Granite Construction Q2 revenue misses expectations

Granite Construction Incorporated

07/08/2025 11:56

Overview

Granite Q2 revenue rises 4% yr/yr, misses analyst expectations, per LSEG data

Adjusted EPS of $1.93 for Q2 beats consensus, per LSEG data

The infrastructure contractor and construction materials producer raises 2025 guidance post acquisitions

Outlook

Company raises 2025 revenue guidance to $4.35 bln-$4.55 bln

Granite expects $150 mln revenue from new acquisitions in 2025

Adjusted EBITDA margin guidance increased to 11.25%-12.25%

SG&A expenses projected at 9% of revenue, including $40 mln stock-based compensation

Result Drivers

ACQUISITIONS - Revenue growth driven by acquisition of Dickerson & Bowen, boosting Q2 results

PROJECT EXECUTION - Improved project execution and favorable claim settlements contributed to increased gross profit

CAP INCREASE - Record CAP rose $324 mln sequentially, reflecting strong bidding opportunities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$1.13 bln
$1.16 bln (2 Analysts)
Q2 Adjusted EPS
Beat
$1.93
$1.7 (2 Analysts)
Q2 EPS
$1.42
Q2 Adjusted Net Income
Beat
$86 mln
$79.80 mln (1 Analyst)
Q2 Net Income
$72 mln
Q2 Adjusted EBITDA
Beat
$152 mln
$143.20 mln (1 Analyst)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "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 $108.00, about 13.6% above its August 6 closing price of $93.34

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw2H8RgWa

(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.)