One-glance verdict
Within fair range
$130.32 our estimate vs market $115.06
Wall Street consensus: $171.67 (31.7% higher than our fair-value estimate)
12% below our estimate
Fundamentals snapshot
Granite Construction Incorporated
GVA · NYQ · Industrials · Engineering & Construction
Current price
$115.06
52-week range
$97.26 - $162.08
Market cap
$5.11B
Balance sheet
Watch
5.55x Adequate
Net debt $681.34M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 12.3% last year.
- Reward Free cash flow was positive in 6/10 years.
- Risk Return on equity was -14.5% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.9% (peer median: 2.4%).
What this company does
Granite Construction Incorporated
Granite Construction builds and repairs major US infrastructure like roads, bridges, and airports, making money both from completing these large projects and from selling the necessary raw materials like gravel and asphalt. Because its business depends on large-scale building, the company's performance is often tied to government and private spending on new development and public works.
How the company got here
Granite Construction started in 1922 in Watsonville, California, focusing on building roads as the state's highway system grew. Over the years, it expanded into more complex projects like bridges, dams, and tunnels. To support its construction work, the company began developing its own quarries and asphalt plants. In 1990, Granite became a publicly traded company on the New York Stock Exchange, which allowed it to raise money from investors to fund its growth. A key moment was the passage of the federal Infrastructure Investment and Jobs Act in 2021, which dedicated over a trillion dollars to infrastructure projects, creating high demand for Granite's services.
What it actually does
Granite Construction is a major player in building and maintaining the physical foundation of the U.S., what's known as infrastructure. Think of them as the company that builds the roads you drive on, the bridges you cross, and the airports you fly from. They also work on water-related projects like dams and reservoirs. In addition to building things, they also produce the raw materials needed for this construction, like crushed stone, asphalt, and concrete.
Construction
This is Granite's largest business segment, making up the vast majority of its revenue. This division handles large-scale construction projects, primarily for the public sector. Their main customers are government bodies like state departments of transportation, local transit authorities, and federal agencies who pay Granite to build and repair highways, bridges, rail lines, and airports. They also undertake projects for private clients, such as site development for new buildings and infrastructure for energy companies.
Materials
This segment is the company's source for essential construction ingredients. Granite operates numerous quarries and plants that produce aggregates (crushed stone, sand, and gravel), asphalt concrete, and recycled materials. A significant portion of these materials is used in Granite's own construction projects, which helps control costs and supply. The rest is sold to other contractors, landscapers, and even homeowners, creating a separate stream of income for the company.
What management is betting on now
Granite's leadership is focused on taking full advantage of the increased government spending on infrastructure. They are also concentrating on improving their profitability by being selective about the projects they take on and managing their costs carefully. The company aims to be a leader in providing sustainable infrastructure solutions, which means building things in a way that is environmentally responsible and helps communities withstand future challenges. This focus on sustainability is also seen as a way to gain a competitive advantage and win more projects.
How the company got here
Granite Construction began in 1922 in Watsonville, California, primarily building roads as the state's highway system expanded. Over the decades, it took on more complex jobs like bridges, dams, and tunnels, growing its expertise. To ensure it had the necessary supplies, the company started its own quarries and asphalt production facilities. In 1990, Granite had its initial public offering (IPO), which is when a private company first sells shares of stock to the public, to raise money for further growth. A major recent turning point was the 2021 Infrastructure Investment and Jobs Act, a massive government spending program that created a high demand for the kind of large-scale projects Granite specializes in.
What it actually does
Granite is what's known as an infrastructure company, meaning it builds the large, essential structures that help our society function. In simple terms, they construct the roads, highways, bridges, and airports that people use every day. They also handle major water projects like dams, reservoirs, and pipelines. Besides the actual construction, Granite also produces and sells many of the raw materials needed for these jobs, such as crushed stone, asphalt, and concrete.
Construction
This is the company's largest division and brings in the most money. This part of the business acts as a general contractor for huge public works projects. Its main customers are government agencies, like state departments of transportation and local transit authorities, who hire Granite to build and rehabilitate things like highways, bridges, and airports. The company also does work for private companies, such as preparing land for new developments or building infrastructure for energy projects.
Materials
This segment is all about producing the basic ingredients for construction. Granite operates dozens of its own quarries and plants to produce aggregates (a construction term for materials like sand, gravel, and crushed stone), asphalt, and concrete. A large portion of these materials is used for Granite's own construction jobs, which helps them control their supply chain (the entire process of making and delivering a product). The rest is sold to outside customers like other contractors, landscapers, and retailers, providing another source of revenue.
