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Core Insights - Granite Construction (GVA) has reported a TTM price-to-earnings ratio of 44.62 and a TTM price-to-sales ratio of 1.23, indicating a premium valuation in the market [1] - The company experienced a year-over-year increase in earnings per share of 21.3% and a revenue growth of 14.21% in Q3 2024, with expectations for Q4 2024 showing a projected earnings per share growth of 50.61% and a revenue increase of 1.73% [1][2] Industry Policy and Environment - The construction sector is supported by the expectations of the "14th Five-Year Plan," with a potential phase of demand release anticipated in 2026, although specific events related to Granite Construction have not been highlighted [1] - There is a trend of increased allocation of insurance capital towards the construction industry, which is characterized by low valuations and high dividend yields, yet Granite Construction has not been a focal point in this context [1] Future Development - The company's revenue growth forecast is relatively low at 1.73%, and the intensifying competition in the industry raises concerns regarding its future order acquisition capabilities and profitability quality [2]

Core Insights - Granite Construction (GVA.US) reported significant improvement in its Q3 FY2025 financial results, reflecting a robust fundamental performance and increased market confidence [1] Financial Report Analysis - For Q3 FY2025, Granite Construction achieved revenue of $1.433 billion, representing a year-over-year increase of 12.39% and a quarter-over-quarter increase of 27.3% [2] - The net profit reached $103 million, showing a substantial year-over-year growth of 30.37% [2] - Gross margin improved to 18.18%, an increase of 1.5 percentage points compared to the same period last year [2] - The company’s signed and awarded project backlog reached a record high of $6.3 billion, with a quarter-over-quarter increase of $273 million [2] - Granite Construction raised its full-year revenue guidance for 2025 to between $4.35 billion and $4.55 billion, with adjusted EBITDA margin expectations of 11.25% to 12.25% [2] Institutional Perspectives - Analyst Brent Thielman from D.A. Davidson maintained a "Buy" rating on Granite Construction and raised the target price from $130 to $155 [3] - The target price increase is based on the company’s record-high contract backlog and ongoing improvements in profitability, reinforcing optimistic market expectations for its growth prospects [3]

Core Insights - Granite Construction reported a strong finish to 2025, driven by effective construction execution despite project delays and adverse weather conditions [1] - The company completed three strategic acquisitions in 2025, which are expected to contribute significantly to growth in 2026 [2] - Granite's committed and awarded projects reached a record $7 billion, with notable improvements in profitability and gross profit margins [3][7] Financial Performance - Granite's revenue for 2025 was $4.4 billion, reflecting a 10% increase, with adjusted EBITDA of $527 million and a margin of 11.9% [6][17] - The construction segment revenue increased by 14% year-over-year in Q4, while materials revenue rose by $69 million, primarily due to acquisitions [13][14] - For 2026, Granite projects revenue between $4.9 billion and $5.1 billion, with an adjusted EBITDA margin target of 12% to 13% [18] Strategic Acquisitions - The acquisitions of Warren Paving, Papich Construction, and Cinderlite expanded Granite's aggregate reserves by 34% to 2.1 billion tons, enhancing the materials segment's cash gross margin to 26% [10][12] - Management emphasized that these acquisitions are margin-accretive and will remain a major component of growth strategy moving forward [2][11] Project and Market Strategy - Granite's strategy focuses on selective bidding for high-quality projects, with 48% of committed projects categorized as best-value procurement, which is expected to drive sustainable margin expansion [8][4] - The company is targeting a balanced mix of best-value and traditional bid-build projects, which supports confidence in organic growth for 2026 and beyond [8] Capital Allocation and Future Outlook - In 2025, Granite allocated $138 million for capital expenditures and $778 million for acquisitions, ending the year with $650 million in cash and marketable securities [16] - The company anticipates mid-single-digit price improvements in aggregates and low-single-digit improvements in asphalt for 2026, while maintaining cost control through automation [12][15]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-12911 Granite Construction Incorporated (Exact name of registrant as specified in its charter) Delaware 77-0239383 ( ...

