Update shared on08 Aug 2025
Fair value Increased 12%The upward revision in Granite Construction’s fair value reflects stronger consensus revenue growth forecasts, partly offset by a modest decline in net profit margin, resulting in the analyst price target increasing from $110.33 to $116.00.
What's in the News
- Granite Construction updated its 2025 earnings guidance, projecting revenue between $4.35–$4.55 billion, including approximately $150 million from new acquisitions.
- Secured major contracts: $160 million and $70 million Garnet Valley Wastewater System packages, $158 million Guam Missile Defense system, $111 million Salt Lake City I-215/bridge rehab, $115 million SFO runway/taxiway, $21 million Carson City street upgrade, $54 million Alaska Parks Highway realignment, $26 million SFO Taxiway Z/S, $17 million UDOT Riverdale bridges, and a $2 million preconstruction phase for the Tahoe Cedars Water project.
- Formed Southern Nevada Construction Partners joint venture, leading significant SNWA water infrastructure projects under the Horizon Lateral Program, with Granite's construction phase share expected around $70 million.
- Added to multiple Russell 2000 indexes, including Value-Defensive, Defensive, and Growth-Defensive categories.
- Achieved first Progressive Design-Build (PDB) contract in California with the Tahoe Cedars Water Reconstruction Project.
Valuation Changes
Summary of Valuation Changes for Granite Construction
- The Consensus Analyst Price Target has risen from $110.33 to $116.00.
- The Consensus Revenue Growth forecasts for Granite Construction has significantly risen from 7.5% per annum to 9.9% per annum.
- The Net Profit Margin for Granite Construction has fallen from 10.36% to 9.84%.
Disclaimer
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