Granite Construction (GVA) Earnings Date & Reports

Key Takeaways

• Granite Construction reported third-quarter 2026 revenue of $1.77 billion, up 23.2% year over year and above the consensus estimate of roughly $1.7 billion.
• Adjusted earnings per share (EPS) came in at $3.81, about 14.5% above the consensus estimate of $3.33 and up from $2.70 in the prior-year quarter.
• GAAP (Generally Accepted Accounting Principles) diluted EPS fell to $0.07 from $1.98 a year earlier, weighed down by non-operating charges tied to the settlement of convertible notes.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 32% to $283.5 million, while operating margin expanded to 12.7% from 10%.
• The company raised its full-year 2026 revenue guidance to a range of $5.4 billion to $5.5 billion and introduced long-term targets through 2029.
• Committed and Awarded Projects (CAP), a key measure of future revenue, reached a record $7.5 billion at quarter end.
• For more on this ticker, explore Granite Construction's Major News, Today's Price Move, Price Targets, and Forecast on additional pages.
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Earnings Context and Why It Matters

Granite Construction is one of the largest diversified civil contractors and construction materials producers in the United States, operating across its Construction and Materials segments. Its third-quarter report offers a crucial read on demand across public transportation, federal, rail, and mission-critical infrastructure markets. Investors closely track CAP growth, margin trends, and cash conversion because these metrics signal the quality and durability of future earnings. The quarter also carried unusual weight because the company finalized the settlement of its convertible notes, creating a wide gap between reported GAAP results and the adjusted figures most analysts use to gauge underlying performance.

Reported Results

For the third quarter ended September 30, 2026, Granite Construction reported revenue of $1.77 billion, a 23.2% increase from $1.43 billion a year earlier and above the consensus estimate of approximately $1.7 billion. Adjusted EPS reached $3.81, surpassing the consensus estimate of $3.33 and rising from $2.70 in the prior-year period. Adjusted EBITDA climbed 32% to $283.5 million, ahead of the roughly $265.8 million analysts expected, while operating margin improved to 12.7% from 10%.

On a GAAP basis, net income attributable to Granite was approximately $3 million, or $0.07 per diluted share, down from $102.9 million, or $1.98 per diluted share, a year ago. The decline reflected about $162 million in non-operating charges related to the settlement of the company's convertible notes rather than weakness in the underlying business. The company also raised its full-year 2026 revenue guidance to a range of $5.4 billion to $5.5 billion, with a midpoint of $5.45 billion, modestly above prior expectations.

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Market Reaction and Investor Sentiment

Shares of Granite Construction remained roughly flat in the immediate aftermath of the release, trading near $111.71, as investors weighed strong operational results against the headline GAAP earnings decline caused by one-time convertible-note charges. Over the prior three months, the stock had declined about 7.7%, while it remained up roughly 8.6% over the trailing twelve months. The market's muted initial response suggests that the adjusted earnings beat and record CAP were largely anticipated, with attention shifting to the newly introduced 2029 targets and the sustainability of margin expansion.

Forward Outlook and Key Factors to Monitor

Granite Construction enters 2027 with record CAP of $7.5 billion, providing substantial revenue visibility. Management highlighted federal work, expected to represent approximately 15% of construction segment revenue this year, and mission-critical infrastructure tied to data centers and the AI build-out as key growth avenues. The company's 2029 targets call for organic revenue compound annual growth of 10% to 12%, adjusted EBITDA margin expansion, operating cash flow of roughly 13% of revenue, and free cash flow of approximately 10% of revenue.

Investors should monitor several factors. First, free cash flow margin declined to 12.9% from 18% a year earlier, so cash conversion will remain an important area of focus. Second, the materials segment continues to face energy cost and weather-related pressures, and aggregate pricing momentum will be watched closely. Third, the company has signaled continued acquisition activity, which introduces integration and balance-sheet considerations. Finally, the broader environment for publicly funded highway and bridge markets remains a durable foundation, but execution on federal and mission-critical projects will be critical to reaching the newly stated long-term goals.

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