Granite Construction (GVA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 30% year-over-year to $912–$912.5 million, driven by strong organic growth, acquisitions, and robust public sector demand.

• Adjusted net income improved to $12 million, while net loss attributable to shareholders widened to $41.7–$42 million due to higher SG&A and financing costs.

• Adjusted EBITDA more than doubled year-over-year to $58 million, with margin expansion and improved execution.

• Committed and Awarded Projects (CAP) reached a record $7.2 billion, up $200 million sequentially and $1.4 billion year-over-year, supported by federal, state, local, and private markets.

• Integration and acquisition activity continued, including Kenny Seng Construction, Warren Paving, Papich Construction, and Cinderlite, with further M&A expected.

Financial highlights

• Revenue increased 30% year-over-year to $912–$912.5 million; Construction segment revenue up 24.6–25% to $766–$766.1 million; Materials segment revenue up 61–72.4% to $146–$146.4 million.

• Gross profit rose to $109.9–$110 million; Construction gross profit $102–$102.2 million, Materials gross profit $7.7 million.

• Adjusted net income was $12 million; adjusted diluted EPS increased to $0.26 from $0.01 year-over-year.

• Adjusted EBITDA was $58 million, up $30 million year-over-year; margin improved to 6.3% from 4.0%.

• Net cash used in operating activities was $30.9–$31 million; cash and cash equivalents at quarter-end were $265.7–$266 million.

Outlook and guidance

• 2026 revenue guidance raised to $5.2–$5.4 billion (previously $4.9–$5.1 billion), with adjusted EBITDA margin guidance increased to 12.25–13.25%.

• SG&A as a percentage of revenue guidance lowered to 8.25–8.75%.

• Capital expenditures guidance unchanged at $140–$160 million, including $50 million for strategic materials investments.

• Several acquisitions anticipated annually to support growth and vertical integration.

• Management expects continued strong demand from public infrastructure funding and robust CAP supported by federal and state programs.