Granite Construction (NYSE:GVA) has reported a strong financial performance in the first quarter of 2026, achieving a 30% increase in revenue to reach $912 million. The company also recorded a 31% rise in gross profit, amounting to $110 million, with adjusted EBITDA standing at $58 million. This robust performance has led the infrastructure firm to revise its full-year 2026 financial outlook upward, projecting total revenue of $5.2 billion to $5.4 billion and an adjusted EBITDA margin of 12.25% to 13.25%.
As part of its growth strategy, Granite Construction recently acquired Kenny Seng Construction, a Utah-based specialty contractor. The acquisition is expected to contribute approximately $150 million annually to Granite's revenue. Founded in 1985, Kenny Seng Construction operates with a vertically integrated model focusing on earthwork, site preparation, and aggregate production.
President and CEO Kyle Larkin described the acquisition as a strategic fit for Granite’s investment framework, stating, "The deal is a perfect fit for the company's disciplined investment framework." He also highlighted that Kenny Seng Construction brings "an accretive adjusted EBITDA margin in the high teens" and noted that the firm is considered a "specialty contractor of choice" within its local market. Granite plans to leverage shared client relationships and expand the acquired company's materials business to drive further growth within and beyond Utah.
Granite’s Committed and Awarded Projects (CAP) reached $7.2 billion, underscoring strong market demand despite the cancellation of a $300 million project in California. The federal portion of the CAP accounts for $1.3 billion, including $640 million allocated to tactical infrastructure.
Executives indicated that the company is increasingly focusing on private-market opportunities, such as rail projects and data centers, as part of its efforts to diversify beyond traditional civil infrastructure.
Granite Construction’s recent achievements reflect its efforts to adapt to evolving market demands and enhance its project portfolio. With the integration of Kenny Seng Construction and a growing presence in critical sectors like education, healthcare, and data center infrastructure, the company aims to sustain its upward trajectory in 2026 and beyond.
