Granite Construction (GVA) investor relations material

Executive summary

• Achieved record Committed and Awarded Projects (CAP) of $7 billion at year-end 2025, up 32% year-over-year, driven by disciplined project selection and strong public funding.

• Strategic focus on high-margin, best value projects, home markets, and targeted M&A expanded geographic footprint and improved profitability.

• Integration of three acquisitions (Warren Paving, Papich Construction, Cinderlite) outperformed expectations, strengthening core markets and supporting Southeast and Western growth.

• Continued investment in materials business and vertical integration supported organic growth and margin expansion.

• Both Construction and Materials segments contributed to strong revenue and earnings growth through organic expansion and acquisitions.

Financial highlights

• FY 2025 revenue increased 10% year-over-year to $4.4 billion; Q4 revenue up 19% to $1.2 billion.

• Adjusted net income for FY 2025 was $276 million (+29% YOY); adjusted diluted EPS $6.07 (+26% YOY).

• Adjusted EBITDA for FY 2025 was $527 million (+31% YOY), with margin at 11.9%.

• Operating cash flow for FY 2025 was $469 million (10.6% of revenue), benefiting from non-recurring collections.

• Gross profit for the year increased $138 million to $711 million; SG&A expenses rose to $408 million (9.2% of revenue).

Outlook and guidance

• 2026 revenue guidance: $4.9–$5.1 billion, with organic growth at the high end of 2027 CAGR target (6–8%).

• Adjusted EBITDA margin expected at 12–13% for 2026, progressing toward 2027 target of 12.5–14.5%.

• CapEx planned at $140–$160 million, including $50 million for strategic materials investments.

• SG&A expense projected at 8.5–9% of revenue in 2026.

• Continued focus on organic growth, margin expansion, and acquisitions.