Update shared on06 Sep 2025
Fair value Increased 4.30%Despite a notable reduction in consensus revenue growth forecasts, analysts have raised Granite Construction's price target, likely reflecting improved net profit margin expectations, with the fair value estimate increasing from $124.00 to $129.33.
What's in the News
- Granite's Layne won a $13 million contract to construct two high-capacity collector wells for LCRWS in South Dakota, enhancing regional water supply.
- The company reported no share repurchases in Q2 2025; total buybacks since 2016 stand at 4.44 million shares for $153.7 million.
- Granite is actively seeking acquisitions, focusing on expanding its materials business and vertical integration into new geographies, with a strengthened corporate development team.
- Updated 2025 guidance anticipates revenue of $4.35-$4.55 billion, including approximately $150 million from new acquisitions.
- Secured work packages worth $230 million for the Garnet Valley Wastewater System under a broader $900 million Southern Nevada initiative; construction to complete by December 2027.
- Granite's JV with Obayashi received a $158 million task order for missile defense infrastructure in Guam, set to finish by July 2028.
- Awarded a $17 million contract to replace multiple bridges in Utah, scheduled for July 2025 to October 2026.
- Won a $111 million contract to rehabilitate I-215 and 22 bridges in Salt Lake City, with work from August 2025 through November 2026.
- Selected for a $115 million SFO runway and taxiway rehabilitation, with construction from March to November 2026.
- Added to Russell 2000 Growth-Defensive, Value-Defensive, and Defensive Indices.
- Granite and JV partner Contri, as SNCP, advancing the Horizon Lateral Program for Southern Nevada Water Authority with several major water infrastructure projects, including preconstruction and prospective construction contracts valued around $70 million.
- SNCP JV also selected for the Paradise Hills CMAR project, featuring a significant water pipeline and a new 65 MGD pumping station in Southern Nevada.
- Chosen for a $3 million preconstruction contract to upgrade aging water infrastructure for Tahoe Cedars in California, marking its first PDB contract in the state.
Valuation Changes
Summary of Valuation Changes for Granite Construction
- The Consensus Analyst Price Target has risen slightly from $124.00 to $129.33.
- The Consensus Revenue Growth forecasts for Granite Construction has significantly fallen from 12.6% per annum to 10.8% per annum.
- The Net Profit Margin for Granite Construction has risen slightly from 9.16% to 9.60%.
Disclaimer
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