Granite Secures $26M Contract for Taxiway Upgrades From SFO

Granite Construction Incorporated GVA secured an approximately $26-million contract from San Francisco International Airport (“SFO”). The project involves upgrades to Taxiway Z and a section of Taxiway S. Funding for the project will be provided by SFO and included in the company’s second-quarter CAP.

The work is expected to improve the condition of key taxiways used for aircraft movement between terminals, maintenance and cargo areas. The project aims to support ongoing airport operations by enhancing taxiway safety and function.

GVA stock inched up 1.3% during yesterday’s after-hours trading session post the contract receipt announcement.

Granite to Lead SFO’s Taxiway Upgrade

The collaboration with SFO on the Taxiway Z Rehabilitation Project reflects Granite's focus on improving airport operations. This project is part of SFO's Capital Improvement Program (“CIP”), which aims to update runways, taxiways and terminals. The CIP includes the Delivering Exceptional Projects initiative. It aligns with Granite’s objectives of trust, transparency, early contractor collaboration and alternate delivery methods.

Per the contract, Granite will handle the reconstruction of the asphalt concrete pavement. The work includes upgrading airfield lighting to LED, improving signage, enhancing electrical duct banks and updating pavement markings and drainage. These upgrades aim to boost the safety and efficiency of the taxiways.

Granite’s Santa Clara hot plant will supply 24,105 tons of hot mix asphalt for the project. Construction is scheduled to start in August 2025 and finish by November 2025. This project also supports Granite’s long-term objective to participate in additional alternate procurement projects with SFO.

CAP Portfolio Continues to Support Granite’s Expansion

Granite is focusing on growing a high-quality Committed and Awarded Projects (“CAP”) portfolio on the back of a positive public funding environment and a resilient private market. The company remains focused on best-value projects where it can leverage the established relationships in 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 attributed 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 long-term financial targets.

GVA’s shares have gained 39.7% in the past year, outperforming the Zacks Building Products - Heavy Construction industry’s 16.5% 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).

Other top-ranked stocks from the Construction sector are Great Lakes Dredge & Dock Corporation GLDD, Construction Partners, Inc. ROAD and Gibraltar Industries, Inc. ROCK

Great Lakes 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 5.4% 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 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 13.6% 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 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 1.1% 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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