They are a diversified construction company akin to Granite Construction (a major builder of highways and public infrastructure), but also specializing in site preparation for data centers and e-commerce warehouses, and concrete foundations for residential and commercial buildings.

• Transportation & Public Infrastructure: Construction and rehabilitation services for major public works such as highways, bridges, airports, ports, and water systems.
• E-infrastructure & Commercial Site Development: Specialty site infrastructure improvement services catering to sectors like e-commerce, data centers, and large-scale commercial facilities.
• Building Solutions (Concrete Foundations): Provides concrete foundations and related structural concrete work for residential homes, multi-family units, and commercial buildings.

Major Customers of Sterling Infrastructure (STRL)

Sterling Infrastructure (STRL) primarily serves other companies and governmental entities across its three main business segments. The company's major customers fall into the following categories:

• Governmental and Public Authorities: This includes departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads for infrastructure and rehabilitation projects. These are not publicly traded companies but public sector organizations.
• Blue-Chip Corporations: For its specialty site infrastructure improvement services, STRL serves "blue-chip end users" in the e-commerce, data center, distribution center and warehousing, and energy sectors. Specific company names are not disclosed in the description, but these are large corporate clients.
• Home Builders, Developers, and General Contractors: In its residential and commercial concrete foundation segment, STRL works for national home builders, regional and custom home builders, developers, and general contractors in commercial markets. Specific company names for these clients are not provided.

Joseph A. Cutillo – Chief Executive Officer

Joe Cutillo has served as the Chief Executive Officer of Sterling Infrastructure, Inc. since 2017. He joined Sterling in 2015. Prior to his role at Sterling, Mr. Cutillo was the President and Chief Executive Officer of Inland Pipe Rehabilitation LLC, a private equity-backed trenchless pipe rehabilitation company, from 2008 to 2015. He also held leadership positions at Contech Construction Products, Ingersoll-Rand Corp, and General Electric. He is credited with leading a strategic transformation at Sterling, focusing on high-complexity, private-sector projects.

Nicholas Grindstaff – Chief Financial Officer

Nicholas Grindstaff was appointed Chief Financial Officer of Sterling Infrastructure, Inc., effective July 10, 2025. He brings over 30 years of finance and leadership experience, with a strong background in the infrastructure and energy industries. Most recently, he served as CFO of Cinterra, a turnkey solar and renewable energy contractor, from late 2024 to June 2025. From 2021 to 2024, he was the CFO of Orbital Infrastructure Group, Inc., a diversified infrastructure services company. Earlier in his career, Mr. Grindstaff spent more than two decades at Quanta Services, Inc., where his roles included Treasurer and Vice President – Finance.

Daniel Govin – Chief Operating Officer

Daniel Govin serves as Sterling's Chief Operating Officer, having joined the company in August 2024. He has 30 years of experience in operations and leadership, with previous roles including Regional President at Quanta Services and President of Par Electrical Contractors within the energy infrastructure industry.

Mark Wolf – General Counsel, Chief Compliance Officer & Corporate Secretary

Mark Wolf has been the General Counsel, Chief Compliance Officer & Corporate Secretary of Sterling since August 2020. Before joining Sterling, he served as Vice President, General Counsel & Corporate Secretary of US Well Services, Inc., and held legal roles at TechnipFMC and FMC Technologies, Inc.

Key Risks for Sterling Infrastructure (STRL)

1. Dependence on Government Infrastructure Spending and Economic Conditions: A significant portion of Sterling Infrastructure's business relies on contracts from government agencies for transportation and water infrastructure projects. Funding for these projects is subject to political decisions, budgetary allocations, and economic conditions. Similarly, the company's residential and commercial concrete foundation work is directly tied to the health of the broader economy, interest rates, and demand in the housing and commercial construction markets. A decline in government infrastructure spending or a downturn in the construction sector could significantly impact the company's revenues and profitability.
2. Volatility in Material and Labor Costs: As a heavy civil and concrete contractor, Sterling Infrastructure is highly exposed to fluctuations in the cost of key construction materials such as asphalt, concrete, and steel. The availability and cost of skilled labor also present a significant risk. Unexpected increases in material or labor costs, particularly on fixed-price contracts, can erode profit margins and negatively affect project profitability.
3. Intense Competition and Project Bidding Risks: The construction industry is highly competitive, and Sterling Infrastructure operates in a fragmented market. The company faces risks associated with intense competition for new projects, which can lead to aggressive bidding, reduced profit margins, or the loss of desirable contracts. Accurate estimation of project costs, schedules, and potential risks is crucial for successful bidding and project execution.

Sterling Infrastructure (STRL) operates in several addressable markets primarily within the United States.

For its main products and services, the addressable markets are sized as follows:

Transportation Infrastructure (U.S.)

• The U.S. transportation infrastructure market was valued at approximately USD 380.4 billion in 2024 and is projected to grow to USD 550.5 billion by 2032, with a compound annual growth rate (CAGR) of 4.9% from 2025 to 2032.
• Another estimate for the U.S. transportation infrastructure construction market indicates a value of USD 233.03 billion in 2025, with a forecast to reach USD 298.12 billion by 2031 at a 4.19% CAGR.

