Granite Construction Incorporated (GVA)
Granite Construction: More EBITDA, Less Multiple, Still A Buy
Granite Construction remains a Buy with a revised FY27 price target of $159, reflecting faster-than-expected EBITDA growth driven by Construction, not Materials. GVA's FY26 EBITDA guidance of $689M surpasses prior FY28 estimates, with the Construction segment organic growth at 15.3% and a robust $7.4B backlog supporting near-term revenue. I apply a 10.3x EV/EBITDA multiple, reflecting contractor comps and margin improvement above 10%, while maintaining conservative margin assumptions below company guidance.
Wall Street Analysts See a 30.86% Upside in Granite Construction (GVA): Can the Stock Really Move This High?
The average of price targets set by Wall Street analysts indicates a potential upside of 30.9% in Granite Construction (GVA). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Wall Street Analysts Think Granite Construction (GVA) Could Surge 28.8%: Read This Before Placing a Bet
The mean of analysts' price targets for Granite Construction (GVA) points to a 28.8% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
Is Granite Construction (GVA) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Granite Construction Q2 Earnings Call Highlights
Granite Construction NYSE: GVA reported higher second-quarter revenue, profit and operating cash flow, citing growth in both its construction and materials operations, a record committed and awarded projects balance and contributions from acquisitions.
Granite Construction's Dip Offers A Solid Entry Point
Granite Construction remains a 'strong buy' despite recent underperformance and a disappointing quarter, given rapid growth and compelling valuation. Q2 revenue surged to $1.46 billion, beating estimates, while adjusted net income and EBITDA also improved year-over-year. Management raised full-year revenue guidance to $5.3–$5.5 billion, with strong federal, state, and private sector funding supporting future growth.
Granite Construction Incorporated (GVA) Q2 2026 Earnings Call Transcript
Granite Construction Incorporated (GVA) Q2 2026 Earnings Call Transcript
Sterling vs. Granite: Which Construction Stock Is a Buy Now?
Infrastructure spending remains a major growth driver for U.S. construction companies, supported by data center development, semiconductor manufacturing, transportation upgrades and federal infrastructure programs. Contractors with strong project pipelines, specialized capabilities and disciplined execution are particularly well positioned.
Granite Construction Incorporated (GVA) Q1 2026 Earnings Call Transcript
Granite Construction Incorporated (GVA) Q1 2026 Earnings Call Transcript
Granite Construction's Outperformance Should Continue
Granite Construction remains a "Strong Buy" due to attractive valuation, robust public infrastructure demand, and successful acquisition-driven growth. GVA's 2025 revenue grew 10.4% year-over-year, with significant EBITDA and cash flow improvements, underscoring operational strength. Public sector CAP surged to $6.06 billion, offsetting private sector weakness, as government infrastructure spending accelerates, particularly in California and federal border projects.
Infrastructure Stock Up 67% This Past Year Just Drew a New $6 Million Investment
Candelo Capital Management initiated a 49,088-share position in Granite Construction during the fourth quarter. Post-trade, the quarter-end position for Granite Construction was $5.66 million.
Granite Construction's Upside Isn't Over Yet
Granite Construction Incorporated remains a Strong Buy due to robust growth, relative undervaluation, and disciplined execution despite a modest guidance revision. GVA's recent acquisitions, Warren Paving and Papich Construction, significantly boosted both the Construction and Materials segment revenues, supporting continued expansion. Shares trade at a meaningful discount to peers, with upside potential of 48%–77% if GVA achieves average sector multiples.
