Construction Joint Ventures

9 Months Ended

Sep. 30, 2025

Guarantees and Product Warranties [Abstract]

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.

(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.