INVESTOR UPDATE SEPTEMBER 2016 Anchorage Hot Plant

ANCHORAGE, ALASKA

SAFE HARBOR Statements made in this presentation are not based on historical facts, including statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results, that may be forward looking in nature. Under the Private Securities Litigation Reform Act of 1995, a “safe harbor” may be provided to us for certain of these forward-looking statements. Words such as “future,” “outlook,” “believes,” “expects,” “appears,” “may,” “will,” “should,” “anticipates,” “estimates,” “intends,” “plans,” “could,” “would,” “continue,” or the negative thereof or comparable terminology, are intended to identify these forward-looking statements. In addition, other written or oral statements which constitute forward-looking statements have been made and may in the future be made by or on behalf of Granite. These forward-looking statements are estimates reflecting the best judgment of our senior management and are based on our current expectations and projections concerning future events, many of which are outside of our control, and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. Factors that might cause or contribute to such differences include, but are not limited to, those risks described in the Company’s Annual Report on Form 10-K under “Item 1A. Risk Factors” and in “Part II, Item 1A. Risk Factors” in the Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to revise or update any forward-looking statements for any reason. As a result, the audience is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Except as required by law, we undertake no obligation to revise or update any forward-looking statements for any reason.

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NAMED BY FORBES® AS ONE OF THE BEST MID-SIZE EMPLOYERS & MOST TRUSTWORTHY COMPANIES

7 STRAIGHT YEARS

COMMITMENT TO CORE VALUES

Reno Data Center RENO, NEVADA

Commitment to: Safety & Health Compliance & Ethics Community Employees Environment Sustainable Infrastructure Quality

SUSTAINABILITY LEADER

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Business Definition Considerations Themes

STRATEGIC OUTLOOK

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Granite is in the

business of delivering

infrastructure

solutions for public

and private clients in

North America

STRATEGIC CONSIDERATIONS

Execute flawlessly by leveraging people, resources and systems

Create and optimize shareholder value

Monitor, evaluate, refine and communicate on an ongoing basis

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STRATEGIC THEMES

BUILDING VALUE TOGETHER 8

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• Growth creates career opportunities • Talent and capability development • Total reward enhancement • Long-term Company vision, plan

Employees

• Short- and long-term profit, earnings growth • Efficient use of capital • Total Shareholder Return in top 25% of peers • Balanced risk-reward return

Shareholders

STAKEHOLDER VALUE IN FOCUS

TOTAL COMPANY

RESULTS Q2 2016

REVENUE

$569

$751

$630

$440

$605

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

GROSS PROFIT SG&A

TOTAL COMPANY $49M

$48

$50

$52

$56

$49

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

$73M TOTAL COMPANY $605M TOTAL

COMPANY

$65

$96

$102

$39

$73

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

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$239M CASH AND MARKETABLE SECURITIES

DILUTED EARNINGS PER SHARE $0.35

NET INCOME

TOTAL COMPANY $14M

$ PER SHARE CASH

$0.24

$0.77 $0.72

($0.28)

$0.35

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

$276 $310

$349

$314

$239

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

$10

$32 $35

($11)

$14

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

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$2.5 $2.7 $2.9

$3.8

2013 2014 2015 Q2 2016Years Ended December 31 In billions.

BACKLOG

INCREASED

25.0% YOY IN Q2 2016

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LARGE PROJECTS CONSTRUCTION

EXPECT TO BID

>$17 BILLION OF PROJECTS OVER NEXT TWO YEARS

BART TBT Internal Retrofit CA

I-59/20 Bridge Replacement AL

Grand Parkway TX

So Capitol St DC

Southwest Corridor MN

Tempe Streetcar AZ

NAVFAC Guam

LAX Automated People Mover CA

Fargo Moorhead Diversion ND

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CONSTRUCTION PROJECTS

EXPECT TO BID

>$345 MILLION OF PROJECTS IN SEPTEMBER 2016

Yerba Buena Island Street Improvements San Francisco

2016 CIPP Installation Centennial, CO

Naco Area Border Fence Naco, AZ

Somerset Area Utility Improvements Columbus, OH

Hwy 205, I-580 HMA Paving and PCC slab Livermore, CA

Permanente Creek Flood Protection Project Santa Clara, CA

I-15 Baker Canyon to Meadow Utah

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Note: The reader is cautioned that any non-GAAP financial measures provided by the Company are provided in addition to, and not as alternatives for, the Company's reported results prepared in accordance with GAAP. Items that may have a significant impact on the Company's financial position, results of operations and cash flows must be considered when assessing the Company's actual financial condition and performance regardless of whether these items are included in non-GAAP financial measures. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures provided by the Company may not be comparable to similar measures provided by other companies.

