Granite Construction Lifts 2026 Outlook by $100M as Q2 Revenue Climbs 29%

summarizeSummary

Granite Construction posted Q2 2026 revenue of $1.46 billion, a 29% year-over-year increase, and raised its full-year revenue guidance by $100 million. A $360 million non-cash loss on convertible debt transactions drove a GAAP net loss, but adjusted earnings exceeded expectations.

check_boxKey Events · Earnings and Guidance · GVA

• Revenue Surges 29% to $1.46B

  Driven by organic growth and recent acquisitions, Q2 2026 revenue rose $330 million year-over-year, with the Construction segment up 28.8% and Materials up 31.7%.

• Adjusted EBITDA Rises 22% to $186M

  Improved execution and higher volumes lifted adjusted EBITDA by $34 million from the prior year, yielding an adjusted EBITDA margin of 12.8%.

• GAAP Net Loss Driven by Non-Cash Convertible Debt Charge

  A $360 million non-operating loss on convertible debt transactions—a mark-to-market charge from settling the 3.75% convertible notes in cash—resulted in a GAAP net loss of $278 million. Adjusted net income was $101 million, or $2.16 per diluted share.

• Full-Year Revenue Guidance Raised by $100M

  Citing strong demand and a $7.4 billion CAP backlog that grew $250 million sequentially, management increased 2026 revenue guidance to $5.3–$5.5 billion.

auto_awesomeAnalysis · GVA · Real Estate & Construction

A strong operational quarter saw revenue jump 29% to $1.46 billion and adjusted EBITDA rise 22% to $186 million. The reported net loss of $278 million stems entirely from a non-cash $360 million loss on convertible debt transactions—a mark-to-market charge from settling the 3.75% convertible notes primarily in cash to limit dilution. Excluding that item, adjusted net income reached $101 million. Reflecting confidence in sustained demand across public and private infrastructure markets, management raised full-year revenue guidance by $100 million. The $7.4 billion CAP backlog and improved operating cash flow provide clear visibility into the second half.