| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 1.5K | 59.5% | 29.3% |
| Total Income | 1.5K | 59.5% | 29.3% |
| Expenditure | 1.3K | 40.9% | 30.0% |
| PBT | -239.34 | 393.4% | 322.5% |
| Net Profit | -278.16 | 567.0% | 487.9% |
| OPM | 8.71% | 12.12pp | 0.49pp |
| NPM | -19.11% | 14.54pp | 25.47pp |
| EPS | -6.36 | 562.5% | 487.8% |
Granite Construction Reports Q2 2026 Results
30 Jul 2026 · 30 Jul, 4:21 pm
Summary
Granite Construction reported a net loss of $278 million for the second quarter of 2026, significantly impacted by a $360 million non-operating loss on convertible debt transactions. However, excluding this item, adjusted net income rose to $101 million from $86 million in the prior year. Revenue for the quarter surged by 29% year-over-year to $1.5 billion, and adjusted EBITDA grew by 22% to $186 million. The company also raised its 2026 revenue guidance by $100 million, reflecting confidence in sustained elevated organic growth.
Key Highlights
- 1
Q2 revenue increased 29% year-over-year to $1.5 billion.
- 2
Q2 net loss was $278 million, compared to a net income of $72 million in the prior year, primarily due to a $360 million non-operating loss on convertible debt transactions.
- 3
Q2 adjusted net income was $101 million, an increase from $86 million in the same period last year.
- 4
Q2 adjusted EBITDA increased 22% year-over-year to $186 million.
- 5
Committed and Awarded Projects (CAP) increased sequentially by $250 million to $7.4 billion.
- 6
Year-to-date operating cash flow increased $136 million year-over-year to $142 million.
- 7
2026 revenue guidance was raised by $100 million to a range of $5.3 billion to $5.5 billion.
Management Comments
Kyle Larkin
We continued to execute against our strategy and deliver on our long-term financial objectives during the quarter. Despite headwinds created by severe weather in the southeast, we generated strong organic revenue growth, increased adjusted EBITDA and operating cash flow, completed the acquisition of Kenny Seng Construction, and strengthened our capital structure by issuing senior notes and calling our 3.75% convertible notes for redemption. We continue to believe public funding for highways, roads and bridges is likely to remain at high levels for the foreseeable future. In addition, we are confident in our ability to grow our business beyond traditional public infrastructure end markets. Over the last several years, we have been positioning Granite to expand our federal portfolio footprint, increase our participation in rail and transit projects, grow our presence in mission critical infrastructure including data center site development, and strengthen our vertically integrated Materials platform. Combined with our leading positions in many of the nation’s fastest growing markets, these initiatives provide Granite with multiple avenues to grow revenue, expand earnings, and create value independent of any single end market or funding source. As we look beyond 2027, our confidence is rooted not only in a supportive funding environment but also in our ability to grow through market diversification, customer expansion, strategic acquisitions, and disciplined execution. Our continued confidence in our ability to grow our business is based on the breadth of opportunities we see across our platform, the quality of the markets we serve, our ability to execute, and the strategic choices we have made over the last several years to build a more diversified, more vertically integrated and more resilient Granite.
Staci Woolsey
During the quarter, we delivered strong growth in both revenue and CAP. With our performance through the second quarter and opportunities ahead, we are raising our annual revenue guidance range by $100 million. Given the strength in both public and private infrastructure markets, we expect to deliver sustained elevated organic growth through the second half of 2026 and into 2027 and beyond.
Informational and educational content only. Not investment advice.