Granite subsidiary Layne awarded $13 million water well contract

WATSONVILLE, Calif. - Granite (NYSE:GVA), a construction company with a market capitalization of $4.9 billion and strong financial health metrics according to InvestingPro, announced that its subsidiary, Layne, A Granite Company, has been awarded a $13 million contract by the Lewis and Clark Regional Water System (LCRWS) to construct two horizontal collector wells near Vermillion, South Dakota.

The project, funded by federal and member sources, will be included in Granite’s third quarter CAP. According to the company’s press release statement, each well is designed with a pumping capacity of 25 million gallons per day, for a total of 50 million gallons daily of raw water supply to the LCRWS.

The wells will be constructed as 16-foot inner diameter concrete caissons reaching approximately 135 feet in depth. Construction is scheduled to begin in September 2025 with completion expected in June 2028.

This project follows Layne’s previous work for LCRWS in 2021, when the company constructed the first horizontal collector well that produces over 20 million gallons daily.

"Lewis & Clark’s staff and engineers have enjoyed working with Layne on several different well projects through the years, including our first collector well," said LCRWS Executive Director, Troy Larson.

LCRWS provides water to 20 member cities and rural water systems across southeast South Dakota, northwest Iowa, and southwest Minnesota. The company noted that Layne has supported LCRWS for over two decades with various water supply services.

Granite, incorporated since 1922, describes itself as one of the largest diversified construction and construction materials companies in the United States.

In other recent news, Granite Construction reported its Q2 2025 earnings, revealing a strong performance with earnings per share (EPS) of $1.93, surpassing the forecast of $1.66 by 16.27%. However, the company faced a revenue shortfall, posting $1.13 billion against the expected $1.16 billion, marking a 2.59% miss. Despite the revenue miss, the market responded positively to the earnings surprise. Additionally, DA Davidson has raised its price target for Granite Construction to $125.00 from $108.00, while maintaining a Buy rating. This adjustment reflects recent acquisitions that have boosted the company’s materials and aggregates-derived revenue and profits. DA Davidson also highlighted Granite’s updated 2027 financial framework, suggesting an attractive earnings trajectory. These developments are significant for investors keeping an eye on the company’s financial health and future prospects.

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