Sterling Infrastructure spikes as management hikes profit guidance by 42% on data center building boom

Sterling Infrastructure is going parabolic on Tuesday after delivering blowout Q1 results that prompted management to significantly revise up its full-year view.

Q1 sales beat estimates by nearly 40%, with adjusted EBITDA exceeding the consensus call by almost 50%.

As such, the firm boosted the midpoint of its full-year guidance for sales by 20% and its adjusted EBITDA by 42%.

The construction company’s E-Infrastructure Solutions business is on fire thanks to the data center boom, posting revenue growth of 174% with its signed backlog also up 123% versus the same quarter a year ago.

“We’re in the early innings, but the projects are extremely big, they’re coming out extremely quickly,” CEO Joseph Cutillo said on the conference call. “And we see not only this year, next year, but what our core customers and key customers are talking about starting ’28, ’29.”