GRANITE CONSTRUCTION INC 10-Q

Item 1. FINANCIAL STATEMENTS GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands, except share and per share data) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents ($ 165,534 and $ 173,894 related to consolidated construction joint ventures (“CCJVs”)) $ 441,804 $ 578,330 Short-term marketable securities 105,437 7,311 Receivables, net ($ 38,836 and $ 33,708 related to CCJVs) 836,149 511,742 Contract assets ($ 31,942 and $ 115,834 related to CCJVs) 261,263 328,353 Inventories 145,239 108,175 Equity in construction joint ventures 154,152 140,928 Other current assets ($ 3,415 and $ 3,982 related to CCJVs) 36,023 41,824 Total current assets 1,980,067 1,716,663 Property and equipment, net ($ 5,240 and $ 6,792 related to CCJVs) 1,199,605 716,184 Long-term marketable securities 69,303 — Investments in affiliates 94,643 94,031 Goodwill 391,660 214,465 Intangible assets, net 181,040 127,886 Right of use assets 152,406 89,791 Other noncurrent assets 76,596 66,635 Total assets $ 4,145,320 $ 3,025,655 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 371,990 $ 1,109 Accounts payable ($ 43,562 and $ 74,745 related to CCJVs) 527,625 407,223 Contract liabilities ($ 68,319 and $ 80,096 related to CCJVs) 327,237 299,671 Accrued expenses and other current liabilities ($ 3,067 and $ 4,706 related to CCJVs) 407,425 323,956 Total current liabilities 1,634,277 1,031,959 Long-term debt 966,346 737,939 Long-term lease liabilities 125,915 73,638 Deferred income taxes, net 118,158 13,874 Other long-term liabilities 95,643 88,882 Commitments and contingencies (see Note 17) Equity: Preferred stock, $ 0.01 par value, authorized 3,000,000 shares, none outstanding — — Common stock, $ 0.01 par value, authorized 150,000,000 shares; issued and outstanding: 43,736,765 shares as of September 30, 2025 and 43,424,646 shares as of December 31, 2024 437 434 Additional paid-in capital 426,143 410,739 Accumulated other comprehensive income (loss) 868 ( 582 ) Retained earnings 728,332 604,635 Total Granite Construction Incorporated shareholders’ equity 1,155,780 1,015,226 Non-controlling interests 49,201 64,137 Total equity 1,204,981 1,079,363 Total liabilities and equity $ 4,145,320 $ 3,025,655 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $ 1,433,498 $ 1,275,510 $ 3,259,009 $ 3,030,271 Cost of revenue 1,172,950 1,072,561 2,715,513 2,608,326 Gross profit 260,548 202,949 543,496 421,945 Selling, general and administrative expenses 101,645 91,650 303,443 249,695 Other costs, net 16,019 8,543 38,698 29,778 Gain on sales of property and equipment, net ( 767 ) ( 1,542 ) ( 6,110 ) ( 4,347 ) Operating income 143,651 104,298 207,465 146,819 Other (income) expense: (Gain) loss on debt extinguishment — ( 272 ) — 27,552 Interest income ( 5,986 ) ( 7,513 ) ( 18,015 ) ( 17,815 ) Interest expense 13,367 7,905 29,051 21,325 Equity in income of affiliates, net ( 4,946 ) ( 4,394 ) ( 9,738 ) ( 12,921 ) Other income, net ( 6,309 ) ( 874 ) ( 8,834 ) ( 1,350 ) Total other (income) expense, net ( 3,874 ) ( 5,148 ) ( 7,536 ) 16,791 Income before income taxes 147,525 109,446 215,001 130,028 Provision for income taxes 38,128 25,469 53,586 36,636 Net income 109,397 83,977 161,415 93,392 Amount attributable to non-controlling interests ( 6,468 ) ( 5,026 ) ( 20,442 ) ( 8,529 ) Net income attributable to Granite Construction Incorporated $ 102,929 $ 78,951 $ 140,973 $ 84,863 Net income per share attributable to common shareholders (see Note 15): Basic $ 2.35 $ 1.81 $ 3.23 $ 1.93 Diluted $ 1.98 $ 1.57 $ 2.83 $ 1.79 Weighted average shares outstanding: Basic 43,783 43,696 43,665 43,914 Diluted 53,556 52,366 52,968 52,585 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited - in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 109,397 $ 83,977 $ 161,415 $ 93,392 Other comprehensive income (loss), net of tax Net unrealized gain (loss) on cash flow hedges, net of tax $ 239 $ ( 547 ) $ 239 $ ( 693 ) Less: reclassification for net gains included in interest expense, net of tax — 436 185 518 Net change $ 239 $ ( 111 ) $ 424 $ ( 175 ) Foreign currency translation adjustments, net ( 368 ) 278 1,026 ( 269 ) Other comprehensive income (loss), net of tax $ ( 129 ) $ 167 $ 1,450 $ ( 444 ) Comprehensive income, net of tax $ 109,268 $ 84,144 $ 162,865 $ 92,948 Non-controlling interests in comprehensive income, net of tax ( 6,468 ) ( 5,026 ) ( 20,442 ) ( 8,529 ) Comprehensive income attributable to Granite Construction Incorporated, net of tax $ 102,800 $ 79,118 $ 142,423 $ 84,419 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited - in thousands, except share data) Outstanding Shares Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income Retained Earnings Total Granite Shareholders’ Equity Non-controlling Interests Total Equity Balances at June 30, 2025 43,778,784 $ 438 $ 430,155 $ 997 $ 631,158 $ 1,062,748 $ 51,607 $ 1,114,355 Net income — — — — 102,929 102,929 6,468 109,397 Other comprehensive loss — — — ( 129 ) — ( 129 ) — ( 129 ) Repurchases of common stock (1) ( 56,802 ) ( 1 ) ( 6,281 ) — — ( 6,282 ) — ( 6,282 ) Restricted stock units (“RSUs”) vested 14,848 — — — — — — — Dividends on common stock ($ 0.13 per share) — — 67 — ( 5,755 ) ( 5,688 ) — ( 5,688 ) Transactions with non-controlling interests — — — — — — ( 8,874 ) ( 8,874 ) Stock-based compensation expense and other ( 65 ) — 2,202 — — 2,202 — 2,202 Balances at September 30, 2025 43,736,765 $ 437 $ 426,143 $ 868 $ 728,332 $ 1,155,780 $ 49,201 $ 1,204,981 Balances at June 30, 2024 43,686,508 $ 437 $ 435,271 $ 270 $ 495,679 $ 931,657 $ 55,758 $ 987,415 Net income — — — — 78,951 78,951 5,026 83,977 Other comprehensive income — — — 167 — 167 — 167 Repurchases of common stock (1) ( 3,546 ) — ( 241 ) — — ( 241 ) — ( 241 ) RSUs vested 10,264 — — — — — — — Dividends on common stock ($ 0.13 per share) — — 73 — ( 5,753 ) ( 5,680 ) — ( 5,680 ) Common stock issued in debt redemption 11,665 — — — — — — — Transactions with non-controlling interests — — — — — — 1,801 1,801 Stock-based compensation expense and other ( 50 ) — 2,240 — — 2,240 — 2,240 Balances at September 30, 2024 43,704,841 $ 437 $ 437,343 $ 437 $ 568,877 $ 1,007,094 $ 62,585 $ 1,069,679 (1) Represents shares withheld related to employee taxes for RSUs vested under our equity incentive plans in 2025 and 2024, as well as 51,120 shares repurchased under our share repurchase program in 2025. 6 Table of Contents Outstanding Shares Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Granite Shareholders’ Equity Non-controlling Interests Total Equity Balances at December 31, 2024 43,424,646 $ 434 $ 410,739 $ ( 582 ) $ 604,635 $ 1,015,226 $ 64,137 $ 1,079,363 Net income — — — — 140,973 140,973 20,442 161,415 Other comprehensive income — — — 1,450 — 1,450 — 1,450 Repurchases of common stock (1) ( 257,540 ) ( 3 ) ( 21,597 ) — — ( 21,600 ) — ( 21,600 ) RSUs vested 565,208 6 ( 6 ) — — — — — Dividends on common stock ($ 0.13 per share per quarter) — — 209 — ( 17,276 ) ( 17,067 ) — ( 17,067 ) Transactions with non-controlling interests — — — — — — ( 35,378 ) ( 35,378 ) Stock-based compensation expense and other 4,451 — 36,798 — — 36,798 — 36,798 Balances at September 30, 2025 43,736,765 $ 437 $ 426,143 $ 868 $ 728,332 $ 1,155,780 $ 49,201 $ 1,204,981 Balances at December 31, 2023 43,944,118 $ 439 $ 474,134 $ 881 $ 501,844 $ 977,298 $ 49,668 $ 1,026,966 Net income — — — — 84,863 84,863 8,529 93,392 Other comprehensive loss — — — ( 444 ) — ( 444 ) — ( 444 ) Repurchases of common stock (1) ( 370,113 ) ( 3 ) ( 20,877 ) — ( 505 ) ( 21,385 ) — ( 21,385 ) RSUs vested 375,704 4 ( 4 ) — — — — — Dividends on common stock ($ 0.13 per share per quarter) — — 225 — ( 17,325 ) ( 17,100 ) — ( 17,100 ) Capped call transactions — — ( 34,189 ) — — ( 34,189 ) — ( 34,189 ) Redemption of warrants — — 466 — — 466 — 466 Common stock issued in debt redemption 11,665 — — — — — — — Exercise of bond hedge ( 260,883 ) ( 3 ) 3 — — — — — Transactions with non-controlling interests — — — — — — 4,388 4,388 Stock-based compensation expense and other 4,350 — 17,585 — — 17,585 — 17,585 Balances at September 30, 2024 43,704,841 $ 437 $ 437,343 $ 437 $ 568,877 $ 1,007,094 $ 62,585 $ 1,069,679 (1) Represents shares withheld related to employee taxes for RSUs vested under our equity incentive plans in 2025 and 2024, as well as 51,320 and 225,000 shares repurchased under our share repurchase program in 2025 and 2024, respectively. The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ( Unaudited - in thousands ) Nine Months Ended September 30, 2025 2024 Operating activities: Net income $ 161,415 $ 93,392 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 113,615 92,283 Amortization related to long-term debt 3,347 3,400 Non-cash loss on debt extinguishment — 27,552 Gain on sales of property and equipment, net ( 6,110 ) ( 4,347 ) Stock-based compensation 36,845 17,325 Equity in net (income) loss from unconsolidated construction joint ventures ( 5,401 ) 651 Net income from affiliates ( 9,738 ) ( 12,921 ) Other non-cash adjustments 233 ( 165 ) Changes in assets and liabilities: Receivables ( 247,391 ) ( 115,321 ) Contract assets, net 97,803 ( 11,799 ) Inventories ( 4,659 ) ( 1,367 ) Contributions to unconsolidated construction joint ventures ( 9,163 ) ( 3,218 ) Distributions from unconsolidated construction joint ventures and affiliates 9,096 28,792 Other assets, net 2,726 14,779 Accounts payable 86,247 104,477 Accrued expenses and other liabilities, net 60,747 50,036 Net cash provided by operating activities $ 289,612 $ 283,549 Investing activities: Purchases of marketable securities ( 238,371 ) ( 6,977 ) Maturities of marketable securities 