Earnings Releases·Oct 29, 2026, 6:45 AM ET

Granite Construction — Third Quarter 2026 Earnings Summary

Q3 2026 revenue rose 23% year-over-year to $1.77 billion, while adjusted net income and adjusted EBITDA increased 40% and 32% respectively to $173 million and $283 million; however, reported net income fell to $3 million from $103 million due to $162 million in non-operating charges from convertible note settlements.
Fiscal 2026 revenue guidance was raised to $5.4–$5.5 billion (previously $5.3–$5.5 billion), with management projecting 15% organic growth and 9% acquisition contribution at the midpoint, alongside record Committed and Awarded Projects (CAP) of $7.5 billion.
The Materials segment faced margin compression to 21.0% in Q3 due to energy surcharges and diesel costs, though cash gross profit for the segment rose 4.5% year-over-year, while the Construction segment delivered a 18.6% gross profit margin.
Capital allocation for the first nine months included $184 million in acquisitions, $55.8 million in stock repurchases, and $17.0 million in dividends, with net debt repayments of $1.18 billion offset by $770 million in proceeds from long-term debt.
Long-term 2029 targets were reaffirmed, including a 10–12% organic revenue CAGR, 14–16% adjusted EBITDA margin, and a 2.5x net leverage target, supported by strong operating cash flow generation of $404 million year-to-date.