On this page of StockholderLetter.com we present the latest annual shareholder letter from STERLING INFRASTRUCTURE, INC. — ticker symbol STRL. Reading current and past STRL letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 2025 NASDAQ: STRL
About Sterling Sterling Infrastructure, Inc. ( Sterling or the Company ) operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society s quality of life. Caring for our people and our communities, our customers and our investors that is The Sterling Way. Table of Contents Our Segments Message From Our Leaders . . . . . . . . . . . . . . . . . . . . . . . ii 2025 Results at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . v Strategic Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi E-Infrastructure Solutions Transportation Solutions Building Solutions Sterling Business Segments . . . . . . . . . . . . . . . . . . . . . . vii Leaders in Their Fields . . . . . . . . . . . . . . . . . . . . . . . . . . viii The Sterling Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Building Tomorrow Today . . . . . . . . . . . . . . . . . . . . . . . . . x We build and service the infrastructure that enables our economy to run, our people to move and our country to grow. Joe Cutillo, Chief Executive Officer 2025 Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Sterling Companies Geographic Footprint Select Projects Sterling Infrastructure, Inc. | Annual Report 2025 i
Messages from Our Leaders Dear Shareholders, Infrastructure investment in the United States is entering a period of meaningful transformation. The rapid expansion of digital infrastructure, the reshoring of advanced manufacturing, and the sustained investment in transportation systems are reshaping how and where critical infrastructure is built. These structural trends are driving a new cycle of infrastructure development that we believe will unfold over many years. Sterling Infrastructure has built a platform aligned with these opportunities, and we believe our capabilities position us to play an important role in delivering the infrastructure that will support America s next phase of economic growth. Over the past decade, we have intentionally reshaped our business focusing on high-value projects, improving project selectivity, and strengthening operational execution. We believe the result is a company with strong margins, greater earnings power, and a platform positioned to participate in some of the most attractive infrastructure markets in the United States. At Sterling, we refer to our operating philosophy as The Sterling Way a commitment to take care of our employees, our customers, our investors, and the communities we serve. This approach continues to guide how we operate, manage risk, pursue new opportunities, and deploy capital. Our performance in 2025 reflects the continued progress of that strategy. Delivering Strong Financial Performance 2025 marked another year of exceptional performance for Sterling. Adjusted earnings per share increased 53%, representing our fifth consecutive year of adjusted EPS growth above 35%. Revenue, as adjusted for the deconsolidation of RHB, grew 32%, driven by strong demand across E-Infrastructure and Transportation Solutions. Over the past several years, our strategy has focused on shifting the business toward projects that offer stronger margins and returns. That strategy continued to produce meaningful results in 2025, as gross margins expanded 280 basis points to 23%, a new record. 82% While we are encouraged by this progress, our focus remains on sustaining this momentum by continuing to scale our platform in attractive markets. Expanding Our Platform Through the Acquisition of CEC Facilities Group In September 2025, we further strengthened Sterling s capabilities through the acquisition of CEC Facilities Group, a leading provider of electrical services for mission-critical infrastructure. CEC brings specialized expertise in the design, installation, and maintenance of complex electrical systems that support data centers, semiconductor fabrication, advanced manufacturing facilities, and other high-reliability environments. The addition of CEC enhances our ability to provide customers with a broader suite of services across the infrastructure project lifecycle, while also increasing our exposure to large, technically complex projects that offer attractive margins and long-term demand. Equally important, CEC shares many of the operating principles that define The Sterling Way a commitment to safety, strong execution, and delivering high-quality outcomes for customers. As we integrate CEC into the Sterling platform, we see meaningful opportunities to drive collaboration across our businesses, expand our service capabilities, and support continued growth in mission-critical infrastructure markets. We believe the addition of CEC strengthens Sterling s long-term growth profile and further positions the company to participate in the significant infrastructure investment underway across the United States. The financial markets also recognized this performance. Sterling s share price increased 82% during 2025, significantly outperforming the 16% return of the S&P 500 over the same period. Sterling Infrastructure, Inc. | Annual Report 2025 ii
Long-Term Infrastructure Investment Supporting Growth Building Solutions Several powerful investment trends continue to shape the markets in which Sterling operates. Our Building Solutions segment operations across DallasFort Worth, Houston, and Phoenix remain well positioned to benefit over the long-term as population growth drives housing demand across the Sunbelt. E-Infrastructure Solutions During 2025, housing activity was affected by affordability challenges including higher mortgage rates. Our E-Infrastructure Solutions segment continued to benefit from accelerating demand for high-value, missioncritical infrastructure, including data center campuses and advanced manufacturing facilities. During 2025, the segment generated 70% growth in operating income, supported by a strong pipeline of mission-critical infrastructure projects. Our ability to manage complex projects efficiently and deliver them on time remains a key differentiator for customers operating in these environments. By year end, the segment s signed backlog approached $2 billion, representing 79% growth from the prior year. In