Shares of Sterling Infrastructure (STRL) skyrocketed nearly 47% in late morning trading on Tuesday, May 5, 2026, after the company reported first-quarter earnings that dramatically exceeded expectations. The surge was fueled by a 92% jump in revenue to $825.7 million, driven by booming demand from data centers and semiconductor manufacturing projects. The stock traded near $777, having earlier spiked above $792, making it one of the top-performing U.S. infrastructure names for the session.
The company's net income attributable to common shareholders rose to $96.0 million, or $3.09 per diluted share, compared to $39.5 million, or $1.28 per share, in the same period last year. Adjusted earnings per share came in at $3.59, representing a 120% surge. Adjusted EBITDA also more than doubled, reaching $166.6 million.
Sterling's transformation from a traditional roads-and-foundations player to a key part of the AI supply chain is now clear. The company's E-Infrastructure segment, which focuses on site preparation and mission-critical electrical work for facilities where uptime is essential, accounted for 72% of first-quarter revenue. Data centers and other mission-critical projects made up more than 90% of the E-Infrastructure backlog at the end of the quarter. The company is currently building out two data-center campuses, handling both site prep and electrical work.
CEO Joe Cutillo highlighted the data center market as "the primary growth driver" once again, noting that demand appears sustainable. He added that major customers are pulling the company more quickly into Texas, the Pacific Northwest, and the Midwest. During an analyst call, Cutillo described the current labor environment as tight, stating, "More opportunities than we have capacity to get to" and noting that if he had 2,000 more electricians, they would be busy within a quarter.
The company raised its 2026 revenue outlook to a range of $3.70 billion to $3.80 billion, up from previous guidance. It also lifted its adjusted diluted EPS target to $18.40 to $19.05. Backlog reached $3.80 billion as of March 31, up from $3.01 billion at the close of 2025. Combined backlog, which includes both signed contracts and unsigned awards not yet finalized, jumped to $5.15 billion from $3.31 billion. The book-to-burn ratio stood at 3.5 times.
The CEC electrical and mechanical unit, acquired in September 2025, contributed $156.1 million in first-quarter revenue and added $592 million to backlog. However, the company flagged several risks, including rising costs, labor shortages, weather disruptions, customer concentration, project estimation errors, and integration challenges from acquisitions. The Building Solutions segment margin dropped to 6.5% from 13.4%, as homebuyer affordability continued to pressure residential demand.
The strong results lifted other data-center construction stocks, with Primoris Services (PRIM) rising about 8.6% and Everus Construction Group climbing 7.7%. Investors are scanning the sector for companies linked to data-center construction and electrical infrastructure, with several earnings catalysts expected this week.