Financial Data and Key Metrics Changes - Revenue increased by 10% year-over-year to $4.4 billion [22] - Gross profit rose by 24% to $711 million [22] - Adjusted Net Income grew by 29% to $276 million [22] - Adjusted EBITDA increased by 31% to $527 million [22] - Operating cash flow increased by 3% to $469 million [22] Business Line Data and Key Metrics Changes - Construction segment revenue increased by 14% year-over-year to $940 million, with a gross profit margin of 15% [22][24] - Materials segment revenue rose by $69 million year-over-year to $225 million, with cash gross profit margin improving to 21% [24][25] - Cash gross profit for the materials segment increased from 19% in 2023 to 26% in 2025 [10] Market Data and Key Metrics Changes - The construction market remains strong, particularly in California and Nevada, with significant public and private opportunities [14][15] - Best Value work increased to 48% of the company's CAP, contributing to margin expansion [16][17] Company Strategy and Development Direction - The company focuses on bidding and building high-quality projects, investing in the materials business, and expanding through targeted M&A [5][6] - The strategic plan aims for consistent financial performance, organic growth, and margin expansion, with a record CAP of $7 billion at year-end 2025 [6][13] - Continued investment in the materials segment is expected, with a planned $50 million in strategic CapEx for 2026 [11][30] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in capturing significant opportunities in both public and private markets, with a focus on disciplined execution [8][32] - The company anticipates continued revenue growth and margin expansion in 2026, supported by favorable market conditions and robust infrastructure funding [13][18] Other Important Information - The company completed three acquisitions in 2025, enhancing its market position and expanding its geographic footprint [11][12] - The company ended 2025 with $650 million in cash and marketable securities, positioning it well for future investments [28][29] Q&A Session Summary Question: Thoughts on federal legislation and IIJA - Management noted that the IIJA expires in September, with ongoing bipartisan support for new investment mechanisms expected to be more substantial than the current IIJA [39][40] Question: Federal opportunities and project pipeline - Management highlighted ongoing work with the federal government in Guam and a significant border infrastructure program valued at approximately $40 billion [43][44] Question: CAP level and 2027 targets - Management indicated that the current CAP level of $7 billion is healthy and supports confidence in achieving 2027 targets [50] Question: Strategic CapEx allocation - The strategic CapEx of $50 million is primarily focused on legacy business expansion and automation projects [52] Question: Project bidding opportunities by vertical - Management reported strong market conditions across various sectors, including mining, rail, and renewables, with ongoing opportunities in data center projects [58][60] Question: Margin outlook for 2026 - Management expects a 50 basis point improvement in construction margins and a 3% increase in materials margins over the next two years [88]

Financial Data and Key Metrics Changes - Revenue increased by 10% year-over-year to $4.4 billion [15] - Gross profit rose by 24% to $711 million [15] - Adjusted net income grew by 29% to $276 million [15] - Adjusted EBITDA increased by 31% to $527 million [15] - Operating cash flow increased by 3% to $469 million [15] Business Line Data and Key Metrics Changes - Construction segment revenue increased by 14% year-over-year to $940 million, with a gross profit margin of 15% [15][16] - Materials segment revenue rose by $69 million year-over-year to $225 million, with cash gross profit margin improving to 26% [17] Market Data and Key Metrics Changes - The construction market remains strong, particularly in California and Nevada, with significant capital outlay projects expected [9][10] - Best Value work increased to 48% of the capital portfolio, contributing to margin expansion [10][11] Company Strategy and Development Direction - The company focuses on bidding and building the right projects, investing in materials, and expanding through targeted M&A [4] - A disciplined approach to project selection has led to a record capital balance of $7 billion [4][9] - Continued investment in the materials business is expected to drive organic growth and margin expansion [8][14] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about capturing significant public and private opportunities in the construction sector [5][8] - The company anticipates continued revenue growth and margin expansion in 2026, supported by favorable market conditions [12][24] - The integration of recent acquisitions is progressing well, with expectations for meaningful revenue and profit increases [24] Other Important Information - The company executed capital allocation priorities with CapEx of $138 million and acquisitions totaling $778 million [19] - The company ended the year with $650 million in cash and marketable securities, positioning for continued investment [20] Q&A Session Summary Question: Thoughts on federal legislation and IIJA - Management noted bipartisan support for new investment mechanisms post-IIJA, with updates expected around March-April [28][29] Question: Federal opportunities and project pipeline - Management highlighted ongoing work with the federal government in Guam and a significant border infrastructure program [32] Question: CAP level and 2027 targets - Management expressed confidence in the current CAP level and its alignment with 2027 targets [39][40] Question: Strategic CapEx allocation - The majority of the $50 million strategic CapEx is focused on legacy business and expanding reserves [42] Question: Project bidding opportunities by vertical - Management indicated strong market conditions across various sectors, including mining, rail, and renewables [48][50] Question: Margin outlook for 2026 - Management discussed expected margin improvements driven by construction and materials segments, with various factors influencing outcomes [76][78] Question: M&A pipeline and leverage considerations - Management expects to complete several strategic acquisitions in 2026 while maintaining a target leverage ratio of 2.5 [80]

