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

Granite Construction (NYSE:GVA) announced its quarterly earnings results 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 business had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.41 billion. Granite Construction had a positive return on equity of 27.83% and a negative net margin of 3.32%.The firm’s revenue for the quarter was up 28.8% on a year-over-year basis. During the same quarter in the prior 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 Trading Up 5.0%

Shares of GVA stock traded up $5.71 during trading hours on Friday, reaching $120.63. The company had a trading volume of 2,000,468 shares, compared to its average volume of 930,693. Granite Construction has a 1-year low of $89.80 and a 1-year high of $162.08. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.01 and a quick ratio of 0.97. The firm has a market cap of $5.28 billion, a price-to-earnings ratio of -27.99 and a beta of 1.29. The company has a 50 day moving average of $136.77 and a 200 day moving average of $130.49.

Granite Construction Announces Dividend

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

Insider Activity at Granite Construction

In other Granite Construction news, SVP Bradley Jay Williams sold 6,734 shares of the company’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 $949,494.00. Following the completion of the sale, the senior vice president owned 7,041 shares of the company’s stock, valued at approximately $992,781. This represents a 48.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Michael G. Tatusko sold 7,500 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $141.00, for a total transaction of $1,057,500.00. Following the completion of the sale, the senior vice president owned 29,787 shares in the company, valued at approximately $4,199,967. This trade represents a 20.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.88% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of GVA. Price T Rowe Associates Inc. MD lifted its position in 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 buying an additional 361,741 shares in the last quarter. Qube Research & Technologies Ltd increased its position in shares of Granite Construction by 87.5% in the third quarter. Qube Research & Technologies Ltd now owns 556,054 shares of the construction company’s stock valued at $60,971,000 after acquiring an additional 259,477 shares during the last quarter. Squarepoint Ops LLC increased its position in shares of Granite Construction by 241.7% in the second quarter. Squarepoint Ops LLC now owns 305,013 shares of the construction company’s stock valued at $28,522,000 after acquiring an additional 215,752 shares during the last quarter. Federated Hermes Inc. raised its holdings in Granite Construction by 46,426.4% during the fourth quarter. Federated Hermes Inc. now owns 202,855 shares of the construction company’s stock worth $23,399,000 after acquiring an additional 202,419 shares in the last quarter. Finally, Millennium Management LLC raised its holdings in Granite Construction by 8.9% during the third quarter. Millennium Management LLC now owns 1,602,382 shares of the construction company’s stock worth $175,701,000 after acquiring an additional 131,360 shares in the last quarter.

Key Granite Construction News

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%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on GVA. Wall Street Zen downgraded shares of Granite Construction from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Stephens started coverage on shares of Granite Construction in a research report on Friday, June 26th. They issued an “overweight” rating and a $180.00 price objective for the company. The Goldman Sachs Group dropped their target price on shares of Granite Construction from $139.00 to $119.00 and set a “sell” rating for the company in a research note on Friday. Zacks Research upgraded shares of Granite Construction to a “hold” rating in a research report on Friday, May 29th. Finally, Oppenheimer increased their price target on shares of Granite Construction from $170.00 to $180.00 and gave the company an “outperform” rating in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $158.50.

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.