Granite wins $54 million Alaska highway contract

WATSONVILLE, Calif. - Granite Construction Incorporated (NYSE:GVA), a construction company with a market capitalization of $3.8 billion and trading near its InvestingPro Fair Value, has secured a $54 million contract to commence the first phase of a two-part project to realign a segment of the Parks Highway in Alaska. This federally funded contract is in collaboration with the Alaska Department of Transportation and Public Facilities.

The initial phase of construction, which began on May 1, 2025, covers the realignment of the highway from milepost 319 to 322. The project aims to enhance traffic safety by smoothing out sharp bends in the road. It includes substantial earthwork of approximately 2.5 million cubic yards, 25,000 tons of asphalt paving, and establishing a full traffic diversion route. This project contributes to Granite’s robust revenue growth, which reached 11.42% in the last twelve months.

Granite’s Vice President of Regional Operations, Ryan Moren, highlighted the Construction Manager/General Contractor (CMGC) method as instrumental in devising an efficient and optimal use of funds for the project. The collaborative efforts of the DOT&PF, Michael Baker International, and Granite were essential in achieving a successful contract award and project design.

The estimated value for the second phase of construction is around $35 million, though details on when this phase will commence have not been disclosed. The completion of the current phase is projected for September 2027.

Granite, which has been operational since 1922, is recognized as one of the leading construction and construction materials companies in the United States. The company is known for its comprehensive civil construction services and commitment to ethical standards, safety, quality, and sustainability.

This project represents a significant investment in infrastructure and safety improvements for the state of Alaska, leveraging Granite’s extensive equipment and expertise. The information for this article is based on a press release statement from Granite.

In other recent news, Granite Construction Incorporated reported a significant earnings surprise for Q1 2025, achieving an earnings per share (EPS) of $0.01, which exceeded analysts’ expectations of a $0.52 loss. However, the company’s revenue was $614.62 million, falling short of the anticipated $705.95 million. Despite the revenue miss, Granite maintained its 2025 revenue guidance between $4.2 billion and $4.4 billion. In addition to financial results, Granite announced that its Executive Vice President and Chief Operating Officer, James A. Radich, will retire on July 4, 2025. The company has decided not to appoint a direct successor, opting instead for a new reporting structure where Senior Vice Presidents will report directly to the President and CEO, Kyle Larkin. This decision reflects a strategic shift in the company’s leadership approach. Furthermore, Granite continues to focus on strategic mergers and acquisitions, planning to pursue 2-3 deals in 2025, emphasizing materials-focused, vertically integrated acquisitions. These developments come amidst ongoing discussions about potential tariff impacts and a strong federal business environment.

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