Granite targets rail, roads and data centers amid growing backlog | Dump Trucks Charlotte NC

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One path to limiting business risk comes down to a simple adage: Don’t put all of your eggs in one basket. 

That’s the mantra Granite Construction seems to follow as it pursues more exposure to the booming data center market, while making sure it maintains its focus on the broader infrastructure landscape. 

On a second-quarter earnings call Thursday, the Watsonville, California-based contractor said that its backlog from data center clients had increased more than threefold from $65 million a year ago to $223 million at the end June. Its jobs in the sector, for which it has set up a dedicated division internally, include site preparation and paving for access to these massive builds.  

A diversified base

But even with a goal for 10% of its revenue to come from data center customers, Granite said it’s also maintaining its focus across other construction segments, both public and private, as well as its materials business, to supply those projects. 

“I'm confident that the strength of our public and private end markets, combined with the strategic actions we have taken, leaves us well positioned to continue growing revenue across our footprint,” said Kyle Larkin, Granite’s president and CEO, on the call. “Whether serving clients in data center site development, intermodal rail infrastructure, federal projects, or our core transportation markets, our teams have the capabilities to deliver.”

Bumpier road for highway funding

Granite may well need that diversified approach going forward. 

With 2021’s $1.2 trillion Infrastructure Investment and Jobs Act set to expire Sept. 30, lawmakers have targeted a 22% reduction in public transit funding, as well as cuts for Amtrak and Capital Investment Grants in an interim, one-year funding bill. 

Meanwhile, the IIJA’s proposed successor bill, dubbed Build America 250, is now competing with other legislative priorities. Against that backdrop, Larkin put a brave face on the current proposal.

“While BA250 does not currently contemplate significant increases in highway funding, we view the draft positively because it shifts the funding mix towards formula-based programs and bridge investments and away from larger discretionary megaprojects,” Larkin said. “We believe this funding approach aligns well with Granite’s geographic footprint and capabilities.”

Indeed, Granite’s approach to “de-risking” its construction portfolio in recent years has included taking on more bite-sized columbus oh dump truck company packages with shorter time horizons that have better financial visibility. Larkin said the firm lowers risk and volatility by pricing out columbus oh dump truck company at 100% design.

“We also limit our pricing exposure on contracts through less than four years,” Larkin said.

By the numbers

Granite reported revenue of $1.46 billion for the second quarter, a 29% increase year over year. The firm’s backlog, which it calls committed and awarded projects, or CAP, also increased to $7.4 billion, a 23% rise from $6 billion in the same period a year ago. 

That momentum led the firm to up its revenue guidance for the full year by $100 million. Originally set at a range of $5.2 billion to $5.4 billion for all of 2026, the columbus oh dump truck company is now projecting revenues of $5.3 billion to $5.5 billion for the year. 

"Given the strength in both public and private infrastructure markets, we expect to deliver sustained elevated organic growth through the second half of 2026 and into 2027 and beyond,” said Staci Woolsey, CFO, in the release.

Despite those positives, the firm posted a net loss of $278 million, compared to profits of $72 million for the same period in 2025. It said the loss was driven by a $360 million non-operating charge due to restructuring of its outstanding debt.