Granite Construction Incorporated (NYSE: GVA) reported fourth‑quarter and full‑year 2025 results that surpassed consensus estimates. Net income rose to $52 million, or $1.03 per diluted share, while adjusted net income climbed to $65 million, or $1.40 per diluted share. Revenue for the quarter reached $1.17 billion, a $0.01 billion (0.86%) beat over the $1.16 billion consensus estimate, and full‑year revenue totaled $4.42 billion, up 10% from $4.0 billion in FY 2024.
The Materials segment drove margin expansion, with cash gross profit reaching 20.8% of revenue in the quarter and 21.4% for the year, compared with 19.5% in the prior year. The Construction segment maintained a 15.2% gross profit margin, while overall cash gross profit rose 1.3 percentage points to 20.1% in the quarter. Record committed and awarded projects of $7.0 billion underscored the strength of the public‑sector pipeline.
Year‑over‑year, Q4 revenue grew 19.2% to $1.17 billion from $977 million in Q4 2024, and full‑year revenue increased 10% to $4.42 billion from $4.0 billion. Diluted earnings per share rose 23% to $1.03 from $0.84, and adjusted diluted EPS climbed 14% to $1.40 from $1.23. These gains reflect disciplined cost control and a favorable mix of high‑margin projects.
President and CEO Kyle Larkin said, 'With our fourth quarter results, we achieved another record year for Granite. Our disciplined approach to project selection, combined with sustained strength in public‑market funding, drove CAP to an all‑time high.' He added, 'We are operating from a position of strength, and I am confident our teams will continue to execute at a high level and deliver long‑term value for our shareholders in 2026 and beyond.' Larkin also noted, 'The pace of improvement from this team has been remarkable, and we see a long runway for further value creation through pricing, operational efficiencies, and vertical integration with our construction operations.'
Granite guided 2026 revenue to $4.9 billion–$5.1 billion, a range that exceeds analyst consensus of $4.88 billion and signals confidence in continued demand for infrastructure projects. The company emphasized that its expanded geographic footprint and integrated materials platform will support the outlook.
Investors responded with a muted reaction, indicating that the results were largely anticipated and that the guidance was viewed as consistent with expectations.
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