Granite Construction Posts 23% Q3 Revenue Growth, Record $7.5B Backlog on Infrastructure Spending

Granite Construction reported third-quarter revenue of $1.77 billion, up 23% year over year, as core road and bridge projects fueled growth. Backlog reached a company record $7.5 billion, $1.1 billion higher than a year ago. Net income fell to $3.2 million from $102.9 million, reflecting a $162 million charge to settle previously outstanding convertible notes. CEO Kyle Larkin said on a Thursday earnings call that Infrastructure Investment and Jobs Act funds continue flowing to active projects despite Congress failing to pass a permanent surface transportation renewal. He said a significant portion of original IIJA funding remains unspent and should support state and local programs for several years. The Watsonville, California-based contractor is targeting faster growth in federal, rail and data center work. Federal projects account for about $1.3 billion in backlog, and Granite expects that segment to reach 15% of construction revenue this year. Mission critical work, including data centers, represents $331 million of backlog, with a target of 10% of construction revenue. Granite has deployed over $1.4 billion on acquisitions since 2023 and hopes to close three more deals worth a combined $750 million by year-end.