70,415 31,500 Purchases of property and equipment ( 87,730 ) ( 108,167 ) Proceeds from sales of property and equipment 10,921 6,739 Acquisitions of businesses, net of cash acquired (See Note 3) ( 705,278 ) ( 122,448 ) Cash paid for purchase price adjustments on business acquisition — ( 13,183 ) Other investing activities 2,250 1,429 Net cash used in investing activities $ ( 947,793 ) $ ( 211,107 ) Financing activities: Proceeds from long-term debt 610,000 — Proceeds from issuance of convertible notes — 373,750 Debt principal repayments ( 10,831 ) ( 310,226 ) Capped call transactions — ( 46,046 ) Redemption of warrants — ( 497 ) Debt issuance costs ( 2,558 ) ( 10,053 ) Cash dividends paid ( 17,030 ) ( 17,131 ) Repurchases of common stock ( 21,600 ) ( 21,384 ) Contributions from non-controlling partners 3,345 20,500 Distributions to non-controlling partners ( 39,625 ) ( 18,072 ) Other financing activities, net ( 46 ) 1,340 Net cash provided by (used in) financing activities $ 521,655 $ ( 27,819 ) Net increase (decrease) in cash and cash equivalents ( 136,526 ) 44,623 Cash and cash equivalents at beginning of period 578,330 417,663 Cash and cash equivalents at end of period $ 441,804 $ 462,286 8 Table of Contents Supplementary Information: Right of use assets obtained in exchange for lease obligations $ 28,236 $ 23,146 Cash paid during the period for: Operating lease liabilities $ 22,991 $ 17,532 Interest $ 13,416 $ 12,686 Income taxes $ 26,726 $ 9,762 Other non-cash operating activities: Deferred taxes related to capped call transactions $ — $ 11,857 Non-cash investing and financing activities: RSUs issued, net of forfeitures $ 39,580 $ 20,309 Dividends declared but not paid $ 5,689 $ 5,682 Contributions from non-controlling partners $ 902 $ 1,959 The accompanying notes are an integral part of these condensed consolidated financial statements. 9 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1.   General Basis of Presentation: The condensed consolidated financial statements included herein have been prepared by Granite Construction Incorporated (“we,” “us,” “our,” the “Company” or “Granite”) pursuant to the rules and regulations of the Securities and Exchange Commission, are unaudited and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (“Annual Report”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. Further, the condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to state fairly our financial position at September 30, 2025 and the results of our operations and cash flows for the periods presented. The December 31, 2024 condensed consolidated balance sheet data included herein was derived from audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. Share Repurchase Program : As announced on February 3, 2022, on February 1, 2022, the Board of Directors authorized us to purchase up to $ 300.0 million of our common stock at management’s discretion. During the three and nine months ended September 30, 2025, we repurchased 51,120 shares and 51,320 shares, respectively, under this authorization. During the three and nine months ended September 30, 2024 there were no shares and 225,000 shares, respectively, repurchased under the authorization. The share repurchases are included in Repurchases of common stock on the Condensed Consolidated Statements of Shareholders’ Equity and within Financing activities on the Condensed Consolidated Statement of Cash Flows. As of September 30, 2025, $ 183.9 million of the authorization remained available. Seasonality: Our operations are typically affected more by weather conditions during the first and fourth quarters of our fiscal year which may alter our construction schedules and can create variability in our revenues and profitability. Therefore, the results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full year. Subsequent Events: On October 3, 2025, we completed the acquisition of Cinderlite Trucking Corporation (“Cinderlite”), for $ 58.5 million in cash, subject to customary closing adjustments. We purchased all of the outstanding equity interest of Cinderlite, which is a construction materials, landscape supply, and transportation company in Carson City, Nevada. This acquisition aligns with our strategy of enhancing our vertical integration by strengthening our existing home markets. On October 1, 2025, we drew the additional $ 75.0 million senior secured term loan (see Note 14), which was used, in part, to fund the Cinderlite acquisition. This term loan was repaid on October 31, 2025. The results of Cinderlite will be included in our consolidated results beginning in the fourth quarter of 2025 and are not expected to have a material impact on our results of operations. 2.   Recently Issued and Adopted Accounting Pronouncements We closely monitor all Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”) and other authoritative guidance. Recently Issued Accounting Pronouncements: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments intended to improve the effectiveness of income tax disclosures. These new disclosure requirements are effective prospectively commencing with our annual report for the year ending December 31, 2025. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity , which amended the guidance in Accounting Standards Codification (“ASC”) 810 to require entities to consider the existing factors in ASC 805 when identifying the accounting acquirer in a transaction achieved primarily through an exchange of equity interests in which the legal acquiree is a variable interest entity (VIE) that meets the definition of a business. The guidance is effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those fiscal years. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provided a practical expedient for all entities for the calculation of current expected credit losses on current accounts receivable and current contract assets. The amendments will be 10 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which aims to modernize the guidance to better align with current software development practices. The amendments will be effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements: In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement , which requires that a joint venture apply a new basis of accounting upon formation. As a result, a newly formed joint venture, upon formation, would initially measure its assets and liabilities at fair value. This ASU is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Adoption of this ASU did not have a material impact on our consolidated financial statements. No other new accounting pronouncements were recently issued or adopted that had or are expected to have a material impact on our financial statements. 3. Acquisitions Warren Paving Acquisition On August 5, 2025, we completed the acquisition of Slats Lucas, LLC and Warren Paving, Inc. (collectively, “Warren Paving”) for $ 540.0 million in cash, subject to customary closing adjustments. We purchased all of the outstanding equity interests in Warren Paving, which is a vertically-integrated asphalt contractor and aggregate producer with operations along the Gulf Coast and Mississippi River. This acquisition aligns with our strategy to expand our presence into new geographies with future growth opportunities while supporting our existing operations, particularly the Materials segment. Warren Paving’s customers are in both the public and private sectors. We have accounted for this transaction in accordance with ASC Topic 805, Business Combinations (“ASC 805”). Warren Paving's results have been included in the Construction and Materials segments since the acquisition date. Revenue attributable to Warren Paving for the three and nine months ended September 30, 2025 was $ 59.7 million. Gross profit attributable to Warren Paving for the three and nine months ended September 30, 2025 was $ 13.0 million. Preliminary Purchase Price Allocation In accordance with ASC 805, the preliminary purchase price was allocated to assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, as presented in the table below. This purchase price allocation is preliminary and has not been finalized due to the recent timing of the acquisition, as certain information is pending as of the date of this filing to finalize estimates of fair value of certain assets acquired and liabilities assumed. As we continue to integrate the acquired business, we may obtain additional information on the acquired tangible and identifiable intangible net assets which, if significant, may require revisions to preliminary valuation assumptions, estimates and the resulting fair values presented herein. We expect to finalize these amounts within 12 months from the acquisition date. 11 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) The following table presents the preliminary purchase price allocation: (in thousands) Assets: Cash and cash equivalents $ 4,217 Receivables 39,120 Contract assets 609 Inventories 28,425 Other current assets 112 Property and equipment 419,079 Right of use assets 55,767 Other noncurrent assets 4,436 Total tangible assets 551,765 Identifiable intangible assets 46,600 Liabilities: Accounts payable 19,139 Contract liabilities 2,218 Accrued expenses and other current liabilities 14,682 Long-term lease liabilities 47,353 Deferred income taxes, net 103,760 Other long-term liabilities 7,000 Total liabilities assumed 194,152 Total tangible and identifiable net assets acquired 404,213 Goodwill 137,749 Preliminary purchase price (1) $ 541,962 (1) The preliminary purchase price includes customary closing