Financial Data and Key Metrics Changes - Revenue increased by 10% year-over-year to $4.4 billion [15] - Gross profit rose by 24% to $711 million [15] - Adjusted net income grew by 29% to $276 million [15] - Adjusted EBITDA increased by 31% to $527 million, with an adjusted EBITDA margin of 11.9% compared to 10% in 2024 [15][17] - Operating cash flow increased by 3% to $469 million, representing 10.6% of annual revenue [18] Business Line Data and Key Metrics Changes - Construction segment revenue increased by 14% year-over-year to $940 million, with a gross profit margin of 15% [15][16] - Materials segment revenue rose by $69 million year-over-year to $225 million, with cash gross profit margin improving to 21% [17] - Cash gross profit for the materials segment increased from 19% in 2023 to 26% in 2025 [7] Market Data and Key Metrics Changes - The construction market remains strong, particularly in California and Nevada, with significant opportunities for growth [10][11] - Best Value work accounted for 48% of the company's CAP, contributing to margin expansion [11][12] Company Strategy and Development Direction - The company focuses on bidding and building the right projects, investing in materials, and expanding through targeted M&A [4] - The CAP reached a record $7 billion at year-end 2025, reflecting a disciplined approach to project selection [4][10] - The company aims to achieve its 2027 financial targets supported by favorable market conditions and robust infrastructure funding [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing significant public and private opportunities in home markets [5][9] - The company anticipates continued organic growth, margin expansion, and strong cash generation in 2026 [15][22] - Management highlighted the importance of maintaining discipline in project selection to ensure appropriate returns [4][22] Other Important Information - The company completed three acquisitions in 2025, significantly expanding its reserves and resources [8][14] - The materials segment's cash gross profit improved significantly, driven by strategic investments and acquisitions [7][14] Q&A Session Summary Question: Thoughts on federal legislation and IIJA - Management noted that the IIJA expires in September, with bipartisan support for a new investment mechanism expected to be higher than the previous one [26][27] Question: Direct federal opportunities and project pipeline - Management highlighted ongoing work with the federal government in Guam and a significant border infrastructure program valued at around $40 billion [30][31] Question: CAP level and its impact on 2027 targets - Management indicated that the current CAP level supports confidence in achieving 2027 targets, with a healthy balance between bid build and best value projects [35][37] Question: Strategic CapEx allocation and Warren integration - The strategic CapEx is primarily focused on legacy business expansion, with positive integration results from recent acquisitions [38][40] Question: Project bidding opportunities by vertical - Management reported strong market conditions across various sectors, including mining, rail, and renewables, with ongoing opportunities in data center projects [44][46] Question: Margin outlook for 2026 - Management expects a 50 basis point improvement in construction margins and a 3% increase in materials margins over the next two years [72][73] Question: M&A pipeline and leverage considerations - Management expressed confidence in the M&A pipeline, targeting a leverage ratio of 2.5 times net debt while remaining open to larger opportunities if they arise [75][77]

Core Insights - The company reported significant improvements in multiple core indicators for Q3 FY2025, with revenue and profit both showing growth, and contract reserves reaching a historical high, indicating increased institutional confidence [1] Financial Performance - Revenue for Q3 reached $1.433 billion, representing a year-over-year increase of 12.39% and a quarter-over-quarter increase of 27.3% [2] - Net profit was $103 million, a substantial year-over-year increase of 30.37%, with diluted earnings per share at $1.98, up 26% [2] - Gross margin improved to 18.18%, an increase of 1.5 percentage points compared to the same period last year [2] Business Segments - The construction segment generated revenue of $1.16 billion, a year-over-year increase of 7.6%, with a gross margin of 16.5% [3] - The materials segment saw revenue of $271 million, a significant year-over-year surge of 39.1%, with a gross margin of 25.2% [3] Project Developments - The company completed acquisitions of Warren Paving and Pappage Construction in 2025, adding 400 million tons of aggregate reserves, expected to contribute $150 million in revenue for the year [4] - These acquisitions are expected to optimize the regional layout of the materials business [4] Project Backlog - As of Q3, the company has a signed and awarded project reserve of $6.3 billion, an increase of $273 million quarter-over-quarter and $718 million year-over-year [5] - Continuous release of public market funds is driving demand growth in data center and transportation projects [5] Financial Health - Operating cash flow was $284 million, with free cash flow at $257 million [6] - Adjusted EBITDA was $216 million, with a profit margin rising to 15.0%, an increase of 4.4 percentage points year-over-year [6] Institutional Sentiment - Recently, 75% of institutions rated the stock as "Buy" or "Hold," with an average target price of $135.20, and a high estimate of $147 [7] - The company raised its full-year revenue guidance for 2025 to between $4.35 billion and $4.55 billion, with adjusted EBITDA margin expectations of 11.25% to 12.25% [7]

Q4 2025 Earnings Presentation © 2026 Granite Construction. All Rights Reserved. Safe Harbor Any statements contained in this presentation that are not based on historical facts, including statements regarding future events, occurrences, circumstances, opportunities, targets, activities, performance, growth, demand, strategy, strategic goals, shareholder value, outcomes, outlook, macro-economic uncertainties, Committed and Awarded Projects (CAP), results, our strategic update, including our home market strat ...