Granite reported gains throughout its materials segment in the first quarter, with revenue, gross profit and cash gross profit all up.
Materials segment revenue increased 72.4 percent to $146.4 million, and cash gross profit hit $25.8 million – an increase of 146.3 percent. Gross profit in the segment soared 586.2 percent.
According to Granite, these gains were driven by revenue deriving from the company’s acquisitions of Warren Paving, Papich Construction and Cinderlite.
Granite also reported a number of companywide gains in the quarter. Adjusted net income reached $12 million, compared to $200,000 in the first quarter of 2025. Revenue was up 30 percent to $912 million, gross profit was up 31 percent to $110 million and adjusted EBITDA was up 106 percent to $58 million.
The company reported a net loss of $42 million, compared to a net loss of $34 million in last year’s first quarter.
“Building on our momentum from the fourth quarter, we are off to a strong start across both our construction and materials segments,” says Kyle Larkin, president and CEO of Granite. “Our materials segment is also performing well. Demand for both aggregates and asphalt has been strong, resulting in volume growth and pricing increases that have met our expectations year to date.
“In addition, we recently announced the acquisition of Kenny Seng Construction in Utah, which continues our strategy of strengthening and expanding our home markets by adding high-quality businesses to our portfolio,” Larkin adds. “We continue to actively evaluate and pursue M&A opportunities and expect to complete several acquisitions this year.”
The company’s materials segment performance in the first quarter led the company to increase its fiscal-year 2026 guidance.
“Given our first-quarter performance and recent project awards, including tactical infrastructure for the U.S. Customs & Border Protection, as well as the acquisition of Kenny Seng Construction, we are increasing our fiscal year 2026 guidance,” Larkin says. “We expect 2026 to be a year of meaningful growth, and believe Granite is positioned for continued growth in 2027.”
