GVA

Granite Construction is a heavy-civil and infrastructure contractor with an integrated aggregates/materials business, and it is executing exceptionally well into the US infrastructure spending cycle. FY2025 revenue grew 10.4% to $4.42B, but profitability grew far faster: gross profit rose 24.2%, operating income 36.2%, and net income 52.8% to $193M, lifting diluted EPS 47.3% to $3.86 and ROE to 16.4%. The five-year history shows a real transformation — net income climbed from just $10.1M in FY2021 to $193M in FY2025 as the company shed low-margin legacy work, improved project selection, and benefited from federal/state infrastructure funding. Operating cash flow of $469M comfortably exceeds net income and funds capex, modest buybacks, and a dividend.

The watch items are leverage and margin structure. Long-term debt rose 30.5% to $963M, the current portion of debt spiked to $376M (a near-term maturity to refinance), and current liabilities rose 43.6% — the balance sheet has taken on more debt to fund growth and working capital. As a contractor, margins remain inherently thin (16.1% gross, 6.4% operating, 4.4% net), so results are sensitive to project execution, cost inflation, and the timing of large jobs.