Granite Construction (GVA) AI Stock Analysis

• Market Cap: $4.58B
• Dividend Yield: 0.5%
• Average Volume (3M): 753.99K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.36
• Revenue Growth: 7.18%
• EPS Growth: 77.84%
• Country: US
• Employees: 2,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.42
• Shares Outstanding: 43,786,156
• 10 Day Avg. Volume: 565,991
• 30 Day Avg. Volume: 753,986
• PEG Ratio: 0.16
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 12.02
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 8.55
• Enterprise Value/Ebitda: 13.35
• 1Y Price Target: $140.00
• Price Target Upside: 35.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $118.00 ▲(13.83% Upside)

Granite Construction's strong financial performance and strategic growth initiatives through acquisitions are the most significant factors driving the score. However, technical indicators suggest potential short-term weakness, and the stock's valuation appears high, which moderates the overall score.

Granite Construction Business Overview & Revenue Model

Company Description

Granite Construction Incorporated (GVA) is a leading heavy civil contractor and construction materials producer, operating primarily in the United States. The company specializes in a diverse range of sectors, including transportation, water resources, and infrastructure development. Granite Construction provides core services such as road and highway construction, bridge building, utility construction, and various environmental projects, as well as producing aggregates, asphalt, and ready-mix concrete for construction and public works projects.

How the Company Makes Money

Granite Construction generates revenue primarily through contracts awarded for construction projects and services across various sectors. The company operates on a project-based revenue model, where it secures contracts from government agencies, municipalities, and private sector clients. Key revenue streams include heavy civil construction, which encompasses highway and road projects, and a range of specialized services in water resource management and environmental remediation. Additionally, revenue is supplemented through the sale of construction materials, including aggregates and asphalt products, which are used in its own projects and sold to third-party contractors. Strategic partnerships with governmental agencies and private firms, along with a focus on long-term contracts, contribute significantly to its earnings stability and growth potential.

Granite Construction Financial Statement Overview

Summary

Granite Construction demonstrates strong revenue growth and improving profitability, with a positive trend in net profit margin and operational efficiency. However, rising debt levels require monitoring for potential leverage risks.

Income Statement

Granite Construction has demonstrated strong revenue growth, with a notable increase in Total Revenue from $3.01 billion in 2021 to $4.03 billion in TTM (Trailing-Twelve-Months) 2025. The Gross Profit Margin has improved, indicating better cost control and efficiency. The Net Profit Margin is positive and has shown a consistent upward trend, which highlights effective profitability management. EBIT and EBITDA margins have also seen positive growth, reflecting enhanced operational efficiency and profitability.

Balance Sheet

The company maintains a stable balance sheet with a reasonable Debt-to-Equity ratio, indicating a balanced capital structure. The Return on Equity (ROE) is improving, showcasing effective utilization of shareholder funds. The Equity Ratio demonstrates a solid proportion of assets financed by equity, suggesting financial stability. However, the increase in total debt over the years should be monitored for potential leverage risks.

Cash Flow

Granite Construction exhibits healthy cash flow management, with positive Free Cash Flow and Operating Cash Flow. The Free Cash Flow to Net Income Ratio indicates strong cash generation relative to net income. The Operating Cash Flow to Net Income Ratio signifies effective cash flow conversion from operations. Free Cash Flow growth remains positive, supporting future investment opportunities, despite minor fluctuations in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08B	4.01B	3.51B	3.30B	3.50B	3.56B
Gross Profit	636.65M	572.70M	396.40M	369.49M	362.64M	344.79M
EBITDA	407.91M	351.71M	170.59M	187.01M	151.92M	-29.30M
Net Income	158.48M	126.35M	43.60M	83.30M	10.10M	-145.12M
Balance Sheet
Total Assets	3.11B	3.03B	2.81B	2.17B	2.49B	2.38B
Cash, Cash Equivalents and Short-Term Investments	385.30M	726.57M	624.76M	517.17M	585.56M	614.09M
Total Debt	821.85M	832.85M	735.09M	339.21M	372.85M	378.62M
Total Liabilities	1.99B	1.95B	1.79B	1.18B	1.50B	1.39B
Stockholders Equity	1.06B	1.02B	977.30M	953.02M	967.68M	975.66M
Cash Flow
Free Cash Flow	309.13M	319.94M	43.32M	-65.97M	-72.88M	175.21M
Operating Cash Flow	439.70M	456.34M	183.71M	55.65M	21.93M	268.46M
Investing Cash Flow	-382.19M	-228.56M	-359.29M	-11.00M	-21.48M	-41.26M
Financing Cash Flow	-102.24M	-67.12M	299.25M	-164.31M	-24.45M	-57.66M

