Granite Construction (GVA) AI Stock Analysis

• Market Cap: $4.30B
• Dividend Yield: 0.48%
• Average Volume (3M): 753.05K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 1.05
• Revenue Growth: 6.87%
• EPS Growth: 64.56%
• Country: US
• Employees: 2,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.98
• Shares Outstanding: 43,649,807
• 10 Day Avg. Volume: 560,672
• 30 Day Avg. Volume: 753,049
• PEG Ratio: 0.16
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 12.02
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: 14.75
• 1Y Price Target: $140.00
• Price Target Upside: 35.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $113.00 ▲(9.01% Upside)

Granite Construction's strong financial performance and positive earnings call guidance are significant strengths, contributing to a solid overall score. However, technical indicators suggest potential bearish momentum, and the stock's valuation appears high, which could limit upside potential.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective business strategy, supporting long-term financial stability.

Successful Acquisitions

Successful integration of acquisitions enhances market reach and operational efficiency, contributing to sustained revenue and margin growth.

Strong Cash Flow

Robust cash flow generation supports financial flexibility and investment capacity, underpinning long-term growth and stability.

Negative Factors

Rising Debt Levels

Higher leverage can increase financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Project Delays

Delays in project execution can affect revenue recognition and cash flow, posing challenges to meeting financial targets and investor expectations.

Weather Risks

Weather-related disruptions can impact project timelines and costs, affecting revenue and profitability, especially in the construction industry.

Granite Construction Business Overview & Revenue Model

Company Description

Granite Construction Incorporated (GVA) is a leading heavy civil contractor and construction materials producer, operating primarily in the United States. The company specializes in a diverse range of sectors, including transportation, water resources, and infrastructure development. Granite Construction provides core services such as road and highway construction, bridge building, utility construction, and various environmental projects, as well as producing aggregates, asphalt, and ready-mix concrete for construction and public works projects.

How the Company Makes Money

Granite Construction generates revenue primarily through contracts awarded for construction projects and services across various sectors. The company operates on a project-based revenue model, where it secures contracts from government agencies, municipalities, and private sector clients. Key revenue streams include heavy civil construction, which encompasses highway and road projects, and a range of specialized services in water resource management and environmental remediation. Additionally, revenue is supplemented through the sale of construction materials, including aggregates and asphalt products, which are used in its own projects and sold to third-party contractors. Strategic partnerships with governmental agencies and private firms, along with a focus on long-term contracts, contribute significantly to its earnings stability and growth potential.

Granite Construction Financial Statement Overview

Summary

Granite Construction has shown a positive trajectory in financial performance, with improvements in revenue, profitability, and cash flow metrics. The company has effectively managed its debt levels while enhancing return on equity. Despite past challenges, particularly in 2021, the current financial health appears strong, positioning the company well for future growth in the engineering and construction industry.

Income Statement

Granite Construction has shown consistent revenue growth with a notable increase in gross profit margin from 11.3% in 2023 to 15.6% in TTM 2025. The net profit margin has also improved, reaching 3.9% in TTM 2025. The EBIT and EBITDA margins have strengthened, indicating enhanced operational efficiency. However, the company faced challenges in earlier years with lower margins and a negative net profit margin in 2021.

Balance Sheet

The company's debt-to-equity ratio has remained relatively stable, decreasing slightly to 0.77 in TTM 2025, suggesting manageable leverage. Return on equity has improved significantly to 15.5% in TTM 2025, reflecting better profitability. The equity ratio remains healthy, indicating a solid financial position, though the company has experienced fluctuations in equity growth over the years.

Cash Flow

Granite Construction has demonstrated strong free cash flow growth, particularly in recent periods, with a 4.7% increase in TTM 2025. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. However, the company faced negative free cash flow in 2021, highlighting past volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.24B	4.01B	3.51B	3.30B	3.50B	3.56B
Gross Profit	694.25M	572.70M	396.40M	369.49M	362.64M	344.79M
EBITDA	465.74M	351.71M	170.59M	187.01M	151.92M	-29.30M
Net Income	182.46M	126.35M	43.60M	83.30M	10.10M	-145.12M
Balance Sheet
Total Assets	4.15B	3.03B	2.81B	2.17B	2.49B	2.38B
Cash, Cash Equivalents and Short-Term Investments	547.24M	726.57M	624.76M	517.17M	585.56M	614.09M
Total Debt	1.46B	832.85M	735.09M	339.21M	372.85M	378.62M
Total Liabilities	2.94B	1.95B	1.79B	1.18B	1.50B	1.39B
Stockholders Equity	1.16B	1.02B	977.30M	953.02M	967.68M	975.66M
Cash Flow
Free Cash Flow	346.44M	319.94M	43.32M	-65.97M	-72.88M	175.21M
Operating Cash Flow	462.41M	456.34M	183.71M	55.65M	21.93M	268.46M
Investing Cash Flow	-965.24M	-228.56M	-359.29M	-11.00M	-21.48M	-41.26M
Financing Cash Flow	482.35M	-67.12M	299.25M	-164.31M	-24.45M	-57.66M

Granite Construction Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GVA, the sentiment is Positive. The current price of 103.66 is above the 20-day moving average (MA) of 102.84, below the 50-day MA of 105.16, and above the 200-day MA of 93.32, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GVA.

Granite Construction Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGX	75 Outperform	$5.46B	47.56	33.43%	0.41%	29.16%	163.46%
MYRG	74 Outperform	$3.48B	36.24	16.22%	―	-0.64%	168.51%
ECG	73 Outperform	$4.69B	25.96	35.26%	―	28.20%	24.27%
PRIM	71 Outperform	$6.84B	25.01	18.56%	0.25%	21.45%	67.31%
GVA	70 Outperform	$4.30B	28.95	16.87%	0.48%	6.87%	64.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TPC	63 Neutral	$3.62B	―	-2.31%	―	19.22%	78.83%

Granite Construction Corporate Events

Granite Construction Shines in Earnings Call

Granite Construction’s recent earnings call painted a picture of robust financial health, marked by impressive revenue and profit growth. The company celebrated successful acquisitions and a favorable market environment, although it acknowledged challenges such as project delays and weather risks that could impact future performance.

Granite Construction Reports Strong Q3 2025 Results

Granite Construction, a leading diversified civil contractor and construction materials producer in the United States, is known for its vertically-integrated operations and commitment to quality and sustainability.

Granite Construction Appoints J. Timothy Romer as Director

On September 8, 2025, Granite Construction Incorporated appointed J. Timothy Romer as a director, who will serve on the Board’s Audit/Compliance Committee and Risk Committee. This appointment aligns with the company’s governance practices and ensures compliance with New York Stock Exchange independence requirements, potentially strengthening the company’s oversight and risk management capabilities.

The most recent analyst rating on (GVA) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Granite Construction stock, see the GVA Stock Forecast page.