Granite Construction (NYSE:GVA) Posts Quarterly Earnings Results, Beats Expectations By $0.54 EPS

Granite Construction (NYSE:GVA) released its quarterly earnings results on Thursday. The construction company reported $3.81 EPS for the quarter, topping the consensus estimate of $3.27 by $0.54, FiscalAI reports. The company had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.70 billion. Granite Construction had a positive return on equity of 27.83% and a negative net margin of 3.32%. The firm’s revenue was up 23.5% on a year-over-year basis. During the same quarter last year, the business posted $1.98 earnings per share.

Here are the key takeaways from Granite Construction’s conference call:

• Record third-quarter performance: Revenue rose 23% year over year to $1.8 billion, while adjusted EBITDA increased 31% to $283 million. Construction revenue grew 27%, and construction gross margin expanded 210 basis points, supported by strong execution and disciplined project selection.
• Guidance and backlog strengthened: Granite raised the low end of its 2026 revenue outlook to $5.4 billion from $5.3 billion and expects 10%–12% organic revenue growth in 2027. Construction CAP reached a record $7.5 billion, providing significant visibility into future revenue.
• Long-term growth opportunities remain broad: Management reiterated its targets for 10%–12% organic revenue CAGR and 14%–16% adjusted EBITDA margins by 2029. Federal, rail, and mission-critical infrastructure—including data centers, space, and battery storage—are expected to complement mid-single-digit growth in core transportation markets.
• Materials margins were pressured: Materials gross margin fell 420 basis points because higher energy costs and related surcharges increased revenue but reduced incremental margins. Management said underlying unit economics remained solid and expects margins to improve as energy costs normalize, pricing, volume, vertical integration, and automation contribute.
• Cash generation supports capital allocation: Year-to-date operating cash flow reached $404 million, up from $290 million a year earlier, and the company remains on track for its 2026 cash-flow target. Granite plans to continue investing organically, pursue acquisitions, and consider share repurchases while maintaining a long-term net leverage target of approximately 2.5 times.

Granite Construction Stock Performance

Shares of NYSE:GVA traded up $1.42 on Friday, hitting $123.11. 514,852 shares of the company were exchanged, compared to its average volume of 721,980. The company has a current ratio of 1.01, a quick ratio of 0.94 and a debt-to-equity ratio of 1.46. Granite Construction has a 1-year low of $97.26 and a 1-year high of $162.08. The firm has a market capitalization of $5.39 billion, a P/E ratio of -28.58 and a beta of 1.34. The stock’s 50 day moving average price is $115.78 and its 200 day moving average price is $126.39.

Granite Construction Announces Dividend

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

Analyst Ratings Changes

A number of research firms have recently commented on GVA. The Goldman Sachs Group cut their target price on Granite Construction from $139.00 to $119.00 and set a “sell” rating on the stock in a research note on Friday, July 31st. Weiss Ratings lowered Granite Construction from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, September 2nd. Oppenheimer upped their target price on Granite Construction from $170.00 to $180.00 and gave the stock an “outperform” rating in a report on Friday, July 31st. Finally, Wall Street Zen downgraded Granite Construction from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Granite Construction currently has a consensus rating of “Hold” and an average target price of $158.50.

Trending Headlines about Granite Construction

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

• Positive Sentiment: Granite reported third-quarter adjusted earnings of $3.81 per share, exceeding analyst estimates of approximately $3.22–$3.29 and increasing from $1.98 a year earlier. Revenue rose 23.5% year over year to $1.77 billion, also ahead of expectations. Granite Construction Q3 Adjusted Earnings, Revenue Rise
• Positive Sentiment: The company’s record $7.5 billion backlog strengthens revenue visibility and signals continued demand for its infrastructure and transportation projects. Granite Construction GVA tops Q3 2026 estimates with record $7.5B backlog
• Positive Sentiment: Management updated its fiscal-year 2026 earnings outlook to a level described as slightly above analyst expectations, reinforcing the positive reaction to the quarterly beat. Granite Construction Updates Fiscal-Year 2026 Earnings Guidance
• Positive Sentiment: Analysts’ consensus price target is approximately $158.50, implying meaningful upside from the stock’s recently reported trading level and suggesting favorable expectations for future performance. Granite Construction Consensus Price Target
• Neutral Sentiment: The earnings call and presentation highlighted the backlog, operating results and updated outlook; investors will likely focus on backlog conversion, margins and project execution in coming quarters. Granite Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat, Granite’s reported net margin remained negative at 3.32%, while its debt-to-equity ratio of 1.46 highlights balance-sheet and profitability risks.

Insider Buying and Selling

In related news, Director Carlos M. Hernandez bought 400 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The shares were purchased at an average cost of $123.99 per share, with a total value of $49,596.00. Following the completion of the acquisition, the director directly owned 5,033 shares in the company, valued at approximately $624,041.67. The trade was a 8.63% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.88% of the company’s stock.

Granite Construction Company Profile

Granite Construction Incorporated (NYSE:GVA) is an infrastructure construction company that provides engineering, construction and rehabilitation services for public and private-sector clients. The company’s work supports transportation, water and other essential infrastructure projects across the United States.

Granite’s transportation activities include the construction and maintenance of highways, roads, bridges, airports, rail systems and other transit facilities. Its water-related services include the development and improvement of water treatment and distribution systems, wastewater facilities, dams, pipelines and related infrastructure.