DA Davidson Reaffirms Sterling Infrastructure (STRL) Buy After Q2 Earnings Beat

Sterling Infrastructure, Inc. (NASDAQ:STRL) is one of the best Russell 2000 stocks to buy now. On August 5, DA Davidson reaffirmed its “Buy” rating on Sterling. The firm maintained the $265 price target for the stock, citing a stronger-than-expected earnings report.

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Sterling reported its Q2 2025 earnings on August 4, delivering adjusted earnings per share (EPS) of $2.69. The EPS was well above both DA Davidson’s estimate of $2.36 and the broader consensus estimate of $2.25. Revenue reached $614.5 million, outperforming DA Davidson’s projection of $552.0 million and the consensus estimate of $554.4 million.

DA Davidson noted that Sterling achieved an adjusted EBITDA of $125.7 million, exceeding its estimate of $114.2 million. As a result of the earnings beat, Sterling increased its full-year guidance, excluding the potential impact of the pending CEC acquisition. The analysts emphasized that their positive outlook is based on the “continued strong performance” and “climbing margins” in Sterling’s E-Infrastructure segment.

Sterling Infrastructure, Inc. (NASDAQ:STRL) is a construction and infrastructure services company. It operates through three segments: Transportation, Building Solutions, and E-Infrastructure. The company specializes in heavy civil construction projects, including highways, bridges, and airports, and also provides site development services for data centers, warehouses, and distribution hubs.

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Disclosure: None. This article is originally published at Insider Monkey.