Granite Construction (NYSE:GVA) Issues Quarterly Earnings Results, Beats Estimates By $0.54 EPS

Granite Construction (NYSE:GVA) announced its earnings results on Thursday. The construction company reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.27 by $0.54, FiscalAI reports. The company had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.70 billion. Granite Construction had a negative net margin of 3.32% and a positive return on equity of 27.83%. The firm’s quarterly revenue was up 23.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.98 earnings per share.

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

• Record third-quarter performance: Revenue rose 23% year over year to $1.8 billion, while adjusted EBITDA increased 31% to $283 million. Construction revenue grew 27%, and construction gross margin expanded 210 basis points, supported by strong execution and disciplined project selection.
• Guidance and backlog strengthened: Granite raised the low end of its 2026 revenue outlook to $5.4 billion from $5.3 billion and expects 10%–12% organic revenue growth in 2027. Construction CAP reached a record $7.5 billion, providing significant visibility into future revenue.
• Long-term growth opportunities remain broad: Management reiterated its targets for 10%–12% organic revenue CAGR and 14%–16% adjusted EBITDA margins by 2029. Federal, rail, and mission-critical infrastructure—including data centers, space, and battery storage—are expected to complement mid-single-digit growth in core transportation markets.
• Materials margins were pressured: Materials gross margin fell 420 basis points because higher energy costs and related surcharges increased revenue but reduced incremental margins. Management said underlying unit economics remained solid and expects margins to improve as energy costs normalize, pricing, volume, vertical integration, and automation contribute.
• Cash generation supports capital allocation: Year-to-date operating cash flow reached $404 million, up from $290 million a year earlier, and the company remains on track for its 2026 cash-flow target. Granite plans to continue investing organically, pursue acquisitions, and consider share repurchases while maintaining a long-term net leverage target of approximately 2.5 times.

Granite Construction Trading Up 8.7%

Granite Construction stock traded up $9.77 during mid-day trading on Thursday, hitting $121.44. The company’s stock had a trading volume of 1,645,249 shares, compared to its average volume of 696,606. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.01 and a quick ratio of 0.94. The stock has a market cap of $5.31 billion, a price-to-earnings ratio of 17.29 and a beta of 1.34. The business has a 50 day moving average price of $115.78 and a 200-day moving average price of $126.39. Granite Construction has a 12 month low of $97.26 and a 12 month high of $162.08.

Granite Construction Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were given a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Wednesday, September 30th. Granite Construction’s dividend payout ratio (DPR) is presently -12.06%.

Analysts Set New Price Targets

Several brokerages have issued reports on GVA. The Goldman Sachs Group dropped their price target on Granite Construction from $139.00 to $119.00 and set a “sell” rating for the company in a research note on Friday, July 31st. Wall Street Zen lowered Granite Construction from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Weiss Ratings cut Granite Construction from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, September 2nd. Finally, Oppenheimer raised their price objective on Granite Construction from $170.00 to $180.00 and gave the company an “outperform” rating in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $158.50.

Insider Activity

In related news, Director Carlos M. Hernandez acquired 400 shares of Granite Construction stock in a transaction dated Thursday, August 6th. The shares were purchased at an average cost of $123.99 per share, with a total value of $49,596.00. Following the completion of the purchase, the director owned 5,033 shares of the company’s stock, valued at $624,041.67. This represents a 8.63% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.88% of the company’s stock.

Granite Construction Company Profile

Granite Construction Incorporated (NYSE:GVA) is an infrastructure construction company that provides engineering, construction and rehabilitation services for public and private-sector clients. The company’s work supports transportation, water and other essential infrastructure projects across the United States.

Granite’s transportation activities include the construction and maintenance of highways, roads, bridges, airports, rail systems and other transit facilities. Its water-related services include the development and improvement of water treatment and distribution systems, wastewater facilities, dams, pipelines and related infrastructure.