GVA · Granite Construction Incorporated

Granite Construction kicked off 2026 with robust top-line growth, as Q1 revenue surged 30% year-over-year to $912 million, driven by higher committed and awarded projects (CAP) entering the quarter and contributions from recent acquisitions including Warren Paving, Papich Construction, and Cinderlite. The Construction segment saw revenue rise 24.6% to $766 million on improved project execution, while Materials revenue more than doubled to $146 million amid strong demand for aggregates and asphalt, plus $50 million from acquired businesses. Gross profit climbed 31% to $110 million, though margins dipped slightly in Construction due to a non-recurring prior-year claim settlement. SG&A expenses increased 22% to $141 million but improved as a percentage of revenue to 15.4% from 16.6%, reflecting better leverage.

Despite the revenue beat, GAAP net loss widened to $42 million or $(0.96) per share from $34 million or $(0.77), tied to higher interest expense and other costs. Adjusted metrics showed strength, with net income of $12 million, diluted EPS of $0.26, and adjusted EBITDA up 107% to $58 million. Management highlighted momentum in federal, state, local, and private markets, with CAP hitting a record $7.2 billion, including $640 million in U.S. Customs and Border Protection tactical infrastructure projects slated for 2026-2027 realization.

Strategically, Granite closed the Kenny Seng Construction acquisition on April 23, expanding its vertically integrated Utah home market, and plans further M&A. Confident in the trajectory, the company raised full-year 2026 guidance: revenue to $5.2-5.4 billion (from $4.9-5.1B), adjusted EBITDA margin to 12.25-13.25% (from 12.0-13.0%), and SG&A to 8.25-8.75% of revenue. Capex remains $140-160 million, with $50 million for materials. CEO Kyle Larkin emphasized healthy market pipelines and materials pricing gains, positioning Granite for sustained growth into 2027.