adjustments. Goodwill Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The factors that contributed to the recognition of goodwill from this acquisition include strengthening and expanding our vertically-integrated Southeast home market and the assembled workforce. We recorded $ 137.7 million of goodwill, none of which is tax deductible. Of the acquired goodwill, $ 24.7 million was allocated to the Construction segment and $ 113.0 million was allocated to the Materials segment. Identifiable Intangible Assets The following table lists identifiable intangible assets from the Warren Paving acquisition that are included in intangible assets in the condensed consolidated balance sheets as of September 30, 2025 (in thousands): Useful Lives (Years) Gross Value Accumulated Amortization Net Value Customer relationships 20 $ 12,500 $ ( 104 ) $ 12,396 Trademarks/trade name 10 9,700 ( 162 ) 9,538 Permits 10 20,000 ( 333 ) 19,667 Backlog 1 4,400 ( 518 ) 3,882 Total intangible assets $ 46,600 $ ( 1,117 ) $ 45,483 The amortization expense related to the acquired identifiable intangible assets for the three and nine months ended September 30, 2025 was included in cost of revenue and selling, general and administrative expenses in the condensed consolidated statements of operations. All of the acquired identifiable intangible assets will be amortized on a straight-line 12 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) basis. Amortization expense related to the acquired identifiable intangible asset balances at September 30, 2025 is expected to be recorded in the future as follows: $ 1.7 million in the remainder of 2025; $ 6.7 million in 2026, $ 3.6 million in each year from 2027 to 2030; and $ 22.7 million thereafter. Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of operations of Granite and Warren Paving as though the companies had been combined as of January 1, 2024. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2024, nor does it intend to be a projection of future results. Three Months Ended September 30, Nine Months Ended September 30, (unaudited, in thousands) 2025 2024 2025 2024 Revenue $ 1,464,436 $ 1,337,974 $ 3,408,831 $ 3,210,608 Net income attributable to Granite Construction Incorporated $ 111,068 $ 74,902 $ 147,580 $ 61,114 These amounts have been calculated after applying Granite’s accounting policies and adjusting the results of Warren Paving to reflect the additional depreciation and amortization that would have been recorded assuming the fair value adjustments to property and equipment and intangible assets had been applied starting on January 1, 2024. Additionally, these amounts reflect adjustment for additional interest that would have been incurred as result of incurring debt for the acquisition over the periods in the pro forma financial information. Acquisition-related expenses related to Warren Paving that were incurred during the three and nine months ended September 30, 2025 are reflected in the nine months ended September 30, 2024 due to the assumed timing of the transaction. The statutory tax rate of 26% was used for both 2025 and 2024 for the pro forma adjustments. During the three and nine months ended September 30, 2025, we incurred $ 11.5 million and $ 12.5 million, respectively, of acquisition-related costs associated with the Warren Paving acquisition which were primarily related to professional services and located in Other costs, net on the Condensed Consolidated Statement of Operations. Papich Construction Acquisition On August 5, 2025, we completed the acquisition of Papich Construction Company, Inc. (“Papich Construction”) for $ 170.0 million in cash, subject to customary closing adjustments. We purchased all of the issued and outstanding common stock of Papich Construction, which is a provider of construction services and materials in California’s Central Coast and Central Valley regions. This acquisition aligns with our strategy of enhancing our vertical integration by strengthening our existing home markets. Papich Construction’s customers are in both the public and private sectors. Papich Construction's results have been included in the Construction and Materials segments since the acquisition date. Revenue attributable to Papich Construction for the three and nine months ended September 30, 2025 was $ 38.7 million. Gross profit attributable to Papich Construction for the three and nine months ended September 30, 2025 was $ 3.8 million. Preliminary Purchase Price Allocation In accordance with ASC 805, the preliminary purchase price was allocated to assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, as presented in the table below. This purchase price allocation is preliminary and has not been finalized due to the recent timing of the acquisition, as certain information is pending as of the date of this filing to finalize estimates of fair value of certain assets acquired and liabilities assumed. As we continue to integrate the acquired business, we may obtain additional information on the acquired tangible and identifiable intangible net assets which, if significant, may require revisions to preliminary valuation assumptions, estimates and the resulting fair values presented herein. We expect to finalize these amounts within 12 months from the acquisition date. For the purpose of this allocation, the contractual purchase price has been adjusted to include customary closing adjustments, resulting in a preliminary purchase price of $ 173.4 million. Based on our preliminary purchase price allocation, the net tangible and identifiable intangible assets acquired were $ 119.0 million and $ 15.6 million, respectively, resulting in acquired goodwill of $ 38.8 million, all of which is expected to be tax deductible. The identifiable intangible assets acquired consisted of backlog, permits and customer relationships. Of the acquired goodwill, $ 5.3 million is in the Materials segment and $ 33.5 million is in the Construction segment. The most significant assets acquired were $ 85.8 million of property and equipment and $ 33.6 million of accounts receivable. 13 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) The factors that contributed to the recognition of goodwill from this acquisition include the strengthening of our vertically-integrated California home market and the assembled workforce. Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of operations of Granite and Papich Construction as though the companies had been combined as of January 1, 2024. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2024, nor does it intend to be a projection of future results. Three Months Ended September 30, Nine Months Ended September 30, (unaudited, in thousands) 2025 2024 2025 2024 Revenue $ 1,452,705 $ 1,319,863 $ 3,364,348 $ 3,133,256 Net income attributable to Granite Construction Incorporated $ 104,014 $ 79,401 $ 148,374 $ 87,475 These amounts have been calculated after applying Granite’s accounting policies and adjusting the results of Papich Construction to reflect the additional depreciation and amortization that would have been recorded assuming the fair value adjustments to property and equipment and intangible assets had been applied starting on January 1, 2024. Additionally, these amounts reflect adjustment for additional interest that would have been incurred as result of incurring debt for the acquisition over the periods in the pro forma financial information. Acquisition-related expenses related to Papich Construction that were incurred during the three and nine months ended September 30, 2025 are reflected in the nine months ended September 30, 2024 due to the assumed timing of the transaction. The statutory tax rate of 26% was used for both 2025 and 2024 for the pro forma adjustments. During the three and nine months ended September 30, 2025, we incurred $ 1.5 million and $ 3.1 million, respectively, of acquisition-related costs associated with the Papich Construction acquisition which were primarily related to professional services and located in Other costs, net on the Condensed Consolidated Statement of Operations. Dickerson & Bowen, Inc. On August 9, 2024, we completed the acquisition of Dickerson & Bowen, Inc. (“D&B”) for $ 125.5 million in cash, subject to customary closing adjustments. D&B is an aggregates, asphalt and highway construction company serving central and southern Mississippi which expanded our footprint in that region. D&B’s customers are in both the public and private sectors. D&B's results have been included in the Construction and Materials segments since the acquisition date. Revenue attributable to D&B for the three and nine months ended September 30, 2025 was $ 21.3 million and $ 59.6 million, respectively. Gross profit attributable to D&B for the three and nine months ended September 30, 2025 was $ 3.1 million and $ 8.0 million, respectively. Purchase Price Allocation In accordance with ASC 805, the purchase price was allocated to assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. For the purpose of the purchase price allocation, the contractual purchase price has been adjusted to exclude $ 4.0 million in cash acquired and include closing adjustments, resulting in an updated purchase price of $ 121.2 million. The tangible and identifiable intangible assets acquired, net of liabilities assumed, were $ 24.9 million and $ 27.9 million, respectively. This generated acquired goodwill of $ 68.4 million, none of which is tax deductible. The most significant assets acquired were $ 38.1 million of property and equipment and an $ 18.2 million customer relationships intangible asset. During the nine months ended September 30, 2025, we made immaterial measurement period adjustments to reflect facts and circumstances in existence as of the acquisition date. We finalized the purchase price allocation during the third quarter of 2025. 