Granite Construction (FRA:GRG) Operating Income: €253 Mil (TTM As of Jun. 2026)

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FRA:GRG Granite Construction Inc FRA:GRG
79 GF Score
Price €105.00
GF Value €105.32
Valuation Fairly Valued
! 2 Warning Signs
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What is Granite Construction Operating Income?

Granite Construction FRA:GRG -1.87% 79 Operating Income is €253 Mil as of Jun. 2026. GuruFocus rates FRA:GRG with a GF Score™ of 79/100 and a GF Value™ of €105.32 (Fairly Valued). The stock has 2 warning signs investors should review.

Granite Construction's Operating Income for the three months ended in Jun. 2026 was €109 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was €253 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Granite Construction's Operating Income for the three months ended in Jun. 2026 was €109 Mil. Granite Construction's Revenue for the three months ended in Jun. 2026 was €1,264 Mil. Therefore, Granite Construction's Operating Margin % for the quarter that ended in Jun. 2026 was 8.63%.

Granite Construction's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Granite Construction's annualized ROC % for the quarter that ended in Jun. 2026 was 14.19%. Granite Construction's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was -60.90%.


Granite Construction  (FRA:GRG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Granite Construction's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=435.984 * ( 1 - 0% )/( (2669.833 + 3473.706)/ 2 )
=435.984/3071.7695
=14.19 %

where

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3269.388 - 490.682 - ( 382.124 - max(0, 1279.198 - 1388.071+382.124))
=2669.833

Invested Capital(Q: Jun. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4148.064 - 647.216 - ( 907.12 - max(0, 2099.586 - 2126.728+907.12))
=3473.706

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Granite Construction's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-755.42/( ( (1204.027 + max(-322.396, 0)) + (1276.983 + max(-981.097, 0)) )/ 2 )
=-755.42/( ( 1204.027 + 1276.983 )/ 2 )
=-755.42/1240.505
=-60.90 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(390.654 + 146.002 + 63.719) - (490.682 + 308.684 + 123.405)
=-322.396

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(552.433 + 158.077 + 45.985) - (647.216 + 382.236 + 708.14)
=-981.097

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Granite Construction's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 )/Revenue (Q: Jun. 2026 )
=108.996/1263.697
=8.63 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Granite Construction Operating Income Related Terms


Granite Construction Operating Income Historical Data

* Premium members only.

The historical data trend for Granite Construction's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Granite Construction Operating Income Chart

Granite Construction Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -36.92 68.69 47.42 189.66 223.95

Granite Construction Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 86.66 121.74 52.00 -29.48 109.00
FRA:GRG
79GF Score
Granite Construction Inc FRA:GRG
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Granite Construction Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €253 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €253 Mil mean?
Granite Construction (FRA:GRG) has a Operating Income of €253 Mil as of Jun. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Granite Construction and its competitors.
Is Granite Construction's Operating Income too high?
Granite Construction's current Operating Income is €253 Mil. Overall, Granite Construction has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Granite Construction's Operating Income compare to LGN and ROAD?
Granite Construction's Operating Income of €253 Mil can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Construction company?
A good Operating Income depends on the Construction industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Granite Construction and its competitors. Granite Construction's current Operating Income is €253 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Granite Construction stock overvalued right now?
Based on GuruFocus' analysis, Granite Construction (FRA:GRG) is currently considered Fairly Valued. The stock's GF Value™ is €105.32, compared to a current price of €105.00 — trading 0.3% below its estimated fair value. The current Operating Income is €253 Mil. Granite Construction's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Granite Construction (FRA:GRG), the current Operating Income is €253 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Granite Construction (FRA:GRG) Overvalued in 2026?

Based on GuruFocus' analysis, Granite Construction stock appears to be undervalued. The current stock price of €105.00 is trading 0.3% below its estimated GF Value™ of €105.32. GuruFocus considers Granite Construction to be Fairly Valued.

Key valuation signals for FRA:GRG:

  • Operating Income: €253 Mil
  • GF Value™: €105.32 vs. price of €105.00 (0.3% below fair value)
  • GF Score™: 79/100 with 2 warning signs

No single metric tells the full story. See the FRA:GRG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Granite Construction Business Description

Other Exchanges GVA:USAGRG:Germany
Address 585 West Beach Street, Watsonville, CA, USA, 95076
Granite Construction Inc engages in the construction and development of various infrastructure projects on behalf of public and private clients in the United States. The company focuses on heavy civil infrastructure projects, including roads, highways, transit facilities, airports, bridges, dams, tunnels, and other infrastructure projects. In addition, the company performs site preparation and infrastructure services for residential development, energy development, and other facilities. The majority of revenue is derived from the company's Construction operating segment, and rest from Materials segment.
79GF Score

Get the complete analysis for FRA:GRG

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€105.00
Price
€105.32
GF Value