Company Overview - Fluor (FLR) is a notable stock in the Construction sector, which consists of 88 individual stocks and currently holds a Zacks Sector Rank of 14 out of 16 groups [2] - Fluor has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook based on earnings estimates and revisions [3] Performance Analysis - The Zacks Consensus Estimate for Fluor's full-year earnings has increased by 0.4% over the past quarter, reflecting improved analyst sentiment [4] - Year-to-date, Fluor has returned approximately 4.2%, outperforming the average loss of 1.7% in the Construction sector [4] - In comparison, Granite Construction (GVA) has also returned 4.2% this year, with an 8.2% increase in the consensus EPS estimate over the past three months, and holds a Zacks Rank of 2 (Buy) [5] Industry Context - Fluor is part of the Engineering - R and D Services industry, which includes 17 companies and is currently ranked 74 in the Zacks Industry Rank, with an average gain of 8.5% this year, indicating that Fluor is slightly underperforming its industry [6] - Granite Construction belongs to the Building Products - Heavy Construction industry, which is ranked 3 and has seen an increase of 11.8% this year [7]

Core Insights - Tutor Perini Corporation (TPC) and Granite Construction Incorporated (GVA) are benefiting from a strong cycle of infrastructure investment, particularly in large-scale civil and transportation contracts [1][2] Company Overview - Both companies specialize in large-scale public infrastructure projects, including highways, bridges, and rail systems, often supported by state and federal funding [2] - Their operations align closely with national infrastructure initiatives, positioning them as key players in upcoming federally funded projects [2] Current Market Environment - Infrastructure spending remains robust, with public funding supporting long-term project pipelines, prompting both companies to focus on expanding backlog, winning contracts, and improving execution efficiency [3] - Strong demand is anticipated from both public and private markets, making operational scaling and project visibility central to their strategies [3] Tutor Perini Corporation (TPC) - TPC is leveraging the surge in infrastructure spending to enhance its backlog and diversify its exposure to large-scale projects across various sectors [5] - In Q1 2025, TPC secured approximately $2 billion in new awards, increasing its backlog to a record $19.4 billion, nearly doubling from the previous year [6] - The company raised its 2025 earnings guidance, indicating strong performance and a favorable project environment [7] - TPC's projected EPS for 2025 suggests a significant year-over-year increase of 155.9% [17] Granite Construction Incorporated (GVA) - GVA is experiencing momentum in both public and private markets, with a disciplined focus on core markets and risk-managed project selection [8] - In Q1 2025, GVA's Committed and Awarded Projects (CAP) reached a record $5.7 billion, reflecting a 7.5% sequential increase and a 3.6% year-over-year rise [9] - GVA expects to maintain its growth trajectory, with projected revenues of $4.2-$4.4 billion and adjusted EBITDA margins of 11-12% for 2025 [11] Stock Performance and Valuation - TPC's stock has surged 82.3% over the past three months, outperforming the industry average of 30.1%, while GVA shares have risen 21% [12] - TPC is trading at a premium compared to GVA based on the forward 12-month price-to-earnings (P/E) ratio [13] Final Assessment - Both companies are well-positioned to benefit from strong infrastructure spending and multi-year project pipelines [20] - TPC stands out with a record backlog, stronger earnings growth outlook, and rising momentum in civil and commercial markets [21] - GVA, while maintaining steady growth, is viewed as less compelling in the near term due to its more measured pace and valuation [22]

Group 1 - Dream Finders Homes Inc. (DFH) has outperformed the Construction sector with a year-to-date gain of approximately 5.4%, while the sector has returned an average of -2.1% [4] - DFH currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with the consensus estimate for full-year earnings moving 2.9% higher in the past quarter [3][4] - The company is part of the Building Products - Home Builders industry, which has seen an average loss of 12% this year, further highlighting DFH's relative strength [6] Group 2 - Granite Construction (GVA) is another stock in the Construction sector that has outperformed, with a year-to-date increase of 2.5% and a Zacks Rank of 2 (Buy) [5] - The Building Products - Heavy Construction industry, to which Granite Construction belongs, is currently ranked 3 and has gained 3.7% this year [6] - Investors are encouraged to monitor both Dream Finders Homes Inc. and Granite Construction for potential continued strong performance in the Construction sector [7]