addition to our firm backlog, we are currently engaged on projects that include nearly $1 billion of high-probability future phase opportunities, which are not yet reflected in reported backlog. Together, these opportunities provide meaningful visibility into future growth. Transportation Solutions Our Transportation Solutions segment also delivered strong results in 2025, with revenue, as adjusted for the deconsolidation of RHB, increasing 17% and operating income rising 53%. These results reflect both strong project execution and continued investment in transportation infrastructure. Funding associated with the Infrastructure Investment and Jobs Act (IIJA) continues to support elevated levels of activity across many of the markets where we operate, particularly in the Rocky Mountain region. We ended the year with Transportation Solutions signed backlog of over $1.1 billion, providing multi-year visibility. Early in 2025, we announced the strategic decision to accelerate the wind-down of our Texas low-bid heavy highway operations. This action will weigh on revenue and backlog in the near term but should contribute to stronger margins and more attractive returns over time. As the segment continues to evolve toward higher-value work, we believe Transportation Solutions remains well positioned to generate solid operating income growth and strong cash flow. During this cycle of lower demand, we are focused on how to best position the business for growth and share gain when demand ultimately accelerates. Maintaining Financial Strength and Capital Discipline Sterling s financial position continued to strengthen during the year. In 2025, we generated $440 million of operating cash flow. Though we invested $482 million in acquisitions and $74 million in share repurchases, we ended the year with a net cash position of approximately $100 million. This strong balance sheet provides flexibility to support growth while maintaining a disciplined approach to capital allocation. Our priorities remain consistent: I nvesting in opportunities that expand our capabilities and strengthen our competitive position P ursuing strategic acquisitions that enhance our service offerings R eturning capital to shareholders when appropriate $74 million During 2025, we repurchased $74 million of Sterling shares at an average price of approximately $169 per share. At year end, $374 million remained available under our share repurchase authorization. We will continue to evaluate capital deployment opportunities carefully to ensure they support longterm value creation. Sterling Infrastructure, Inc. | Annual Report 2025 iii
Investing in Our People and Safety Culture The success of Sterling ultimately reflects the dedication and professionalism of our employees. Across the organization, our teams continue to demonstrate a strong commitment to safety, operational excellence, and customer service. In 2025, Sterling maintained an incident rate that was 62% lower than the national average of construction companies with over 1,000 employees, reflecting the strength of our safety culture, disciplined processes, and operational focus on creating a safe work environment. Our commitment to safety was also recognized across the industry. During the year, we received three first place national safety awards from the American Road & Transportation Builders Association and two first place Construction Safety Excellence awards at the Associated General Contractors (AGC) National Convention. In addition, one of our Safety Directors was honored with the AGC s national Safety Professional of the Year award. We remain steadfast in our commitment to protecting our employees and ensuring that every member of our team returns home safely each day. Additional recognitions included: 11 2 3 100 21 1 11 38 on Forbes Most Successful Mid-Cap Companies 2025 Best CEO, Best CFO, Institutional Investor Best Company Board, Best IR Professional, Best IR Program, Best IR Team, Institutional Investor These achievements highlight the expertise and dedication of our employees across the organization. Responsible Operations and Long-Term Sustainability As we build infrastructure that supports economic growth, we also recognize our responsibility to operate in a manner that supports long-term sustainability. Across our operations, we continue to invest in equipment, technology, and processes that improve efficiency, enhance safety, and reduce environmental impact. These efforts strengthen our ability to deliver long-term value for shareholders while contributing to resilient communities and sustainable infrastructure systems. Looking Ahead The infrastructure markets we serve are supported by powerful long-term investment trends, including the growth of digital infrastructure, the expansion of domestic manufacturing, including semiconductor fabrication, and the continued modernization of transportation networks. Sterling has entered this phase of growth with a strong balance sheet, a disciplined operating model, and a team that consistently delivers for our customers and shareholders. The opportunities ahead are significant and our focus remains unchanged: executing our strategy with discipline, maintaining operational excellence, and continuing to build a company that delivers value over the long-term. Thank you for your continued confidence in Sterling Infrastructure. Sincerely, Best Companies of 2025, Investor's Business Daily on Engineering News-Record s Top 600 Contractors on ENR s Top Firms in Excavation on ENR s Top Firms in Concrete Houston Chronicle 100 Joe Cutillo Chief Executive Officer Engineering News-Record (ENR) 2025 Lists Extel (formerly Institutional Investor Research) 2025 All-America Executive Team, Midcap rankings ($2B to $10B) within company s sector Forbes 2026 America s Most Successful Mid-Cap Companies annual list Investor s Business Daily , a Dow Jones affiliate Roger A. Cregg Chairman of the Board Sterling Infrastructure, Inc. | Annual Report 2025 iv
 • shareholder letter icon 3/25/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/24/2023 STRL Stockholder Letter
 • stockholder letter icon 3/26/2024 STRL Stockholder Letter
 • stockholder letter icon 3/25/2025 STRL Stockholder Letter
 • stockholder letter icon More "Construction" Category Stockholder Letters
 • Benford's Law Stocks icon STRL Benford's Law Stock Score = 96


