February 2026 Investor 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 ...

Financial Performance - Fourth Quarter 2025 net income increased 27% year-over-year to $52 million, or $1.03 per diluted share, while adjusted net income rose 17% to $65 million, or $1.40 per diluted share [3][8]. - Fourth Quarter 2025 revenue increased 19% year-over-year to $1.2 billion, with fiscal year revenue growing 10% to $4.4 billion [8][15]. - Fiscal Year 2025 net income totaled $193 million, a 53% increase from the prior year, with adjusted net income rising 29% to $276 million [10][15]. - Adjusted EBITDA for the fourth quarter increased 21% year-over-year to $131 million, while fiscal year adjusted EBITDA rose 31% to $527 million [8][15]. - Total revenue for the year ended December 31, 2025, was $4,424,379, an increase of 10.4% from $4,007,574 in 2024 [26]. - Operating income for the year ended December 31, 2025, was $282,446, a 36.2% increase from $207,363 in 2024 [26]. - The company reported a net cash provided by operating activities of $468,916 for the year ended December 31, 2025, compared to $456,343 in 2024 [28]. - Basic net income per share attributable to common shareholders for the year ended December 31, 2025, was $4.42, up from $2.88 in 2024, an increase of 53.5% [26]. Revenue Growth - Committed and Awarded Projects (CAP) reached a record $7.0 billion, up 32% year-over-year, driven by strong public project bidding activity [8][12]. - The materials business contributed significantly to revenue growth, with fourth quarter revenue up 44.3% to $225 million and fiscal year revenue up 29.9% to $769 million [13][14]. - Total revenue for the Materials Product Line in 2025 was $769.5 million, a significant increase from $592.3 million in 2024, representing a growth of approximately 30% [43]. - The Asphalt segment generated external revenue of $458.8 million in 2025, compared to $395.8 million in 2024, representing an increase of approximately 15.9% [43]. Profitability Metrics - Gross profit for the year ended December 31, 2025, was $711,216, representing a 24.3% increase from $572,697 in 2024 [26]. - The net income margin for Q4 2025 was 4.5%, slightly up from 4.2% in Q4 2024 [34]. - Cash gross profit for the materials segment in Q4 2025 was $46,709,000, compared to $37,068,000 in Q4 2024, representing a 26.1% increase [40]. - Gross profit for the Materials Product Line in 2025 was $137.0 million, with a gross profit margin of 17.8%, compared to $81.7 million and a margin of 13.8% in 2024 [43]. - Cash gross profit for 2025 was $202.2 million, which is 26.3% of total revenue, up from $126.8 million or 21.4% in 2024 [43]. Expenses and Liabilities - SG&A expenses for the fiscal year totaled $408 million, or 9.2% of revenue, compared to $334 million, or 8.3% of revenue, in the prior year [15]. - Total current liabilities rose to $1,481,745 as of December 31, 2025, from $1,031,959 in 2024, an increase of 43.4% [24]. - Depreciation, depletion, and amortization expenses for 2025 totaled $65.1 million, up from $45.1 million in 2024, indicating a rise of about 44.4% [43]. Future Guidance - Guidance for 2026 includes revenue expectations in the range of $4.9 billion to $5.1 billion and an adjusted EBITDA margin of 12.0% to 13.0% [20]. - The company plans to continue investing in acquisitions and capital expenditures, with estimated capital expenditures of approximately $140 million to $160 million for 2026 [20]. - The company expects to improve gross profit margins and SG&A efficiencies while expanding CAP in 2026, supported by a healthy market backdrop [17]. Market and Sales Performance - The average selling price per ton for aggregates in Q4 2025 was $18.67, up from $15.69 in Q4 2024, a 19.0% increase [40]. - The average selling price per ton for aggregates in 2025 was $17.63, an increase from $15.98 in 2024, indicating a rise of approximately 10.4% [45]. - Sales tons for the Materials Product Line increased to 24,629 in 2025 from 20,284 in 2024, reflecting a growth of about 21.5% [43]. - Internal revenue for 2025 was $171.5 million, compared to $127.8 million in 2024, marking an increase of approximately 34.2% [44]. - Intersegment revenues for 2025 were $275.2 million, up from $246.8 million in 2024, indicating a growth of approximately 11.5% [44].

Core Viewpoint - Granite reported a significant increase in net income for the fourth quarter of 2025, indicating strong financial performance compared to the previous year [1] Financial Performance - Fourth Quarter 2025 net income reached $52 million, or $1.03 per diluted share, up from $41 million, or $0.84 per diluted share in the same period last year [1] - Adjusted net income for the fourth quarter was $65 million, or $1.40 per diluted share, compared to $56 million, or $1.23 per diluted share for the same period in the prior year [1]

