Granite and Obayashi secure $97 million NAVFAC contract

Published 10/03/2025, 21:38
Granite and Obayashi secure $97 million NAVFAC contract

WATSONVILLE, Calif. - Granite Construction, in partnership with Obayashi Corporation, has secured a contract worth approximately $97 million from the Naval Facilities Engineering Command (NAVFAC) to enhance the Battery Energy Storage System (BESS) at Polaris Point, Guam. The project, which is funded by the Department of Defense (DOD), will be reflected in Granite’s first-quarter Capital Projects Acquisition (CAP) as the consolidating partner. The contract adds to Granite’s robust $4 billion revenue stream, with the company showing strong revenue growth of 14.2% in the last twelve months, according to InvestingPro data.

The joint venture’s work will encompass the construction of a 17,000 square foot facility, including site work necessary to accommodate the BESS and a microgrid controller. This system will integrate with the current electrical grid, aiming to supply clean power to future Naval installations on the island.

Granite’s Vice President of Regional Operations, Curt Haldeman, expressed that the initiative is set to bolster the company’s growth in the Pacific region, particularly in Guam. He highlighted the project’s significance in strengthening Granite’s strategic position and expanding its portfolio in battery energy storage and microgrid solutions.

The company, which has operated since 1922 and is listed on the New York Stock Exchange under the ticker NYSE:GVA, emphasizes its commitment to supporting the Navy’s objectives and contributing to sustainable and reliable energy infrastructure.

Construction on the BESS facility is scheduled to commence on March 20, 2025, with an anticipated completion date in June 2028. Granite, known as America’s Infrastructure Company™, maintains a reputation for high ethical standards, safety, quality, and sustainability in the construction and construction materials industry.

This news is based on a press release statement.

In other recent news, Granite Construction Incorporated reported its fourth quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.23, compared to the forecasted $1.17. The company also reported revenues of $977 million, slightly above the anticipated $976.76 million. For the full year 2024, Granite Construction’s revenue increased by 14% to $4 billion, and its gross profit surged 44% to $573 million. The company has projected revenue between $4.2 billion and $4.4 billion for 2025, targeting an organic growth rate of 6-8%. Granite Construction plans to complete 2-3 mergers and acquisitions in 2025, indicating a focus on strategic growth. The company also aims for an adjusted EBITDA margin of 11-12% and plans capital expenditures of $140-$160 million. Despite the positive earnings surprise, Granite Construction’s stock experienced a decline of 0.71% in pre-market trading. Analyst discussions during the earnings call highlighted strong market opportunities and the potential for early achievement of the company’s 2027 financial targets.

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