Granite Construction Q3 revenue beats estimates on organic growth, acquisitions
Overview
US civil contractor's Q3 revenue rose 23% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Net income impacted by $162 mln in non-operating charges from convertible note settlements
Outlook
Granite raises 2026 revenue guidance to $5.4 bln-$5.5 bln from $5.3 bln-$5.5 bln
Company maintains 2026 adj EBITDA margin outlook at 12.25%-13.25%
Granite targets 2029 organic revenue CAGR of 10%-12% and adj EBITDA margin of 14%-16%
Result Drivers
ORGANIC GROWTH - Co said Q3 revenue growth was driven by higher committed and awarded projects (CAP) entering the quarter and strong organic growth
ACQUISITIONS - Co said incremental revenue from acquisitions contributed to Q3 revenue growth
PROJECT EXECUTION - Co said gross profit and margin increased due to strong execution across its project portfolio
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.80 bln | $1.72 bln (5 Analysts) |
Q3 Adjusted EPS | Beat | $3.81 | $3.33 (5 Analysts) |
Q3 EPS | $0.07 | ||
Q3 Adjusted Net Income | Beat | $173 mln | $142.94 mln (2 Analysts) |
Q3 Net Income | $3.21 mln | ||
Q3 Adjusted EBITDA | Beat | $283 mln | $265.85 mln (4 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and 1 "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 Incorporated is $177.50, about 59% above its October 28 closing price of $111.67
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 22 three months ago
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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.)