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WATSONVILLE, Calif. - On Thursday, Granite Construction (NYSE:GVA) reported third quarter adjusted earnings that exceeded analyst expectations, though revenue fell short of estimates. The infrastructure construction company posted adjusted earnings per share of $2.70, surpassing the analyst consensus of $2.36, while revenue of $1.43 billion missed the consensus estimate of $1.51 billion.
The company’s third quarter revenue increased 12% YoY from $1.28 billion in the same period last year. Adjusted net income rose 36% YoY to $124 million, compared to $91 million in the third quarter of 2024. Adjusted EBITDA jumped 44% YoY to $216 million, with adjusted EBITDA margin expanding to 15.0% from 11.7% in the prior-year period.
Granite’s Committed and Awarded Projects (CAP) reached a record $6.3 billion, increasing $273 million sequentially and $718 million YoY. The company narrowed its full-year 2025 revenue guidance to $4.35-4.45 billion from its previous range of $4.35-4.55 billion, while raising its adjusted EBITDA margin forecast to 11.50-12.50% from 11.25-12.25%.
"Our third quarter results demonstrate solid progress toward our 2027 financial targets," said Kyle Larkin, Granite President and Chief Executive Officer. "Our CAP reached $6.3 billion, which is a new record, with a number of projects ramping up in the third quarter that should accelerate growth in the fourth quarter and into 2026."
The Construction segment, which represents the bulk of Granite’s business, saw revenue increase 7.6% YoY to $1.16 billion, with gross profit rising 12.7% to $192.3 million. The Materials segment delivered even stronger performance, with revenue up 39.1% to $271 million and gross profit more than doubling to $68.2 million.
CFO Staci Woolsey noted, "In the third quarter, we saw an increase in materials orders and we continued to expand our high quality project portfolio. We expect a busy fourth quarter and continuation into 2026."
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