Granite Construction reported third quarter revenue of $1.77 billion, up 23 percent year on year, and a record backlog of $7.5 billion, $1.1 billion above a year ago, the company said on its October 30 earnings call. Net income fell to $3.2 million from $102.9 million because of a $162 million charge to settle previously outstanding convertible notes.
Federal transportation money continues to flow under the Infrastructure Investment and Jobs Act even though Congress did not pass a permanent renewal of the surface transportation bill last month. The programme is running on a continuing resolution at IIJA levels, and chief executive Kyle Larkin said a significant portion of the original IIJA funding has yet to be spent and should support state and local programmes for several years.
Granite is pushing beyond roads and bridges. Federal work, including airfields, military campuses and water infrastructure, accounts for about $1.3 billion of backlog and is expected to reach 15 percent of construction segment revenue this year, helped by flexible procurement methods in the 2026 National Defense Authorization Act. Mission critical work, including data centers and battery storage, is $331 million of backlog, and a 4,500 acre integrated rail facility in Southern California for a Class 1 railroad client is in preconstruction and permitting.
The company also intends to stay acquisitive. It has deployed more than $1.4 billion on M&A since 2023 and hopes to complete three more deals by the end of the year worth a combined $750 million, mainly in materials. Larkin cautioned that the deals are not done until they are done.