Granite Construction: More EBITDA, Less Multiple, Still A Buy

The Sharpe Quest 543 Followers Follow Summary Granite Construction remains a Buy with a revised FY27 price target of $159, reflecting faster-than-expected EBITDA growth driven by Construction, not Materials. GVA's FY26 EBITDA guidance of $689M surpasses prior FY28 estimates, with the Construction segment organic growth at 15.3% and a robust $7.4B backlog supporting near-term revenue. I apply a 10.3x EV/EBITDA multiple, reflecting contractor comps and margin improvement above 10%, while maintaining conservative margin assumptions below company guidance. Balance sheet leverage, ongoing acquisitions, and uncertainty over post-2027 federal infrastructure funding temper upside, precluding a Strong Buy rating. RyanJLane/E+ via Getty Images One year after my last Buy rating with a three-year price target of $145, Granite Construction Incorporated ( GVA ) is trading at $112.47, representing an increase of around 5.5%. Although, to be fair, the stock exceeded this target much This article was written by The Sharpe Quest 543 Followers Follow My approach mixes long-term conviction holdings with tactical sector rotations, driven by the belief that investing isn’t about being right, it’s about making money. I focus on undercovered opportunities and momentum-driven sectors. All views are my own and not financial advice. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.