Granite Construction Inc Reports Impressive Growth in Fourth Quarter and Fiscal Year 2025

By Chris Stiles • Thursday, February 12 12:48 • Permanent Link

Granite Construction Incorporated (NYSE: GVA) has reported its fourth quarter and fiscal year 2025 results, showcasing impressive growth and financial performance.

Committed and Awarded Projects (CAP) increased by 32% year-over-year to $7.0 billion, setting a new record. Fourth-quarter revenue saw a 19% increase year-over-year, reaching $1.2 billion, while fiscal year revenue grew by 10% to $4.4 billion.

Net income for the fourth quarter rose by 25% year-over-year, reaching $52 million, with adjusted net income increasing by 17% to $65 million. For the fiscal year, net income surged by 53% to $193 million, and adjusted net income increased by 29% to $276 million.

In terms of earnings per share, diluted EPS for the fourth quarter increased by 23% to $1.03, with adjusted diluted EPS rising by 14% to $1.40. For the fiscal year, diluted EPS increased by 47% to $3.86, and adjusted diluted EPS grew by 26% to $6.07.

Adjusted EBITDA for the fourth quarter increased by 21% year-over-year to $131 million, with fiscal year adjusted EBITDA climbing by 31% to $527 million. Operating cash flow for the fiscal year totaled $469 million, representing 10.6% of revenue.

The construction segment experienced a 14.5% increase in revenue for the fourth quarter and a 7.0% increase for the fiscal year. Gross profit for this segment also saw significant growth, rising by 11.4% for the quarter and 16.9% for the year.

The materials segment posted impressive results, with revenue for the fourth quarter increasing by 44.3% and gross profit rising by 10.4%. For the fiscal year, revenue and gross profit for this segment grew by 29.9% and 67.7%, respectively.

Looking ahead, Granite has provided guidance for 2026, including a revenue range of $4.9 billion to $5.1 billion and an adjusted EBITDA margin in the range of 12.0% to 13.0%. The company also expects to see improvements in gross profit margins and SG&A efficiencies, aiming to drive adjusted EBITDA margin growth in line with its 2027 financial targets.

Granite's strong performance has positioned the company for continued growth and value creation in the coming year, with a focus on organic growth, acquisitions, and capital expenditures to drive long-term shareholder value. As a result of these announcements, the company's shares have moved 0.31% on the market, and are now trading at a price of $121.36. Check out the company's full 8-K submission here.

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