Shares of Granite Construction Inc. (NYSE: GVA) tumbled 5.41% in pre-market trading on Thursday following the release of the company's first quarter 2025 financial results. The infrastructure solutions provider reported revenue that fell short of analysts' expectations, despite posting a surprise adjusted profit.

Granite Construction reported Q1 revenue of $699.5 million, representing a 4.1% year-over-year increase but missing the analyst consensus estimate of $706.15 million. However, the company posted an adjusted earnings per share of $0.01, significantly beating expectations of a $0.46 per share loss.

While Granite Construction's bottom line surprised to the upside, investors appeared to focus on the revenue miss and ongoing challenges. The company's operating margin remained negative at -5.7%, unchanged from the same quarter last year, indicating persistent profitability pressures.

Despite the mixed results, Granite Construction reaffirmed its full-year 2025 revenue guidance of $4.2 billion to $4.4 billion. CEO Kyle Larkin stated, "We are off to a great start in 2025," and emphasized that the company is "well positioned to meet our guidance for 2025 as well as our 2027 financial targets."

The stock's sharp decline suggests investors may be concerned about Granite Construction's ability to meet its full-year targets given the Q1 revenue shortfall. However, the company's improved bottom line and management's confident outlook could provide support for the shares as the market digests the earnings report.