Bullish indicating open at $55-$60, IPO prices at $37
LAS VEGAS - Granite (NYSE:GVA), a $3.97 billion infrastructure company with strong financial health and 36 consecutive years of dividend payments, has partnered with Contri Construction Company to form Southern Nevada Construction Partners (SNCP), a joint venture selected to deliver the preconstruction phase of the Paradise Hills Construction Manager at Risk Project for the Southern Nevada Water Authority (SNWA), according to a press release statement. InvestingPro analysis suggests the stock is currently trading below its Fair Value.
The infrastructure project involves installing approximately 22,000 linear feet of 120-inch steel water pipeline with up to three trenchless crossings beneath existing infrastructure. The project will also include construction of a new 65 million gallons per day pumping station with an initial operating capacity of 35 MGD.
As the joint venture lead, Granite will handle structure excavations, concrete work, access road installation, and pump station construction, while Contri will be responsible for installing the pipeline and associated components.
The preconstruction contract awarded to SNCP is scheduled for completion in December 2026. Construction is expected to begin on January 4, 2027, with completion anticipated in January 2030. Granite’s estimated construction contract value is $240 million.
The Paradise Hills project is part of SNWA’s Horizon Lateral Program, which aims to enhance water delivery, system reliability, and regional redundancy in Southern Nevada.
The pipeline will include multiple valved outlets for future connections to Boulder City, the City of Henderson’s Reservoir R-8, and the Horizon Lateral pipeline.
In other recent news, Granite Construction has been selected for a $3 million preconstruction contract by the Tahoe City Public Utility District for the Tahoe Cedars Water Reconstruction Project in Tahoma, California. This project, which is Granite’s first Progressive Design-Build contract in California, aims to upgrade water infrastructure originally built in the 1940s. In another development, Granite has secured a $54 million contract for the first phase of a highway realignment project in Alaska, which involves significant earthwork and asphalt paving to improve traffic safety. Additionally, DA Davidson has maintained its Buy rating on Granite Construction, with a price target of $108, citing the company’s strategic focus on mergers and acquisitions and its undervaluation compared to industry averages. The firm believes these factors, along with Granite’s robust organic growth opportunities, enhance its appeal to investors. Furthermore, Granite announced the upcoming retirement of its Executive Vice President and Chief Operating Officer, James A. "Jim" Radich, on July 4, 2025, with no direct successor to be named. Instead, the company’s Senior Vice Presidents of Construction and Materials will report directly to President and CEO Kyle Larkin. These recent developments highlight Granite’s ongoing projects and strategic initiatives within the infrastructure sector.
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