Granite Construction (NYSE:GVA) Posts Earnings Results, Misses Estimates By $0.09 EPS

Granite Construction (NYSE:GVA) 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 company had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same period last year, the firm posted $1.42 earnings per share. Granite Construction’s quarterly revenue was up 28.8% compared to the same quarter last year.

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 Trading Up 5.0%

NYSE:GVA traded up $5.71 during mid-day trading on Friday, reaching $120.63. 2,000,468 shares of the company’s stock traded hands, compared to its average volume of 930,693. The company has a 50 day moving average price of $136.77 and a 200-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. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.01 and a quick ratio of 0.97. Granite Construction has a 12-month low of $89.80 and a 12-month high of $162.08.

Granite Construction Dividend Announcement

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

Wall Street Analysts Forecast Growth

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

Insider Transactions at Granite Construction

In other news, Director John Timothy Romer acquired 375 shares of the business’s stock in a transaction on 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 transaction, the director owned 2,801 shares in the company, valued at $402,363.65. The trade was a 15.46% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Michael G. Tatusko sold 7,500 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were 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 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 SEC filing for this sale provides additional information. Corporate insiders own 0.88% of the company’s stock.

Hedge Funds Weigh In On Granite Construction

Several institutional investors and hedge funds have recently modified their holdings of GVA. Corient Private Wealth LLC grew its position in Granite Construction by 3.1% during the 4th quarter. Corient Private Wealth LLC now owns 4,978 shares of the construction company’s stock valued at $575,000 after purchasing an additional 148 shares during the last quarter. EP Wealth Advisors LLC purchased a new position in Granite Construction in the fourth quarter worth about $312,000. SkyView Investment Advisors LLC bought a new position in shares of Granite Construction in the fourth quarter worth approximately $313,000. SummitTX Capital L.P. grew its holdings in shares of Granite Construction by 67.0% during the fourth quarter. SummitTX Capital L.P. now owns 38,931 shares of the construction company’s stock valued at $4,491,000 after buying an additional 15,619 shares during the last quarter. Finally, Tudor Investment Corp ET AL grew its holdings in shares of Granite Construction by 26.3% during the fourth quarter. Tudor Investment Corp ET AL now owns 169,871 shares of the construction company’s stock valued at $19,595,000 after buying an additional 35,341 shares during the last quarter.

Key Headlines 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.