Information
Granite (NYSE:GVA) announced it has been selected for a contract valued at approximately $66 million by the California Department of Transportation (Caltrans) for a highway improvement project in Nevada County,
Original sourceAI Summary
Granite Construction (GVA) secured a $66 million contract for expanding State Route 49 in California, aimed at enhancing safety and traffic flow. Funded by federal and state sources, this project will likely contribute positively to Granite’s revenue in Q4 2025 and strengthen its market position in the region.
Sentiment Rationale
Historical data indicates new contracts often lead to increased revenue forecasts. Projects of this scale typically positively influence stock prices, as evidenced by similar contracts enhancing market valuations for peers.
Trading Thesis
GVA is expected to see a price increase driven by new contract revenue in Q4 2025.
Market-Moving
- The $66 million contract is likely to boost GVA's future revenue streams.
- Project aligns with government investment priorities in infrastructure improvements.
- Improved traffic infrastructure may lead to a positive public perception of GVA.
- Ongoing presence in the Sacramento area could result in more contracts.
Key Facts
- Granite awarded $66M contract by Caltrans for highway improvements.
- Project expands State Route 49 to improve safety and traffic flow.
- Includes truck climbing lane and drainage improvements.
- Funding sourced from federal and state allocations.
- Project highlights Granite's operational presence in Sacramento region.
Companies Mentioned
- California Department of Transportation (Caltrans): Project funding and specifications are directly associated with Caltrans.
Corporate Developments
The news fits under 'Corporate Developments' as it highlights a significant new contract that will directly impact GVA's operations and revenue. Such contracts are crucial for infrastructure companies, especially those like Granite focusing on growth within public sectors.
Granite (NYSE:GVA) announced it has been selected for a contract valued at approximately $66 million by the California Department of Transportation (Caltrans) for a highway improvement project in Nevada County, California. Project funding is to come from Federal and State sources, and will be included in Granite's 2025 fourth quarter CAP.
The project will expand State Route 49 to four lanes with a center turn lane, improving safety, traffic flow, and local access.
The new alignment will include:
- Truck Climbing Lane for improved freight mobility.
- Accessibility Enhancements to multiple driveways and side streets.
- Drainage Improvements to support long-term roadway durability.
- Wildlife Crossing Box Culvert to protect local ecosystems.
"This project, located near Sacramento and within Granite's market, highlights our partnership with Caltrans District 03," said Carter Rohrbough, Granite VP of Regional Operations. "The Nevada County Transportation Commission identified 59 collisions in this corridor over three years, with more than half due to congestion. Adding new travel lanes will help reduce congestion and improve access for residents."
Granite will supply 75,000 tons of HMA and RHMA from its Bradshaw Hot Plant to pave the new roadway, ensuring high-quality materials and efficient delivery.
About Granite
Granite is America's Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite civil construction provider. Granite's Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, graniteconstruction.com, and connect with Granite on LinkedIn, X, Facebook, and Instagram.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260114229573/en/
Granite Contacts
Media
Erin Kuhlman 831-768-4111
Investors
Wenjun Xu - 831-761-7861