14 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 4.   Revisions in Estimates Our profit recognition related to construction contracts is based on estimates of transaction price and costs to complete each project. These estimates can vary significantly in the normal course of business as projects progress, circumstances develop and evolve, and uncertainties are resolved. Changes in estimates of transaction price and costs to complete may result in the reversal of previously recognized revenue if the current estimate adversely differs from the previous estimate. In addition, the estimated or actual recovery related to estimated costs associated with unresolved affirmative claims and back charges may be recorded in future periods or may be at values below the associated cost, which can cause fluctuations in the gross profit impact from revisions in estimates. When we experience significant revisions in our estimates, we undergo a process that includes reviewing the nature of the changes to ensure that there are no material amounts that should have been recorded in a prior period rather than as revisions in estimates for the current period. For revisions in estimates, generally we use the cumulative catch-up method for changes to the transaction price that are part of a single performance obligation. Under this method, revisions in estimates are accounted for in their entirety in the period of change. There can be no assurance that we will not experience further changes in circumstances or otherwise be required to revise our estimates in the future. In our review of these changes for the three and nine months ended September 30, 2025 and 2024, we did not identify any material amounts that should have been recorded in a prior period. The projects with increases from revisions in estimates, which individually had an impact of $ 5.0 million or more on gross profit, are summarized as follows (dollars in millions, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Number of projects with upward estimate changes 2 2 7 2 Range of increase in gross profit, net $ 5.0 - 8.3 $ 5.4 - 5.7 $ 5.2 - 9.8 $ 5.2 - 6.2 Increase to project profitability, net $ 13.3 $ 11.1 $ 50.8 $ 11.4 Increase to net income $ 9.9 $ 8.5 $ 37.7 $ 8.7 Amounts attributable to non-controlling interests $ — $ — $ 5.1 $ — Increase to net income attributable to Granite Construction Incorporated $ 9.9 $ 8.5 $ 32.6 $ 8.7 Increase to net income per diluted share attributable to common shareholders $ 0.18 $ 0.16 $ 0.62 $ 0.17 The increases during the three months ended September 30, 2025 were due to decreases in estimated costs from mitigated risks and production at a higher rate than anticipated. The increases during the three months ended September 30, 2024 were due to changes in the estimated amount of probable recovery on outstanding claims and decreases in estimated costs from mitigated risks. The increases during the nine months ended September 30, 2025 were due to settlement of outstanding claims, decreases in estimated costs from mitigated risks, production at a higher rate than anticipated and acceleration of project schedule. The increases during the nine months ended September 30, 2024 were due to changes in the estimated amount of probable recovery on outstanding claims and changes in the estimated transaction price related to unresolved contract modifications resulting from revisions to project work plans, permitting and scheduling. 15 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) The projects with decreases from revisions in estimates, which individually had an impact of $ 5.0 million or more on gross profit, are summarized as follows (dollars in millions, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Number of projects with downward estimate changes 1 — 3 4 Range of reduction in gross profit, net $ 5.9 $ — $ 6.8 - 15.1 $ 5.3 - 22.0 Decrease to project profitability, net $ 5.9 $ — $ 32.5 $ 44.2 Decrease to net income $ 4.4 $ — $ 24.1 $ 33.8 Amounts attributable to non-controlling interests $ — $ — $ — $ 5.4 Decrease to net income attributable to Granite Construction Incorporated $ 4.4 $ — $ 24.1 $ 28.5 Decrease to net income per diluted share attributable to common shareholders $ 0.08 $ — $ 0.46 $ 0.54 The decrease during the three months ended September 30, 2025 was due to additional costs related to changes in project duration, net of estimated probable recovery. The decreases during the nine months ended September 30, 2025 and 2024 were due to additional costs related to changes in project duration, net of estimated probable recovery, lower productivity than originally anticipated, and increased labor and materials costs. 5.   Disaggregation of Revenue In addition to disaggregating revenue by reportable segment (see Note 18), we further disaggregate Construction segment revenue by customer type and Materials segment revenue by product line. We believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Construction Segment Disaggregation by Customer Type Customers in our Construction segment are predominantly in the public sector which includes certain federal agencies, state departments of transportation, local transit authorities, county and city public works departments and school districts. Our private sector customers include, but are not limited to, developers, utilities and private owners of industrial, commercial and residential sites. Materials Segment Disaggregation by Product Line The Materials segment focuses primarily on production of aggregates, recycled materials, asphalt concrete and liquid asphalt. We categorize aggregates and recycled materials as Aggregates and asphalt concrete and liquid asphalt as Asphalt in the table below. Other includes immaterial amounts of revenue from products and services that are not considered to be core product lines. 16 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) The following table presents our revenue disaggregated by reportable segment, by customer type for our Construction segment and product line for our Materials segment: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Construction segment revenue: Public $ 880,416 $ 828,268 $ 1,928,224 $ 1,944,795 Private 282,097 252,437 786,333 649,077 Total Construction segment revenue $ 1,162,513 $ 1,080,705 $ 2,714,557 $ 2,593,872 Materials segment revenue: Aggregates $ 100,849 $ 57,086 $ 200,894 $ 147,522 Asphalt 169,290 137,658 342,353 287,843 Other 846 61 1,205 1,034 Total Materials segment revenue $ 270,985 $ 194,805 $ 544,452 $ 436,399 Total revenue $ 1,433,498 $ 1,275,510 $ 3,259,009 $ 3,030,271 6.   Unearned Revenue The following table presents our unearned revenue disaggregated by customer type as of the respective periods: (in thousands) September 30, 2025 December 31, 2024 Public $ 3,694,624 $ 2,801,273 Private 630,705 783,105 Total $ 4,325,329 $ 3,584,378 All unearned revenue is in the Construction segment. Approximately $ 3.2 billion of the September 30, 2025 unearned revenue is expected to be recognized within the next twelve months and the remaining amount will be recognized thereafter. 7.   Contract Assets and Liabilities As a result of changes in contract transaction price related to performance obligations that were satisfied or partially satisfied prior to the end of the periods, we recognized revenue of $ 47.3 million and $ 43.3 million during the three months ended September 30, 2025 and 2024, respectively, and $ 165.6 million and $ 220.7 million during the nine months ended September 30, 2025 and 2024, respectively. The changes in contract transaction price for the three and nine months ended September 30, 2025 and 2024 were from items such as executed or estimated change orders, contract modifications and claims. As of September 30, 2025 and December 31, 2024, the aggregate claim recovery estimates included in contract asset and liability balances were $ 27.2 million and $ 46.6 million, respectively. The components of the contract asset balances as of the respective dates were as follows: (in thousands) September 30, 2025 December 31, 2024 Costs in excess of billings and estimated earnings $ 98,732 $ 139,436 Contract retention 162,531 188,917 Total contract assets $ 261,263 $ 328,353 As of September 30, 2025 and December 31, 2024, no contract retention receivables individually exceeded 10% of total contract assets. The December 31, 2024 contract retention balance included $ 29.2 million from Brightline Trains Florida LLC, all of which was collected in the first quarter of 2025. The majority of the contract retention balance is expected to be collected within one year. As work is performed, revenue is recognized and the corresponding contract liabilities are reduced. We recognized revenue of $ 28.5 million and $ 16.7 million during the three months ended September 30, 2025 and 2024, respectively, and $ 341.4 17 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) million and $ 270.0 million during the nine months ended September 30, 2025 and 2024, respectively, that was included in the contract liability balances at December 31, 2024 and 2023, respectively. The components of the contract liability balances as of the respective dates were as follows: (in thousands) September 30, 2025 December 31, 2024 Billings in excess of costs and estimated earnings, net of retention $ 317,974 $ 288,495 Provisions for losses 9,263 11,176 Total contract liabilities $ 327,237 $ 299,671 8.   