Granite Construction (NYSE:GVA) Releases Quarterly Earnings Results, Beats Expectations By $1.03 EPS

Granite Construction (NYSE:GVA) released its quarterly earnings data on Thursday. The construction company reported $0.26 earnings per share for the quarter, beating the consensus estimate of ($0.77) by $1.03, Zacks reports. Granite Construction had a return on equity of 24.90% and a net margin of 3.99%.The company had revenue of $912.47 million for the quarter, compared to the consensus estimate of $782.26 million. During the same quarter last year, the business posted $0.01 EPS. Granite Construction’s revenue for the quarter was up 30.4% on a year-over-year basis.

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

• Acquisition: The purchase of Kenny Seng Construction is expected to add about $150 million of annual revenue with an accretive adjusted EBITDA margin in the high teens, expanding Granite’s Utah presence and exposure to education and mission‑critical end markets.
• Stronger results and raised guidance: Q1 revenue rose 30% to $912M and adjusted EBITDA increased to $58M, prompting management to raise 2026 revenue guidance to $5.2–$5.4B and increase adjusted EBITDA margin guidance to 12.25%–13.25% while lowering SG&A as a percent of revenue.
• Materials momentum: The materials segment started the year “fantastic” with volume and cash gross profit gains led by the Warren Paving integration, and management says energy exposures are hedged so recent oil price moves are not expected to materially affect the annual outlook.
• Backlog and tactical projects: CAP grew to $7.2B despite a rare ~$300M California contract cancellation; the backlog includes large, quick‑burn federal/tactical infrastructure projects that lift near‑term revenue but carry schedule, logistics and subcontractor execution risks.

Granite Construction Trading Up 1.6%

NYSE:GVA traded up $2.20 during trading hours on Friday, hitting $139.27. 856,919 shares of the company were exchanged, compared to its average volume of 525,353. The stock has a market capitalization of $6.09 billion, a price-to-earnings ratio of 38.05 and a beta of 1.35. The company has a current ratio of 1.09, a quick ratio of 1.13 and a debt-to-equity ratio of 0.80. Granite Construction has a one year low of $78.19 and a one year high of $141.98. The company has a fifty day simple moving average of $125.23 and a 200 day simple moving average of $117.84.

Granite Construction Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Tuesday, March 31st. Granite Construction’s dividend payout ratio (DPR) is currently 14.21%.

Analyst Ratings Changes

Several equities research analysts recently weighed in on GVA shares. Zacks Research raised Granite Construction from a “strong sell” rating to a “hold” rating in a report on Monday, January 12th. The Goldman Sachs Group raised their price objective on Granite Construction from $109.00 to $124.00 and gave the company a “neutral” rating in a report on Wednesday, January 28th. Wall Street Zen raised Granite Construction from a “hold” rating to a “buy” rating in a research report on Saturday, February 28th. Finally, DA Davidson raised their target price on Granite Construction from $130.00 to $155.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Granite Construction has a consensus rating of “Moderate Buy” and a consensus price target of $139.50.

More Granite Construction News

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

• Positive Sentiment: Q1 beat on both profit and sales — Granite reported EPS of $0.26 vs. consensus of ($0.77) and revenue of $912.5M vs. estimates near $782M; revenue was up ~30% year-over-year, signaling stronger demand and execution. MarketBeat Q1 summary
• Positive Sentiment: Management raised FY2026 revenue guidance to $5.2–$5.4B (above prior consensus ~ $5.0B), indicating confidence in backlog and upcoming project activity — a clear catalyst for upward revisions to analyst estimates. Granite Construction Lifts Outlook on Strong Growth
• Neutral Sentiment: Earnings call and materials are available — the full transcript and slide deck provide detail on regional backlog, margin drivers and capital allocation plans for investors doing fundamental follow-up. Q1 2026 Earnings Call Transcript Q1 Results Presentation
• Negative Sentiment: Valuation and margins remain considerations — GVA trades at a relatively high P/E (~38x) and reported a modest net margin (~4.4%) with leverage (D/E ~0.79). Strong top-line growth reduces some execution risk, but investors should weigh the premium valuation and margin sensitivity to cost pressures.

Insider Buying and Selling at Granite Construction

In related news, CFO Staci M. Woolsey sold 1,523 shares of the firm’s stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $119.84, for a total transaction of $182,516.32. Following the completion of the transaction, the chief financial officer directly owned 18,954 shares of the company’s stock, valued at $2,271,447.36. This trade represents a 7.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Kyle T. Larkin sold 26,651 shares of the firm’s stock in a transaction on Friday, March 27th. The stock was sold at an average price of $118.12, for a total value of $3,148,016.12. Following the transaction, the chief executive officer directly owned 114,881 shares of the company’s stock, valued at approximately $13,569,743.72. This represents a 18.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 35,488 shares of company stock valued at $4,207,042. 1.00% of the stock is owned by corporate insiders.

Institutional Trading of Granite Construction

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GVA. Aster Capital Management DIFC Ltd increased its position in Granite Construction by 512.8% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 239 shares of the construction company’s stock valued at $28,000 after buying an additional 200 shares in the last quarter. Quarry LP increased its holdings in Granite Construction by 1,417.6% during the 3rd quarter. Quarry LP now owns 516 shares of the construction company’s stock worth $57,000 after purchasing an additional 482 shares in the last quarter. Danske Bank A S bought a new stake in Granite Construction during the 3rd quarter worth approximately $77,000. Glenmede Investment Management LP bought a new stake in Granite Construction during the 3rd quarter worth approximately $206,000. Finally, United Services Automobile Association bought a new stake in Granite Construction during the 1st quarter worth approximately $207,000.

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.