Granite Construction Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 103.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GVA, the sentiment is Neutral. The current price of 103.66 is below the 20-day moving average (MA) of 106.29, below the 50-day MA of 107.82, and above the 200-day MA of 91.71, indicating a neutral trend. The MACD of -0.96 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 24.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GVA.

Granite Construction Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECG	―	$4.79B	28.91	33.00%	―	21.87%	18.56%
MYRG	―	$3.41B	45.82	12.56%	―	-3.80%	62.94%
AGX	―	$4.10B	35.69	33.43%	0.55%	29.16%	163.46%
PRIM	―	$7.69B	32.33	17.01%	0.23%	15.08%	55.10%
GVA	―	$4.58B	34.96	15.89%	0.50%	7.18%	77.84%
TPC	―	$3.63B	―	-10.61%	―	12.03%	-93.60%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Granite Construction Corporate Events

Granite Construction Appoints J. Timothy Romer as Director

On September 8, 2025, Granite Construction Incorporated appointed J. Timothy Romer as a director, who will serve on the Board’s Audit/Compliance Committee and Risk Committee. This appointment aligns with the company’s governance practices and ensures compliance with New York Stock Exchange independence requirements, potentially strengthening the company’s oversight and risk management capabilities.

The most recent analyst rating on (GVA) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Granite Construction stock, see the GVA Stock Forecast page.

Granite Construction’s Earnings Call Highlights Strategic Growth

Granite Construction’s latest earnings call conveyed a predominantly positive sentiment, underscoring strategic acquisitions, record capital achievements, and robust growth in both revenue and profit margins. Despite an increase in debt and stable private market conditions, the company maintains a strong outlook with revised guidance and optimistic future targets.

Granite Construction Reports Strong Q2 2025 Results

Granite Construction Incorporated is a leading diversified civil contractor and construction materials producer in the United States, known for its strong commitment to safety, quality, and sustainability. In its latest earnings report for the second quarter of 2025, Granite Construction announced a 4% year-over-year increase in revenue, reaching $1.13 billion, and a significant 87% rise in diluted earnings per share to $1.42. The company also reported a record increase in Committed and Awarded Projects to $6.1 billion, reflecting robust bidding opportunities in both public and private markets. Key financial highlights include a gross profit increase to $199 million and an adjusted EBITDA rise to $152 million, driven by improved project execution and favorable claim settlements. The company also completed strategic acquisitions of Warren Paving and Papich Construction, enhancing its aggregate supply and expanding its market presence in the Southeast and California. Looking ahead, Granite Construction has raised its 2025 revenue guidance to between $4.35 billion and $4.55 billion, with expectations of continued margin expansion and strategic growth through acquisitions.

Granite Construction Acquires Slats Lucas and Warren Paving

On August 5, 2025, Granite Construction Incorporated entered into an Equity Purchase Agreement to acquire all outstanding equity interests of Slats Lucas, LLC, and Warren Paving, Inc., for $540 million. This acquisition was financed through a new $600 million senior secured term loan. Additionally, Granite Construction amended and restated its credit agreement to include a $600 million revolving credit facility and a $600 million term loan, with provisions for additional borrowing capacity. These strategic financial moves are aimed at strengthening the company’s financial flexibility and operational capacity.

The most recent analyst rating on (GVA) stock is a Sell with a $70.00 price target. To see the full list of analyst forecasts on Granite Construction stock, see the GVA Stock Forecast page.