Receivables, net Receivables include billed and unbilled amounts for services provided to clients for which we have an unconditional right to payment as of the end of the applicable period and generally do not bear interest. The following table presents major categories of receivables: (in thousands) September 30, 2025 December 31, 2024 Contracts completed and in progress: Billed $ 380,665 $ 250,656 Unbilled 233,327 127,776 Total contracts completed and in progress 613,992 378,432 Materials sales 147,549 55,770 Other 75,891 78,309 Total gross receivables 837,432 512,511 Less: allowance for credit losses 1,283 769 Total net receivables $ 836,149 $ 511,742 Included in other receivables at September 30, 2025 and December 31, 2024 were items such as estimated recovery from back charge claims, notes receivable and income and other tax refunds receivable. Other receivables at September 30, 2025 and December 31, 2024 also included $ 25.0 million of working capital contributions in the form of a loan to a partner in one of our unconsolidated construction joint ventures, plus accrued interest. None of our customers had a receivable balance in excess of 10 % of our total net receivables as of September 30, 2025 or December 31, 2024. 9.   Fair Value Measurement The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value measurement levels (in thousands): Fair Value Measurement at Reporting Date Using September 30, 2025 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 98,608 $ — $ — $ 98,608 Commercial paper 77,169 — — 77,169 Other current assets: Interest rate swaps $ — $ 321 $ — $ 321 Total assets $ 175,777 $ 321 $ — $ 176,098 Accrued and other current liabilities: Heating oil swaps $ — $ 35 $ — $ 35 Total liabilities $ — $ 35 $ — $ 35 18 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) December 31, 2024 Cash equivalents: Money market funds $ 73,031 $ — $ — $ 73,031 Total assets $ 73,031 $ — $ — $ 73,031 Accrued and other current liabilities: Heating oil swaps $ — $ 531 $ — $ 531 Diesel collars — 177 — 177 Total liabilities $ — $ 708 $ — $ 708 Interest Rate Swaps In September 2025, we entered into two interest rate swaps designated as cash flow hedges with an effective date of January 2026. The two cash flow hedges had a combined initial notional amount of $ 350 million and mature in August of 2030. The interest rate swaps are designed to convert the interest rate on our Term Loans (as defined below) under our Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) (See Note 14) from a variable interest rate of Secured Overnight Financing Rate (“SOFR”) plus an applicable margin to a fixed rate of 3.218 % plus the same applicable margin. The interest rate swap is measured at fair value on the consolidated balance sheet using the income approach, which discounts the future net cash settlements expected under the derivative contracts to a present value. These valuations primarily utilize indirectly observable inputs, including contractual terms, interest rates, and yield curves observable at commonly quoted intervals. Commodity Derivatives We have entered into collar contracts and commodity swaps to reduce our price exposure on diesel consumption and heating oil consumption, respectively. The collars and swaps were not designated as hedges and will be treated as a mark-to-market derivative instruments through their maturity dates. The financial statement impact of the collar contracts and commodity swaps for the three and nine months ended September 30, 2025 and 2024 was immaterial. Other Assets and Liabilities The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows: September 30, 2025 December 31, 2024 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value Assets: Held-to-maturity marketable securities (1) Corporate notes and bonds Level 1 $ 61,788 $ 62,035 $ — $ — U.S. Government and agency obligations Level 1 $ 19,717 $ 19,724 $ 7,311 $ 7,312 Commercial paper Level 1 $ 154,507 $ 154,479 $ — $ — Municipal notes and bonds Level 1 $ 15,906 $ 15,932 $ — $ — Liabilities (including current maturities): 3.75 % Convertible Notes (2) Level 2 $ 373,750 $ 902,672 $ 373,750 $ 738,724 3.25 % Convertible Notes (2) Level 2 $ 373,750 $ 573,665 $ 373,750 $ 491,582 Credit Agreement - Term Loan (2) Level 3 $ 600,000 $ 605,256 $ — $ — Credit Agreement - Revolver (2) Level 3 $ — $ — $ — $ — (1) All marketable securities were classified as held-to-maturity as of the periods presented. Of the above balances, $ 105.4 million and $ 7.3 million were short-term marketable securities on our condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively and $ 69.3 million were long-term marketable securities on our condensed consolidated balance sheets as of September 30, 2025. Our long-term marketable securities have varying maturities between one and three years . (2) The fair values of our 3.25 % convertible senior notes due 2030 (the “ 3.25 % Convertible Notes”) and our 3.75 % convertible senior notes due 2028 (the “ 3.75 % Convertible Notes”) are based on the median price of the notes in an active market. The fair value of the Credit Agreement is based on borrowing rates available to us for long-term loans with similar terms, average maturities and credit risk. See Note 14 for more information about our convertible notes and the Credit Agreement. 19 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) During the nine months ended September 30, 2025 and 2024, we had no material nonfinancial asset and liability fair value adjustments. 10.   Construction Joint Ventures We participate in various construction joint ventures. We have determined that certain of these joint ventures are consolidated because they are variable interest entities and we are the primary beneficiary. We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE. Based on our assessments during the three and nine months ended September 30, 2025, we determined no change was required for existing joint ventures. Due to the joint and several nature of the performance obligations under the related owner contracts, if any of our partners fail to perform, we and the remaining partners, if any, would be responsible for performance of the outstanding work (i.e., we provide a performance guarantee). We are not able to estimate amounts that may be required beyond the current remaining forecasted cost of the work to be performed. These forecasted costs could be offset by billings to the customer or by proceeds from our partners’ corporate and/or other guarantees. See Note 13 for disclosure of the performance guarantee amounts recorded in the condensed consolidated balance sheets. Consolidated Construction Joint Ventures (“CCJVs”) As of September 30, 2025, we were engaged in nine active CCJV projects. Our proportionate share of the equity in these joint ventures was between 50.0 % and 70.0 %. During the three months ended September 30, 2025 and 2024, total revenue from CCJVs was $ 86.1 million and $ 101.3 million, respectively, and during the nine months ended September 30, 2025 and 2024, total revenue from CCJV's was $ 250.0 million and $ 265.1 million, respectively. During the nine months ended September 30, 2025 and 2024, CCJVs provided $ 89.0 million and $ 33.0 million of operating cash flows, respectively. As of September 30, 2025, our share of revenue remaining to be recognized on these CCJVs was $ 395.0 million and ranged from $ 0.8 million to $ 269.6 million by project. Unconsolidated Construction Joint Ventures As of September 30, 2025, we were engaged in two active unconsolidated construction joint venture projects. Our proportionate share of the equity in these unconsolidated construction joint ventures ranged from 30.0 % to 40.0 %. As of September 30, 2025, our share of the revenue remaining to be recognized on these unconsolidated construction joint ventures was $ 8.5 million and ranged from $ 0.8 million to $ 7.7 million by project. The following is summary financial information related to unconsolidated construction joint ventures: (in thousands) September 30, 2025 December 31, 2024 Assets Cash, cash equivalents and marketable securities $ 120,627 $ 94,856 Other current assets (1) 572,992 599,625 Noncurrent assets 18,281 35,886 Less: partners’ interest 489,372 498,872 Granite’s interest (1),(2) $ 222,528 $ 231,495 Liabilities Current liabilities $ 120,139 $ 151,655 Less: partners’ interest and adjustments (3) 48,350 57,437 Granite’s interest $ 71,789 $ 94,218 Equity in construction joint ventures (4) $ 150,739 $ 137,277 (1) Included in this balance and in accrued expenses and other current liabilities on the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 was $ 55.5 million related to performance guarantees (see Note 13). (2) Included in this balance as of September 30, 2025 and December 31, 2024 was $ 66.9 million related to Granite’s share of estimated cost recovery of customer affirmative claims. In addition, this balance included $ 0.8 million and $ 1.7 million related to Granite’s share of estimated recovery of back charge claims as of September 30, 2025 and December 31, 2024, respectively. (3) Partners’ interest and adjustments includes amounts to reconcile total net assets as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast differences. 20 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) (4) Included in this balance and in accrued expenses and other current liabilities on our condensed consolidated balance sheets was $ 3.4 million and $ 3.7 million as of September 30, 2025 and December 31, 2024, respectively, related to deficits in unconsolidated construction joint ventures, which includes provisions for losses. