Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector.Sign up today for your two-week free trial and get a new lease on oil & gas! ...

WATSONVILLE, Calif.--(BUSINESS WIRE)--Granite (NYSE:GVA) today announced that its Board of Directors has declared a quarterly cash dividend of $0.13 per common share. The dividend is payable on October 15, 2025, to all shareholders of record at the close of business on September 30, 2025. About Granite Granite is America's Infrastructure Companyâ"¢. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States. ...

WATSONVILLE, Calif.--(BUSINESS WIRE)--Granite (NYSE: GVA) announced today the appointment of J. Timothy Romer to its Board of Directors, effective September 8, 2025. With nearly four decades of experience in finance and infrastructure, Mr. Romer brings a wealth of expertise to support Granite's strategic growth initiatives. Mr. Romer's distinguished career includes leadership roles at top-tier financial institutions. Mr. Romer spent 30 years in senior roles at Goldman Sachs and Merrill Lynch, l. ...

Core Viewpoint - Granite Construction (GVA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors who adjust their valuations based on these estimates [4][6]. - For Granite Construction, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investors respond to this trend [5][8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Granite Construction to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - Granite Construction (GVA) is one of 88 companies in the Construction group, currently ranked 13 within the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions, with Granite Construction holding a Zacks Rank of 2 (Buy) [3] - The Zacks Consensus Estimate for GVA's full-year earnings has increased by 2.7% in the past quarter, indicating improved analyst sentiment [4] Group 2 - Year-to-date, Granite Construction has gained approximately 20.9%, outperforming the average gain of 6.3% in the Construction group [4] - Granite Construction belongs to the Building Products - Heavy Construction industry, which is ranked 1 in the Zacks Industry Rank, but GVA is slightly underperforming its industry with an average gain of 31.1% [6] - Another notable stock in the Construction sector is Sterling Infrastructure (STRL), which has increased by 79.7% year-to-date and has a Zacks Rank of 2 (Buy) [5][7]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Financial statements for June 30, 2025, show total assets at **$3.11 billion**, Q2 revenue at **$1.13 billion**, and net income significantly increased [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$3.11 billion**, liabilities rose to **$2.0 billion**, and total equity reached **$1.11 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $322,017 | $578,330 | | Receivables, net | $704,988 | $511,742 | | Total current assets | $1,691,615 | $1,716,663 | | Total assets | $3,105,991 | $3,025,655 | | **Liabilities & Equity** | | | | Total current liabilities | $1,076,151 | $1,031,959 | | Long-term debt | $733,039 | $737,939 | | Total liabilities | $1,991,636 | $1,946,292 | | Total equity | $1,114,355 | $1,079,363 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue increased **4.0%** to **$1.13 billion**, gross profit grew **20.9%**, and net income attributable to Granite nearly doubled to **$71.7 million** Q2 and Six Months Ended June 30, 2025 vs 2024 (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,125,964 | $1,082,486 | $1,825,511 | $1,754,761 | | Gross Profit | $199,099 | $164,711 | $282,948 | $218,996 | | Operating Income | $103,565 | $85,821 | $63,814 | $42,521 | | Net Income Attributable to Granite | $71,700 | $36,895 | $38,044 | $5,912 | | Diluted EPS | $1.42 | $0.76 | $0.84 | $0.13 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, operating cash flow was **$5.4 million**, investing activities used **$207.3 million**, and cash equivalents decreased by **$256.3 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,438 | $22,084 | | Net cash used in investing activities | $(207,255) | $(50,122) | | Net cash used in financing activities | $(54,496) | $(22,879) | | **Net decrease in cash and cash equivalents** | **$(256,313)** | **$(50,917)** | | Cash and cash equivalents at end of period | $322,017 | $366,746 | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail acquisitions of **$540 million** and **$170 million**, funded by a new **$600 million** revolver and **$675 million** term loans - Subsequent to the quarter end, on August 5, 2025, Granite completed two major acquisitions: Warren Paving for **$540.0 million** and Papich Construction for **$170.0 million**[25](index=25&type=chunk)[26](index=26&type=chunk) - To fund the acquisitions and for general purposes, the company entered into a new Fifth Amended and Restated Credit Agreement on August 5, 2025, which provides for a **$600.0 million** revolving credit facility and up to **$675.0 million** in term loans[24](index=24&type=chunk)[27](index=27&type=chunk) Impact of Revisions in Estimates on Gross Profit (Six