STERLING INFRASTRUCTURE, INC.STRL
STERLING INFRASTRUCTURE, INC. Revenue Disclosure
| 4. | REVENUE FROM CUSTOMERS | ||||
Remaining Performance Obligations—RPOs represent the aggregate amount of our contract transaction price related to performance obligations that are unsatisfied or partially satisfied at the end of the period. RPOs include the entire expected revenue values for joint ventures we consolidate and our proportionate value for those we proportionately consolidate. RPOs may not be indicative of future operating results. Projects included in RPOs may be canceled or modified by customers; however, the customer would be obligated to compensate the Company for work performed through the date of termination and for any applicable contractual costs for cancellations or modifications. Excluded from RPOs are potential orders under master service agreements and expected revenues under certain non-fixed price contracts. The following table presents the Company’s RPOs, by segment:
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| E-Infrastructure Solutions RPOs | $ | 1,843,536 | $ | 1,032,109 | ||||||||||
Transportation Solutions RPOs | 1,124,429 | 622,085 | ||||||||||||
Building Solutions RPOs - Commercial | 42,977 | 39,029 | ||||||||||||
| Total RPOs | $ | 3,010,942 | $ | 1,693,223 | ||||||||||
The Company expects to recognize approximately 64% of its RPOs as revenue during the next 12 months, and substantially all of the remaining balance in the 12 to 24 months thereafter.
Revenue Disaggregation—The following tables present the Company’s revenue disaggregated by major end market and contract type:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues by major end market | |||||||||||||||||
E-Infrastructure Solutions Revenues | $ | 1,466,777 | $ | 923,728 | $ | 937,408 | |||||||||||
| Heavy Highway | 425,595 | 547,278 | 453,042 | ||||||||||||||
| Aviation | 62,716 | 85,005 | 70,784 | ||||||||||||||
| Other Services | 152,363 | 151,376 | 107,082 | ||||||||||||||
Transportation Solutions Revenues (1) | 640,674 | 783,659 | 630,908 | ||||||||||||||
| Residential | 319,547 | 306,547 | 273,699 | ||||||||||||||
| Commercial | 63,051 | 101,822 | 130,214 | ||||||||||||||
Building Solutions Revenues | 382,598 | 408,369 | 403,913 | ||||||||||||||
Total Revenues (1) | $ | 2,490,049 | $ | 2,115,756 | $ | 1,972,229 | |||||||||||
(1) Due to the deconsolidation of RHB on December 31, 2024, RHB’s revenue is no longer included in Sterling’s consolidated revenue in 2025. For the years ended December 31, 2024 and 2023, RHB had revenue of $235,876 and $193,055, respectively, included within Transportation Solutions and Total Revenues. | |||||||||||||||||
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues by contract type | |||||||||||||||||
| Lump Sum | $ | 1,431,114 | $ | 1,040,490 | $ | 1,076,432 | |||||||||||
| Fixed-Unit Price | 719,586 | 756,468 | 613,842 | ||||||||||||||
| Residential and Other | 339,349 | 318,798 | 281,955 | ||||||||||||||
Total Revenues (1) | $ | 2,490,049 | $ | 2,115,756 | $ | 1,972,229 | |||||||||||
(1) Due to the deconsolidation of RHB on December 31, 2024, RHB’s revenue is no longer included in Sterling’s consolidated revenue in 2025. For the years ended December 31, 2024 and 2023, RHB had revenue of $235,876 and $193,055, respectively, included within Total Revenues. | |||||||||||||||||
Variable Consideration
The Company has projects that it is in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with its customers. The Company is proceeding with its contractual rights to recoup additional costs incurred from its customers based on completing work associated with change orders, including change orders with pending change order pricing, or claims related to significant changes in scope which resulted in substantial delays and additional costs in completing the work. Unapproved change order and claim information has been provided to the Company’s customers and negotiations with the customers are ongoing. If additional progress with an acceptable resolution is not reached, legal action will be taken. Based upon the Company’s review of the provisions of its contracts, specific costs incurred and other related evidence supporting the unapproved change orders and claims, together in some cases as necessary with the views of the Company’s outside claim consultants, the Company concluded it was appropriate to include in project price amounts of $2,900 and $4,000, at December 31, 2025 and 2024, respectively, relating to unapproved change orders and claims. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.
Contract Estimates
Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes such profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that often span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials and the performance of subcontractors. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract penalty provisions and final contract settlements, may result in changes in revenue and are recognized in the period in which the changes are determined. Changes in contract estimates on performance obligations satisfied or partially satisfied in previous periods resulted in net revenue increases of $168,373, $135,344 and $58,827 for the years ended December 31, 2025, 2024 and 2023, respectively, and are included in “Operating income” on the Consolidated Statements of Operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Mar 5, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.