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Revenue Total $ 17,893 $ 15,996 $ 21,554 $ 46,361 Less: partners’ interest and adjustments (1) 11,605 8,206 4,385 21,148 Granite’s interest $ 6,288 $ 7,790 $ 17,169 $ 25,213 Cost of revenue Total $ 7,754 $ 23,462 $ 40,574 $ 69,559 Less: partners’ interest and adjustments (1) 2,663 13,756 27,798 42,132 Granite’s interest $ 5,091 $ 9,706 $ 12,776 $ 27,427 Granite’s interest in gross profit (loss) $ 1,197 $ ( 1,916 ) $ 4,393 $ ( 2,214 ) Net Income (Loss) Total $ 11,390 $ ( 5,667 ) $ ( 15,583 ) $ ( 17,766 ) Less: partners’ interest and adjustments (1) 9,803 ( 4,264 ) ( 20,984 ) ( 17,115 ) Granite’s interest in net income (loss) (2) $ 1,587 $ ( 1,403 ) $ 5,401 $ ( 651 ) (1) Partners’ interest and adjustments includes amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast and/or actual differences. (2) These joint venture net income amounts exclude our corporate overhead required to manage the joint ventures and include taxes only to the extent the applicable states have joint venture level taxes. 11.   Investments in Affiliates Our investments in affiliates balance consists of equity method investments in the following types of entities: (in thousands) September 30, 2025 December 31, 2024 Foreign $ 74,158 $ 72,075 Real estate 4,509 4,552 Asphalt terminal 15,976 17,404 Total investments in affiliates $ 94,643 $ 94,031 The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis: (in thousands) September 30, 2025 December 31, 2024 Current assets $ 210,537 $ 205,235 Noncurrent assets 122,141 130,451 Total assets $ 332,678 $ 335,686 Current liabilities 73,121 68,679 Long-term liabilities (1) 44,183 45,007 Total liabilities $ 117,304 $ 113,686 Net assets $ 215,374 $ 222,000 Granite’s share of net assets $ 94,643 $ 94,031 (1) This balance is primarily related to local bank debt for equipment purchases and debt associated with our real estate ventures. Affiliate assets as of September 30, 2025 included $ 257.2 million of foreign affiliate assets, $ 39.4 million of assets in real estate ventures and $ 36.1 million of assets in the asphalt terminal entity. 21 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 12.   Property and Equipment, net Balances of major classes of assets and total accumulated depreciation and depletion are included in property and equipment, net in the condensed consolidated balance sheets as follows: (in thousands) September 30, 2025 December 31, 2024 Equipment and vehicles $ 1,439,055 $ 1,211,208 Quarry property 531,563 256,043 Land and land improvements 169,252 128,124 Buildings and leasehold improvements 119,397 115,147 Office furniture and equipment 82,765 75,078 Property and equipment $ 2,342,032 $ 1,785,600 Less: accumulated depreciation and depletion 1,142,427 1,069,416 Property and equipment, net $ 1,199,605 $ 716,184 13.   Accrued Expenses and Other Current Liabilities (in thousands) September 30, 2025 December 31, 2024 Payroll and related employee benefits $ 140,408 $ 119,510 Accrued insurance 87,640 80,797 Performance guarantees 55,488 55,488 Short-term lease liabilities 32,054 20,165 Other 91,835 47,996 Total $ 407,425 $ 323,956 Other includes deficits in unconsolidated construction joint ventures, dividends payable, taxes payable, interest payable, warranty reserves, asset retirement obligations, remediation reserves and other miscellaneous accruals, none of which were greater than 5% of total current liabilities at any of the presented dates. 14.   Long-Term Debt and Credit Arrangements (in thousands) September 30, 2025 December 31, 2024 Credit Agreement - Term Loan $ 600,000 $ — 3.25 % Convertible Notes due 2030 373,750 373,750 3.75 % Convertible Notes due 2028 373,750 373,750 Debt issuance costs and other ( 9,164 ) ( 8,452 ) Total debt $ 1,338,336 $ 739,048 Less: current maturities 371,990 1,109 Total long-term debt $ 966,346 $ 737,939 Credit Agreement On August 5, 2025, we entered into the Credit Agreement. The Credit Agreement consists of (1) a $ 600.0 million senior secured revolving credit facility (the “Revolver”), (2) a $ 600.0 million senior secured term loan (the “Initial Term Loan”) and (3) an additional $ 75.0 million senior secured term loan (the “Delayed Draw Term Loan” and together with the Initial Term Loan, the “Term Loans”). The Delayed Draw Term Loan may be borrowed from the closing date of the Credit Agreement until six months after the closing date (the “Term Loan Availability Period”), subject to voluntary termination by the Company of the Delayed Draw Term Loan commitments and termination of the Delayed Draw Term Loan commitments upon the occurrence of an Event of Default (as defined in the Credit Agreement) at the request of or with the consent of the required lenders. The Credit Agreement also includes an accordion feature that allows us to increase borrowings under the Revolver, request a new tranche of term loans, or issue one or more series of notes (whether issued in a public offering, Rule 144A or other private placement or purchase or otherwise) or loans or any bridge financing pursuant to financing documentation other than the Credit Agreement, or a combination thereof, in an amount not to exceed (1) the greater of (a) $ 535.0 million and (b) the amount equal to 100 % of Consolidated EBITDA (as defined in the Credit 22 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) Agreement), calculated on a pro forma basis, plus (2) unlimited additional amounts so long as on a pro forma basis after giving effect to the incurrence of additional indebtedness and after giving effect to all other appropriate pro forma adjustments, the ratio of consolidated funded secured indebtedness to Consolidated EBITDA (as defined in the Credit Agreement) does not exceed 1.25 to 1.0, in each case, subject to lender approval. The Credit Agreement includes a $ 150.0 million sublimit for letters of credit ($ 75.0 million for financial letters of credit) and a $ 20.0 million sublimit for swingline loans. As of September 30, 2025, the total unused availability under the Revolver was $ 580.4 million, resulting from $ 19.6 million in issued and outstanding letters of credit and no amount drawn under the Revolver. The letters of credit had expiration dates between October 2025 and October 2026. We may borrow under the Credit Agreement, at our option, at either (a) term SOFR plus an applicable margin initially and through the delivery of the March 31, 2026 compliance certificate of 1.75 % and then ranging from 1.25 % to 2.0 %, or (b) a base rate plus an applicable margin initially and through the delivery of the March 31, 2026 compliance certificate of 0.75 % and then ranging from 0.25 % to 1.0 %. After delivery of the March 31, 2026 compliance certificate, the applicable margin will be based on our consolidated leverage ratio set forth on the most recent compliance certificate delivered quarterly. In addition, we have agreed to pay an unused commitment fee initially and through the delivery of the March 31, 2026 compliance certificate of 0.300 % and then ranging from 0.175 % to 0.350 %, depending on our consolidated leverage ratio set forth on the most recent compliance certificate delivered quarterly. Further, during the Term Loan Availability Period, we have agreed to pay a ticking fee ranging from 0.175 % to 0.350 %, depending on our consolidated leverage ratio, on the amount by which the commitment for Term Loans of $ 675.0 million exceeds the amount of outstanding Term Loans. The ticking fee will be payable beginning on the 60 th day after closing and during the Term Loan Availability Period or until the Delayed Draw Term Loan is made. The Term Loans and Revolver will mature on August 5, 2030. The Term Loans will amortize at 2.5 % per year payable in quarterly installments beginning with the quarter ending December 31, 2026 through September 30, 2027 and increasing to 5.0 % per year payable in quarterly installments until the maturity date. 3.25 % Convertible Notes On June 11, 2024, we issued $ 373.8 million aggregate principal amount of our 3.25 % Convertible Notes. The 3.25 % Convertible Notes bear interest at a rate of 3.25 % per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The 3.25 % Convertible Notes mature on June 15, 2030, unless earlier converted, redeemed or repurchased. Prior to the close of business on the business day immediately preceding December 15, 2029, the 3.25 % Convertible Notes will be convertible at the option of the holders only upon the occurrence of certain events and during certain periods. Thereafter, the 3.25 % Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding their maturity date. The 3.25 % Convertible Notes have an initial conversion rate of 12.8398 shares of our common stock per $1,000 principal amount of the 3.25 % Convertible Notes, which is equivalent to an initial conversion price of approximately $ 77.88 per share of our common stock, subject to adjustment if certain events occur. Upon conversion, we will settle the principal amount of the 3.25 % Convertible Notes in cash, and any conversion premium in excess of the principal amount in cash, shares of our common stock, or a combination of cash and shares of common stock, at our election. As of September 30, 2025, one of the conditions permitting the holders of the 3.25 % Convertible Notes to convert was met. Our common stock traded above 130 % of the $ 77.88 conversion price for at least 20 trading days during the period of 30 consecutive trading days ending on September 30, 2025 (the last trading day of the calendar quarter). The holders of the 3.25 % Convertible Notes have the right to convert through December 31, 2025, at which point the Company will re-evaluate whether the 3.25 % Convertible Notes will continue to be convertible in the subsequent calendar quarter. In the event the holders of the 3.25 % Convertible Notes elect to convert a portion or all of their 3.25 % Convertible Notes, the principal amount is required to be settled in cash. As a result, the $ 373.8 million principal amount has been classified as a current liability as of September 30, 2025 in the condensed consolidated balance sheet. Any conversion premium will be satisfied with cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. Upon the occurrence of a “fundamental change” as defined in the indenture governing the 3.25 % Convertible Notes, holders may require us to repurchase for cash all or any portion of their 3.25 % Convertible Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 3.25 % Convertible Notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If certain corporate events that constitute a “make-whole fundamental change” as set forth in the indenture governing the 3.25 % Convertible Notes occur prior to the maturity date of the 3.25 % Convertible Notes or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 3.25 % Convertible Notes in connection with such event or notice of redemption. 