Granite Construction Q2 revenue jumps 29%, beats estimates

Granite Construction Incorporated

30/07/2026 12:31

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

Outlook
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

Result Drivers
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

Company press release: ID:nBw7HvDHa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.5 bln
$1.41 bln (5 Analysts)
Q2 Adjusted EPS
Miss
$2.16
$2.33 (5 Analysts)
Q2 Loss Per Share
 
$6.36
 
Q2 Adjusted Net Income
Miss
$101 mln
$104.46 mln (2 Analysts)
Q2 Net Loss
 
$278 mln
 
Q2 Adjusted EBITDA
Miss
$186 mln
$204.84 mln (4 Analysts)

Analyst Coverage
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

Reuters Recommended Reads
July 29 - Vulcan Materials beats quarterly profit estimates on strong construction materials demand
July 28 - Orion Group Q2 adjusted EPS and EBITDA miss estimates; lowers FY outlook
July 28 - Titan America Q2 revenue rises 9.6% on Keystone deal

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)