Granite Wins $66M Highway Project to Ease Traffic in California

Granite Construction Incorporated GVA has secured a highway improvement contract worth about $66 million from the California Department of Transportation for a project in Nevada County, CA. Funding will come from both federal and state sources. The contract value will be included in Granite’s fourth-quarter 2025 Committed and Awarded Projects (“CAP”).

Highway Expansion in Nevada County

Granite will expand State Route 49 to four lanes with a center turn lane to improve road safety and traffic movement. The upgrade is also expected to support better access for local communities across the region.

The project is located near Sacramento and sits within Granite’s core operating market. The work highlights an ongoing relationship with Caltrans District 03. The additional lanes are expected to help reduce congestion over time.

Granite will supply around 75,000 tons of HMA and RHMA for paving from the Bradshaw Hot Plant. This approach supports steady material supply and efficient delivery while helping maintain construction quality.

Growing CAP Strengthens GVA Project Visibility

This California-based infrastructure construction and materials provider is benefiting from steady execution across key public infrastructure markets. The company remains focused on disciplined project selection and consistent execution practices. This approach supports margin stability and steady growth across core operating regions.

Granite continues to strengthen its vertically integrated model by placing greater emphasis on the Materials business. This strategy supports cost control and reliable supply for large transportation projects. It also improves execution efficiency across active construction markets.

Granite’s CAP reached a new record of $6.3 billion as of Sept. 30, 2025, up from $5.6 billion in the prior-year period. Several projects began ramping up in the third quarter. This is expected to support stronger growth in the fourth quarter and into 2026.

GVA’s Share Price Performance

GVA’s shares have gained 15.1% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry’s 5.1% growth. The bidding pipeline remains healthy across both public and private markets. Granite continues to see opportunities to expand CAP and support organic growth. This visibility aligns with the company’s longer-term financial targets through 2027.

GVA’s Zacks Rank & Key Picks

Granite currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Construction sector are Installed Building Products, Inc. IBP, Frontdoor, Inc. FTDR and Gibraltar Industries, Inc. ROCK.

Installed Building Products currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise 8.4%, on average. The stock has gained 19.9% over the past three months. The Zacks Consensus Estimate for Installed Building Products’ 2025 sales and earnings per share (EPS) implies an increase of 1.1% and 0.1%, respectively, from a year ago.

Frontdoor currently carries a Zacks Rank of #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 59.4%, on average. The stock has tumbled 6.4% in the past three months.

The Zacks Consensus Estimate for Frontdoor’s 2026 sales and EPS implies an increase of 5.2% and 1.7%, respectively, from a year ago.

Gibraltar currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 2.2%, on average. The stock has tumbled 15.8% in the past three months.

The Zacks Consensus Estimate for Gibraltar’s 2026 sales and EPS implies an increase of 6.8% and 11%, respectively, from a year ago.

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This article originally published on Zacks Investment Research (zacks.com).

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