GRANITE CONSTRUCTION INCGVA
GRANITE CONSTRUCTION INC Segments Disclosure
21. 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.
The Construction segment focuses on construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure and site development for use by the general public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities and energy companies. It also provides construction of various complex projects including infrastructure / site development, mining, public safety, tunnel, solar, battery storage and other power-related projects. The Materials segment focuses on production of aggregates, asphalt concrete, liquid asphalt and recycled materials production for internal use in our construction projects and for sale to third parties.
The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note 1). 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):
| Years Ended December 31, | Construction | Materials | Total | ||||||||||||||
| 2025 | |||||||||||||||||
| Total revenue from reportable segments | $ | 3,654,880 | $ | 1,044,727 | $ | 4,699,607 | |||||||||||
| Elimination of intersegment revenue | — | (275,228) | (275,228) | ||||||||||||||
| Revenue | 3,654,880 | 769,499 | 4,424,379 | ||||||||||||||
| Cost of revenue | 3,080,702 | 632,461 | 3,713,163 | ||||||||||||||
| Gross profit | 574,178 | 137,038 | 711,216 | ||||||||||||||
| Selling, general and administrative expenses | 223,910 | 41,885 | 265,795 | ||||||||||||||
| Gain on sales of property and equipment, net | (6,474) | (13,935) | (20,409) | ||||||||||||||
| Operating income from reportable segments | $ | 356,742 | $ | 109,088 | $ | 465,830 | |||||||||||
| Depreciation, depletion and amortization | $ | 86,508 | $ | 69,012 | $ | 155,520 | |||||||||||
| Segment assets as of period end | $ | 702,445 | $ | 1,386,539 | $ | 2,088,984 | |||||||||||
| 2024 | |||||||||||||||||
| Total revenue from reportable segments | $ | 3,415,225 | $ | 839,176 | $ | 4,254,401 | |||||||||||
| Elimination of intersegment revenue | — | (246,827) | (246,827) | ||||||||||||||
| Revenue | 3,415,225 | 592,349 | 4,007,574 | ||||||||||||||
| Cost of revenue | 2,924,223 | 510,654 | 3,434,877 | ||||||||||||||
| Gross profit | 491,002 | 81,695 | 572,697 | ||||||||||||||
| Selling, general and administrative expenses | 189,078 | 29,205 | 218,283 | ||||||||||||||
| Gain on sales of property and equipment, net | (9,206) | (835) | (10,041) | ||||||||||||||
| Operating income from reportable segments | $ | 311,130 | $ | 53,325 | $ | 364,455 | |||||||||||
| Depreciation, depletion and amortization | $ | 71,634 | $ | 45,036 | $ | 116,670 | |||||||||||
| Segment assets as of period end | $ | 603,913 | $ | 673,444 | $ | 1,277,357 | |||||||||||
| 2023 | |||||||||||||||||
| Total revenue from reportable segments | $ | 2,992,254 | $ | 717,369 | $ | 3,709,623 | |||||||||||
| Elimination of intersegment revenue | — | (200,485) | (200,485) | ||||||||||||||
| Revenue | 2,992,254 | 516,884 | 3,509,138 | ||||||||||||||
| Cost of revenue | 2,667,199 | 445,540 | 3,112,739 | ||||||||||||||
| Gross profit | 325,055 | 71,344 | 396,399 | ||||||||||||||
| Selling, general and administrative expenses | 177,040 | 12,730 | 189,770 | ||||||||||||||
| Gain on sales of property and equipment, net | (24,913) | (3,274) | (28,187) | ||||||||||||||
| Operating income from reportable segments | $ | 172,928 | $ | 61,888 | $ | 234,816 | |||||||||||
| Depreciation, depletion and amortization | $ | 43,828 | $ | 29,718 | $ | 73,546 | |||||||||||
As of December 31, 2025 and 2024, segment assets included $23.5 million and $18.8 million, respectively, of property and equipment located in foreign countries (primarily Canada). During the years ended December 31, 2025, 2024 and 2023 less than 5% of our revenue was derived from foreign operations.
A reconciliation of operating income from reportable segments to consolidated income before income taxes is as follows (in thousands):
| Years Ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
Total operating income from reportable segments | $ | 465,830 | $ | 364,455 | $ | 234,816 | |||||||||||
Corporate selling, general and administrative expenses | 141,766 | 115,879 | 104,696 | ||||||||||||||
| Corporate (gain) loss on sales of property and equipment, net | 202 | 1,277 | (159) | ||||||||||||||
| Other costs, net | 41,416 | 39,936 | 50,217 | ||||||||||||||
Total operating income | 282,446 | 207,363 | 80,062 | ||||||||||||||
| Total other (income) expense, net | (6,381) | 11,171 | 20,208 | ||||||||||||||
| Income before income taxes | $ | 288,827 | $ | 196,192 | $ | 59,854 | |||||||||||
A reconciliation of segment assets to consolidated total assets is as follows:
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Total assets for reportable segments | $ | 2,088,984 | $ | 1,277,357 | |||||||
| Assets not allocated to segments: | |||||||||||
| Cash and cash equivalents | 529,220 | 578,330 | |||||||||
| Receivables, net | 630,392 | 511,742 | |||||||||
| Other current assets, excluding segment assets | 303,799 | 369,804 | |||||||||
| Property and equipment, net, excluding segment assets | 30,000 | 30,654 | |||||||||
| Marketable securities | 120,555 | 7,311 | |||||||||
| Investments in affiliates | 96,764 | 94,031 | |||||||||
| Right of use assets | 152,678 | 89,791 | |||||||||
| Other noncurrent assets | 78,001 | 66,635 | |||||||||
| Consolidated total assets | $ | 4,030,393 | $ | 3,025,655 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Feb 22, 2021 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.