, with E-Infrastructure revenues and backlog surging.
EMCOR brings greater scale and diversification across electrical, mechanical and industrial services, with $17.14 billion of remaining performance obligations as of June 30, 2026. KBR, meanwhile, has broader exposure to engineering, government and technology-enabled infrastructure services.
Sterling’s potential competitive edge lies in its integrated site-development and electrical capabilities, strengthened by the CEC acquisition, allowing it to pursue larger mission-critical projects. Its smaller scale also leaves greater room for rapid growth, although EMCOR’s diversification provides broader end-market exposure. Overall, Sterling’s accelerating backlog and integrated E-Infrastructure platform position it distinctly within this expanding market.
STRL Stock’s Price Performance & Valuation Trend
Shares of this Texas-based infrastructure services provider have gained 18.1% over the past six months, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.
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STRL stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 20.19, as shown in the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision for STRL
STRL’s earnings estimates for 2026 and 2027 have moved upward over the past 60 days to $20.02 and $25.79 per share, respectively. The revised estimated figures for 2026 and 2027 imply year-over-year growth of 84% and 28.8%, respectively.
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Sterling stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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