Months Ended June 30, 2025, in millions) | Type of Revision | Number of Projects | Impact on Gross Profit | | :--- | :--- | :--- | | Upward Changes | 3 | $22.9 | | Downward Changes | 2 | $(21.1) | Segment Operating Income (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Construction | $130,982 | $105,006 | | Materials | $31,407 | $17,074 | | **Total from reportable segments** | **$162,389** | **$122,080** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong performance from public funding, **4.0%** revenue growth, **15.5%** gross margin, and **$6.1 billion** in Committed and Awarded Projects [Current Economic Environment and Outlook](index=30&type=section&id=Current%20Economic%20Environment%20and%20Outlook) Positive outlook supported by **$1.2 trillion** IIJA funding and a strong **$6.1 billion** Committed and Awarded Projects balance - The federal **$1.2 trillion** Infrastructure Investment and Jobs Act (IIJA) has increased federal highway, bridge, and transit funding to its highest level in over six decades, driving an increase in project lettings[114](index=114&type=chunk) - The company's Committed and Awarded Projects (CAP) balance reached a strong **$6.1 billion** at the end of Q2 2025, supported by a positive public funding environment and strength in private markets[118](index=118&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased **4.0%** to **$1.13 billion**, with gross profit margin improving to **17.7%** due to better execution and higher volumes Revenue by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | % of Total | 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Construction | $1,552,044 | 85.0% | $1,513,167 | 86.2% | | Materials | $273,467 | 15.0% | $241,594 | 13.8% | | **Total** | **$1,825,511** | **100.0%** | **$1,754,761** | **100.0%** | Gross Profit by Segment (Six Months Ended June 30) | Segment | Gross Profit 2025 (in thousands) | Margin 2025 | Gross Profit 2024 (in thousands) | Margin 2024 | | :--- | :--- | :--- | :--- | :--- | | Construction | $239,104 | 15.4% | $192,200 | 12.7% | | Materials | $43,844 | 16.0% | $26,796 | 11.1% | | **Total** | **$282,948** | **15.5%** | **$218,996** | **12.5%** | - SG&A expenses for the six months ended June 30, 2025 increased by **$43.8 million** compared to 2024, primarily due to an **$18.1 million** increase in stock-based compensation and **$15.4 million** in higher salaries and related expenses[136](index=136&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity sources include **$483.4 million** in cash and a new credit agreement for **$600 million** revolver and **$675 million** term loans - On August 5, 2025, the company entered into a new A&R Credit Agreement, providing a **$600.0 million** revolver and a **$600.0 million** initial term loan, plus an additional **$75.0 million** delayed draw term loan[148](index=148&type=chunk) - Total cash, cash equivalents, and marketable securities stood at **$483.4 million** as of June 30, 2025, down from **$585.6 million** at year-end 2024[149](index=149&type=chunk) - Anticipated capital expenditures for 2025 are projected to be between **$140 million** and **$160 million**, including approximately **$50 million** for strategic materials investments[152](index=152&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material change in market risk exposure, except for investment portfolio diversification as detailed in Note 9 - As of June 30, 2025, there has been no material change in the company's exposure to market risk from what was disclosed in the 2024 Annual Report, with the exception of diversification of its investment portfolio[167](index=167&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[168](index=168&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[169](index=169&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from Note 17, with immaterial liabilities recorded as of June 30, 2025 - The company is involved in various legal proceedings in the ordinary course of business. Liabilities recorded for these proceedings were immaterial as of June 30, 2025[101](index=101&type=chunk)[170](index=170&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes in the risk factors previously disclosed in the company's Annual Report[171](index=171&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) In Q2 2025, the company repurchased **2,518 shares** at **$88.86** per share, with **$189.5 million** remaining for authorization Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 202 | $76.33 | | May 2025 | 473 | $86.34 | | June 2025 | 1,843 | $90.88 | | **Total** | **2,518** | **$88.86** | - As of June 30, 2025, approximately **$189.5 million** remained available for repurchase under the Board's **$300.0 million** authorization from February 2022[173](index=173&type=chunk)

Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by $43 million or 4%, gross profit increased by $34 million or 21%, adjusted net income improved by $9 million or 12%, and adjusted EBITDA improved by $22 million or 17% [22][27] - Year-to-date operating cash flow reached $5 million, aligning with the 2025 target [22][26] Business Line Data and Key Metrics Changes - In the construction segment, revenue increased by $19 million or 2% year-over-year to $937 million, driven by acquisitions and a strong backlog [22][19] - The construction segment's gross profit improved by $18 million to $154 million, with a gross profit margin of 16%, reflecting a 170 basis point increase due to improved execution [23] - In the materials segment, aggregate volumes increased by 11% for the quarter and 13% year-to-date, leading to improved cash gross profit margins [25][24] Market Data and Key Metrics Changes - The public market environment continues to drive growth, with strong transportation funding in California increasing budgeted allocations by 9% over the previous fiscal year [19][20] - The Southeast market is experiencing growth due to increased public funding and private investment, particularly in infrastructure [12][13] Company Strategy and Development Direction - The company is focused on raising construction margins and driving organic growth through strategic acquisitions, particularly in materials [6][7] - The recent acquisitions of Warm Paving and Pabich Construction are expected to enhance the company's vertical integration and expand its geographic reach [10][16] - The company aims to maintain a disciplined approach to M&A, targeting materials-focused companies to support its strategic plan [8][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance for the second half of the year, anticipating revenue growth acceleration as projects progress [20][36] - The company expects to achieve gross margin expansion of greater than 1% during 2025, supported by improved project performance [20][28] Other Important Information - The company amended its credit facility to support future M&A opportunities, with total debt outstanding approximately $1.35 billion [26][27] - Revised revenue guidance for 2025 is now between $4.35 billion and $4.55 billion, reflecting contributions from recent acquisitions [27][28] Q&A Session Summary Question: Comments on construction segment growth and project pace - Management noted that revenue growth is tied to project starts and finishes, with expectations for acceleration in the second half of the year due to a record backlog [36] Question: Insights on materials profit margin expansion - Management highlighted volume improvements in both asphalt and aggregate, with expectations for continued margin expansion [38][39] Question: Details on Pabich Construction's strengths - Pabich is primarily a public works contractor, complementing the company's existing footprint in California and expected to enhance overall business performance [42][44] Question: Comparison of cap trends between regions - Management indicated that the record cap is consistent across the entire footprint, with strong market support from federal funding [47][49] Question: Quality of assets from Warren Paving acquisition - Warren Paving is a high-performing business with a strong materials focus, expected to provide significant opportunities for growth in the Southeast [53][56] Question: Clarification on 2027 targets and acquisition impacts - Management confirmed that 2027 targets include organic growth expectations and potential contributions from future acquisitions, with a focus on maintaining a strong balance sheet [59][61]

Acquisitions and Financial Performance - Granite acquired Warren Paving and Papich Construction for a combined $710 million[8] - The acquisitions are expected to contribute approximately $425 million in annual revenue with an Adjusted EBITDA margin of approximately 18%[8] - Granite's Materials segment aggregate sales volumes are expected to increase approximately 27% annually due to the acquisitions[8] - Granite's aggregates reserves and resources are expected to increase by approximately 30% due to the acquisitions[8] - Q2 2025 total revenue was $1,126 million, an increase of $43 million year-over-year[34] - Adjusted EBITDA for Q2 2025 was $152 million, with an Adjusted EBITDA margin of 135%, representing a 150 basis points increase year-over-year[34] Market and Operational Highlights - Warren Paving has estimated aggregates reserves and resources of over 400 million tons[11, 14] - Papich Construction has estimated aggregates reserves and resources of over 40 million tons[21] - Mississippi and Louisiana are expected to receive a combined $30 billion in data center investments[19] Guidance and Targets - The company updated its 2025 revenue guidance to $435 billion - $455 billion[40] - The company is targeting a 65%-85% free cash flow margin in 2027[40]