Core Insights - Granite Construction Incorporated (GVA) has secured a $66 million highway improvement contract from the California Department of Transportation for a project in Nevada County, CA, with funding from federal and state sources [1][8] - The project involves expanding State Route 49 to four lanes with a center turn lane, aimed at improving road safety and traffic movement, while also enhancing access for local communities [2][8] - Granite's Committed and Awarded Projects (CAP) reached a record $6.3 billion as of September 30, 2025, up from $5.6 billion in the previous year, indicating strong growth potential for the company [6][10] Project Details - The highway expansion project will include the supply of approximately 75,000 tons of Hot Mix Asphalt (HMA) and Rubberized Hot Mix Asphalt (RHMA) from the Bradshaw Hot Plant, ensuring steady material supply and construction quality [3][8] - The project is strategically located near Sacramento, within Granite's core operating market, and reflects the company's ongoing relationship with Caltrans District 03 [2][4] Business Strategy - Granite is focusing on a vertically integrated model with an emphasis on its Materials business, which supports cost control and reliable supply for large transportation projects [5][10] - The company is committed to disciplined project selection and consistent execution practices, which contribute to margin stability and growth across its core operating regions [4][10] Market Performance - GVA's shares have increased by 15.1% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry's growth of 5.1% [10] - The bidding pipeline remains robust in both public and private markets, providing opportunities for Granite to expand its CAP and support organic growth [10]

Core Insights - Granite has been awarded a contract worth approximately $66 million by the California Department of Transportation for a highway improvement project in Nevada County, California [1] - The funding for the project will be sourced from Federal and State allocations and is expected to be included in Granite's fourth quarter CAP for 2025 [1] - The project aims to expand State Route 49 to four lanes with a center turn lane, which will enhance safety, traffic flow, and local accessibility [1]

Group 1 - The article highlights Granite Construction Incorporated (GVA) as an appealing investment opportunity in the current market [1] - The author emphasizes a value-oriented investment approach, focusing on companies trading at a significant discount to their intrinsic value [1] - The investment philosophy combines principles from Benjamin Graham with a contrarian market approach [1]

Core Insights - Granite Construction Incorporated (GVA) is a US-based civil contractor with over a century of experience, serving both public and private sectors, with a significant contribution from public sector projects [1] Company Overview - Granite Construction operates as a vertically integrated civil contractor, indicating a comprehensive approach to construction that encompasses various stages of project development [1]

Core Insights - Granite has been awarded a $24 million contract by the Riverside County Transportation Commission to transform the Perris South Metrolink Station and Layover Facility Project, aimed at improving service reliability and addressing increased commuter demand [1][2] Project Overview - The current single-track terminus of the Perris South station faces operational constraints that limit train movements and create service bottlenecks, necessitating the transformation into a high-capacity hub [2] - The project will enhance rail capacity and reliability, providing a viable alternative to congested freeway corridors, thereby reducing greenhouse gas emissions and supporting sustainable growth in the Inland Empire [3] Strategic Importance - This initiative represents a significant strategic win for Granite, reinforcing its commitment to expanding in the rail end market and the Inland Empire region [3] - The project builds on Granite's successful partnership with RCTC and Metrolink, leveraging the company's strengths in heavy civil construction and rail [3] Key Project Features - The addition of a second passenger platform and approximately 1,100–1,200 feet of new station track will enable two trains to load/unload simultaneously [5] - The existing platform will be extended to accommodate eight-car Metrolink trains, with upgrades to passenger amenities including canopies and electronic displays [5] - New pedestrian safety enhancements will be introduced, including an at-grade crossing with active warning gates and flashing lights [5] - The layover facility will be expanded to add a fourth layover track and new switching infrastructure, improving operational flexibility [5]

Core Insights - Granite has achieved Cybersecurity Maturity Model Certification (CMMC) Level 2, enhancing its capability to serve federal clients and protect sensitive government data [1][3] - The CMMC program is being rolled out in phases, with new federal contracts requiring certification starting November 10, 2025, and all Department of War contracts requiring it by October 31, 2026 [1] - Granite is among fewer than 500 firms out of an anticipated 80,000 federal contractors to have obtained CMMC Level 2 certification [1] Certification Details - The CMMC framework mandates government contractors to certify their cybersecurity practices, and Granite achieved a perfect score by passing all 110 security requirements and meeting 320 assessment objectives [2] - CMMC Level 2 is crucial for infrastructure contractors like Granite, as it is necessary for handling Controlled Unclassified Information on federal projects [3] Company Positioning - Achieving CMMC Level 2 is seen as a transformative milestone for Granite, positioning the company to pursue high-value federal contracts [4] - The company has demonstrated a commitment to aligning its infrastructure, policies, and training with the CMMC framework over the past two years [3]

Core Insights - Granite Construction (GVA) reported Q3 CY2025 revenue of $1.43 billion, a 12.4% increase year-on-year, but fell short of Wall Street's expectations of $1.50 billion, resulting in a 4.5% miss [1][6] - The company's adjusted EPS was $2.70, exceeding analyst estimates of $2.50 by 7.9% [1][6] - Full-year revenue guidance was revised down to $4.4 billion at the midpoint, a 1.1% decrease from the previous guidance of $4.45 billion [1][6] Management Commentary - Management highlighted strong execution in both Construction and Materials segments, supported by recent acquisitions and improved project selection [3][5] - CEO Kyle Larkin noted that increased aggregate and asphalt volumes, along with effective pricing strategies, contributed to margin improvement [3][5] - The company is optimistic about organic revenue growth due to a robust backlog of committed projects and strong public market demand, despite acknowledging challenges related to project timing and weather [4][5] Financial Performance - Adjusted EBITDA for the quarter was $215.6 million, beating analyst estimates of $197.5 million, with a margin of 15% [6] - Operating margin improved to 10%, up from 8.2% in the same quarter last year [6] - Market capitalization stands at $4.35 billion [6]