STRL
Sterling Construction
Is STRL Halal?
Construction company — building infrastructure permissible.
What You Should Know
Sterling Construction specializes in heavy construction and civil infrastructure. Core business is permissible. Its March 31, 2026 Form 10-Q reports $2,783.672 million of assets, $289.089 million of interest-bearing debt, $511.858 million of cash, $513.903 million of receivables and $825.675 million of quarterly revenue. Debt/assets is 10.39%, liquidity/assets is 18.39%, receivables-plus-cash/assets is 36.85%, and disclosed interest income is 0.44% of revenue; FTSE and Malaysia financial ratios pass while the stricter MSCI receivables-plus-cash screen fails, and government, data-center and project end uses remain qualitative.
⚠️ Concerns
- •Cyclical construction demand
- •Variable-rate term debt
- •MSCI receivables-plus-cash ratio exceeds the examined limit
- •Data-center, semiconductor and government project end uses
- •Interest income
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
289.089 / 2,783.672
511.858 / 2,783.672
1,025.761 / 2,783.672
3.638 / 825.675
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 10.39%, liquidity/assets is 18.39%, receivables-plus-cash/assets is 36.85%, and disclosed income is 0.44% of revenue; business activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 36.85%, above the examined MSCI 33.33% limit; debt/assets is 10.39% and liquidity/assets is 18.39%.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 10.39% and liquidity/assets is 18.39%; activity remains incomplete and this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Sterling provides e-infrastructure, transportation and building solutions. Construction and civil infrastructure are generally permissible, while project end uses, government contracts, labor and environmental effects require qualitative review.
Limitation: The filing does not allocate every contract and customer end use into a universal prohibited-activity numerator.
Purification
Sterling reports $3.638 million of interest income but does not provide a complete prohibited-activity numerator or scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Sterling Infrastructure's March 31, 2026 Form 10-Q.
- Interest-bearing debt is $289.089 million of term-loan, current-maturity and other debt; operating and finance lease liabilities are excluded.
- Cash and cash equivalents are $511.858 million. The $100.482 million investment in an unconsolidated subsidiary is not treated as an interest-bearing security.
- Accounts receivable are $513.903 million and quarterly revenue is $825.675 million. The filing reports $3.638 million of interest income.
- E-infrastructure, transportation and building services are generally permissible, while government, data-center, infrastructure and project end uses require qualitative review.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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