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• Granite Construction announced it has been selected to rehabilitate an eight-mile stretch of U.S. Highway 101 near King City in Monterey County, California, a federally funded infrastructure project valued at about US$20,000,000 and scheduled to run from late first quarter 2026 through first quarter 2027.
• The project not only adds to Granite’s first quarter capital allocation plan, but also highlights the role of its Coalinga Asphalt Plant in supplying tens of thousands of tons of rubberized and conventional asphalt, underscoring the company’s integrated construction and materials capabilities.
• Next, we’ll examine how this federally funded highway rehabilitation contract shapes Granite Construction’s investment narrative, particularly around backlog quality and infrastructure exposure.

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What Is Granite Construction's Investment Narrative?

To own Granite Construction, you need to be comfortable with a heavy civil contractor that mixes project work with vertically integrated materials, uses meaningful leverage, and has recently paired strong earnings growth with a long-standing but modest dividend. The Highway 101 rehabilitation win fits neatly into that story: at about US$20,000,000 it is small relative to annual revenue, so it is unlikely to move the needle on its own, but it does reinforce a backlog increasingly tilted toward funded transportation work and integrated asphalt supply. That may modestly support near term catalysts around backlog quality and execution, without changing the central question for shareholders: whether Granite can keep converting a growing book of work into consistent margins while managing debt and construction risk.

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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