Core Viewpoint - Granite Construction Incorporated (GVA) has demonstrated strong stock performance, rising 41.4% over the past year, significantly outperforming the Zacks Building Products - Heavy Construction industry's growth of 16.8% and the overall market's increase of 9.3% [1][2]. Group 1: Market Performance - GVA stock has outperformed competitors such as MasTec, Inc. (MTZ), EMCOR Group, Inc. (EME), and Dycom Industries, Inc. (DY), which saw gains of 38.2%, 17.7%, and 26.6% respectively over the same period [3]. - Technical indicators show GVA stock trading above both the 50 and 200-day simple moving averages, indicating a bullish trend and positive market sentiment [7]. Group 2: Growth Opportunities - The company anticipates strong opportunities in both public and private markets, securing high-quality projects that align with its growth and margin targets [2][10]. - GVA's Committed and Awarded Projects (CAP) reached $5.7 billion in Q1 2025, reflecting a 7.5% sequential growth and a 3.6% year-over-year increase, driven by increased public spending [13]. Group 3: Strategic Expansion - Granite is focused on enhancing its market presence through acquisitions and investments, having increased its reserves by 56% to 1.6 billion tons from 2022 to 2024 [14]. - The company aims to complete two to three targeted acquisitions in 2025, focusing on vertically integrated, materials-focused businesses [15]. Group 4: Earnings Estimates and Valuation - The Zacks Consensus Estimate for Granite's 2025 earnings has increased, indicating a growth of 23.2% from the previous year [17]. - GVA is currently trading at a discount compared to industry peers, making it an attractive option for investors despite its recent stock price increase [18][20].

Core Viewpoint - Granite Construction Incorporated (GVA) has secured a $26-million contract for upgrades at San Francisco International Airport, which will enhance taxiway safety and functionality [1][2][3]. Group 1: Contract Details - The project involves upgrades to Taxiway Z and a section of Taxiway S, funded by SFO and included in GVA's second-quarter Committed and Awarded Projects (CAP) [1][2]. - The work will improve key taxiways used for aircraft movement, supporting ongoing airport operations [2][3]. - GVA's responsibilities include reconstructing asphalt concrete pavement, upgrading airfield lighting to LED, improving signage, enhancing electrical duct banks, and updating pavement markings and drainage [4]. Group 2: Project Timeline and Resources - Construction is scheduled to start in August 2025 and finish by November 2025 [5]. - GVA's Santa Clara hot plant will supply 24,105 tons of hot mix asphalt for the project [5]. Group 3: CAP Portfolio and Growth - GVA is focusing on expanding its high-quality CAP portfolio, which totaled $5.7 billion as of Q1 2025, reflecting a 7.5% sequential growth from $5.3 billion at the end of 2024 [6][7]. - The growth in CAP is attributed to increased public spending trends, providing favorable bidding opportunities despite macroeconomic challenges [7]. Group 4: Stock Performance and Market Outlook - GVA's shares have gained 39.7% over the past year, outperforming the Zacks Building Products - Heavy Construction industry's growth of 16.5% [9]. - The company anticipates strong opportunities across public and private markets to foster growth, despite market uncertainties and inflation concerns [9].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Granite Construction (GVA) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 48.6%, with projected EPS growth of 23.2% this year, significantly surpassing the industry average of 13.3% [5] - Granite Construction's year-over-year cash flow growth stands at 47.2%, well above the industry average of 13.4% [6] Group 2: Financial Metrics - The annualized cash flow growth rate for Granite Construction over the past 3-5 years is 29.1%, compared to the industry average of 8% [7] - The Zacks Consensus Estimate for the current year's earnings has increased by 8.2% over the past month, indicating a positive trend in earnings estimate revisions [8] Group 3: Investment Positioning - Granite Construction has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it favorably for potential outperformance in the growth stock category [10]

