Granite Construction (GVA) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 29% year-over-year to $1.5 billion, with adjusted net income up to $101 million and adjusted diluted EPS at $2.16, both increasing year-over-year.

• Net loss attributable to shareholders was $278 million for Q2, driven by a $360 million non-operating loss on convertible debt transactions, which is excluded from adjusted results.

• Operating cash flow for the first half of 2026 surged to $142 million from $5 million year-over-year.

• Recent acquisitions, including Kenny Seng Construction, Warren Paving, Papich Construction, and Cinderlite, contributed significantly to revenue and gross profit.

• Strong demand in both public and private end markets, with robust pipelines in transportation, federal, rail, and data center infrastructure.

Financial highlights

• Q2 adjusted EBITDA increased 22% year-over-year to $186 million, with a margin of 12.8%.

• Q2 gross profit rose to $239 million from $199 million year-over-year.

• Construction segment revenue increased 29% to $1.2 billion, with $98 million from acquisitions and $172 million organic.

• Materials segment Q2 revenue rose 32% to $248 million, all from acquired businesses; internal asphalt sales up 73%.

• Cash and marketable securities totaled $932 million at quarter-end.

Outlook and guidance

• 2026 revenue guidance raised to $5.3–$5.5 billion, with organic growth expected to exceed 10%.

• Adjusted EBITDA margin expected between 12.25% and 13.25%.

• CAP (Committed and Awarded Projects) reached $7.4 billion, up $250 million sequentially, supported by strong funding.

• Materials segment expected to recover margins in the second half as weather impacts subside and quarry costs normalize.

• Several acquisitions anticipated in 2026 to further strengthen the competitive position.