Granite Construction (NYSE:GVA) Announces Earnings Results

31 Oct 2026, 14:44 by Michael Walen · The Markets Daily

Granite Construction (NYSE:GVA – Get Free Report) released its quarterly earnings data 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 business had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.70 billion. Granite Construction had a positive return on equity of 33.79% and a negative net margin of 4.99%. During the same quarter in the prior year, the firm posted $1.98 EPS. The business’s quarterly revenue was up 23.5% compared to the same quarter last year.

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 Price Performance

NYSE:GVA traded up $1.94 during trading hours on Friday, hitting $123.63. 1,072,173 shares of the stock were exchanged, compared to its average volume of 741,660. The firm’s fifty day moving average price is $115.79 and its 200 day moving average price is $126.39. Granite Construction has a 52-week low of $97.26 and a 52-week high of $162.08. The company has a market cap of $5.41 billion, a P/E ratio of -19.88 and a beta of 1.34. The company has a current ratio of 1.11, a quick ratio of 0.94 and a debt-to-equity ratio of 1.18.

Granite Construction Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.4%. The ex-dividend date was Wednesday, September 30th. Granite Construction’s payout ratio is presently -8.36%.

Analyst Ratings Changes

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

Get Our Latest Stock Analysis on GVA

Insider Activity at Granite Construction

In other news, Director Carlos M. Hernandez acquired 400 shares of the firm’s stock in a transaction on Thursday, August 6th. The shares were bought at an average price of $123.99 per share, for a total transaction of $49,596.00. Following the acquisition, the director owned 5,033 shares of the company’s stock, valued at approximately $624,041.67. This trade represents a 8.63% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 0.88% of the company’s stock.

Key Headlines Impacting Granite Construction

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

Positive Sentiment: Q3 earnings and revenue exceeded expectations. Granite reported adjusted earnings of $3.81 per share, above consensus estimates near $3.22–$3.29, while revenue rose 23.5% year over year to $1.77 billion, exceeding the $1.70 billion estimate. Granite Construction Q3 Adjusted Earnings, Revenue Rise
Positive Sentiment: Record backlog strengthens forward visibility. Granite ended the quarter with a reported $7.5 billion backlog, supporting expectations for continued activity across its infrastructure and construction markets. Granite Construction GVA tops Q3 2026 estimates with record $7.5B backlog
Positive Sentiment: Full-year guidance was updated to slightly exceed expectations. The revised outlook reinforces the view that Granite’s earnings momentum is continuing beyond the third quarter. Granite Construction Incorporated Updates Earnings Guidance for Fiscal Year 2026
Positive Sentiment: Analyst valuation remains supportive. Granite Construction has a reported consensus price target of $158.50, materially above the recent trading level, suggesting analysts see additional upside if the company delivers on its outlook. Granite Construction Stock Has Consensus Price Target of $158.50
Neutral Sentiment: The earnings-call transcript and presentation provide additional detail on Granite’s operating performance, backlog and guidance, but the principal market-moving information is already reflected in the earnings beat and outlook update. Granite Q3 2026 Earnings Call Transcript

About Granite Construction

(Get Free Report)

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.