Sterling Infrastructure raised its full-year outlook after third-quarter revenue more than doubled, but the growth figure needs two qualifications: acquisitions helped the comparison, and the company’s larger backlog measure includes unsigned work. Its 28 October 2026 results release reported $1.56 billion of quarterly revenue, up 127% from a year earlier.
GAAP net income attributable to common shareholders reached $214.9 million, or $6.92 per diluted share. Adjusted net income was $235.4 million, or $7.58 per diluted share. The adjusted figures exclude specified expenses; they do not replace the reported accounts.
The results and outlook, on separate bases
| Measure | Verified figure | Scope or condition | Primary source |
|---|---|---|---|
| Revenue | $1.56 billion | Up 127% year on year; management cites 70% organic growth | Consolidated results and CEO commentary |
| GAAP net income attributable to common shareholders | $214.9 million | Diluted EPS $6.92 | Adjusted net-income reconciliation |
| Adjusted net income attributable to common shareholders | $235.4 million | Adjusted diluted EPS $7.58; non-GAAP | Adjusted net-income reconciliation |
| Signed backlog | $4.14 billion | At 30 September 2026; not recognized revenue | Backlog metrics |
| Combined backlog | $6.14 billion | Includes $2.00 billion of unsigned awards | Backlog metrics and footnote |
| 2026 revenue guidance | $4.63–$4.73 billion | Raised forecast, not completed full-year sales | Full-year guidance |
| 2026 diluted-EPS guidance | $19.16–$19.42 reported basis | $21.70–$21.96 adjusted basis; both forecasts | Guidance reconciliation |
Why the 127% increase is not all organic
Management cited 70% organic revenue growth alongside the 127% reported increase. Those are different measures of the same business expansion, not competing estimates to combine or add together.
CEC, the electrical business acquired on 1 September 2025, contributed $425.6 million of revenue in the latest quarter. The year-earlier quarter contained only a partial ownership period and $41.4 million of CEC revenue. That change in the comparison period helps explain why the reported increase should not be described as entirely like-for-like growth.
The expansion was also uneven across the group. E-Infrastructure revenue rose 212% to $1.30 billion, while Transportation revenue fell 3.1% to $165.2 million and Building revenue declined 5.4% to $96.0 million. A group-wide growth headline does not mean every business improved.
Reported profit and adjusted profit answer different questions
The issuer reconciliation starts with GAAP income attributable to common shareholders and removes non-cash stock compensation, intangible-asset amortization, acquisition-related costs, earn-out expense and a debt-extinguishment loss, with the associated tax effects. These adjustments explain the gap between $6.92 reported diluted EPS and $7.58 adjusted diluted EPS.
For a consistent comparison, use reported figures against reported figures and adjusted figures against the same adjusted definition. Neither EPS measure is cash flow. The $427.1 million of operating cash flow disclosed in the release covers the first nine months, not the third quarter alone.
Backlog is prospective work, not booked sales
Signed backlog was $4.14 billion at 30 September. Combined backlog was $6.14 billion because Sterling adds $2.00 billion of unsigned awards: $4.14 billion plus $2.00 billion equals $6.14 billion. The distinction matters when assessing the strength and status of the future-work pipeline.
Unsigned awards are not the same as signed contracts, and neither backlog total is revenue already recognized in the income statement. Scope, timing and conversion of future work remain uncertainties identified in the company’s forward-looking disclosures.
What to watch next
Sterling now forecasts 2026 revenue of $4.63 billion to $4.73 billion. Its reported-basis diluted-EPS forecast is $19.16 to $19.42, compared with adjusted diluted EPS of $21.70 to $21.96. These are management forecasts for the full year, not another set of achieved quarterly results.
Later disclosures can show how signed projects convert to revenue and whether acquired businesses sustain their performance on comparable periods. Readers comparing these results with another company can use CapKet’s six-field earnings-comparison worksheet to keep period, scope and accounting basis aligned.
Source record: Sterling Infrastructure’s unaudited third-quarter release dated 28 October 2026, including its financial tables and GAAP-to-non-GAAP reconciliations. The issuer HTML release was observed at 2026-10-29T12:23:54.418Z; its linked official Exhibit 99.1 PDF at 2026-10-29T12:25:29.787Z. These are two formats of the same release, not independent corroboration. This report does not establish a share-price reaction or independently verified market expectations. Prepared with AI assistance and checked against the linked issuer document; this is not an assertion of independent human editorial approval.
Recorded source observation: . This is a source-check timestamp, not a market quote or a new article update.