Is the business good?
How good a business is GVA?
Granite Construction Incorporated earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 2.7 points above what the capital costs: growth creates value
- Operating margin
- 6.3%
Operating margin · Engineering & Construction median 7.4% · 12 months to Q1 2026
- Cash conversion
- 1.63×
Cash conversion · 2.39× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.15%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −4.4% |
| FY2021 | 0.71% |
| FY2022 | 2.6% |
| FY2023 | 2.3% |
| FY2024 | 5.2% |
| FY2025 | 6.4% |
Details›
- Gross margin12 months to Q1 2026
- 16%
- Operating margin12 months to Q1 2026
- 6.3%
- Net margin12 months to Q1 2026
- 4.0%
- Free cash flow margin
- 6.5%
- Revenue, trailing twelve months
- $4.64B
- Free cash flow, trailing twelve months
- $302M
- Net income, trailing twelve months
- $185M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Engineering & Construction
Ranks #14 of 27 by Smart Score