Larkin

Granite Construction

reported several fourth-quarter gains in its materials segment – including revenue (up 44.3 percent), gross profit (up 10.4 percent) and cash gross profit (up 26 percent).

The segment’s revenue, gross profit and cash gross profit were all up across fiscal year 2025, as well. Revenue was up 29.9 percent at Granite last year, while gross profit increased 67.7 percent and cash gross profit moved upward by 59.5 percent.

According to Granite, the segment’s fourth-quarter and fiscal-year gains derived from acquired businesses and higher aggregate and asphalt prices.

Granite made a variety of companywide gains in the fourth quarter, as well. Net income totaled $52 million – up from the $41 million achieved in the fourth quarter of 2024. Adjusted net income in the fourth quarter totaled $65 million– up from the $56 million achieved in the prior year’s fourth quarter.

In addition, Granite’s revenue increased $188 million to $1.2 billion. Gross profit increased $17 million to $168 million, and adjusted EBITDA was up $22 million to $131 million.

“With our fourth-quarter results, we achieved another record year for Granite,” says

Kyle Larkin

, president and CEO of Granite. “Our disciplined approach to project selection, combined with sustained strength in public market funding, drove CAP (contract awards pending) to an all‑time high. With record CAP entering 2026 and continued momentum in the market, we believe we are positioned to achieve our 2027 targets for both organic growth and margin expansion.”

“Our materials business was a standout contributor in 2025, delivering significant margin expansion and revenue growth as recent investments begin to scale,” Larkin adds. “The pace of improvement from this team has been remarkable, and we see a long runway for further value creation through pricing, operational efficiencies and vertical integration with our construction operations.”

Larkin says Granite’s acquisition pipeline remains “robust,” with the company expected to acquire additional businesses in 2026.

“We are operating from a position of strength, and I am confident our teams will continue to execute at a high level and deliver long‑term value for our shareholders in 2026 and beyond,” he says.

Staci Woolsey

, executive vice president and CFO of Granite, says Granite expects its top-line momentum to continue in 2026.

“With a healthy market backdrop and a solid pipeline of bidding opportunities, we believe we are well positioned to continue expanding CAP in 2026,” Woolsey says. “We also expect to improve gross profit margins and SG&A (selling, general and administrative expenses) efficiencies as we work to drive adjusted EBITDA margin growth in line with our 2027 financial targets.”

Related:

Martin Marietta sets fourth-quarter records in building materials