Granite Construction (NYSE:GVA) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Granite Construction (NYSE:GVA) posted its quarterly earnings results on Thursday. The construction company reported $1.40 earnings per share for the quarter, beating analysts’ consensus estimates of $1.34 by $0.06, Briefing.com reports. Granite Construction had a return on equity of 24.04% and a net margin of 4.31%.During the same period in the prior year, the firm earned $1.23 EPS. The business’s revenue for the quarter was up 19.2% compared to the same quarter last year.

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 Stock Down 3.2%

GVA traded down $4.20 on Thursday, hitting $128.97. The company had a trading volume of 207,245 shares, compared to its average volume of 634,284. The stock has a fifty day simple moving average of $119.40 and a 200-day simple moving average of $110.29. The firm has a market capitalization of $5.63 billion, a P/E ratio of 37.09 and a beta of 1.34. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.21 and a quick ratio of 1.12. Granite Construction has a 52-week low of $69.08 and a 52-week high of $136.63.

Granite Construction Dividend Announcement

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

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on GVA shares. The Goldman Sachs Group lifted their price target on shares of Granite Construction from $109.00 to $124.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 28th. Zacks Research upgraded Granite Construction from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Granite Construction in a research note on Monday, December 29th. Wall Street Zen raised Granite Construction from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Finally, DA Davidson lifted their target price on Granite Construction from $125.00 to $130.00 and gave the stock a “buy” rating in a research note on Tuesday, November 11th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $127.00.

Insider Buying and Selling

In related news, Director Celeste Beeks Mastin sold 7,614 shares of the company’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $105.23, for a total transaction of $801,221.22. Following the completion of the sale, the director owned 10,206 shares in the company, valued at approximately $1,073,977.38. This represents a 42.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On Granite Construction

A number of hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC boosted its holdings in Granite Construction by 73.2% during the 1st quarter. AQR Capital Management LLC now owns 21,379 shares of the construction company’s stock valued at $1,612,000 after acquiring an additional 9,038 shares during the period. United Services Automobile Association acquired a new position in Granite Construction during the 1st quarter valued at approximately $207,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Granite Construction by 21.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 168,859 shares of the construction company’s stock valued at $12,732,000 after acquiring an additional 29,428 shares during the last quarter. Marshall Wace LLP grew its position in Granite Construction by 2,423.4% during the second quarter. Marshall Wace LLP now owns 89,882 shares of the construction company’s stock valued at $8,405,000 after buying an additional 86,320 shares during the period. Finally, WINTON GROUP Ltd purchased a new stake in shares of Granite Construction during the second quarter worth about $229,000.

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.