Sterling Infrastructure's Transportation Solutions segment reported a 10% revenue increase and a 26% rise in adjusted operating income in the first quarter of 2026, driven by strong execution and a favorable mix of higher-margin projects. The segment's backlog reached $1.04 billion, up 20% year over year, providing healthy revenue visibility. Sterling expects low to mid-single-digit revenue growth for the full year, though growth is likely to moderate after an unusually strong first quarter that benefited from favorable weather and earlier-than-expected project starts. The company is reducing exposure to lower-margin highway work in Texas while redeploying equipment and resources to higher-return projects, improving asset utilization and capital efficiency. Transportation Solutions continues to serve as a reliable cash-generating business, supporting investment across Sterling's other growth initiatives.
Sterling Infrastructure, Inc.Transportation Solutions backlog up 20% to $1.04B, revenue up 10%, operating income up 26%.
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