Granite Construction (GVA) Investor presentation summary

Investment highlights and growth strategy

• Multi-year revenue visibility supported by record CAP and strong presence in public, federal, and high-growth private markets.

• Public infrastructure funding at federal and state levels expected to remain at record highs.

• Home market strategy leverages local relationships and market insight for competitive advantage.

• Disciplined M&A pipeline with $391M average annual acquisition spend and high teens EBITDA margins from acquired businesses.

• Focus on automation and reserve expansion, targeting 45% plant automation by year-end 2026.

Financial performance and guidance

• Q2 2026 revenue rose 29% year-over-year to $1.46B, with construction revenue up 29% and materials revenue up 32%.

• Adjusted EBITDA for Q2 2026 was $186M, with a margin of 12.8%.

• YTD operating cash flow increased $136M year-over-year, raising annual operating cash flow guidance to 11% of revenue.

• 2026 revenue guidance raised to $5.3B–$5.5B, with adjusted EBITDA margin of 12.5%–14.5%.

• 2027 targets include 10%+ organic revenue growth, several acquisitions, and free cash flow margin of 6.5%–8.5%.

Segment performance and operational highlights

• Construction CAP reached a record $7.4B, with strong federal and data center-related growth.

• Aggregate and asphalt volumes increased year-over-year, with aggregate prices up 21% and asphalt up 9%.

• Materials segment gross profit margins for Q2 2026: aggregates at 14.6%, asphalt at 15.0%.

• Severe weather in the Southeast impacted materials margins, but demand remains healthy.

• Vertically integrated operations improve margins, schedule certainty, and quality, especially in materials-constrained markets.