Update shared on22 Aug 2025
Fair value Increased 13%Sterling Infrastructure's consensus price target has increased from $313 to $355, reflecting raised earnings estimates and forward guidance, as well as anticipated growth and strategic value from the CEC Facilities Group acquisition.
Analyst Commentary
- Q2 earnings beat and raised forward guidance prompted upward revisions to valuation assumptions.
- Bullish analysts increased core earnings estimates, reflecting robust baseline business performance.
- The CEC Facilities Group acquisition is expected to provide access to new attractive markets for further growth.
- The scarcity and high demand for scaled electrical contractors add strategic value to Sterling’s expanded platform.
- Although the CEC acquisition is mildly dilutive to EBITDA margins, Sterling is projected to maintain top-tier profitability.
What's in the News
- Sterling Infrastructure completed the repurchase of 944,000 shares for $114.42 million under its buyback program, with no shares repurchased in the latest quarter.
- The company raised full-year 2025 guidance, projecting revenue of $2.10 billion to $2.15 billion, net income of $243 million to $252 million, and diluted EPS of $7.87 to $8.13.
- Nicholas Grindstaff was appointed as Chief Financial Officer, bringing extensive experience from previous roles at Cinterra, Orbital Infrastructure Group, and Quanta Services.
Valuation Changes
Summary of Valuation Changes for Sterling Infrastructure
- The Consensus Analyst Price Target has significantly risen from $313.00 to $355.00.
- The Consensus Revenue Growth forecasts for Sterling Infrastructure has significantly risen from 6.9% per annum to 11.6% per annum.
- The Net Profit Margin for Sterling Infrastructure has significantly risen from 10.58% to 12.51%.
Disclaimer
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