Granite Construction Reports $1.3B Federal Backlog and Eyes New Military Work

Granite Construction’s third-quarter 2026 results highlight continuing demand for transportation and federal infrastructure work. The contractor reported $1.77 billion in revenue, up 23% year over year, and a record $7.5 billion backlog, which was $1.1 billion higher than a year earlier. Core road and bridge projects continued to support growth, while Granite identified federal, rail, and mission-critical data center projects as areas where it expects faster expansion. For federal contractors and potential teammates, the results signal that established infrastructure firms are positioning for a wider range of government work beyond traditional highway construction.

Federal transportation funding remains an important factor in the near-term opportunity environment. Granite CEO and President Kyle Larkin said funding continues to flow to active projects under the Infrastructure Investment and Jobs Act (IIJA), even though Congress did not pass a permanent renewal of the surface transportation bill the prior month. Larkin described the funding environment as a continuing resolution that provides a short-term extension of surface transportation programs at IIJA funding levels, while work proceeds on fiscal year 2027 appropriations and a longer-term reauthorization. He also said a significant share of original IIJA funding remains unspent and expects approved funds to support state and local transportation programs over the next several years. This outlook may sustain demand across transportation-related federal and federally supported projects, though future funding decisions remain relevant to timing and scope.

Granite’s federal portfolio represents approximately $1.3 billion of backlog and spans airfield and runway paving, roads, site infrastructure, civil work, military campus support, water infrastructure, and other facilities. Larkin said the company has performed federal work “from Guam to Alaska and across the continental United States” and expects to “bid on billions of dollars of opportunities over the next several years.” That stated pursuit plan is a useful market signal for firms providing construction, engineering, and infrastructure services: Granite may seek partners or compete across multiple project types and geographies, but the source does not identify specific solicitations, locations for upcoming work, or teaming requirements.

Military construction is a particular area to watch because the 2026 National Defense Authorization Act (NDAA) authorizes flexible delivery approaches, including progressive design-build and construction manager at risk, along with other procurement methods. These approaches can shape how projects are organized, when contractors engage, and what capabilities are needed across design and construction teams. Granite has also shifted in recent years away from pursuing multibillion-dollar megaprojects toward smaller, more manageable work packages that carry less risk. Companies considering the federal construction market should therefore assess both their ability to participate in flexible delivery models and their capacity to support packages of different sizes. Granite’s earnings report is company news rather than a contract announcement: it indicates anticipated bidding and market positioning, not an award or a specific active solicitation.

• Granite Construction reported a record $7.5 billion backlog, up $1.1 billion from a year earlier.
• Third-quarter revenue reached $1.77 billion, a 23% year-over-year increase; net income fell to $3.2 million from $102.9 million, reflecting a $162 million charge to settle previously outstanding convertible notes.
• Approximately $1.3 billion of Granite’s backlog is federal work, covering airfields and runways, roads, site infrastructure, civil work, military campuses, water infrastructure, and facilities.
• Granite expects to bid on billions of dollars in federal opportunities over the next several years; no specific upcoming solicitation or award was identified in the source.
• The 2026 NDAA authorized flexible military-construction delivery approaches, including progressive design-build and construction manager at risk.
• Granite’s federal work has spanned Guam, Alaska, and the continental United States, according to CEO Kyle Larkin.
• Granite expects approved IIJA funds to support state and local transportation programs over the next several years, while FY2027 appropriations and longer-term surface transportation reauthorization remain in progress.
• Contractors should review their teaming, design-build, construction management, and infrastructure capabilities against potential military, transportation, water, and facilities work, while tracking future funding and solicitation details.
• Granite has moved from multibillion-dollar megaprojects toward smaller, more manageable packages intended to carry less risk.