Granite Construction Reports 30.4% Revenue Increase to $912.5 Million in Q1 2026

Granite Construction Incorporated reported a significant increase in revenue for the first quarter of 2026, achieving $912.5 million, up 30.4% from $699.5 million in the same period of 2025. The company's gross profit also rose to $109.9 million, compared to $83.8 million a year earlier. However, despite the revenue growth, Granite experienced an operating loss of $31.1 million, an improvement from the $39.8 million loss reported in the prior year. The net loss attributable to the company was $41.7 million, compared to a loss of $33.7 million in the first quarter of 2025.

The increase in revenue was primarily driven by a 24.6% rise in construction revenue, which reached $766.1 million, bolstered by higher committed and awarded projects (CAP) entering the quarter and contributions from recently acquired businesses, including Warren Paving and Papich Construction. The materials segment also saw a substantial increase, with revenue climbing 72.4% to $146.4 million, largely due to higher sales volumes and prices, as well as contributions from acquisitions. The company’s CAP stood at $7.2 billion at the end of March 2026, reflecting a 2.9% increase from the previous quarter.

Granite Construction has made strategic moves to enhance its market position, including the acquisition of KSC Utah Investments, Inc. (Kenny Seng Construction) for $164.1 million, which is expected to strengthen its operations in Utah. This acquisition aligns with the company's strategy to enhance vertical integration in its existing home markets. The results from Kenny Seng Construction will be included in Granite's consolidated results starting in the second quarter of 2026. Additionally, the company drew $170 million from its senior secured revolving credit facility to help fund this acquisition.

Operationally, Granite's total current assets decreased to $1.6 billion as of March 31, 2026, down from $1.8 billion at the end of 2025. The company reported a slight increase in current liabilities, resulting in a total equity of $1.1 billion, down from $1.2 billion at the end of the previous year. The company’s employee headcount remained stable, with no significant changes reported. Looking ahead, Granite Construction anticipates continued growth driven by strong public funding for infrastructure projects, particularly in light of the Infrastructure Investment and Jobs Act, which has increased federal funding for transportation projects. However, the company also acknowledges ongoing challenges related to inflation and supply chain constraints that could impact future performance.