Granite Construction (NYSE:GVA) was named the lead partner in a joint venture with Traylor Bros., Inc. to deliver a $157 million widening of 22nd Street and replacement of a four‑lane bridge over Barraza‑Aviation Parkway and the Union Pacific Railroad with a modern six‑lane bridge in Tucson, Arizona. The project will rebuild the corridor from Kino Parkway to Tucson Boulevard and is funded by the City of Tucson, the Regional Transportation Authority and a $25 million RAISE grant.
The Granite‑Traylor joint venture will supply 10,525 tons of asphalt from Granite’s Swan Facility, underscoring the company’s vertically integrated materials capability. The win adds a substantial, long‑term revenue stream to Granite’s 2025 fourth‑quarter backlog and reinforces its strategy of securing high‑value public‑sector projects that leverage its construction and materials expertise.
Granite’s 2025 third‑quarter earnings showed an EPS beat of $0.24 (from $2.70 actual versus $2.46 estimate) driven by strict cost controls and operational leverage, while revenue missed estimates by $80 million (reported $1.43 billion versus $1.51 billion expected). The revenue shortfall was largely attributable to a 4 % decline in the construction segment, reflecting softer demand in the public‑sector pipeline, whereas the materials segment offset the loss with a 3 % increase in asphalt sales. Management’s guidance for FY 2025 raised adjusted EBITDA margin expectations to 11.5‑12.5 % from 10.5‑11.5 %, signaling confidence in maintaining profitability amid a mixed revenue outlook.
Derek Betts, Granite’s Vice President of Regional Operations, said the joint venture “leverages Granite’s strong local resources with Traylor’s extensive experience in complex segmental bridge construction, positioning us to deliver a high‑quality project for the people of Tucson.” The company’s focus on public‑sector infrastructure and its vertically integrated model are expected to drive future growth, as the backlog continues to expand and the materials business provides a stable cost base.
Market analysts noted that the project win comes at a time when Granite’s stock has climbed over 31 % in the past six months and is near its 52‑week high. Investors have been closely watching the company’s revenue trajectory, with the recent earnings miss prompting a slight dip in pre‑market trading. The positive sentiment surrounding the backlog growth and strategic acquisitions, however, continues to support a bullish view of Granite’s long‑term prospects.
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