Sterling Construction (NASDAQ: STRL) shares surged 7.32% in after-hours trading on Monday, following the company's announcement of record-breaking second-quarter results for 2025 and an increase in full-year guidance. The infrastructure construction company significantly outperformed analyst expectations, demonstrating strong growth across its key business segments.
Sterling reported adjusted earnings per share of $2.69 for Q2, a substantial 36.55% beat compared to the analyst consensus estimate of $1.97. This represents a 40.84% increase from the same period last year. The company's quarterly revenue reached $614.468 million, exceeding analyst estimates of $554.35 million by 10.84% and marking a 5.43% year-over-year increase.
The impressive results were driven by strong performance in Sterling's E-Infrastructure Solutions and Transportation Solutions segments, which saw revenue increases of 29% and 24% respectively. The company also reported a robust gross margin of 23.3% for the quarter. In light of these strong results, Sterling raised its full-year 2025 guidance, now expecting adjusted EPS of $9.21 to $9.47 on revenue of $2.10 billion to $2.15 billion. This upward revision in guidance likely contributed to investor enthusiasm, resulting in the significant after-hours stock price increase.