Granite Construction (NYSE:GVA) Posts Earnings Results, Beats Estimates By $0.06 EPS

Granite Construction (NYSE:GVA) issued its quarterly earnings data on Thursday. The construction company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.34 by $0.06, Briefing.com reports. Granite Construction had a net margin of 4.31% and a return on equity of 24.04%. During the same period in the previous year, the business posted $1.23 EPS. The business’s quarterly revenue was up 19.2% compared to the same quarter last year.

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

• Record backlog (CAP) of $7 billion, up $632 million sequential, with Best Value work at 48%—management says this higher‑quality mix should drive continued construction margin expansion.
• Strong 2025 results — revenue up 10% to $4.4 billion, adjusted EBITDA up 31% to $527 million, adjusted net income up 29%, and operating cash flow of $469 million, highlighting improved profitability and cash generation.
• Materials business transformed by three acquisitions (Warren Paving, Papich, Cinderlite), boosting reserves 34% to 2.1 billion tons and cash gross profit margin to 26%; management plans an additional $50 million of strategic materials CapEx in 2026.
• 2026 guidance targets revenue of $4.9–$5.1 billion, adjusted EBITDA margin of 12–13%, SG&A of 8.5–9% of revenue, and CapEx of $140–$160 million, while reiterating 2027 financial targets.
• Near‑term risks include reliance on public funding (≈85% of work), weather and execution exposure on large federal/border opportunities (none of which are assumed in 2026 guidance), and 2025 OCF benefited from one‑time retention/claim collections.

Granite Construction Stock Performance

Shares of Granite Construction stock traded down $4.20 during mid-day trading on Thursday, hitting $128.97. 207,245 shares of the stock were exchanged, compared to its average volume of 634,284. Granite Construction has a 12 month low of $69.08 and a 12 month high of $136.63. The company has a 50-day simple moving average of $119.40 and a 200 day simple moving average of $110.29. The company has a market capitalization of $5.63 billion, a P/E ratio of 37.09 and a beta of 1.34. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.12 and a current ratio of 1.21.

Granite Construction Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st were paid a dividend of $0.13 per share. The ex-dividend date was Wednesday, December 31st. This represents a $0.52 dividend on an annualized basis and a yield of 0.4%. Granite Construction’s payout ratio is 14.99%.

Analysts Set New Price Targets

Several brokerages have recently commented on GVA. The Goldman Sachs Group lifted their target price on Granite Construction from $109.00 to $124.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 28th. Wall Street Zen raised Granite Construction from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. DA Davidson increased their price objective on Granite Construction from $125.00 to $130.00 and gave the company a “buy” rating in a research report on Tuesday, November 11th. Weiss Ratings reiterated a “buy (b)” rating on shares of Granite Construction in a report on Monday, December 29th. Finally, Zacks Research upgraded shares of Granite Construction from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $127.00.

Insiders Place Their Bets

In other Granite Construction news, Director Celeste Beeks Mastin sold 7,614 shares of Granite Construction stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $105.23, for a total value of $801,221.22. Following the transaction, the director directly owned 10,206 shares of the company’s stock, valued at $1,073,977.38. The trade was a 42.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC grew its stake in Granite Construction by 73.2% during the 1st quarter. AQR Capital Management LLC now owns 21,379 shares of the construction company’s stock valued at $1,612,000 after purchasing an additional 9,038 shares during the last quarter. United Services Automobile Association purchased a new position in Granite Construction in the 1st quarter worth approximately $207,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Granite Construction by 21.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 168,859 shares of the construction company’s stock valued at $12,732,000 after purchasing an additional 29,428 shares during the last quarter. Marshall Wace LLP grew its holdings in shares of Granite Construction by 2,423.4% during the 2nd quarter. Marshall Wace LLP now owns 89,882 shares of the construction company’s stock worth $8,405,000 after purchasing an additional 86,320 shares during the period. Finally, WINTON GROUP Ltd acquired a new position in Granite Construction during the second quarter worth $229,000.

Granite Construction Company Profile

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.