Group 1: Contract Announcement - Granite Construction Incorporated (GVA) has been awarded a $54 million CMGC contract by the Alaska Department of Transportation and Public Facilities for the first phase of a construction project [1] - Following the announcement, GVA's stock increased by 0.3% in after-hours trading [1] Group 2: Project Details - The first phase involves realigning the Parks Highway from milepost 319 to 322, which includes 2.5 million cubic yards of onsite earthwork, 25,000 tons of asphalt paving, and full traffic diversion [2] - The project will utilize GVA's equipment fleet, including a portable crusher and hot plant [2] - Construction is set to begin on May 1, 2025, and is expected to be completed by September 2027 [3] Group 3: Growth Strategy - Granite is focusing on expanding a high-quality CAP portfolio, driven by a favorable public funding environment and a resilient private market [4] - The company aims to pursue best-value projects to leverage established relationships and minimize risk [4] Group 4: Financial Performance - As of Q1 2025, Granite's CAP totaled $5.7 billion, reflecting a 7.5% sequential growth from $5.3 billion at the end of 2024 and a 3.6% year-over-year growth from $5.5 billion [5] - The growth is attributed to increased public spending trends, providing favorable bidding opportunities despite macroeconomic challenges [5] - GVA's shares have increased by 39.8% over the past year, outperforming the Zacks Building Products - Heavy Construction industry's growth of 19.5% [6] Group 5: Market Outlook - The company anticipates strong opportunities in both public and private markets, which are expected to support growth despite market uncertainties and inflation concerns [8]

Industry Overview - The Zacks Building Products - Heavy Construction industry is experiencing strong growth driven by favorable long-term trends, despite facing near-term challenges such as high interest rates and labor market pressures [1][8] - The industry includes mechanical and electrical construction, industrial and energy infrastructure, and building service providers, focusing on heavy civil construction projects like highways, bridges, and ports [3] Growth Drivers - A robust federal infrastructure agenda is unlocking significant investments in transportation, broadband, and energy networks, leading to increased demand in high-growth sectors [2] - The data center market's expansion is creating new opportunities for heavy construction companies, as demand for large-scale infrastructure solutions rises [5] - The ramp-up of 5G projects is benefiting industry players, with increased demand for wireline and wireless networks [6] Company Performance - EMCOR Group Inc. is benefiting from surging demand in data centers and healthcare, with a backlog of $11.8 billion reflecting strong long-term demand [32] - MasTec, with a backlog of $15.88 billion, has seen a 23.7% year-over-year increase, driven by growth across all segments [29] - Granite Construction has a record-high CAP of $5.7 billion, supported by federal and state infrastructure funding [21] Market Outlook - The industry's Zacks Industry Rank is 10, placing it in the top 4% of over 250 Zacks industries, indicating solid near-term prospects [10][11] - Aggregate earnings estimates for the industry have increased from $5.61 to $5.76 per share for 2025, reflecting growing analyst confidence [12] Recent Performance - The Zacks Building Products - Heavy Construction industry has outperformed the broader Zacks Construction sector and the S&P 500, gaining 12.3% over the past year compared to the sector's 7.9% decline [14] - The industry's current forward P/E ratio is 17.43, lower than the S&P 500's 20.43, suggesting potential value [17]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant risk and volatility [1] Group 1: Company Overview - Granite Construction (GVA) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 48.6%, with projected EPS growth of 23.2% this year, surpassing the industry average of 11.8% [5] Group 2: Financial Metrics - Year-over-year cash flow growth for Granite Construction stands at 47.2%, significantly higher than the industry average of 25.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 29.1%, compared to the industry average of 8% [7] Group 3: Earnings Estimates - There has been an upward revision in current-year earnings estimates for Granite Construction, with the Zacks Consensus Estimate increasing by 8.2% over the past month [9] - The combination of strong earnings growth, cash flow growth, and positive earnings estimate revisions has positioned Granite Construction as a Zacks Rank 1 stock with a Growth Score of A [10]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 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 State of Incorporation: I.R.S. Employer Identification Num ...