Granite Wins CMGC Contract's First Construction Phase in Alaska

Granite Construction Incorporated GVA has been selected by the Alaska Department of Transportation and Public Facilities (DOT & PF) for a Construction Manager/General Contractor (CMGC) contract.

The company will be responsible for the first of the two construction phases of this $54 million federally funded contract.

GVA stock inched up 0.3% during yesterday’s after-hours trading session post the contract receipt announcement.

Granite’s Work Scope

Per the first phase of the contract, Granite will be responsible for the realignment of the Parks Highway from milepost 319 to 322, with the primary work scope including 2.5 million cubic yards of onsite earthwork, 25,000 tons of asphalt paving and implementation of a full traffic diversion.

This construction project will be leveraging all the dimensions of GVA’s equipment fleet, including a portable crusher and hot plant.

Per Ryan Moren, Granite’s vice president of regional operations, “This project sets the standard for collaboration, teamwork and partnering through preconstruction, with DOT&PF, Michael Baker International (Designer), and Granite all actively contributing to an optimal design and successful contract award.”

The project’s construction began on May 1, 2025, and is expected to be complete by September 2027.

CAP – Growth Driver of Granite

Granite is focusing on growing a high-quality CAP portfolio on the back of a positive public funding environment and a resilient private market. It remains focused on best-value projects where it can leverage the established relationships in its home markets to deliver larger projects while minimizing risk.

CAP totaled $5.7 billion as of the first quarter of 2025, reflecting 7.5% sequential growth from $5.3 billion at 2024-end and 3.6% year-over-year growth from $5.5 billion. The uptrend can be attributable to the increased public spending trends, resulting in favorable bidding opportunities for the company, despite the ongoing macro headwinds. Amid the current market conditions, it continues to expect significant opportunities to expand CAP throughout the year and meet its long-term financial targets.

GVA’s shares have gained 39.8% in the past year, outperforming the Zacks Building Products - Heavy Construction industry’s 19.5% growth. The company believes that strong opportunities across public and private markets will likely foster its growth in the upcoming period, despite the market uncertainties and inflation woes.

GVA’s Zacks Rank & Other Key Picks

Granite currently carries a Zacks Rank #2 (Buy).

Here are other top-ranked stocks from the Construction sector.

Great Lakes Dredge & Dock Corporation GLDD 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 of 93.3%, on average. The stock has moved down 2.2% year to date. The Zacks Consensus Estimate for Great Lakes’ 2025 sales and earnings per share (EPS) implies an increase of 7.9% and 10.7%, respectively, from a year ago.

Construction Partners, Inc. ROAD currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 97.4%, on average. The stock has trended up 15.6% year to date.

The Zacks Consensus Estimate for Construction Partners’ fiscal 2025 sales and EPS implies an increase of 53% and 60.9%, respectively, from a year ago.

Gibraltar Industries, Inc. ROCK currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 3.1%, on average. The stock has inched up 3% year to date.

The Zacks Consensus Estimate for Gibraltar’s 2025 sales and EPS implies an increase of 9.3% and 15.8%, respectively, from a year ago.

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

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