Granite Construction (NYSE:GVA) Announces Quarterly Earnings Results

Granite Construction (NYSE:GVA) released its quarterly earnings data on Thursday. The construction company reported $2.16 EPS for the quarter, missing the consensus estimate of $2.25 by ($0.09), Briefing.com reports. The firm had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.41 billion. Granite Construction had a positive return on equity of 27.83% and a negative net margin of 3.32%.The company’s revenue for the quarter was up 28.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.42 earnings per share.

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 Up 5.0%

Granite Construction stock traded up $5.71 during mid-day trading on Friday, reaching $120.63. 2,000,468 shares of the company were exchanged, compared to its average volume of 930,693. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.97 and a current ratio of 1.01. The firm has a market cap of $5.28 billion, a P/E ratio of -27.99 and a beta of 1.29. The business has a fifty day moving average of $136.77 and a 200 day moving average of $130.49. Granite Construction has a 12-month low of $89.80 and a 12-month high of $162.08.

Granite Construction Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on GVA. Oppenheimer increased their price target on Granite Construction from $170.00 to $180.00 and gave the stock an “outperform” rating in a research report on Friday. Weiss Ratings downgraded Granite Construction from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. Wall Street Zen lowered shares of Granite Construction from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. The Goldman Sachs Group lowered their price objective on shares of Granite Construction from $139.00 to $119.00 and set a “sell” rating for the company in a research note on Friday. Finally, Stephens began coverage on shares of Granite Construction in a report on Friday, June 26th. They set an “overweight” rating and a $180.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Granite Construction currently has an average rating of “Moderate Buy” and an average price target of $158.50.

Insider Activity

In other news, SVP Michael G. Tatusko sold 7,500 shares of the business’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $141.00, for a total value of $1,057,500.00. Following the completion of the transaction, the senior vice president directly owned 29,787 shares of the company’s stock, valued at approximately $4,199,967. The trade was a 20.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director John Timothy Romer acquired 375 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were bought at an average cost of $143.65 per share, for a total transaction of $53,868.75. Following the transaction, the director owned 2,801 shares of the company’s stock, valued at $402,363.65. This represents a 15.46% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.88% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Maryland State Retirement & Pension System grew its position in Granite Construction by 1.3% during the fourth quarter. Maryland State Retirement & Pension System now owns 6,378 shares of the construction company’s stock valued at $736,000 after buying an additional 83 shares during the period. Evergreen Capital Management LLC raised its position in shares of Granite Construction by 4.5% in the second quarter. Evergreen Capital Management LLC now owns 2,813 shares of the construction company’s stock worth $263,000 after acquiring an additional 120 shares during the period. Corient Private Wealth LLC boosted its stake in shares of Granite Construction by 3.1% during the 4th quarter. Corient Private Wealth LLC now owns 4,978 shares of the construction company’s stock worth $575,000 after acquiring an additional 148 shares in the last quarter. Aster Capital Management DIFC Ltd grew its position in shares of Granite Construction by 512.8% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 239 shares of the construction company’s stock valued at $28,000 after acquiring an additional 200 shares during the period. Finally, Vanguard Personalized Indexing Management LLC grew its position in shares of Granite Construction by 3.8% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 6,104 shares of the construction company’s stock valued at $704,000 after acquiring an additional 224 shares during the period.

Key Stories Impacting Granite Construction

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%.

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.