E-Infrastructure (U.S.)

This segment includes specialty site infrastructure for e-commerce, data centers, distribution centers, warehousing, and energy sectors.

• Data Center Construction: The U.S. data center construction market was valued between approximately USD 14.35 billion and USD 94.14 billion in 2025. Projections suggest growth to a range of USD 21.43 billion by 2030 to USD 211.66 billion by 2033, with various sources indicating CAGRs between 5.15% and 11% over different forecast periods.
• Warehousing & Distribution Center Construction: The broader U.S. industrial building construction market, which encompasses warehouses, data centers, and specialized manufacturing facilities, was valued at USD 43.8 billion in 2024 and is expected to reach USD 61.6 billion by 2032, growing at a CAGR of 4.5% during 2025–2032. As of December 2024, approximately USD 9 billion worth of warehousing and distribution projects were under construction in the U.S.
• Energy Infrastructure Construction: The U.S. power infrastructure market was valued at USD 264.2 billion in 2024 and is projected to increase to USD 455.6 billion by 2032, advancing at a CAGR of 7.2% during 2025–2032. The energy and utilities construction market was valued at $139.64 billion in 2025 and is projected to grow to $208.73 billion in 2030.

Building Solutions (U.S.)

This covers residential and commercial concrete foundations and other concrete work.

• Overall Concrete Market: The U.S. concrete market was estimated at USD 351,372.5 million in 2024 and is expected to reach USD 541,383.5 million by 2035, growing at a CAGR of around 4.01% from 2025 to 2035.
• Concrete Contractors: The market size for Concrete Contractors in the U.S. was approximately USD 110.4 billion in 2025 and USD 110.5 billion in 2026.
• Precast Concrete: The U.S. precast concrete market, which includes components used in residential and commercial construction, was valued at USD 20.85 billion in 2024 and is expected to reach USD 36.45 billion by 2033. Residential applications constitute 63.2% of this market.

Sterling Infrastructure (STRL) is expected to drive future revenue growth over the next 2-3 years through several key factors:

1. Booming E-Infrastructure Demand: The E-Infrastructure Solutions segment is projected to be the primary driver of revenue growth, fueled by the accelerating demand for data centers (including AI data centers), semiconductor fabrication facilities, advanced manufacturing plants, and e-commerce distribution and warehousing centers. This segment saw a 123% year-over-year revenue surge in Q4 2025 and is targeting 40% or higher growth in 2026.
2. Strategic Acquisitions: Recent acquisitions, such as CEC Facilities Group, have significantly expanded Sterling Infrastructure's E-Infrastructure capabilities, particularly in specialty electrical and mechanical contracting, and have notably boosted the company's backlog and revenue. The acquisition of Drake Concrete also strengthened the Building Solutions segment.
3. Robust Backlog and Project Pipeline: The company's record-high signed backlog, which reached $3 billion at the end of 2025, along with unsigned awards and future phase opportunities totaling approximately $4.5 billion, provides substantial revenue visibility for the coming years.
4. Geographic Expansion and Market Penetration: Sterling Infrastructure is strategically expanding its presence into new high-growth regions, such as Texas and the Pacific Northwest, to capitalize on large-scale infrastructure projects. The company is actively deploying teams into selected markets ahead of upcoming "megaprojects" to secure long-term opportunities.
5. Stable Contribution from Transportation Solutions: The Transportation Solutions segment is expected to continue providing stable revenue growth, supported by the ongoing federal infrastructure funding cycle through initiatives like the Infrastructure Investment and Jobs Act (IIJA). Management anticipates low to mid-single-digit revenue growth and continued margin expansion in this segment.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• Sterling Infrastructure authorized a new $400 million stock repurchase program on November 12, 2025, effective for 24 months, replacing a prior program.
• At the time of replacement, the previous program had $81 million of remaining capacity.
• Actual share repurchases were approximately $74.2 million in 2025, $43.8 million in 2023, $43.8 million in 2022, and $70.6 million in 2021.

Share Issuance

• In June 2025, Sterling Infrastructure issued $55 million in common stock as part of the consideration for the acquisition of CEC Facilities Group.
• Sterling Infrastructure's shares outstanding increased by 2.11% in 2023 from 2022.

Outbound Investments

• In June 2025, Sterling Infrastructure announced the acquisition of CEC Facilities Group for a total of $505 million, comprising $450 million in cash and $55 million in Sterling Common Stock.
• This acquisition, completed in Q3 2025, aimed to significantly expand Sterling's E-Infrastructure capabilities, particularly in electrical and mechanical services for data centers and manufacturing.

Capital Expenditures

• Capital expenditures amounted to approximately $77.31 million in 2025, $50.92 million in 2024, $31.26 million in 2023, $17.92 million in 2022, and $80.95 million in 2021.
• The capital expenditures are primarily focused on supporting its E-Infrastructure, Transportation, and Building Solutions segments.