Sterling Construction (NASDAQ: STRL) saw its stock price surge 5.50% in pre-market trading on Tuesday, following the company's impressive first-quarter earnings report and increased full-year guidance. The civil infrastructure construction firm's financial results exceeded analyst expectations across key metrics, demonstrating robust business momentum.
For Q1 2025, Sterling reported adjusted earnings per share of $1.63, significantly surpassing the consensus estimate of $1.26 and marking a 63% year-over-year increase. While revenue slightly decreased to $430.9 million, it still beat Wall Street's projections. The company's adjusted EBITDA of $80.3 million also outperformed expectations, achieving an impressive 18.6% margin.
In light of the strong quarterly performance, Sterling raised its full-year 2025 guidance. The company now projects adjusted earnings per share between $8.40 and $8.90, up from its previous range. Revenue forecasts were also increased to $2.05 billion to $2.15 billion. Both metrics now exceed current analyst expectations, fueling investor optimism about Sterling's growth prospects. With a solid backlog of $2.13 billion, the company appears well-positioned to maintain its growth trajectory throughout the year, particularly in the rapidly expanding data center sector.