Granite Construction (GVA) Q4 2025 earnings summary

Executive summary

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

• Delivered significant organic and acquisition-driven growth in both construction and materials segments, with strategic focus on high-margin projects, home markets, and vertical integration.

• Strategic acquisitions in 2025 expanded the Southeast platform and strengthened positions in California and Nevada, contributing to revenue and profit growth.

• Positioned for continued organic growth, margin expansion, and strong cash generation in 2026 and beyond, supported by robust public and private market demand.

• Record CAP and high-quality backlog with a significant share of best value projects provide future revenue visibility.

Financial highlights

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

• Gross profit rose 24% to $711 million; adjusted net income up 29% to $276 million; full-year net income was $193 million (up 53%).

• Adjusted EBITDA grew 31% to $527 million, with margin at 11.9%; operating cash flow increased 3% to $469 million, or 10.6% of revenue.

• Construction segment revenue up 14–15% year-over-year in Q4 to $940 million; materials segment revenue up 44% in Q4 to $225 million.

• Adjusted diluted EPS for FY 2025 was $6.07 (up 26%); cash gross profit margin in materials improved to 26.3%.

Outlook and guidance

• 2026 revenue guidance: $4.9–$5.1 billion, with adjusted EBITDA margin expected at 12–13% and SG&A targeted at 8.5–9% of revenue.

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

• On track for 2027 targets: adjusted EBITDA margin of 12.5–14.5%, operating cash flow margin of 10%, and free cash flow margin of 6.5–8.5%.

• Effective tax rate for adjusted net income projected in the mid-20s percent range.

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