Overview

* Granite Q3 revenue grows 12% yr/yr but misses analyst expectations

* Adjusted EPS for Q3 beats consensus, indicating strong operational performance

* Company reports record CAP increase to $6.3 bln, reflecting strategic growth initiatives

Outlook

* Granite narrows 2025 revenue forecast to $4.35 bln-$4.45 bln

* Company raises 2025 adjusted EBITDA margin forecast to 11.50%-12.50%

* Capital expenditures expected to total approximately $130 mln, or 3% of revenue

Result Drivers

* RECORD CAP - Granite reports record increase in Committed and Awarded Projects (CAP) to $6.3 bln, supporting future growth

* ACQUISITIONS DRIVE REVENUE - Revenue growth supported by contributions from Warren Paving and Papich Construction acquisitions

* MATERIALS SEGMENT PROFIT - Higher sales volumes and prices in aggregates and asphalt drive significant gross profit improvements in Materials segment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.43 $1.51

Revenue bln bln (2

Analysts

)

Q3 Beat $2.70 $2.60 (2

Adjusted Analysts

EPS )

Q3 EPS $1.98

Q3 Beat $124 mln $114.50

Adjusted mln (1

Net Analyst)

Income

Q3 Net $103 mln

Income

Q3 Beat $216 mln $201.60

Adjusted mln (1

EBITDA Analyst)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction & engineering peer group is "buy"

* Wall Street's median 12-month price target for Granite Construction Inc ( GVA ) is $131.50, about 21.9% above its November 5 closing price of $102.76

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)