GVAGRANITE CONSTRUCTION INC

Heavy Construction Other Than Bldg Const - Contractors

Revenue: $4.4B; 10% YoY
Operating margin: 6.4%; 23% YoY
EBITDA: $445M; 33% YoY
Market cap: $5.5B
Employees: 200; $22M revenue each
Net debt / EBITDA: -0.1×; −$65M net debt
AI in 10-K: 1.7; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersYes
3 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
243% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
15% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
10% of assets
Over 40% of assets
Shareholder dissentNo
99% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$22M · 100th pct
Bottom quartile of its SIC industry
Quiet on AINo
1.7 per 10K words · 49th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.1× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$5.5B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$10M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$3.5B	$3.3B	$3.5B	$4.0B	$4.4B	10%
Operating income	$25M	$85M	$80M	$207M	$282M	36%
Net income	$10M	$83M	$44M	$126M	$193M	53%
Operating cash flow	$22M	$56M	$184M	$456M	$469M	2.8%
Capex	$95M	$122M	$140M	$136M	$138M	1.4%
Stock-based comp	$6M	$8M	$10M	$20M	$39M	100%
Buybacks	$3M	$71M	$4M	$51M	$48M	4.8%
Dividends	$24M	$23M	$23M	$23M	$23M	0.4%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $157K · 4
Open-market sells, 12 mo: $10M · 16
Net: −$10M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	457	388
FY2024	—	—	345	287
FY2023	—	—	199	204
FY2022	—	—	135	171
FY2021	—	—	147	149