Granite Construction (NYSE:GVA) Announces Quarterly Earnings Results

Posted by George Bondi on Oct 29th, 2026

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

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 Up 8.7%

Granite Construction stock traded up $9.77 during mid-day trading on Thursday, hitting $121.44. 1,645,249 shares of the company’s stock were exchanged, compared to its average volume of 696,606. The company has a current ratio of 1.01, a quick ratio of 0.94 and a debt-to-equity ratio of 1.46. The stock has a market cap of $5.31 billion, a P/E ratio of 17.29 and a beta of 1.34. Granite Construction has a 1-year low of $97.26 and a 1-year high of $162.08. The stock has a 50 day moving average of $115.78 and a two-hundred day moving average of $126.39.

Granite Construction Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were issued a dividend of $0.13 per share. The ex-dividend date 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%.

Insider Buying and Selling at Granite Construction

In related news, Director Carlos M. Hernandez purchased 400 shares of Granite Construction stock in a transaction on Thursday, August 6th. The stock was bought at an average price of $123.99 per share, with a total value of $49,596.00. Following the completion of the transaction, the director directly owned 5,033 shares of the company’s stock, valued at approximately $624,041.67. This represents a 8.63% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.88% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Weiss Ratings lowered Granite Construction from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, September 2nd. Wall Street Zen cut Granite Construction from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. Oppenheimer upped their target price on Granite Construction from $170.00 to $180.00 and gave the company an “outperform” rating in a report on Friday, July 31st. Finally, The Goldman Sachs Group reduced their price target 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, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $158.50.

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About Granite Construction

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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.