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Should Data Center-Fueled E-Infrastructure Expansion and CEC Deal Require Action From Sterling Infrastructure (STRL) Investors?

Simply Wall St · 3d ago
  • Sterling Infrastructure recently reported very large revenue growth in its E-Infrastructure Solutions segment tied to data center projects in Q3 2025, while its acquisition of CEC broadened electrical capabilities to complement existing site development work.
  • This combination of rapid data center-related expansion and enhanced in-house electrical expertise could meaningfully influence how investors view Sterling’s long-term role in mission-critical infrastructure.
  • Next, we’ll examine how the data center-driven surge in E-Infrastructure revenue may reshape Sterling Infrastructure’s broader investment narrative and outlook.

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Sterling Infrastructure Investment Narrative Recap

Sterling Infrastructure appeals to investors who believe data center and mission critical work can support sustained demand for its E Infrastructure Solutions business. The latest 125% data center revenue jump and CEC acquisition reinforce that story, but also sharpen the key short term catalyst around continued hyperscale project wins and the main risk that this concentrated growth could slow or prove less durable than recent results suggest.

Among recent announcements, the Q3 2025 earnings release stands out alongside the data center update, with sales of US$689.02 million and net income of US$92.09 million. Together with the raised full year 2025 guidance for revenue of US$2.375 billion to US$2.390 billion and diluted EPS of US$8.73 to US$8.87, it frames how much of Sterling’s current appeal now ties back to execution in E Infrastructure Solutions.

Yet behind the strong data center momentum, investors should be aware of the concentration risk if...

Read the full narrative on Sterling Infrastructure (it's free!)

Sterling Infrastructure's narrative projects $2.6 billion revenue and $276.4 million earnings by 2028. This requires 6.9% yearly revenue growth and a $8.6 million earnings decrease from $285.0 million today.

Uncover how Sterling Infrastructure's forecasts yield a $453.33 fair value, a 42% upside to its current price.

Exploring Other Perspectives

STRL 1-Year Stock Price Chart
STRL 1-Year Stock Price Chart

Six Simply Wall St Community fair value estimates span from US$113.55 to US$453.33, showing how far apart views on Sterling can be. When you set those against the data center driven surge in E Infrastructure Solutions, it becomes even more important to compare different assumptions about how long that project mix can support the business.

Explore 6 other fair value estimates on Sterling Infrastructure - why the stock might be worth less than half the current price!

Build Your Own Sterling Infrastructure Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.