APPENDIX

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EBITDA RECONCILIATION

(1) We define EBITDA as GAAP net income attributable to Granite Construction Incorporated, adjusted for interest, taxes, depreciation, depletion and amortization. We

believe this non-GAAP financial measure and the associated margin are useful in evaluating operating performance and are regularly used by security analysts,

institutional investors and other interested parties in reviewing the Company. However, the reader is cautioned that any non-GAAP financial measures provided by the

Company are provided in addition to, and not as alternatives for, the Company's reported results prepared in accordance with GAAP. The methods used by the

Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any

non-GAAP financial measures provided by the Company may not be comparable to similar measures provided by other companies.

(2) Amount includes the sum of depreciation, depletion and amortization which are classified as Cost of Revenue and Selling, General and Administrative expenses in the

condensed consolidated statements of operations of Granite Construction Incorporated.

(3) Represents EBITDA divided by consolidated revenue. Consolidated revenue was $604,579 and $1,044,031 for three and six months ended June 30, 2016,

respectively and $569,242 and $989,491 for the three and six months ended June 30, 2015, respectively.

GRANITE CONSTRUCTION INCORPORATED EBITDA(1)

(Unaudited - dollars in thousands) Three Months Ended June 30, Six Months Ended June 30,

2016 2015 2016 2015

Net income attributable to Granite Construction Incorporated

$ 14,130 $ 9,613 $ 2,942 $ 1,053 Depreciation, depletion and amortization expense(2)

15,766 15,704 29,502 31,331 Provision for income taxes 8,916 4,975 3,739 469 Interest expense, net of interest income 2,389 3,457 4,602 6,511

EBITDA $ 41,201 $ 33,749 $ 40,785 $ 39,364

Consolidated EBITDA Margin(3) 6.8 % 5.9 % 3.9 % 4.0 %

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$2.27 $2.28

$2.37

2013 2014 2015

TOTAL COMPANY ANNUAL REVENUE

Years Ended December 31 In billions.

INCREASED +4.2% IN 2015

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$177.2

$242.2

$303.4

2013 2014 2015Years Ended December 31 In millions; percentages denote gross profit margin as a percentage of revenue.

7.8% 10.7% 12.8%

TOTAL COMPANY ANNUAL GROSS PROFIT

INCREASED

+25.2% IN 2015

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2013 2014 2015

SG&A CASH

2013 2014 2015

Years Ended December 31 In millions; percentages represent selling, general & administrative expenses as a percent of revenue.

$191.9 $346.3

$195.8

$207.3

$358.0

$358.5

8.7% 8.6% 8.5%

STRONG BALANCE

SHEET

TOTAL COMPANY ANNUAL SG&A AND CASH

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Years Ended December 31 In millions; percentages denote gross profit margin as a percentage of revenue.

$1,251

$778

$238

$1,186

$825

$264

$1,263

$813

$296

CONSTRUCTION LARGE PROJECTS MATERIALS

2013 2014 2015

15.1%

CONSTRUCTION & MATERIALS

DRIVE 2015 PROFIT GROWTH

9.7% 8.2%

8.7% 13.1% 9.8%

3.1% 7.4% 11.2%

OPERATING SEGMENT REVENUE

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$0.64

$1.52

2013 2014 2015

NET INCOME EARNINGS PER SHARE (DILUTED)

$25.3

$60.5

2013 2014 2015

Years Ended December 31 Net income in millions.

($36.4) ($0.94)

TOTAL COMPANY ANNUAL

NET INCOME

+138.6% IN 2015

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EBITDA(1) RECONCILIATION

(1) We define EBITDA as GAAP net income (loss) attributable to Granite Construction Incorporated, adjusted for interest, taxes, depreciation, depletion and amortization. We believe this non-GAAP financial measure and the associated margin are useful in evaluating operating performance and are regularly used by security analysts, institutional investors and other interested parties in reviewing the Company.

(2) Amount includes the sum of depreciation, depletion and amortization which are classified as Cost of Revenue and Selling, General and Administrative expenses in the condensed consolidated statements of operations of Granite Construction Incorporated.

(3) Represents EBITDA divided by consolidated revenue. Consolidated revenue was $631,355 and $2,372,222 for three and twelve months ended December 31, 2015, respectively and $589,789 and $2,275,270 for the three and twelve months ended December 31, 2014, respectively.

2015 2014 2015 2014

Net income attributable to Granite Construction

Incorporated 28,673$ 16,979$ 60,485$ 25,346$

Depreciation, depletion and amortization

expense(2) 15,792 18,284 64,309 68,252

Provision for income taxes 17,031 11,420 35,179 19,721

Interest expense, net of interest income 2,717 3,204 12,122 12,287

EBITDA 64,213$ 49,887$ 172,095$ 125,606$

Consolidated EBITDA Margin (3) 10.2 % 8.5 % 7.3 % 5.5 %

Years Ended

December 31,

GRANITE CONSTRUCTION INCORPORATED(Unaudited - dollars in thousands)

Three Months Ended

December 31,

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Ron Botoff Director of Investor Relations O: (831) 728-7532 E: ronald.botoff@gcinc.com

INVESTOR UPDATE SEPTEMBER 2016