of late, for builders and consultants as well as the contech companies that sell to them.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nGranite\u2019s picks and shovels strategy is also helping it strike paydirt beyond pure infrastructure jobs, via entry into the building boom for data centers, which also need roads and parking lots.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nFor example, Larkin said on the call the firm was experiencing particularly strong demand for aggregates in the Southeast.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cIt’s that significant private investment that we knew was already taking place in the Southeast, and that’s proving to be the case,\u201d Larkin said. \u201cThere’s strong demand associated with data center infrastructure improvements and expansion and development, so we\u2019re already looking at ways that we can meet that demand.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nBy the numbers<\/span><\/span><\/strong><\/span><\/span><\/span><\/p>\nGranite\u2019s total revenue increased to $1.43 billion, a 12% increase from $1.28 billion in the third quarter of 2024. Net income was also higher, at $102.93 million, a 30% jump from $78.95 million a year ago.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nBacklog, which the company refers to as committed and awarded projects, or CAP, came in at $6.3 billion, a company record. That was a $718 million increase from a year ago, representing a 12.9% gain.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nRevenue from its materials segment grew 39.1% to $270.99 million, up from $194.81 million a year earlier, according to its earnings release.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nConstruction revenue was up to $1.16 billion, a 7.6% increase from $1.08 billion a year ago.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nSome projects \u2018shift to the right\u2019<\/span><\/span><\/strong><\/span><\/span><\/span><\/p>\nAlthough improvements in the materials business were the focus of the call, the risks inherent to large-scale construction projects showed up, too. Granite adjusted downward the upper end of its revenue guidance for full year 2025. It\u2019s now projecting a range of $4.35 billion to $4.45 billion, below its previous range of $4.35 billion to $4.55 billion.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nGranite had \u201csome work shift to the right,\u201d Larkin said, meaning revenue it thought would come in the third quarter moved to the end of the year. He explained that lag materialized as some projects took longer in their preconstruction phases than expected.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cIt\u2019s always hard to predict the timing of these things,\u201d Larkin said. \u201cSometimes that preconstruction services can take more than the typical two years that we’ve talked about. There’s actually a couple contracts that we’re looking at today that we’ve been in preconstruction for four and five years, so it can take a while to navigate through all those.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n