Granite Construction (NYSE:GVA) reported third-quarter results on Thursday that beat earnings expectations even as revenue came in below forecasts. The U.S. infrastructure builder continued to deliver strong margin expansion and record project bookings.
The company posted adjusted earnings per share of $2.70, well above the analyst consensus of $2.36, while revenue reached $1.43 billion, short of expectations for $1.51 billion.
Compared to the same quarter last year, revenue grew 12% from $1.28 billion, while adjusted net income jumped 36% to $124 million from $91 million. Adjusted EBITDA surged 44% year-over-year to $216 million, with margins improving to 15.0% from 11.7% a year ago, highlighting stronger project execution and cost discipline.
Granite’s Committed and Awarded Projects (CAP) pipeline climbed to a record $6.3 billion, up $273 million sequentially and $718 million year-over-year. Reflecting its strong backlog, the company tightened its 2025 revenue forecast to $4.35–$4.45 billion (from $4.35–$4.55 billion) and raised its adjusted EBITDA margin outlook to 11.50–12.50%, from 11.25–12.25% previously.
“Our third quarter results demonstrate solid progress toward our 2027 financial targets,” said Kyle Larkin, Granite President and Chief Executive Officer. “Our CAP reached $6.3 billion, which is a new record, with a number of projects ramping up in the third quarter that should accelerate growth in the fourth quarter and into 2026.”
By segment, the Construction division—which represents the majority of Granite’s revenue—saw sales increase 7.6% to $1.16 billion, with gross profit up 12.7% to $192.3 million. The Materials segment delivered standout results, with revenue rising 39.1% to $271 million and gross profit more than doubling to $68.2 million.
CFO Staci Woolsey added, “In the third quarter, we saw an increase in materials orders and we continued to expand our high quality project portfolio. We expect a busy fourth quarter and continuation into 2026.”