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Granite Secures $66M Caltrans Contract for SR99 Interchange
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Granite Construction Incorporated (GVA - Free Report) has been awarded a $66 million contract by the California Department of Transportation (Caltrans) to improve the Caldwell Avenue interchange on SR99 in Visalia, CA. The project will be included in Granite’s first-quarter committed and awarded projects (CAP) and is set to begin in August 2025, with completion expected by the second quarter of 2027.
Major Enhancements to SR99
The project involves significant improvements, including the construction of two new precast girder bridges. One will be a two-span structure crossing SR99, while the other will be a single-span bridge over the UPRR tracks. Additionally, 12 retaining walls will be built using cast-in-place concrete, mechanically stabilized earth, and soldier pile walls with timber lagging. To improve traffic flow, four new on- and off-ramps will be constructed, each controlled by roundabouts.
Expanding the roadway will require approximately 216,000 cubic yards of import borrow to widen embankments. Further upgrades include improvements to the drainage system, installation of new pavement markings and roadside signage, and replacement of highway electrical systems.
Strategic Growth and Regional Impact
Granite’s area manager, Jeff Grimm, emphasized the project’s benefits not only for the traveling public but also for regional development. He noted that this effort aligns with another pavement rehabilitation project in nearby Tulare, scheduled for 2025, allowing for greater efficiency and synergy between the two projects.
Strengthening Granite’s Position
This contract reinforces Granite’s leadership in transportation infrastructure and positions the company for continued growth. With funding from both federal and state sources, the project enhances the safety and efficiency of California’s roadways while further solidifying Granite’s role in large-scale infrastructure development.
CAP – Growth Driver of Granite
Granite is focusing on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market. It remains focused on best-value projects where it can leverage the established relationships in its home markets to deliver larger projects while minimizing risk.
CAP totaled $5.3 billion in 2024, reflecting a sequential decline of $324 million and a year-over-year decrease of $250 million. Despite this, bidding activity remained strong, with several major project awards anticipated to be added to CAP in the first half of 2025. Given the current market conditions, the company expects significant opportunities to expand CAP throughout the year.
Image Source: Zacks Investment Research
GVA’s shares have lost 15.6% year to date amid the macro uncertainties and tariff concerns compared with the Zacks Building Products - Heavy Construction industry’s 16.4% decline. The company believes that strong opportunities across public and private markets will likely foster growth in the upcoming period.
GVA Stock’s Zacks Rank & Key Picks
Granite currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks have been discussed below:
Sterling Infrastructure, Inc. (STRL - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). STRL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has lost 29.9% year to date (YTD). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for STRL’s 2025 sales indicates a decrease of 4.1% and an increase of 20.5% for earnings per share (EPS), respectively, from a year ago.
Gibraltar Industries, Inc. (ROCK - Free Report) currently carries a Zacks Rank #2 (Buy). ROCK delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has gained 12.9% YTD.
The Zacks Consensus Estimate for ROCK’s 2025 sales and EPS calls for an increase of 9.8% and 15.5%, respectively, from a year ago.
Hillman Solutions Corp. (HLMN - Free Report) currently carries a Zacks Rank #2. HLMN delivered a trailing four-quarter earnings surprise of 7.6%, on average. The stock has lost 2% YTD.
The Zacks Consensus Estimate for HLMN’s 2025 sales and EPS calls for an increase of 4% and 18.4%, respectively, from a year ago.
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Granite Secures $66M Caltrans Contract for SR99 Interchange
Granite Construction Incorporated (GVA - Free Report) has been awarded a $66 million contract by the California Department of Transportation (Caltrans) to improve the Caldwell Avenue interchange on SR99 in Visalia, CA. The project will be included in Granite’s first-quarter committed and awarded projects (CAP) and is set to begin in August 2025, with completion expected by the second quarter of 2027.
Major Enhancements to SR99
The project involves significant improvements, including the construction of two new precast girder bridges. One will be a two-span structure crossing SR99, while the other will be a single-span bridge over the UPRR tracks. Additionally, 12 retaining walls will be built using cast-in-place concrete, mechanically stabilized earth, and soldier pile walls with timber lagging. To improve traffic flow, four new on- and off-ramps will be constructed, each controlled by roundabouts.
Expanding the roadway will require approximately 216,000 cubic yards of import borrow to widen embankments. Further upgrades include improvements to the drainage system, installation of new pavement markings and roadside signage, and replacement of highway electrical systems.
Strategic Growth and Regional Impact
Granite’s area manager, Jeff Grimm, emphasized the project’s benefits not only for the traveling public but also for regional development. He noted that this effort aligns with another pavement rehabilitation project in nearby Tulare, scheduled for 2025, allowing for greater efficiency and synergy between the two projects.
Strengthening Granite’s Position
This contract reinforces Granite’s leadership in transportation infrastructure and positions the company for continued growth. With funding from both federal and state sources, the project enhances the safety and efficiency of California’s roadways while further solidifying Granite’s role in large-scale infrastructure development.
CAP – Growth Driver of Granite
Granite is focusing on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market. It remains focused on best-value projects where it can leverage the established relationships in its home markets to deliver larger projects while minimizing risk.
CAP totaled $5.3 billion in 2024, reflecting a sequential decline of $324 million and a year-over-year decrease of $250 million. Despite this, bidding activity remained strong, with several major project awards anticipated to be added to CAP in the first half of 2025. Given the current market conditions, the company expects significant opportunities to expand CAP throughout the year.
Image Source: Zacks Investment Research
GVA’s shares have lost 15.6% year to date amid the macro uncertainties and tariff concerns compared with the Zacks Building Products - Heavy Construction industry’s 16.4% decline. The company believes that strong opportunities across public and private markets will likely foster growth in the upcoming period.
GVA Stock’s Zacks Rank & Key Picks
Granite currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks have been discussed below:
Sterling Infrastructure, Inc. (STRL - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). STRL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has lost 29.9% year to date (YTD). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for STRL’s 2025 sales indicates a decrease of 4.1% and an increase of 20.5% for earnings per share (EPS), respectively, from a year ago.
Gibraltar Industries, Inc. (ROCK - Free Report) currently carries a Zacks Rank #2 (Buy). ROCK delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has gained 12.9% YTD.
The Zacks Consensus Estimate for ROCK’s 2025 sales and EPS calls for an increase of 9.8% and 15.5%, respectively, from a year ago.
Hillman Solutions Corp. (HLMN - Free Report) currently carries a Zacks Rank #2. HLMN delivered a trailing four-quarter earnings surprise of 7.6%, on average. The stock has lost 2% YTD.
The Zacks Consensus Estimate for HLMN’s 2025 sales and EPS calls for an increase of 4% and 18.4%, respectively, from a year ago.