STRL Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT 2025
NASDAQ: STRL

About Sterling
Sterling Infrastructure, Inc. (   Sterling    or    the Company   )
operates through a variety of subsidiaries within three
segments specializing in E-Infrastructure, Transportation
and Building Solutions in the United States, primarily
across the Southern, Northeastern, Mid-Atlantic
and Rocky Mountain regions and the Pacific Islands.
E-Infrastructure Solutions provides advanced, large-scale
site development services and mission-critical electrical
services for data centers, semiconductor fabrication,
manufacturing, distribution centers, warehousing, power
generation and more. Transportation Solutions includes
infrastructure and rehabilitation projects for highways,
roads, bridges, airports, ports, rail and storm drainage
systems. Building Solutions includes residential and
commercial concrete foundations for single-family and
multi-family homes, parking structures, elevated slabs,
other concrete work, plumbing services, and surveys
for new single-family residential builds. From strategy
to operations, we are committed to sustainability by
operating responsibly to safeguard and improve society   s
quality of life. Caring for our people and our communities,
our customers and our investors   that is The Sterling Way.
Table of Contents
Our Segments
Message From Our Leaders  . . . . . . . . . . . . . . . . . . . . . . . ii
2025 Results at a Glance  . . . . . . . . . . . . . . . . . . . . . . . . . . v
Strategic Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  vi
E-Infrastructure
Solutions
Transportation
Solutions
Building
Solutions
Sterling Business Segments  . . . . . . . . . . . . . . . . . . . . . . vii
Leaders in Their Fields . . . . . . . . . . . . . . . . . . . . . . . . . .  viii
The Sterling Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  ix
Building Tomorrow Today . . . . . . . . . . . . . . . . . . . . . . . . . x
    We build and service the infrastructure that enables
our economy to run, our people to move and our
country to grow.   
Joe Cutillo, Chief Executive Officer
2025 Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The Sterling Companies
Geographic Footprint
Select Projects
Sterling Infrastructure, Inc. | Annual Report 2025
i

