Granite Construction (NYSE:GVA) Issues Quarterly Earnings Results

Granite Construction (NYSE:GVA) issued its quarterly earnings data on Thursday. The construction company reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.34 by $0.06, Briefing.com reports. The firm had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. Granite Construction had a return on equity of 24.04% and a net margin of 4.31%.The business’s revenue for the quarter was up 19.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.23 EPS.

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 Up 2.3%

Shares of Granite Construction stock traded up $2.97 during trading on Friday, reaching $132.19. The company’s stock had a trading volume of 19,522 shares, compared to its average volume of 637,485. The company has a quick ratio of 1.12, a current ratio of 1.21 and a debt-to-equity ratio of 0.80. The firm’s 50-day moving average is $119.82 and its two-hundred day moving average is $110.42. The company has a market cap of $5.77 billion, a price-to-earnings ratio of 38.09 and a beta of 1.34. Granite Construction has a 52-week low of $69.08 and a 52-week high of $136.63.

Granite Construction Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a $0.13 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $0.52 dividend on an annualized basis and a yield of 0.4%. Granite Construction’s payout ratio is presently 14.99%.

Granite Construction News Roundup

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

• Positive Sentiment: Q4 results beat expectations: adjusted EPS $1.40 vs. consensus $1.34 and revenue $1.17B vs. $1.15B; revenue rose ~19% year-over-year, and adjusted net income improved. Granite Reports Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: Company raised its FY2026 revenue outlook to a range around $4.9B–$5.1B (roughly in line with or modestly above consensus), signaling continued top-line momentum. Granite Construction beats Q4 estimates, raises 2026 revenue outlook
• Positive Sentiment: Earnings call commentary pointed to strong backlog and momentum into the new fiscal year — management tone was constructive. Granite Construction Signals Strong Momentum In 2025
• Neutral Sentiment: Dividend declared: $0.13 per share payable April 15, ex-dividend March 31 (annualized yield ~0.4%) — a steady but modest income component for shareholders.
• Neutral Sentiment: Full call transcripts, slides and detailed release are available for investors who want to vet margins, backlog and segment trends. Granite Construction Incorporated (GVA) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Shares pulled back despite the beat — likely reflecting near-term profit-taking after a recent run toward the 12‑month high and a relatively rich valuation (PE in the high 30s), which raises sensitivity to any guidance shortfalls and macro risk.
• Negative Sentiment: Dividend yield is minimal, and investors focused on income or immediate cash returns may find the payout insufficient, limiting upside from yield-focused demand.

Insider Activity

In other Granite Construction news, Director Celeste Beeks Mastin sold 7,614 shares of the firm’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 transaction, the director 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 1.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of GVA. Integrated Quantitative Investments LLC raised its stake in Granite Construction by 49.6% during the 4th quarter. Integrated Quantitative Investments LLC now owns 18,396 shares of the construction company’s stock valued at $2,122,000 after purchasing an additional 6,099 shares during the period. Martingale Asset Management L P purchased a new position in shares of Granite Construction in the third quarter worth $2,010,000. Tower Research Capital LLC TRC boosted its position in shares of Granite Construction by 68.3% during the second quarter. Tower Research Capital LLC TRC now owns 5,499 shares of the construction company’s stock worth $514,000 after acquiring an additional 2,231 shares during the last quarter. Susquehanna Fundamental Investments LLC boosted its holdings in shares of Granite Construction by 41.9% during the 3rd quarter. Susquehanna Fundamental Investments LLC now owns 5,108 shares of the construction company’s stock valued at $560,000 after purchasing an additional 1,508 shares during the last quarter. Finally, Envestnet Asset Management Inc. boosted its holdings in shares of Granite Construction by 110.9% during the 3rd quarter. Envestnet Asset Management Inc. now owns 5,106 shares of the construction company’s stock valued at $560,000 after purchasing an additional 2,685 shares during the last quarter.

Wall Street Analyst Weigh In

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

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.