Granite Construction reported rising revenue and backlog in the first quarter of 2025, even as its net loss slightly deepened compared to the prior year and concerns over tariffs entered the picture. The Watsonville, California-based contractor, known for its civil infrastructure work, roadbuilding, and aggregate production, said it has largely avoided serious harm from the Trump administration’s recently reimposed tariffs — at least for now.

“We do expect there to be some equipment cost increases, parts increases, some repair cost increases,” CEO Kyle Larkin told analysts on the company’s Q1 earnings call. “So those things are going to happen and we’ve been navigating that environment.”

Navigating Costs and Federal Funding

While tariffs could eventually push up equipment and material costs, Larkin expressed optimism about Granite’s ability to manage the challenge. “Concern over tariffs has been a major source of uncertainty,” Larkin said. “Granite, like all companies, is not immune to the direct and indirect impacts of tariffs. However, to date, they have not significantly impacted our results or our strategy.”

Despite the political shifts in Washington, Larkin reassured investors that Granite has not experienced delays in federally funded projects. “Despite reports of project disruptions on certain federally funded work, the change in administration, we have not experienced any delays,” he said.

Looking Ahead to Another Infrastructure Law

Larkin’s upbeat tone was fueled in part by the strong stream of work tied to the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), passed in 2021 during President Joe Biden’s term. While the legislation officially sunsets in 2026, Larkin emphasized that only about one-third of the funds have been spent so far, meaning significant project activity will continue well beyond the formal end date.

“The IIJA continues to provide really strong spending, really across all of our geographies,” Larkin said. “We believe there’s still several years of spending under the IIJA.”

Notably, Larkin hinted that Congress may be gearing up for another major infrastructure package once the current program winds down. “We also believe that there’s bipartisan support and a lot of momentum around another bill that will come on following the IIJA that will have spending levels equal to or greater than what we see around highways, bridges and roads,” he said. “We’ll see if we can get that passed, but certainly that would be good news for our industry and good news for Granite.”

He added that “we do think that with the current administration, there are a lot of opportunities for us in the federal space.”

Financial Highlights

Granite reported a net loss of $33.7 million for the first quarter, a slight widening from the $31 million loss recorded in the same period last year. Still, revenue rose about 4% to $699.5 million, up from $672.3 million a year earlier.

The company’s backlog — labeled as committed and awarded projects (CAP) — grew by $241 million year over year, reaching $5.74 billion, also a 4% increase. Granite maintained its full-year revenue guidance for 2025, projecting between $4.2 billion and $4.4 billion.

Larkin said Granite saw healthy bidding activity, particularly in California and Texas, positioning the company to further grow its backlog in the months ahead. “Coming into 2025, we expected a strong bidding environment with federal and state funding fueling opportunities across the public sector,” Larkin said. “At this point, the market has met our expectations and we have won more work than in the first four months of 2024.”

Market Outlook

Granite’s ability to secure work amid evolving political and economic pressures highlights its positioning as a key player in U.S. infrastructure development. With ongoing federal funding from the IIJA and the possibility of follow-on legislation, the firm appears set to capitalize on large-scale projects across transportation, civil, and public works.

Originally reported by Joe Bousquin in Construction Dive.