Messages from Our Leaders
Dear Shareholders,
Infrastructure investment in the United States is entering a period of meaningful
transformation. The rapid expansion of digital infrastructure, the reshoring of advanced
manufacturing, and the sustained investment in transportation systems are reshaping
how and where critical infrastructure is built. These structural trends are driving a new
cycle of infrastructure development that we believe will unfold over many years. Sterling
Infrastructure has built a platform aligned with these opportunities, and we believe our
capabilities position us to play an important role in delivering the infrastructure that will
support America   s next phase of economic growth.
Over the past decade, we have intentionally reshaped
our business   focusing on high-value projects, improving
project selectivity, and strengthening operational
execution. We believe the result is a company with
strong margins, greater earnings power, and a platform
positioned to participate in some of the most attractive
infrastructure markets in the United States.
At Sterling, we refer to our operating philosophy as
The Sterling Way   a commitment to take care of our
employees, our customers, our investors, and the
communities we serve. This approach continues to guide
how we operate, manage risk, pursue new opportunities,
and deploy capital.
Our performance in 2025 reflects the continued progress
of that strategy.
Delivering Strong Financial Performance
2025 marked another year of exceptional performance
for Sterling. Adjusted earnings per share increased
53%, representing our fifth consecutive year of adjusted
EPS growth above 35%. Revenue, as adjusted for the
deconsolidation of RHB, grew 32%, driven by strong
demand across E-Infrastructure and Transportation Solutions.
Over the past several years, our strategy has focused on
shifting the business toward projects that offer stronger
margins and returns. That strategy continued to produce
meaningful results in 2025, as gross margins expanded
280 basis points to 23%, a new record.
82%
While we are encouraged by this progress, our focus
remains on sustaining this momentum by continuing to
scale our platform in attractive markets.
Expanding Our Platform Through the Acquisition of
CEC Facilities Group
In September 2025, we further strengthened Sterling   s
capabilities through the acquisition of CEC Facilities
Group, a leading provider of electrical services for
mission-critical infrastructure. CEC brings specialized
expertise in the design, installation, and maintenance
of complex electrical systems that support data centers,
semiconductor fabrication, advanced manufacturing
facilities, and other high-reliability environments. The
addition of CEC enhances our ability to provide customers
with a broader suite of services across the infrastructure
project lifecycle, while also increasing our exposure to
large, technically complex projects that offer attractive
margins and long-term demand.
Equally important, CEC shares many of the operating
principles that define The Sterling Way   a commitment
to safety, strong execution, and delivering high-quality
outcomes for customers. As we integrate CEC into the
Sterling platform, we see meaningful opportunities to
drive collaboration across our businesses, expand our
service capabilities, and support continued growth in
mission-critical infrastructure markets.
We believe the addition of CEC strengthens Sterling   s
long-term growth profile and further positions the
company to participate in the significant infrastructure
investment underway across the United States.
The financial markets also recognized this
performance. Sterling   s share price increased 82%
during 2025, significantly outperforming the 16%
return of the S&P 500 over the same period.
Sterling Infrastructure, Inc. | Annual Report 2025
ii

Long-Term Infrastructure Investment
Supporting Growth
Building Solutions
Several powerful investment trends continue to shape
the markets in which Sterling operates.
Our Building Solutions segment operations across DallasFort Worth, Houston, and Phoenix remain well positioned
to benefit over the long-term as population growth drives
housing demand across the Sunbelt.
E-Infrastructure Solutions
During 2025, housing activity was affected by affordability
challenges including higher mortgage rates.
Our E-Infrastructure Solutions segment continued to
benefit from accelerating demand for high-value, missioncritical infrastructure, including data center campuses and
advanced manufacturing facilities.
During 2025, the segment generated 70% growth in
operating income, supported by a strong pipeline of
mission-critical infrastructure projects. Our ability to
manage complex projects efficiently and deliver them on
time remains a key differentiator for customers operating
in these environments.
By year end, the segment   s signed backlog approached
$2 billion, representing 79% growth from the prior year. In
addition to our firm backlog, we are currently engaged on
projects that include nearly $1 billion of high-probability
future phase opportunities, which are not yet reflected in
reported backlog. Together, these opportunities provide
meaningful visibility into future growth.
Transportation Solutions
Our Transportation Solutions segment also delivered
strong results in 2025, with revenue, as adjusted for
the deconsolidation of RHB, increasing 17% and
operating income rising 53%. These results reflect both
strong project execution and continued investment in
transportation infrastructure.
Funding associated with the Infrastructure Investment
and Jobs Act (IIJA) continues to support elevated levels
of activity across many of the markets where we operate,
particularly in the Rocky Mountain region. We ended the
year with Transportation Solutions signed backlog of over
$1.1 billion, providing multi-year visibility.
Early in 2025, we announced the strategic decision to
accelerate the wind-down of our Texas low-bid heavy
highway operations. This action will weigh on revenue and
backlog in the near term but should contribute to stronger
margins and more attractive returns over time.
As the segment continues to evolve toward higher-value
work, we believe Transportation Solutions remains well
positioned to generate solid operating income growth
and strong cash flow.
During this cycle of lower demand, we are focused on
how to best position the business for growth and share
gain when demand ultimately accelerates.
Maintaining Financial Strength and Capital
Discipline
Sterling   s financial position continued to strengthen
during the year. In 2025, we generated $440 million of
operating cash flow. Though we invested $482 million
in acquisitions and $74 million in share repurchases, we
ended the year with a net cash position of approximately
$100 million.
This strong balance sheet provides flexibility to support
growth while maintaining a disciplined approach to
capital allocation.
Our priorities remain consistent:
    I nvesting in opportunities that expand our
capabilities and strengthen our competitive
position
   P
  ursuing strategic acquisitions that enhance our
service offerings
   R
  eturning capital to shareholders when appropriate
$74 million
During 2025, we repurchased $74 million of Sterling
shares at an average price of approximately $169 per
share. At year end, $374 million remained available
under our share repurchase authorization.
We will continue to evaluate capital deployment
opportunities carefully to ensure they support longterm value creation.
Sterling Infrastructure, Inc. | Annual Report 2025
iii

