📊 GVA Key Takeaways
Is Granite Construction Inc. (GVA) a Good Investment?
Granite Construction is experiencing severe financial deterioration with negative operating income, negative free cash flow of -$57M, and stalled revenue growth. The company cannot cover its interest obligations from operations (negative 2.3x interest coverage) while carrying $1.2B in debt, creating acute financial distress risk.
Fundamentals are solid with healthy profitability (6.4% operating margin, 16.4% ROE) and strong cash generation (7.5% FCF margin) despite flat revenue. Interest coverage is very high, liquidity is adequate, and cash comfortably supports operations, indicating resilient financial health. Moderate leverage and execution risks temper the outlook, but cash flow strength and EPS growth support a constructive stance.
Why Buy Granite Construction Inc. Stock? GVA Key Strengths
- Maintains $265.7M in cash reserves providing near-term liquidity runway
- Gross profit of $109.9M demonstrates retained ability to generate some core business value
- EPS improved 47.3% YoY despite continued losses, indicating marginal operational stabilization
- Strong free cash flow and cash conversion (OCF > net income)
- High interest coverage with adequate liquidity
- Solid ROE and notable EPS growth
GVA Stock Risks: Granite Construction Inc. Investment Risks
- Negative operating cash flow (-$30.9M) and free cash flow (-$57.0M) are structurally unsustainable and accelerate covenant breach risk
- Negative interest coverage ratio (-2.3x) means company cannot service $1.2B debt from operations, requiring asset sales or refinancing
- Zero YoY revenue growth combined with negative profitability (operating -3.4%, net -4.6%) across all margins indicates structural business deterioration
- Flat revenue and net income growth
- Project execution risk on fixed-price contracts can compress margins
- Moderate leverage (Debt/Equity 1.14x) and working capital volatility
Key Metrics to Watch
- Operating cash flow trajectory - must turn positive within 2-3 quarters to avoid liquidity crisis
- Debt covenant compliance and refinancing terms - critical given negative cash generation
- Gross margin sustainability - 12% is dangerously thin; further erosion accelerates distress timeline
- Operating margin sustainability
- Free cash flow conversion (OCF/Net income)
Granite Construction Inc. (GVA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Granite Construction Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GVA Profit Margin, ROE & Profitability Analysis
GVA vs Industrial Sector: How Granite Construction Inc. Compares
How Granite Construction Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Granite Construction Inc. Stock Overvalued? GVA Valuation Analysis 2026
Based on fundamental analysis, Granite Construction Inc. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Granite Construction Inc. Balance Sheet: GVA Debt, Cash & Liquidity
GVA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Granite Construction Inc.'s revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.97 reflects profitable operations.
GVA Revenue Growth, EPS Growth & YoY Performance
GVA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $699.5M | -$33.7M | $-0.77 |
| Q3 2025 | $1.3B | $79.0M | $1.57 |
| Q2 2025 | $1.1B | $5.9M | $0.13 |
| Q1 2025 | $672.3M | -$31.0M | $-0.70 |
| Q2 2024 | $898.6M | $5.9M | $0.13 |
| Q1 2024 | $560.1M | -$23.0M | $-0.53 |
| Q3 2023 | $1.0B | $17.6M | $0.40 |
| Q2 2023 | $849.2M | -$8.1M | $-0.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Granite Construction Inc. Dividends, Buybacks & Capital Allocation
GVA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Granite Construction Inc. (CIK: 0000861459)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GVA
What is the AI rating for GVA?
Granite Construction Inc. (GVA) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (BUY) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GVA's key strengths?
Claude: Maintains $265.7M in cash reserves providing near-term liquidity runway. Gross profit of $109.9M demonstrates retained ability to generate some core business value. ChatGPT: Strong free cash flow and cash conversion (OCF > net income). High interest coverage with adequate liquidity.
What are the risks of investing in GVA?
Claude: Negative operating cash flow (-$30.9M) and free cash flow (-$57.0M) are structurally unsustainable and accelerate covenant breach risk. Negative interest coverage ratio (-2.3x) means company cannot service $1.2B debt from operations, requiring asset sales or refinancing. ChatGPT: Flat revenue and net income growth. Project execution risk on fixed-price contracts can compress margins.
What is GVA's revenue and growth?
Granite Construction Inc. reported revenue of $912.5M.
Does GVA pay dividends?
Granite Construction Inc. pays dividends, with $5.7M distributed to shareholders in the trailing twelve months.
Where can I find GVA SEC filings?
Official SEC filings for Granite Construction Inc. (CIK: 0000861459) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GVA's EPS?
Granite Construction Inc. has a diluted EPS of $-0.96.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GVA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Granite Construction Inc. has a SELL rating with 81% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GVA stock overvalued or undervalued?
Valuation metrics for GVA: ROE of -4.0% (sector avg: 15%), net margin of -4.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GVA stock in 2026?
Our dual AI analysis gives Granite Construction Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GVA's free cash flow?
Granite Construction Inc.'s operating cash flow is $-30.9M, with capital expenditures of $26.1M. FCF margin is -6.2%.
How does GVA compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -4.6% (avg: 10%), ROE -4.0% (avg: 15%), current ratio 1.09 (avg: 1.8).