Granite Construction (NYSE:GVA) Announces Quarterly Earnings Results

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

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 Price Performance

Shares of GVA stock traded up $5.71 during trading hours on Friday, hitting $120.63. 2,000,468 shares of the company’s stock were exchanged, compared to its average volume of 930,693. Granite Construction has a fifty-two week low of $89.80 and a fifty-two week high of $162.08. The firm has a market cap of $5.28 billion, a P/E ratio of -27.99 and a beta of 1.29. The company has a quick ratio of 0.97, a current ratio of 1.01 and a debt-to-equity ratio of 1.46. The firm has a 50 day moving average of $136.77 and a two-hundred day moving average of $130.49.

Granite Construction Announces Dividend

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

Trending Headlines about 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%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Weiss Ratings cut shares of Granite Construction from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 21st. Zacks Research upgraded shares of Granite Construction to a “hold” rating in a research report on Friday, May 29th. Stephens assumed coverage on shares of Granite Construction in a report on Friday, June 26th. They issued an “overweight” rating and a $180.00 price objective for the company. The Goldman Sachs Group decreased 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 report on Friday. Finally, Wall Street Zen lowered 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 issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $158.50.

Insider Activity at Granite Construction

In related news, SVP Michael G. Tatusko sold 7,500 shares of the business’s stock in a transaction 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 sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John Timothy Romer purchased 375 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was bought at an average cost of $143.65 per share, with a total value of $53,868.75. Following the acquisition, the director owned 2,801 shares in the company, valued at $402,363.65. This represents a 15.46% increase in their position. The SEC filing for this purchase provides additional information. 0.88% of the stock is owned by corporate insiders.

Institutional Trading of Granite Construction

Institutional investors and hedge funds have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD raised its position in shares of Granite Construction by 254.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 503,906 shares of the construction company’s stock worth $58,126,000 after purchasing an additional 361,741 shares during the last quarter. Qube Research & Technologies Ltd lifted its stake in Granite Construction by 87.5% in the 3rd quarter. Qube Research & Technologies Ltd now owns 556,054 shares of the construction company’s stock valued at $60,971,000 after buying an additional 259,477 shares in the last quarter. Squarepoint Ops LLC boosted its holdings in Granite Construction by 241.7% in the 2nd quarter. Squarepoint Ops LLC now owns 305,013 shares of the construction company’s stock worth $28,522,000 after buying an additional 215,752 shares during the last quarter. Federated Hermes Inc. boosted its holdings in Granite Construction by 46,426.4% in the 4th quarter. Federated Hermes Inc. now owns 202,855 shares of the construction company’s stock worth $23,399,000 after buying an additional 202,419 shares during the last quarter. Finally, Millennium Management LLC increased its stake in Granite Construction by 8.9% during the 3rd quarter. Millennium Management LLC now owns 1,602,382 shares of the construction company’s stock worth $175,701,000 after buying an additional 131,360 shares in the last quarter.

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.