Granite Construction announced it has been awarded the LRT‑4 Webb‑Zapata project by Customs and Border Protection. The $495 million contract covers 27 miles of tactical infrastructure improvements near Laredo, Texas, including mass excavation, grading, road construction, fencing, cattle guards, seven bridges and eight major culverts. Work is slated to begin in April 2026 and finish in July 2027.
The award adds to Granite’s first‑quarter 2026 committed and awarded projects (CAP) balance, pushing the record high to $7.0 billion. The new contract provides multi‑year revenue visibility and reinforces the company’s strategy of winning high‑margin, best‑value federal projects.
Granite’s Q4 2025 results showed an earnings per share of $1.40 versus the consensus estimate of $1.34, a beat of $0.06, and revenue of $1.17 billion versus the $1.15 billion estimate. The earnings beat was driven by strong demand in core segments and disciplined cost control, while the revenue beat reflected continued strength in public‑market funding and a favorable mix of high‑margin projects.
Management guided 2026 revenue to a range of $4.9 billion to $5.1 billion, up from the prior guidance of $4.3 billion to $4.5 billion, and reiterated confidence in margin expansion. Staci Woolsey, CFO, said, “We expect revenue to grow to a range of $4.9 billion to $5.1 billion. This reflects our record CAP balance and the strong macro environment and places organic growth at the high end of our 2027 target CAGR of 6% to 8%.”
The LRT‑4 Webb‑Zapata project is part of a broader wave of CBP border infrastructure investments, including recent Smart Wall contracts totaling $3.3 billion. Granite’s focus on federal projects positions it to capture a growing share of this market, while its disciplined project selection and execution capabilities give it a competitive edge over peers.
Curt Haldeman, Granite’s Federal Division Vice President, noted, “Granite is focused on growing our portfolio of federal work, and the Webb‑Zapata project is a major piece of that growth. This award reflects the collaboration and commitment of teams across multiple regions of the company, brought together by the support and leadership of many strong leaders within Granite. Together, we continue to demonstrate our capabilities as a reliable partner on vital federal infrastructure projects.” Todd Keller, Program Manager, added, “We are well positioned to serve our clients' needs as we have the broad range of skillsets and sophisticated management required for tactical infrastructure projects.”
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