The adjusted EPS miss may pressure the stock near-term, but the strong revenue beat, raised guidance, and record CAP backlog ($7.4B) support the operational narrative. Listen to the conference call for commentary on materials segment margins and the impact of weather, as well as any updates on M&A and capital allocation following the convertible debt restructuring.
Price Chart
Executive Summary
Granite Construction reported Q2 2026 adjusted EPS of $2.16, missing consensus of $2.33 by 7.3%, while revenue of $1.456B beat estimates of $1.41B and grew 29% YoY. The GAAP net loss of $278M ($(6.36)/share) was driven by a $360M non-operating loss on convertible debt settlement, but the company raised its FY2026 revenue guidance by $100M to $5.3B-$5.5B and increased its operating cash flow target to 11% of revenue. The mixed results—EPS miss vs revenue beat and raised guidance—suggest the market will weigh operational strength against the earnings shortfall.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $1.456B (+29% YoY) vs consensus $1.41B (beat)
- Adjusted diluted EPS $2.16 vs consensus $2.33 (miss of 7.3%)
- GAAP diluted EPS $(6.36) due to $360M loss on convertible debt transactions
- FY2026 revenue guidance raised to $5.3B-$5.5B from $5.2B-$5.4B
- Adjusted EBITDA margin maintained at 12.25%-13.25%
- Committed and Awarded Projects (CAP) increased $250M sequentially to $7.4B
- Year-to-date operating cash flow $142M vs $5M prior year; cash flow target raised to 11% of revenue
- Materials segment gross profit margin declined to 16.1% from 24.1% due to severe weather and quarry development costs
Financial Impact
Adjusted EPS miss of $0.17 (7.3%) vs consensus; revenue beat of $46M (3.3%); FY revenue guidance raised by $100M at midpoint
Risk Factors
- Severe weather in the southeast impacting materials segment margins
- Execution risk on large CAP projects (including $624M in CBP tactical infrastructure)
- Potential further non-cash charges from convertible debt transactions
- Rising interest rates could affect project funding and demand
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000861459-26-000027 |
| Document: gva-20260730.htm | 0000861459-26-000027 |
| Document: 0000861459-26-000027-index-headers.html | 0000861459-26-000027 |
| Document: 0000861459-26-000027-index.html | 0000861459-26-000027 |
| Document: 0000861459-26-000027.txt | 0000861459-26-000027 |
| 8-K Data (Synthetic) | 0000861459-26-000027 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 7w ago | 8-K | $127.10 $114.41 | ▼ −9.98% | ▼ −7.99% | $117.97 (−7.18%) |
Aug 7, 2026 8w ago | 8-K | $128.32 $119.30 | ▼ −7.03% | ▼ −6.63% | $117.97 (−8.07%) |
Aug 4, 2026 8w ago | 8-K | $122.11 $117.93 | ▼ −3.42% | ▼ −2.19% | $117.97 (−3.39%) |
Jul 30, 2026 9w ago | 8-K | $114.92 $124.71 | ▲ +8.52% | ▲ +4.55% | $117.97 (+2.65%) |
Jun 15, 2026 15w ago | Insider Cluster | $145.18 $120.93 | ▼ −16.70% | ▼ −16.90% | $117.97 (−18.74%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $117.97 (−15.77%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $117.97 (−15.77%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $117.97 (−15.77%) |
Jun 2, 2026 17w ago | 8-K | $139.03 $145.93 | ▲ +4.96% | ▲ +5.96% | $117.97 (−15.15%) |
May 18, 2026 19w ago | 8-K | $137.28 $145.18 | ▲ +5.75% | ▲ +4.17% | $117.97 (−14.07%) |
US Market Status
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