Granite Construction (NYSE:GVA) Issues Quarterly Earnings Results

Key Points

• Revenue beat expectations: Granite Construction reported quarterly revenue of $1.46 billion, up 28.8% year over year and above the $1.41 billion consensus estimate. Adjusted EPS was $2.16, narrowly missing estimates of $2.25.
• Strong outlook and project backlog: Committed and awarded projects rose to a record $7.4 billion, while the company raised 2026 revenue guidance to $5.3 billion–$5.5 billion and projected 2027 organic growth above 10%.
• Profitability faced pressure: Severe Southeast weather and quarry-development costs reduced materials gross margin by 800 basis points, while a $360 million non-operating charge contributed to a reported $278 million net loss.

Granite Construction (NYSE:GVA - Get Free Report) issued its quarterly earnings results on Thursday. The construction company reported $2.16 earnings per share for the quarter, missing analysts' consensus estimates of $2.25 by ($0.09), Briefing.com reports. Granite Construction had a positive return on equity of 27.83% and a negative net margin of 3.32%.The business had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.41 billion. During the same quarter in the previous year, the firm posted $1.42 EPS. Granite Construction's revenue was up 28.8% on a year-over-year basis.

Here are the key takeaways from Granite Construction's conference call:

• Record committed and awarded projects (CAP) increased to $7.4 billion, up $250 million sequentially, providing strong revenue visibility and supporting continued growth across transportation, federal, rail, and data-center projects.
• Second-quarter revenue rose 29% to $1.5 billion, while adjusted EBITDA increased by $34 million to $186 million and adjusted net income reached $101 million. Year-to-date operating cash flow improved substantially to $142 million, prompting the company to raise its annual cash-flow target to 11% of revenue.
• Granite raised 2026 revenue guidance to $5.3 billion-$5.5 billion and increased its 2027 organic growth outlook to above 10%, citing strong CAP, healthy public and private-sector demand, and a robust bidding pipeline.
• Data-center-related CAP grew to approximately $223 million from $65 million a year ago, and management expects the business to reach roughly 10% or more of annual revenue relatively quickly. The company also anticipates additional acquisitions, with $200 million-$400 million of spending targeted by year-end.
• Materials gross profit margin declined 800 basis points in the quarter, pressured by severe Southeast weather and approximately $5 million of quarry-development and plant-setup costs. Management expects the weather-related volume disruption to shift into later periods and does not expect a similar quarry-related drag in the third or fourth quarters.

Granite Construction Stock Performance

Shares of Granite Construction stock traded up $5.71 on Friday, reaching $120.63. 2,000,468 shares of the stock were exchanged, compared to its average volume of 930,693. The business has a 50 day moving average price of $136.77 and a two-hundred day moving average price of $130.49. The firm has a market capitalization of $5.28 billion, a price-to-earnings ratio of -27.99 and a beta of 1.29. Granite Construction has a twelve month low of $89.80 and a twelve month high of $162.08. The company has a quick ratio of 0.97, a current ratio of 1.01 and a debt-to-equity ratio of 1.46.

Granite Construction Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a dividend of $0.13 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.4%. Granite Construction's payout ratio is -12.06%.

More Granite Construction News

Here are the key news stories impacting Granite Construction this week:

• Positive Sentiment: Raised revenue outlook: Granite increased its 2026 revenue guidance to $5.3 billion–$5.5 billion and lifted its 2027 organic-growth outlook to above 10%. Management cited continued federal, state and private infrastructure funding as key growth drivers. Granite outlines 2026 revenue outlook
• Positive Sentiment: Revenue beat expectations: Second-quarter revenue rose approximately 29% year over year to $1.46 billion, exceeding the roughly $1.41 billion consensus estimate. Adjusted EBITDA also increased 22% to about $186 million, with public infrastructure activity providing the main source of momentum. Granite Reports Second Quarter 2026 Results
• Positive Sentiment: Bullish analyst view: Oppenheimer raised its price target from $170 to $180 and maintained an “outperform” rating, implying substantial upside based on the supplied reference price. Oppenheimer raises Granite price target
• Neutral Sentiment: Analyst opinions diverged: Goldman Sachs cut its target from $139 to $119 and assigned a “sell” rating, citing limited near-term upside, while Oppenheimer took the opposite view. This split highlights uncertainty around valuation and execution.
• Negative Sentiment: Headline loss and cost pressures: Granite reported a $278 million net loss, or $(6.36) per share, versus prior-year profit. The loss primarily reflected a $360 million non-operating charge tied to convertible-note transactions. Adjusted EPS of $2.16 also fell short of the $2.25 consensus, while severe Southeast weather and higher quarry-development costs pressured materials margins. Adjusted EBITDA margin guidance remained unchanged at 12.25%–13.25%.

Insider Buying and Selling

In other Granite Construction news, Director John Timothy Romer acquired 375 shares of the company's stock in a transaction dated Monday, June 15th. The shares were acquired at an average cost of $143.65 per share, with a total value of $53,868.75. Following the acquisition, the director directly owned 2,801 shares of the company's stock, valued at approximately $402,363.65. The trade was a 15.46% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Michael G. Tatusko sold 7,500 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $141.00, for a total transaction of $1,057,500.00. Following the completion of the sale, the senior vice president owned 29,787 shares in the company, valued at $4,199,967. The trade was a 20.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.88% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GVA. Arrowstreet Capital Limited Partnership purchased a new position in shares of Granite Construction during the 3rd quarter valued at about $367,000. Quantinno Capital Management LP acquired a new position in shares of Granite Construction in the 2nd quarter valued at about $335,000. Cibc World Markets Corp purchased a new stake in shares of Granite Construction in the fourth quarter worth about $334,000. PharVision Advisers LLC purchased a new stake in shares of Granite Construction in the third quarter worth about $313,000. Finally, SkyView Investment Advisors LLC acquired a new stake in Granite Construction during the fourth quarter worth about $313,000.

Analyst Ratings Changes

GVA has been the subject of several research analyst reports. Oppenheimer increased their price objective on shares of Granite Construction from $170.00 to $180.00 and gave the company an "outperform" rating in a research report on Friday. Weiss Ratings lowered shares of Granite Construction from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Wall Street Zen cut shares of Granite Construction from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Zacks Research upgraded shares of Granite Construction to a "hold" rating in a research note on Friday, May 29th. Finally, Stephens initiated coverage on shares of Granite Construction in a report on Friday, June 26th. They set an "overweight" rating and a $180.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Granite Construction currently has an average rating of "Moderate Buy" and an average price target of $158.50.

About Granite Construction

Granite Construction Inc is a publicly traded heavy civil contractor and construction materials producer based in Watsonville, California. The company specializes in delivering large-scale infrastructure projects for government and private clients, focusing on the development, rehabilitation and maintenance of transportation, water resource and industrial facilities. Its turnkey solutions span the full project lifecycle, from preconstruction and design-build to construction management and facilities maintenance.

In its construction segment, Granite undertakes highway and bridge building, airport runway and taxiway construction, marine terminal and port improvements, dam and reservoir projects, transit systems and underground utilities.

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