Hensel Phelps Taps New CEO, Signals Pivot to Innovation and Growth

GREELEY, CO – January 06, 2026 – Construction giant Hensel Phelps has initiated a significant executive leadership transition, appointing 29-year company veteran Brad Jeanneret as its new President and Chief Executive Officer. The move, effective January 1, 2026, sees former CEO Mike Choutka transition to Chairman of the Board, ensuring a seamless transfer of power at the nearly 90-year-old firm.

While the announcement signals stability and continuity, a deeper look reveals a strategic repositioning designed to navigate a complex market and aggressively pursue a future defined by technology and targeted regional growth. The leadership changes, coupled with recent strategic investments and key promotions focused on the booming Southwest, suggest that Hensel Phelps is not just changing its guard but sharpening its playbook for a new era.

A Blueprint for Internal Succession

The transition is a hallmark of the company's deeply ingrained culture, which is built upon its status as one of the nation's largest employee-owned general contractors. Jeanneret’s ascent from a field engineer in Southern California in 1996 to the company's top executive role exemplifies a long-standing commitment to nurturing internal talent. Before this promotion, he served as President and Chief Operating Officer, and previously as Executive Vice President.

This methodical succession planning provides a stable foundation, a stark contrast to the disruptive leadership changes often seen in publicly traded corporations. Choutka, who has been with the company for over three decades and served as CEO since 2019, will now focus on strategic oversight as Chairman. His endorsement underscores the confidence in the new leadership. "Brad has demonstrated strong leadership and driven exceptional results and the Board has full confidence in his ability to lead Hensel Phelps forward," Choutka said in a statement. "Having served in many roles throughout the organization during his 29-year career, his vast operational experience has prepared him to take the helm."

This philosophy is rooted in the company's Employee Stock Ownership Plan (ESOP), adopted in 1989. The core value of "Ownership" is more than a slogan; it creates a workforce of stakeholders invested in the firm's long-term success over short-term gains. This structure inherently favors promoting from within, ensuring that leaders possess deep institutional knowledge and a commitment to the company's guiding principles.

Investing in an Innovative Future

The press release's mention of propelling the company into a "new era of growth and innovation" is substantiated by significant recent investments. These initiatives, championed by the new leadership, aim to embed technology and advanced training into the core of the business.

One of the most significant moves was the 2023 launch of Diverge, a Hensel Phelps subsidiary dedicated to sourcing, vetting, and deploying new construction technologies. In a previous statement, Jeanneret highlighted the initiative's importance, noting the "profound impact" of advancements in prefabrication, robotics, and drones. This commitment was solidified in October 2025 with the opening of the Diverge Innovation Center in Phoenix, Arizona. The center serves as a hub for cross-industry collaboration and a showcase for cutting-edge solutions in safety, 3D printing, and digital platforms.

Further reinforcing its focus on human capital, Hensel Phelps acquired education and training firm Transcend in October 2025. Having partnered with the firm since 2022, the acquisition brings Transcend's leadership programs and organizational strategies in-house. This move is designed to amplify the employee experience and expand access to advanced learning and coaching, ensuring the workforce is equipped to handle the industry's evolving demands. Together, these investments in technology and talent development form the twin pillars of Jeanneret's innovation-focused strategy.

A Strategic Bet on the Booming Southwest

The leadership shuffle also casts a bright spotlight on the American Southwest, signaling its critical importance to the company's future. The promotions of Steve Grauer to Executive Vice President and Cole Weaver to Regional Vice President of the Southwest Region are tactical moves designed to capitalize on the area's explosive growth.

Grauer, who has led the Southwest Region since 2008, will now also oversee the company's Services and Mission Critical Integrated Solutions divisions—a portfolio that directly aligns with the region's booming data center market, driven by the expansion of artificial intelligence. Weaver, a 19-year veteran, steps into Grauer's former role, bringing deep operational experience to a market teeming with opportunity.

The Southwest, particularly states like Arizona and Nevada, is experiencing economic and population growth that outpaces the national average. Pro-business climates and significant public and private investment have turned cities like Phoenix into magnets for high-tech manufacturing, semiconductor fabrication, and logistics. This influx of industry and people fuels immense demand for the large-scale commercial, infrastructure, and residential projects that are Hensel Phelps' specialty. Locating the Diverge Innovation Center in Phoenix further cements this strategic alignment, placing the company's R&D efforts at the heart of a key growth market.

Navigating a Shifting Market Landscape

This strategic realignment comes as the U.S. construction industry navigates a challenging environment. While the 2026 outlook includes persistent headwinds like labor shortages, rising material costs, and high interest rates, it also presents unique opportunities. Federal infrastructure spending continues to fund major projects, while sectors like data centers and advanced manufacturing are experiencing unprecedented demand.

With a reported revenue of $7.1 billion in 2024 and top industry rankings in government and airport facility construction, Hensel Phelps is already a dominant player. The new leadership structure and strategic initiatives appear tailored to insulate the company from market volatility while doubling down on these high-growth sectors. The focus on innovation through Diverge aims to improve efficiency and mitigate labor challenges, while the emphasis on the Southwest targets a region where economic tailwinds are strongest.

By elevating a seasoned insider to CEO, investing heavily in technology and talent, and sharpening its focus on the nation's most dynamic regional market, Hensel Phelps is not merely reacting to change. The firm is proactively constructing a framework intended to extend its legacy of excellence and build a more resilient, innovative, and formidable enterprise for the decades to come.