Granite Construction (NYSE:GVA) Announces Earnings Results, Beats Estimates By $0.06 EPS

14 Feb 2026, 13:14 by Sarita Garza · The Markets Daily

Granite Construction (NYSE:GVA – Get Free Report) announced its earnings results on Thursday. The construction company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.34 by $0.06, Briefing.com reports. The company had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Granite Construction had a return on equity of 24.10% and a net margin of 4.36%.Granite Construction’s revenue for the quarter was up 19.2% on a year-over-year basis. During the same period last year, the business posted $1.23 EPS.

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

Record backlog (CAP) of $7 billion, up $632 million sequential, with Best Value work at 48%—management says this higher‑quality mix should drive continued construction margin expansion.
Strong 2025 results — revenue up 10% to $4.4 billion, adjusted EBITDA up 31% to $527 million, adjusted net income up 29%, and operating cash flow of $469 million, highlighting improved profitability and cash generation.
Materials business transformed by three acquisitions (Warren Paving, Papich, Cinderlite), boosting reserves 34% to 2.1 billion tons and cash gross profit margin to 26%; management plans an additional $50 million of strategic materials CapEx in 2026.
2026 guidance targets revenue of $4.9–$5.1 billion, adjusted EBITDA margin of 12–13%, SG&A of 8.5–9% of revenue, and CapEx of $140–$160 million, while reiterating 2027 financial targets.
Near‑term risks include reliance on public funding (≈85% of work), weather and execution exposure on large federal/border opportunities (none of which are assumed in 2026 guidance), and 2025 OCF benefited from one‑time retention/claim collections.

Granite Construction Price Performance

Shares of GVA opened at $130.86 on Friday. Granite Construction has a twelve month low of $69.08 and a twelve month high of $136.63. The firm’s fifty day simple moving average is $120.28 and its 200-day simple moving average is $110.68. The firm has a market capitalization of $5.71 billion, a price-to-earnings ratio of 35.75 and a beta of 1.34. The company has a current ratio of 1.22, a quick ratio of 1.12 and a debt-to-equity ratio of 0.79.

Granite Construction Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be given a $0.13 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.4%. Granite Construction’s dividend payout ratio is currently 14.21%.

Wall Street Analysts Forecast Growth

GVA has been the subject of several recent research reports. Weiss Ratings reissued a “buy (b)” rating on shares of Granite Construction in a research note on Monday, December 29th. Wall Street Zen lowered shares of Granite Construction from a “buy” rating to a “hold” rating in a report on Saturday. DA Davidson raised their price target on shares of Granite Construction from $130.00 to $155.00 and gave the company a “buy” rating in a research report on Friday. Zacks Research raised Granite Construction from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Finally, The Goldman Sachs Group increased their price objective on Granite Construction from $109.00 to $124.00 and gave the company a “neutral” rating in a research note on Wednesday, January 28th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $139.50.

Get Our Latest Stock Report on Granite Construction

Key Headlines Impacting Granite Construction

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

Positive Sentiment: Q4 results beat expectations — Granite reported adjusted EPS of $1.40 (vs. $1.34 consensus) and revenue of $1.17B, up ~19% year‑over‑year; management highlighted improved margins and strong backlog conversion. Business Wire: Q4 Results
Positive Sentiment: Raised FY‑2026 revenue outlook — company gave a revenue range of $4.9B–$5.1B and signaled momentum into 2026, supporting growth expectations and pushing upward guidance sensitivity. Investing.com: Revenue Outlook
Positive Sentiment: Management outlined 6%–8% organic growth target for 2026 driven by acquisitions and margin expansion — clear growth targets give investors a roadmap for revenue and profit improvement. Seeking Alpha: 2026 Growth Targets
Neutral Sentiment: Analyst upgrade and price‑target lift — DA Davidson moved to a “buy” and raised its target to $155, implying material upside from current levels and providing a near‑term catalyst for momentum. Benzinga: DA Davidson Upgrade
Neutral Sentiment: Dividend declared — Granite set a $0.13 quarterly dividend (ex‑div March 31, pay April 15), a modest yield (~0.4%) that supports shareholder return but is not a major income draw.
Negative Sentiment: Valuation and expectations — the stock trades at a relatively rich multiple (PE ~37.7), so much of the positive lean on continued margin expansion and execution; any slippage in backlog conversion or cost pressure could weigh on shares.

Insider Activity at Granite Construction

In related news, Director Celeste Beeks Mastin sold 7,614 shares of the stock in a transaction on Monday, November 24th. The stock was sold at an average price of $105.23, for a total value of $801,221.22. Following the transaction, the director owned 10,206 shares of the company’s stock, valued at $1,073,977.38. This represents a 42.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Brevan Howard Capital Management LP purchased a new position in shares of Granite Construction during the second quarter worth about $2,002,000. AQR Capital Management LLC boosted its position in shares of Granite Construction by 111.0% in the 2nd quarter. AQR Capital Management LLC now owns 45,119 shares of the construction company’s stock valued at $4,219,000 after purchasing an additional 23,740 shares during the period. PDT Partners LLC grew its stake in Granite Construction by 32.1% during the 2nd quarter. PDT Partners LLC now owns 71,786 shares of the construction company’s stock worth $6,713,000 after buying an additional 17,431 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in Granite Construction during the 2nd quarter worth approximately $2,197,000. Finally, Quantinno Capital Management LP acquired a new position in Granite Construction during the second quarter worth approximately $335,000.

About Granite Construction

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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.