- Granite announced in January 2026 that it had been selected for two major US infrastructure contracts: a US$157,000,000 road and bridge project in Tucson, Arizona, and a roughly US$66,000,000 highway improvement project in Nevada County, California, both slated for inclusion in its 2025 fourth-quarter committed and awarded projects.
- These wins highlight Granite’s role in complex, publicly funded transportation upgrades that combine freight mobility, safety improvements, and local materials sourcing to support long-term corridor resilience.
- Next, we’ll explore how securing these large, publicly funded transportation contracts shapes Granite’s investment narrative, particularly around future revenue visibility.
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What Is Granite Construction's Investment Narrative?
To own Granite, you have to believe in a business built around steady, publicly funded infrastructure work and disciplined execution rather than big swings. The Tucson and Nevada County wins, together worth about US$223,000,000 and added to fourth quarter 2025 committed and awarded projects, slightly strengthen the near term story by adding more visibility to an already busy backlog and supporting the company’s revenue guidance profile. They also reinforce Granite’s positioning in complex transportation projects where it can pair construction expertise with its own materials plants. At the same time, the stock already reflects very strong multi year total returns, trades on a relatively full earnings multiple versus peers, and carries a high level of debt, so the key question is whether new awards are simply filling the pipeline or meaningfully changing the risk reward balance.
However, the combination of a rich valuation and high leverage is something investors should not ignore.Granite Construction's shares have been on the rise but are still potentially undervalued by 25%. Find out what it's worth.Exploring Other Perspectives
Explore 3 other fair value estimates on Granite Construction - why the stock might be worth as much as 34% more than the current price!
Build Your Own Granite Construction Narrative
Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Granite Construction research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
- Our free Granite Construction research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Granite Construction's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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