GRANITE CONSTRUCTION INC has recently released its latest 10-Q report. Granite Construction Incorporated provides infrastructure solutions for public and private clients in the United States, with operations centered in Construction and Materials. Its Construction segment handles roads, bridges, rail lines, airports, ports, dams, water-related work, mining, tunnels, solar, battery storage and power projects, while its Materials segment produces and delivers aggregates, asphalt concrete, liquid asphalt and recycled materials.
Granite said its five main business drivers are U.S. economic conditions, public funding levels, population growth, aging infrastructure needs and commodity pricing. The company said its committed and awarded projects totaled $7.17 billion at March 31, 2026, up from $6.97 billion at December 31, 2025, with public work representing $6.24 billion of that total. During the quarter, it added $495 million for a tactical infrastructure project in Texas, $115 million for a reservoir replacement project in California and $114 million for a highway project in California, while a $296 million California highway project was canceled after its expanded scope exceeded available funding.
For the three months ended March 31, 2026, Granite reported revenue of $912.5 million, up from $699.5 million a year earlier. Gross profit rose to $109.9 million from $83.8 million, while SG&A expenses increased to $141.0 million from $115.9 million. The company posted an operating loss of $31.1 million, compared with a loss of $39.8 million in the prior-year quarter, and a net loss attributable to Granite Construction Incorporated of $41.7 million, versus $33.7 million.
Construction revenue increased 24.6% to $766.1 million, with public-sector work accounting for $548.3 million and private-sector work $217.7 million. Granite said the increase was driven by higher CAP entering the quarter and $43.1 million of construction revenue from recently acquired businesses, Warren Paving and Papich Construction. Construction gross profit rose to $102.2 million from $85.4 million, though margin slipped to 13.3% from 13.9%.
Materials revenue climbed 72.4% to $146.4 million, led by aggregates revenue of $91.0 million and asphalt revenue of $55.4 million. Materials gross profit improved to $7.7 million from a gross loss of $1.6 million, helped by higher volumes and sales prices in both aggregates and asphalt, plus $4.9 million of gross profit from recently acquired businesses, including Warren Paving, Papich Construction and Cinderlite. SG&A rose 21.6% to $141.0 million, with stock-based compensation increasing $12.5 million to $42.6 million and salaries and related expenses rising $7.1 million to $62.6 million. As a result of these announcements, the company's shares have moved 0.64% on the market, and are now trading at a price of $123.37. Check out the company's full 10-Q submission here.
