We raise our price target for Sterling Infrastructure to $380 (from $254) following another stellar quarter in which STRL showcased its ability to leverage its value proposition of reliability and timeliness to fuel earnings growth.
2Q:25 sales and EPS were 13% and 21% above our forecasts, respectively, led by the E-Infrastructure segment's strong project execution on data center work (more than doubled year over year) and advanced manufacturing work.
Our thesis is unchanged: As projects increase in size and complexity in the coming years, we think the scarcity of STRL's services will drive pricing power and margin expansion, which will, in turn, drive multiple expansion for the stock.
The acquisition of CEC Facilities Group (expected to close before the end of 2025) improves STRL's competitive positioning to compete for the anticipated rising tide of megaprojects coming to market over the next half decade.
We raise our 2025 and 2026 EPS estimates to $8.93 (from $8.15) and $10.28 (from $9.41), embedding a steady execution of mission critical projects, digesting CEC, and managing through residential headwinds in Building Solutions.
We think E-Infrastructure segment margins reaccelerate in 2027, driving our newly introduced 2027 EPS estimate of $12.68, implying 23% growth.
We continue to forecast STRL will hold a net cash position even after funding the CEC deal with cash on hand, supporting our moderate risk rating.
Our raised $380 price target (from $254) is based on 30x our newly introduced 2027 EPS estimate of $12.68. Previously, we valued the stock at 27x our prior 2026 estimate of $9.41.

11 Aug 2025
2Q:25 Beat And Guidance Raise; Increasing Project Complexity And The Scarcity Of STRL's Services Drive Our Increased Estimates And Price Target To $380 (From $254)

Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
2Q:25 Beat And Guidance Raise; Increasing Project Complexity And The Scarcity Of STRL's Services Drive Our Increased Estimates And Price Target To $380 (From $254)
STERLING CONSTRUCTION CO (STRL:NYSE) | 0 0 0.0%
- Published:
11 Aug 2025 -
Author:
Julio Romero -
Pages:
11 -
We raise our price target for Sterling Infrastructure to $380 (from $254) following another stellar quarter in which STRL showcased its ability to leverage its value proposition of reliability and timeliness to fuel earnings growth.
2Q:25 sales and EPS were 13% and 21% above our forecasts, respectively, led by the E-Infrastructure segment's strong project execution on data center work (more than doubled year over year) and advanced manufacturing work.
Our thesis is unchanged: As projects increase in size and complexity in the coming years, we think the scarcity of STRL's services will drive pricing power and margin expansion, which will, in turn, drive multiple expansion for the stock.
The acquisition of CEC Facilities Group (expected to close before the end of 2025) improves STRL's competitive positioning to compete for the anticipated rising tide of megaprojects coming to market over the next half decade.
We raise our 2025 and 2026 EPS estimates to $8.93 (from $8.15) and $10.28 (from $9.41), embedding a steady execution of mission critical projects, digesting CEC, and managing through residential headwinds in Building Solutions.
We think E-Infrastructure segment margins reaccelerate in 2027, driving our newly introduced 2027 EPS estimate of $12.68, implying 23% growth.
We continue to forecast STRL will hold a net cash position even after funding the CEC deal with cash on hand, supporting our moderate risk rating.
Our raised $380 price target (from $254) is based on 30x our newly introduced 2027 EPS estimate of $12.68. Previously, we valued the stock at 27x our prior 2026 estimate of $9.41.