23 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) We will not be able to redeem the 3.25 % Convertible Notes prior to June 21, 2027. On or after June 21, 2027, we will be able to redeem for cash all or any portion of the 3.25 % Convertible Notes, at our option, if the last reported sale price of Granite’s common stock is equal to or greater than 130 % of the conversion price for a specified period of time at a redemption price equal to 100 % of the principal amount of the 3.25 % Convertible Notes to be redeemed, plus accrued but unpaid interest to, but excluding, the redemption date. The indenture governing the 3.25 % Convertible Notes contains customary events of default. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, with respect to us or our significant subsidiaries, all outstanding 3.25 % Convertible Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, then the trustee or the holders of at least 25% in aggregate principal amount of the 3.25 % Convertible Notes then outstanding may declare the 3.25 % Convertible Notes due and payable immediately. 2024 Capped Call Transactions In June 2024, we entered into privately negotiated capped call transactions in connection with the offering of the 3.25 % Convertible Notes (the “2024 capped call transactions”). The 2024 capped call transactions are expected generally to reduce the potential dilution to our common stock upon any conversion of the 3.25 % Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 3.25 % Convertible Notes, as the case may be. If, however, the market price per share of our common stock, as measured under the terms of the 2024 capped call transactions, exceeds the cap price of $ 119.82 of the 2024 capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such cash payments, in each case, to the extent that such market price exceeds the cap price of the 2024 capped call transactions. 3.75 % Convertible Notes On May 11, 2023, we issued $ 373.8 million aggregate principal amount of our 3.75 % Convertible Notes. The 3.75 % Convertible Notes bear interest at a rate of 3.75 % per annum payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2023 and mature on May 15, 2028, unless earlier converted, redeemed or repurchased. Prior to the close of business on the business day immediately preceding November 15, 2027, the 3.75 % Convertible Notes will be convertible at the option of the holders only upon the occurrence of certain events and during certain periods. Thereafter, the 3.75 % Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The initial conversion rate applicable to the 3.75 % Convertible Notes is 21.6807 shares of Granite common stock per $1,000 principal amount of the 3.75 % Convertible Notes, which is equivalent to an initial conversion price of approximately $ 46.12 per share of Granite common stock, subject to adjustment if certain events occur. Upon conversion, we will pay or deliver, as the case may be, cash, shares of Granite common stock or a combination of cash and shares of Granite common stock, at our election. In addition, upon the occurrence of a “fundamental change” as defined in the indenture governing the 3.75 % Convertible Notes, holders may require us to repurchase for cash all or any portion of their 3.75 % Convertible Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 3.75 % Convertible Notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If certain corporate events that constitute a “make-whole fundamental change” as set forth in the indenture governing the 3.75 % Convertible Notes occur prior to the maturity date of the 3.75 % Convertible Notes or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 3.75 % Convertible Notes in connection with such event or notice of redemption. We will not be able to redeem the 3.75 % Convertible Notes prior to May 20, 2026. On or after May 20, 2026, we have the option to redeem for cash all or any portion of the 3.75 % Convertible Notes if the last reported sale price of our common stock is equal to or greater than 130 % of the conversion price for a specified period of time at a redemption price equal to 100 % of the principal amount of the 3.75 % Convertible Notes to be redeemed, plus any accrued but unpaid interest to, but excluding, the redemption date. The indenture governing the 3.75 % Convertible Notes contains customary events of default. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, with respect to us or our significant subsidiaries, all outstanding 3.75 % Convertible Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, then the trustee or the holders of at least 25 % in aggregate principal amount of the 3.75 % Convertible Notes then outstanding may declare the 3.75 % Convertible Notes due and payable immediately. 2023 Capped Call Transactions In May 2023, we entered into capped call transactions (the “2023 capped call transactions”) in connection with the offering of the 3.75 % Convertible Notes. The 2023 capped call transactions are expected generally to reduce the potential dilution 24 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) to our common stock upon conversion of the 3.75 % Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 3.75 % Convertible Notes, as the case may be. If, however, the market price per share of our common stock, as measured under the terms of the 2023 capped call transactions, exceeds the cap price of $ 79.83 of the 2023 capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such cash payments, in each case, to the extent that such market price exceeds the cap price of the 2023 capped call transactions. Covenants and Events of Default Our Credit Agreement requires us to comply with various affirmative, restrictive and financial covenants, including the financial covenants described below. Our failure to comply with these covenants would constitute an event of default under the Credit Agreement. Additionally, the 3.25 % Convertible Notes and 3.75 % Convertible Notes are governed by the terms and conditions of their respective indentures. Our failure to pay principal, interest or other amounts when due or within the relevant grace period on our 3.25 % Convertible Notes, our 3.75 % Convertible Notes or our Credit Agreement would constitute an event of default under the 3.25 % Convertible Notes indenture, the 3.75 % Convertible Notes indenture or the Credit Agreement. A default under our Credit Agreement could result in (i) us no longer being entitled to borrow under such facility; (ii) the termination of such facility; (iii) the requirement that any letters of credit under such facility be cash collateralized; (iv) the acceleration of amounts owed under the Credit Agreement; and/or (v) the foreclosure on any collateral securing the obligations under such facility. A default under the 3.25 % Convertible Notes indenture or the 3.75 % Convertible Notes indenture could result in acceleration of the maturity of the notes. The financial covenants under the terms of our Credit Agreement require the maintenance of a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Leverage Ratio. As of September 30, 2025, we were in compliance with all covenants contained in the Credit Agreement. We are not aware of any non-compliance by any of our unconsolidated real estate ventures with the covenants contained in their debt agreements. Debt Issuance Costs During the three months ended September 30, 2025 and 2024, we recorded $ 1.0 million and $ 0.9 million, respectively, and during the nine months ended September 30, 2025 and 2024 we recorded $ 2.9 million and $ 3.0 million, respectively, of amortization related to debt issuance costs. During the three and nine months ended September 30, 2025 we capitalized $ 2.8 million in debt issuance costs associated with the Initial Term Loan. 15.   