Investing in Our People and Safety Culture
The success of Sterling ultimately reflects the dedication and
professionalism of our employees. Across the organization,
our teams continue to demonstrate a strong commitment to
safety, operational excellence, and customer service.
In 2025, Sterling maintained an incident rate that was
62% lower than the national average of construction
companies with over 1,000 employees, reflecting the
strength of our safety culture, disciplined processes, and
operational focus on creating a safe work environment.
Our commitment to safety was also recognized across
the industry. During the year, we received three first
place national safety awards from the American Road &
Transportation Builders Association and two first place
Construction Safety Excellence awards at the Associated
General Contractors (AGC) National Convention. In
addition, one of our Safety Directors was honored with the
AGC   s national Safety Professional of the Year award.
We remain steadfast in our commitment to protecting our
employees and ensuring that every member of our team
returns home safely each day.
Additional recognitions included:
11

2
3

100

21
1
11

38

on Forbes    Most Successful
Mid-Cap Companies
2025 Best CEO, Best CFO,
Institutional Investor
Best Company Board, Best IR
Professional, Best IR Program,
Best IR Team, Institutional Investor
These achievements highlight the expertise and
dedication of our employees across the organization.
Responsible Operations and Long-Term
Sustainability
As we build infrastructure that supports economic growth,
we also recognize our responsibility to operate in a
manner that supports long-term sustainability. Across
our operations, we continue to invest in equipment,
technology, and processes that improve efficiency,
enhance safety, and reduce environmental impact. These
efforts strengthen our ability to deliver long-term value for
shareholders while contributing to resilient communities
and sustainable infrastructure systems.
Looking Ahead
The infrastructure markets we serve are supported by
powerful long-term investment trends, including the
growth of digital infrastructure, the expansion of domestic
manufacturing, including semiconductor fabrication, and
the continued modernization of transportation networks.
Sterling has entered this phase of growth with a strong
balance sheet, a disciplined operating model, and a
team that consistently delivers for our customers and
shareholders.
The opportunities ahead are significant and our focus
remains unchanged: executing our strategy with discipline,
maintaining operational excellence, and continuing to build
a company that delivers value over the long-term.
Thank you for your continued confidence in Sterling
Infrastructure.
Sincerely,
Best Companies of 2025,
Investor's Business Daily
on Engineering News-Record   s
Top 600 Contractors
on ENR   s Top Firms in Excavation
on ENR   s Top Firms in Concrete
Houston Chronicle 100
Joe Cutillo
Chief Executive Officer
    Engineering News-Record (ENR) 2025 Lists
    Extel (formerly Institutional Investor Research) 2025 All-America Executive Team, Midcap rankings ($2B to $10B) within company   s sector
    Forbes 2026 America   s Most Successful Mid-Cap Companies annual list
    Investor   s Business Daily  , a Dow Jones affiliate
Roger A. Cregg
Chairman of the Board
Sterling Infrastructure, Inc. | Annual Report 2025
iv


shareholder letter icon 3/25/2026 Letter Continued (Full PDF)
 

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