Granite Construction (NYSE:GVA) Issues Earnings Results

Granite Construction (NYSE:GVA) issued its earnings results on Thursday. The construction company reported $1.40 earnings per share (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%. The business’s quarterly revenue was up 19.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.23 earnings per share.

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 Trading Down 3.4%

Shares of GVA stock traded down $4.53 during mid-day trading on Thursday, hitting $128.65. 292,104 shares of the company’s stock were exchanged, compared to its average volume of 637,498. The stock has a market cap of $5.62 billion, a price-to-earnings ratio of 37.07 and a beta of 1.34. The company has a quick ratio of 1.12, a current ratio of 1.21 and a debt-to-equity ratio of 0.80. Granite Construction has a fifty-two week low of $69.08 and a fifty-two week high of $136.63. The stock has a 50-day simple moving average of $119.40 and a two-hundred day simple moving average of $110.29.

Granite Construction Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st were issued a dividend of $0.13 per share. The ex-dividend date was Wednesday, December 31st. This represents a $0.52 annualized dividend and a dividend yield of 0.4%. Granite Construction’s dividend payout ratio (DPR) is 14.99%.

More Granite Construction News

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

• Positive Sentiment: Q4 beat and healthy revenue growth — Adjusted Q4 EPS $1.40 vs. consensus $1.34; revenue was up ~19.2% year-over-year and adjusted net income was $65M. This shows stronger top-line momentum and margin improvement. Read More.
• Positive Sentiment: Raised FY2026 revenue outlook — management updated its revenue guidance to roughly $4.9–$5.1 billion for FY2026, signaling confidence in backlog and bidding opportunity. Read More.
• Neutral Sentiment: Call, slides and transcripts available — management commentary and the slide deck may clarify margin drivers, backlog and the cadence of FY26 revenue; review the transcript and slides for color on regional demand and contract mix. Read More.
• Neutral Sentiment: Reported profitability metrics — net margin of ~4.3% and ROE ~24% indicate solid returns on equity but modest operating margins typical for the sector; monitor margin trajectory as revenues scale. Read More.
• Negative Sentiment: Market reaction and possible concerns — shares fell despite the beat. Contributing factors likely include limited/unclear EPS guidance detail in the release, a relatively rich valuation (P/E ~37x) and below-average trading volume today, which can amplify directional moves. Read More.

Wall Street Analysts Forecast Growth

GVA has been the subject of several research reports. The Goldman Sachs Group lifted their price objective on Granite Construction from $109.00 to $124.00 and gave the stock a “neutral” rating in a report on Wednesday, January 28th. Weiss Ratings reissued a “buy (b)” rating on shares of Granite Construction in a research note on Monday, December 29th. DA Davidson raised their target price on shares of Granite Construction from $125.00 to $130.00 and gave the company a “buy” rating in a report on Tuesday, November 11th. Wall Street Zen upgraded shares of Granite Construction from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Finally, Zacks Research raised 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 given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $127.00.

Insider Transactions at Granite Construction

In other Granite Construction news, Director Celeste Beeks Mastin sold 7,614 shares of the firm’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $105.23, for a total value of $801,221.22. Following the sale, the director directly owned 10,206 shares of the company’s stock, valued at approximately $1,073,977.38. This trade represents a 42.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of GVA. Millennium Management LLC grew its holdings in Granite Construction by 8.9% in the third quarter. Millennium Management LLC now owns 1,602,382 shares of the construction company’s stock valued at $175,701,000 after purchasing an additional 131,360 shares during the period. Wasatch Advisors LP boosted its holdings in shares of Granite Construction by 12.4% in the 3rd quarter. Wasatch Advisors LP now owns 861,770 shares of the construction company’s stock valued at $94,493,000 after purchasing an additional 94,902 shares during the last quarter. Nuveen LLC grew its stake in shares of Granite Construction by 9.4% during the 4th quarter. Nuveen LLC now owns 662,832 shares of the construction company’s stock valued at $76,458,000 after buying an additional 57,072 shares during the period. Qube Research & Technologies Ltd increased its holdings in shares of Granite Construction by 87.5% during the 3rd quarter. Qube Research & Technologies Ltd now owns 556,054 shares of the construction company’s stock worth $60,971,000 after buying an additional 259,477 shares during the last quarter. Finally, Balyasny Asset Management L.P. increased its holdings in shares of Granite Construction by 44.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 316,042 shares of the construction company’s stock worth $34,654,000 after buying an additional 96,551 shares during the last quarter.

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.