Weighted Average Shares Outstanding and Net Income Per Share The following table presents a reconciliation of the weighted average shares of common stock used in calculating basic and diluted net income per share as well as the calculation of basic and diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2025 2024 2025 2024 Numerator Net income attributable to common shareholders for basic earnings per share $ 102,929 $ 78,951 $ 140,973 $ 84,863 Add: Interest expense related to Convertible Notes (1) 2,974 3,064 8,922 9,196 Net income attributable to common shareholders for diluted earnings per share $ 105,903 $ 82,015 $ 149,895 $ 94,059 Denominator Weighted average common shares outstanding, basic 43,783 43,696 43,665 43,914 Add: Dilutive effect of RSUs 509 567 546 568 Add: Dilutive effect of Convertible Notes (1) 9,264 8,103 8,757 8,103 Weighted average common shares outstanding, diluted 53,556 52,366 52,968 52,585 Net income per share, basic $ 2.35 $ 1.81 $ 3.23 $ 1.93 Net income per share, diluted $ 1.98 $ 1.57 $ 2.83 $ 1.79 25 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) (1) The dilutive effect of the convertible notes was determined using the if-converted method. As the 3.75 % Convertible Notes will be convertible into cash, shares of our common stock or a combination thereof at our election, the 3.75 % Convertible Notes are assumed to be converted into common stock at the beginning of the reporting period, and the resulting shares are included in the denominator of the calculation. In addition, interest charges, net of any income tax effects are added back to the numerator of the calculation. For the 3.25 % Convertible Notes, we are required to settle the principal amount in cash and any conversion premium in excess of the principal amount in cash, shares of common stock, or a combination of cash and shares of common stock, at our election. As such, the 3.25 % Convertible Notes only have an impact on diluted earnings per share when the average share price of our common stock exceeds the conversion price. In connection with the issuance of the 3.25 % Convertible Notes and 3.75 % Convertible Notes, we entered into the 2024 capped call transactions and 2023 capped call transactions, respectively, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. 16.   Income Taxes The following table presents the provision for income taxes for the respective periods: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2025 2024 2025 2024 Provision for income taxes $ 38,128 $ 25,469 $ 53,586 $ 36,636 Effective tax rate 25.8 % 23.3 % 24.9 % 28.2 % Our effective tax rate for the three months ended September 30, 2025 is higher than the prior period primarily due to an increase in state income taxes and less benefit related to income from affiliates. Our effective tax rate for the nine months ended September 30, 2025 is lower than the prior period primarily due to non-deductible debt extinguishment costs incurred in the prior year. On July 4, 2025, Public Law No. 119-21 known as the “One Big Beautiful Bill Act” (“OBBBA”) was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017. For 2025, we expect to realize a current year benefit associated with accelerated depreciation but do not expect any material impact on our effective tax rate. 17.   Contingencies - Legal Proceedings Liabilities relating to legal proceedings and government inquiries, to the extent that we have concluded such liabilities are probable and the amounts of such liabilities are reasonably estimable, are recorded in the consolidated balance sheets. Disclosure is required when a material loss is probable but not reasonably estimable, a material loss is reasonably possible but not probable, or when it is reasonably possible that the amount of a loss will exceed the amount recorded. The total liabilities recorded in our condensed consolidated balance sheets for legal proceedings and government inquiries were immaterial as of September 30, 2025 and December 31, 2024. It is possible that future developments in our legal proceedings and inquiries could require us to (i) adjust or reverse existing accruals, or (ii) record new accruals that we did not originally believe to be probable or that could not be reasonably estimated. Such changes could be material to our financial condition, results of operations and/or cash flows in any particular reporting period. Ordinary Course Legal Proceedings In the ordinary course of business, we and our affiliates are involved in various legal proceedings alleging, among other things, liability issues or breach of contract or tortious conduct in connection with the performance of services and/or materials provided, the various outcomes of which often cannot be predicted with certainty. For information on our accounting policies regarding affirmative claims and back charges that we are party to in the ordinary course of business, see Note 1 of our Annual Report. We and our affiliates are also subject to government inquiries in the ordinary course of business seeking information concerning our compliance with government construction contracting requirements and various laws and regulations, the outcomes which often cannot be predicted with certainty. Some of the matters in which we or our joint ventures and affiliates are involved may involve compensatory, punitive, or other claims or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that are not probable to be incurred or cannot currently be reasonably estimated. In addition, in some circumstances our government contracts could be terminated, we could be suspended, debarred or incur other administrative penalties or sanctions, or payment of our costs could be disallowed. While any of our pending legal proceedings may be subject to early 26 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) resolution as a result of our ongoing efforts to resolve the proceedings, whether or when any legal proceeding will be resolved is neither predictable nor guaranteed. 18.  Reportable Segment Information We manage our operations under two reportable segments, Construction and Materials, which are distinguished by differences in business activities. Our reportable segments are the same as our operating segments and correspond with how our chief operating decision maker, or decision-making group (our “CODM”) regularly reviews financial information to allocate resources and assess performance. We identified our CODM as our Chief Executive Officer (“CEO”). We previously identified our CODM as our CEO and Chief Operating Officer (“COO”). Following our COO's retirement on July 4, 2025, our CEO assumed sole responsibility as the CODM. This change did not impact our reportable segments for the current period. Our CODM evaluates segment performance and makes business decisions based on operating income, which excludes non-operating income or expense. Segment assets include property and equipment, intangibles, goodwill, inventory and equity in construction joint ventures. Summarized segment information is as follows (in thousands): Three months ended September 30, Construction Materials Total 2025 Total revenue from reportable segments $ 1,162,513 $ 376,559 $ 1,539,072 Elimination of intersegment revenue — ( 105,574 ) ( 105,574 ) Revenue 1,162,513 270,985 1,433,498 Cost of revenue 970,167 202,783 1,172,950 Gross profit 192,346 68,202 260,548 Selling, general and administrative expenses 52,390 9,974 62,364 (Gain) loss on sales of property and equipment, net ( 2,298 ) 1,156 ( 1,142 ) Operating income from reportable segments $ 142,254 $ 57,072 $ 199,326 Depreciation, depletion and amortization $ 27,935 $ 18,894 $ 46,829 2024 Total revenue from reportable segments $ 1,080,705 $ 297,398 $ 1,378,103 Elimination of intersegment revenue — ( 102,593 ) ( 102,593 ) Revenue 1,080,705 194,805 1,275,510 Cost of revenue 910,020 162,541 1,072,561 Gross profit 170,685 32,264 202,949 Selling, general and administrative expenses 47,526 8,117 55,643 Gain on sales of property and equipment, net ( 1,424 ) ( 66 ) ( 1,490 ) Operating income from reportable segments $ 124,583 $ 24,213 $ 148,796 Depreciation, depletion and amortization $ 16,979 $ 11,685 $ 28,664 27 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) Nine Months Ended September 30, Construction Materials Total 2025 Total revenue from reportable segments $ 2,714,557 $ 733,995 $ 3,448,552 Elimination of intersegment revenue — ( 189,543 ) ( 189,543 ) Revenue 2,714,557 544,452 3,259,009 Cost of revenue 2,283,107 432,406 2,715,513 Gross profit 431,450 112,046 543,496 Selling, general and administrative expenses 163,040 24,541 187,581 Gain on sales of property and equipment, net ( 4,826 ) ( 974 ) ( 5,800 ) Operating income from reportable segments $ 273,236 $ 88,479 $ 361,715 Depreciation, depletion and amortization $ 61,610 $ 46,722 $ 108,332 Segment assets as of period end $ 716,082 $ 1,326,266 $ 2,042,348 2024 Total revenue from reportable segments $ 2,593,872 $ 625,570 $ 3,219,442 Elimination of intersegment revenue — ( 189,171 ) ( 189,171 ) Revenue 2,593,872 436,399 3,030,271 Cost of revenue 2,230,987 377,339 2,608,326 Gross profit 362,885 59,060 421,945 Selling, general and administrative expenses 137,701 18,401 156,102 Gain on sales of property and equipment, net ( 4,405 ) ( 628 ) ( 5,033 ) Operating income from reportable segments $ 229,589 $ 41,287 $ 270,876 Depreciation, depletion and amortization $ 44,183 $ 33,079 $ 77,262 Segment assets as of period end $ 604,257 $ 646,654 $ 1,250,911 A reconciliation of operating income from reportable segments to consolidated income before income taxes is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Total operating income from reportable segments $ 199,326 $ 148,796 $ 361,715 $ 270,876 Corporate selling, general and administrative expenses 39,281 36,007 115,862 93,593 Corporate (gain) loss on sales of property and equipment, net 375 ( 52 ) ( 310 ) 686 Other costs, net 16,019 8,543 38,698 29,778 Total operating income 143,651 104,298 207,465 146,819 Total other (income) expense, net ( 3,874 ) ( 5,148 ) ( 7,536 ) 16,791 Income before income taxes $ 147,525 $ 109,446 $ 215,001 $ 130,028 28 Table of Contents