What management is betting on now
The company's current strategy is heavily focused on capturing work from the recent surge in government infrastructure spending. Management is also emphasizing operational discipline, which means carefully selecting projects and controlling costs to improve the company's margins (the percentage of revenue left over as profit after business expenses are paid). Granite is also promoting its ability to deliver sustainable infrastructure, which involves using environmentally friendly practices and materials. They believe that being a leader in sustainability will give them a competitive advantage and help them win more contracts in the future.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$220.16M
FY2024 Q4
$144.56M
FY2025 Q1
$-28.56M
FY2025 Q2
$-27.02M
FY2025 Q3
$257.47M
FY2025 Q4
$128.76M
FY2026 Q1
$-57.01M
FY2026 Q2
$142.69M
Revenue
$1.46B
Net income
$-278.16M
Diluted EPS
-6.36
Operating cash flow
$172.42M
Free cash flow
$142.69M
Fetching…
Sources
Revenue
$912.47M
Net income
$-41.70M
Diluted EPS
-0.96
Operating cash flow
$-30.87M
Free cash flow
$-57.01M
Fetching…
Sources
Revenue
$1.17B
Net income
$52.03M
Diluted EPS
1.23
Operating cash flow
$179.30M
Free cash flow
$128.76M
Fetching…
Sources
Revenue
$1.43B
Net income
$102.93M
Diluted EPS
1.98
Operating cash flow
$284.17M
Free cash flow
$257.47M
Fetching…
Sources
Revenue
$1.13B
Net income
$71.70M
Diluted EPS
1.42
Operating cash flow
$1.79M
Free cash flow
$-27.02M
Fetching…
Sources
Revenue
$699.55M
Net income
$-33.66M
Diluted EPS
-0.77
Operating cash flow
$3.65M
Free cash flow
$-28.56M
Fetching…
Sources
Revenue
$977.30M
Net income
$41.48M
Diluted EPS
0.99
Operating cash flow
$172.79M
Free cash flow
$144.56M
Fetching…
Sources
Revenue
$1.28B
Net income
$78.95M
Diluted EPS
1.57
Operating cash flow
$261.46M
Free cash flow
$220.16M
Fetching…
Sources
Is it cheap or expensive?
Fair value $130.32 vs current price $115.06
Wall Street consensus is the average analyst price target: $171.67 (31.7% higher than our fair-value estimate).
Our most-likely fair value is $130.32 a share — about 13.3% away from today's price of $115.06, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $681.3M. Interest coverage 5.6x.
Net debt
$681.34M
Interest coverage
5.55x
Granite Construction Incorporated's profit covers its interest bill about 5.6 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
GVA
BASELINE
Granite Construction Incorporated
Total debt $1.73B Interest coverage 5.55x This is the baseline the peer rows are being compared against.
Total debt $1.07B Interest coverage -6.40x -100% vs GVA This peer has almost no interest-payment cushion compared with GVA.
Total debt $464.86M Interest coverage 4.60x -17% vs GVA Carries about 1.2x less debt cushion than GVA.
Total debt $336.82M Interest coverage 20.90x +276% vs GVA Carries about 3.8x more debt cushion than GVA.
Total debt $3.33B Interest coverage 5.75x +3% vs GVA Has roughly the same debt cushion as GVA.
Total debt $3.24B Interest coverage 3.77x -32% vs GVA Carries about 1.5x less debt cushion than GVA.
What you should know
The case for and against GVA
3 Rewards
2 Risks
Rewards
-
Revenue grew 12.3% last year.
-
Free cash flow was positive in 6/10 years.
-
Dividend yield is 0.5% with 36-year payout history.
Risks
-
Return on equity was -14.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.9% (peer median: 2.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
14.40x
P/B
6.69x
P/S
1.03x
EV/EBITDA
11.82x
PEG ratio
0.11x
Profitability
How much profit each dollar creates
Gross margin
15.6%
Operating margin
9.0%
Net margin
-3.3%
ROE
-14.5%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
2.15x
Current ratio
1.01x
Quick ratio
0.92x
Total debt
$1.73B
Total cash
$1.05B
Growth
How the business has been compounding
Revenue TTM
$4.97B
Revenue 5Y CAGR
6.0%
EPS TTM
-4.31
EPS 5Y CAGR
31.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$605.02M
Free CF TTM
$330.65M
FCF margin
6.7%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
14.2%
Last ex-div date
2026-09-30