Granite raises 2026 revenue guidance to $5.3 bln-$5.5 bln from $5.2 bln-$5.4 bln
Company maintains 2026 adjusted EBITDA margin guidance at 12.25%-13.25%
Granite expects sustained elevated organic growth through H2 2026 and into 2027
Overview
U.S. civil contractor's Q2 revenue rose 29% yr/yr, beating analyst expectations
Adjusted EPS for Q2 missed consensus, despite rising yr/yr to $2.16
Company raised 2026 revenue guidance by $100 mln
Result drivers and key details
ACQUISITIONS AND PROJECT BACKLOG - Revenue growth was driven by higher CAP entering the quarter and contributions from recently acquired businesses, including Warren Paving, Papich Construction, and Kenny Seng Construction
PROJECT EXECUTION - Gross profit increased due to higher revenue and improved execution across the project portfolio
WEATHER AND COST PRESSURES - Materials segment margins declined, impacted by severe weather in the southeast and higher production costs from quarry development
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell". The average consensus recommendation for the construction & engineering peer group is "buy". Wall Street's median 12-month price target for Granite Construction Inc is $172.50, about 46.3% above its July 29 closing price of $117.88. The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago.
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