Granite Construction has entered 2026 with a double boost, closing the door on a long-running legal dispute while securing a significant new infrastructure contract in California. The U.S. Securities and Exchange Commission has dismissed civil fraud allegations against a former company executive, removing an overhang that had weighed on the firm for years. At the same time, Granite has been awarded a $20 million contract from the California Department of Transportation (Caltrans) to rehabilitate a key stretch of Highway 101.
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The project covers 13 miles near King City and will be fully funded through federal sources. Granite plans to supply asphalt from its own facility in Coalinga, underscoring the company’s vertically integrated model. Construction is expected to begin late in the first quarter of 2026 with completion targeted for early 2027.
Shares of the company closed at $120.74 on Friday, giving Granite a market capitalization of approximately $5.27 billion.
In a major development for investor sentiment, the SEC last Friday dismissed all civil fraud charges against Dale Swanberg, former head of Granite’s large project division. The case related to accounting adjustments from 2017 to 2019 and had been a persistent concern for shareholders.
The defense successfully argued that the cost projections for twelve major projects had been approved by both internal leadership and external auditors at the time. The dismissal was issued “with prejudice,” meaning the allegations cannot be revived, effectively ending the matter.
The conclusion of the investigation removes one of the most significant uncertainties surrounding the company and allows management to refocus fully on operations and growth.
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Granite’s latest quarterly results showed revenue of $1.43 billion and earnings per share of $2.70, reflecting steady demand for infrastructure services. Institutional investors have taken mixed positions: AlphaQuest LLC increased its stake by 41.5%, while Great Lakes Advisors LLC trimmed holdings by 38.3% during the third quarter.
With the legal issue resolved, attention now turns to execution of the 2026 project pipeline, led by the newly awarded Highway 101 rehabilitation.
Market analysts are revisiting their outlook on Granite following the dual catalysts of the SEC dismissal and contract win. The article notes:
“Should investors sell immediately? Or is it worth buying Granite Construction?”
and further highlights:
“The latest Granite Construction figures speak for themselves: Urgent action needed for Granite Construction investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 1.”
The company’s ability to convert backlog into revenue over the coming quarters will be critical to sustaining the recent positive momentum.
Granite enters 2026 with a cleaner balance sheet, restored reputation, and a fresh pipeline of work. The Highway 101 project adds to its transportation division backlog and demonstrates continued confidence from public sector clients.
With legal distractions now in the rear-view mirror, management has signaled that the focus will be on project delivery, margin improvement, and disciplined growth across its core markets.
Originally reported by Ad Hoc News.
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