Granite Construction Inc. reported first‑quarter 2026 results that surpassed analyst expectations, with revenue rising 30% to $912.5 million and adjusted earnings per share of $0.26, a beat of $0.73 over the consensus estimate of –$0.47. The company posted a GAAP net loss of $41.7 million, but its adjusted EBITDA more than doubled from $28 million in Q1 2025 to $58 million, reflecting stronger operating leverage and disciplined cost control.
Revenue growth was driven by a 72.4% increase in the Materials segment, which benefited from the recent acquisition of Kenny Seng Construction and favorable pricing in the high‑margin sub‑segment. The Construction segment also contributed to the top‑line rise, with a 31% increase in gross profit to $110 million, indicating that the company’s shift toward higher‑margin projects is paying off.
The GAAP net loss was largely attributable to higher SG&A expenses and interest costs, which offset the gains in operating income. However, the adjusted EBITDA margin expanded to 12.5% from 9.8% in the prior year, underscoring the effectiveness of the company’s cost‑control initiatives and the positive impact of the acquisition on profitability.
Management raised its full‑year revenue guidance to $5.2 billion–$5.4 billion, up from the previous $4.9 billion–$5.1 billion range, and increased the adjusted EBITDA margin guidance to 12.25%–13.25%. The guidance lift signals confidence in sustained demand for the company’s construction and materials services and reflects the momentum generated by the recent acquisition and disciplined execution.
CEO Kyle Larkin highlighted the company’s “strong momentum” and the positive impact of the acquisition, while CFO Staci Woolsey emphasized disciplined execution, improved SG&A leverage, and sustained demand as key drivers of the results and the raised guidance.
Analysts responded positively to the earnings beat and the raised guidance, noting that the strong adjusted earnings and revenue growth, combined with a record backlog of $7.2 billion, demonstrate robust execution and a favorable outlook for the remainder of the year.
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