Shares of Sterling Infrastructure (NASDAQ: STRL) jumped 5% in after-hours trading on Tuesday following the company's strong first-quarter earnings report and increased full-year guidance. The civil infrastructure construction firm delivered better-than-expected results across key financial metrics, signaling continued momentum in its business operations.

For the quarter ended March 31, 2025, Sterling reported adjusted earnings per share of $1.63, handily beating the analyst consensus estimate of $1.26 and representing a 63% increase from $1.00 per share in the same period last year. Revenue came in at $430.9 million, surpassing Wall Street's expectations of $409.1 million, despite a 2.1% year-over-year decrease. The company's adjusted EBITDA of $80.3 million also topped analyst projections of $75.39 million, achieving an impressive 18.6% margin.

In light of the strong quarterly performance, Sterling raised its full-year 2025 guidance. The company now expects adjusted earnings per share between $8.40 and $8.90, up from its previous range of $7.90 to $8.40. Revenue projections were also lifted to $2.05 billion to $2.15 billion, compared to the earlier forecast of $2.00 billion to $2.15 billion. Both metrics now surpass current analyst expectations, fueling investor optimism about Sterling's growth prospects.

Joe Cutillo, Sterling's Chief Executive Officer, expressed satisfaction with the company's performance, stating, "Sterling is off to a great start in 2025, as we grew our first quarter adjusted net income by 28% to deliver adjusted diluted EPS of $1.63." He highlighted the strength across Sterling's business segments, particularly noting the 18% revenue growth and 61% adjusted operating income growth in the E-Infrastructure Solutions division, which focuses on site development for data centers, manufacturing facilities, and other large-scale projects.

The positive results and outlook underscore Sterling's ability to capitalize on robust demand in its key markets, especially in the rapidly growing data center sector. With a solid backlog of $2.13 billion as of March 31, 2025, the company appears well-positioned to sustain its growth trajectory throughout the year, despite broader economic uncertainties.