Granite Construction reported robust third quarter 2026 results, exceeding analyst estimates for both revenue and earnings. Growth was fueled by 20% organic revenue growth in the Construction segment and successful integration of recent acquisitions. While GAAP net income was significantly impacted by non-operating charges related to convertible note settlements, adjusted profitability expanded year-over-year as the company converted its massive project backlog into high-margin revenue.
Key Highlights
- Revenue climbed 23% year-over-year to $1.77 billion, surpassing the $1.70 billion estimate behind strong organic volume.
- Adjusted diluted EPS of $3.81 beat the $3.21 consensus estimate, driven by operating leverage and project execution.
- Committed and Awarded Projects (CAP) reached a new record high of $7.5 billion, providing significant visibility through 2028.
- Management introduced 2029 financial targets, including a 10% to 12% organic revenue CAGR and adjusted EBITDA margins between 14% and 16%.