Granite Construction (GVA) Tops Q3 EPS by 41c; offers guidance

Granite Construction (NYSE: GVA) reported Q3 EPS of $3.81, $0.41 better than the analyst estimate of $3.40. Revenue for the quarter came in at $1.77 billion versus the consensus estimate of $1.7 billion.

GUIDANCE:

Granite Construction sees FY2026 revenue of $5.4-5.5 billion, versus the consensus of $5.398 billion.

Adjusted EBITDA margin in a range of 12.25% to 13.25%
SG&A expense as a percent of revenue in a range of 8.25% to 8.75% of revenue, inclusive of an estimated $48 million of stock-based compensation expense
Effective tax rate for adjusted net income in the mid-20s
Capital expenditures in a range of approximately $140 million to $160 million, including approximately $50 million in planned strategic materials investments.

Our 2029 financial targets are summarized below:

Organic revenue CAGR in a range of 10% to 12%
Adjusted EBITDA margin in a range of 14% to 16%
SG&A expense as a percent of revenue of approximately 7.5%
Operating cash flow of approximately 13% of revenue and CAPEX of approximately 3% of revenue resulting in free cash flow of approximately 10% of revenue
Continued expansion through M&A with a 2.5x net leverage target.

For earnings history and earnings-related data on Granite Construction (GVA) click here.

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