Granite Construction Incorporated (GVA) AI Stock Analysis

Granite Construction Incorporated operates as an infrastructure contractor and producer of construction materials in the United States across two main segments: Construction and Materials. The Construction segment handles projects including road construction, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, and water-related infrastructure for municipal, industrial, and energy clients. It also builds mining facilities, public safety structures, tunnels, solar installations, and power facilities. The Materials segment supplies aggregates and asphalt to internal projects and external customers, supporting site preparation, mining, and residential developments. In addition, the company provides construction management services.

Between FY2021 and FY2025, annual revenue increased from $3.50B to $4.42B, achieving a 5-year revenue CAGR of 4.4%. Over the same timeframe, gross margin expanded from 10.4% to 16.1%, operating margin rose from 0.7% to 5.9%, and net income grew from $10.1M to $193.0M. Free cash flow improved from -$72.9M in FY2021 to $330.6M in FY2025. In the trailing twelve months, revenue reached $4.97B, though net margin was -3.3% and EPS was -$4.32. For the latest quarter ending June 30, 2026, quarterly revenue grew 29.3% year-over-year and quarterly earnings grew 25.1%.

As of June 30, 2026, Granite Construction held $1.05B in cash and short-term investments against total debt of $1.73B, resulting in net debt of $687.4M. Shareholders' equity was $752.7M and total assets stood at $4.78B. The company reported a current ratio of 1.01 and a debt-to-equity ratio of 2.30. In FY2025, operating cash flow reached $468.9M, which funded $138.3M in capital expenditures, $48.2M in share buybacks, and $22.7M in dividends paid.

Granite Construction trades at a market cap of $4.88B and an enterprise value of $5.77B. Its forward P/E of 13.9x is below the 17.2x median of its US-listed Industrials peers, while its price-to-sales of 1.0x compares to the peer median of 1.5x. However, its EV to EBITDA ratio of 30.5x is higher than the peer median of 13.9x. The stock recorded a 1-year return of 4.5%, lagging the S&P 500 (SPY) return of 16.8%, but its 5-year return of 194.0% outpaced the benchmark return of 83.0%.

Granite Construction pays a quarterly dividend with an annual forward payout of $0.52 per share, representing a dividend yield of 0.47%. The company has paid dividends for 37 consecutive years, maintaining a payout ratio of 8.1%. Its 5-year annualized dividend growth stands at 0.0%, and its last ex-dividend date was September 30, 2026.

Wall Street coverage consists of 4 Strong Buy ratings and 1 Strong Sell rating. The mean price target of $171.67 sits 56.3% above the October 16, 2026 closing price of $109.82. Analysts estimate FY2026 revenue of $5.40B and EPS of $7.11, representing 17.1% earnings growth. For FY2027, consensus anticipates revenue of $5.91B and EPS of $8.06. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of Granite Construction Incorporated (GVA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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