Granite Construction Reports 4% Revenue Growth and Increased Net Income in Q2 2025

Granite Construction Incorporated reported a notable increase in financial performance for the second quarter of 2025, with total revenue reaching $1.126 billion, up from $1.082 billion in the same period last year, marking a 4.0% increase. For the first half of 2025, revenue totaled $1.826 billion, compared to $1.755 billion in the first half of 2024, reflecting a 4.0% year-over-year growth. The company’s net income attributable to Granite Construction increased significantly to $71.7 million, or $1.64 per share, for the second quarter, compared to $36.9 million, or $0.84 per share, in the prior year. This growth in profitability was driven by improved project execution and increased revenue from recent acquisitions.

The company experienced a 13.5% increase in gross profit for the second quarter, totaling $199.1 million, compared to $164.7 million in the same quarter of 2024. The gross profit margin also improved, rising to 17.7% from 15.2% year-over-year. Selling, general, and administrative expenses increased to $85.9 million from $70.1 million, primarily due to higher salaries and incentive compensation linked to improved financial performance. The company’s operating income for the second quarter was $103.6 million, up from $85.8 million in the previous year.

Granite Construction has made strategic moves to enhance its market position, including the recent acquisitions of Warren Paving and Papich Construction, completed on August 5, 2025, for $540 million and $170 million, respectively. These acquisitions are expected to expand the company’s geographic footprint and strengthen its vertical integration in the construction materials sector. The results from these acquisitions will be included in the company’s consolidated financial results starting in the third quarter of 2025.

Operationally, Granite Construction reported a committed and awarded projects (CAP) balance of $6.1 billion as of June 30, 2025, reflecting a 5.7% increase from the previous quarter. This growth is attributed to a strong public funding environment and new project awards, particularly in water infrastructure and transportation. The company’s construction segment revenue for the second quarter was $937.4 million, with public sector projects accounting for 69.5% of this revenue. The materials segment also saw growth, with revenue increasing to $188.5 million, driven by higher volumes and prices for aggregates and asphalt.

Looking ahead, Granite Construction remains optimistic about its growth prospects, supported by a favorable funding environment for public infrastructure projects, particularly due to the Infrastructure Investment and Jobs Act. The company anticipates continued revenue growth in the second half of 2025, bolstered by its strong CAP and strategic acquisitions. However, it also acknowledges potential challenges from inflation and supply chain constraints that could impact its operations.