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) Granite reported strong financial results for Q2 and H1 2025, achieving record Committed and Awarded Projects and updating its full-year guidance to reflect strategic acquisitions [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Granite reported strong second quarter 2025 results with significant increases in net income and adjusted diluted EPS, achieving record CAP and updating guidance after strategic acquisitions - 2025 guidance raised to reflect acquisitions of Warren Paving and Papich Construction businesses[8](index=8&type=chunk) - Record Committed and Awarded Projects ("CAP") increased sequentially by **$324 million** to **$6.1 billion**[8](index=8&type=chunk) Second Quarter 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | Source Chunk | | :-------------------------------- | :------ | :------ | :--------- | :----------- | | Net income attributable to Granite | $72M | $37M | +94.6% | 3 | | Diluted EPS | $1.42 | $0.76 | +86.8% | 3, 8 | | Adjusted net income attributable to Granite | $86M | $77M | +11.7% | 3 | | Adjusted diluted EPS | $1.93 | $1.73 | +11.6% | 3, 8 | | Revenue | $1.13B | $1.08B | +4% | 8, 9 | | Gross profit | $199M | $165M | +20.6% | 9 | | Adjusted EBITDA | $152M | $130M | +16.9% | 9 | [Six Months Ended June 30, 2025 Highlights](index=1&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Highlights) For the first six months of 2025, Granite demonstrated significant financial improvement, with net income attributable to Granite increasing substantially compared to the prior year, alongside healthy revenue, gross profit, and adjusted EBITDA growth Six Months Ended June 30, 2025 Key Financial Highlights | Metric | H1 2025 | H1 2024 | YoY Change | Source Chunk | | :-------------------------------- | :------ | :------ | :--------- | :----------- | | Net income attributable to Granite | $38M | $6M | +533.3% | 5 | | Diluted EPS | $0.84 | $0.13 | +546.2% | 5 | | Adjusted net income attributable to Granite | $87M | $68M | +27.9% | 5 | | Adjusted diluted EPS | $1.94 | $1.52 | +27.6% | 5 | | Revenue | $1.83B | $1.75B | +4.6% | 10 | | Gross profit | $283M | $219M | +29.2% | 10 | | Adjusted EBITDA | $180M | $144M | +25.0% | 10 | | Year-to-date operating cash flow | $5M | N/A | N/A | 10 | - Year-to-date operating cash flow of **$5 million**, positioned to achieve target of **9% operating cash flow as a percent of revenue** for the year[10](index=10&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Granite's consolidated financial performance for both Q2 and H1 2025 showed robust year-over-year growth in revenue, gross profit, and net income [Second Quarter 2025 Consolidated Results](index=1&type=section&id=Second%20Quarter%202025%20Consolidated%20Results) Granite's consolidated financial performance for the second quarter of 2025 showed robust growth across key metrics, with revenue increasing 4% year-over-year and gross profit seeing a significant increase, despite rising SG&A expenses Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | YoY Change | Source Chunk | | :--------------------------------------- | :------------------ | :------------------ | :--------- | :----------- | | Revenue | $1,125,964 | $1,082,486 | +4.0% | 27 | | Cost of revenue | $926,865 | $917,775 | +1.0% | 27 | | Gross profit | $199,099 | $164,711 | +20.9% | 27 | | Selling, general and administrative expenses | $85,887 | $70,052 | +22.6% | 27 | | Operating income | $103,565 | $85,821 | +20.7% | 27 | | Income before income taxes | $107,559 | $59,550 | +80.6% | 27 | | Net income attributable to Granite | $71,700 | $36,895 | +94.3% | 27 | | Diluted EPS | $1.42 | $0.76 | +86.8% | 27 | - SG&A expenses increased **$16 million** to **$86 million** (**7.6% of revenue**) from **$70 million** (**6.5% of revenue**) in the prior year, primarily due to additional salaries, related expenses, and a greater percentage of annual incentive compensation[9](index=9&type=chunk) [Six Months Ended June 30, 2025 Consolidated Results](index=1&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Consolidated%20Results) For the first half of 2025, Granite's consolidated results demonstrated strong growth, with revenue increasing by $71 million and gross profit by $64 million year-over-year, leading to a more than doubled operating income and substantial net income growth Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | YoY Change | Source Chunk | | :--------------------------------------- | :------------------ | :------------------ | :--------- | :----------- | | Revenue | $1,825,511 | $1,754,761 | +4.0% | 27 | | Cost of revenue | $1,542,563 | $1,535,765 | +0.4% | 27 | | Gross profit | $282,948 | $218,996 | +29.2% | 27 | | Selling, general and administrative expenses | $201,798 | $158,045 | +27.7% | 27 | | Operating income | $63,814 | $42,521 | +50.1% | 27 | | Income before income taxes | $67,476 | $20,582 | +227.8% | 27 | | Net income attributable to Granite | $38,044 | $5,912 | +543.5% | 27 | | Diluted EPS | $0.84 | $0.13 | +546.2% | 27 | - SG&A expenses increased **$44 million** to **$202 million** (**11.1% of revenue**) from **$158 million** (**9.0% of revenue**) in the prior year, primarily due to additional stock-based compensation, salaries, and a greater percentage of annual incentive compensation[10](index=10&type=chunk) [Segment Performance Review](index=2&type=section&id=Segment%20Performance%20Review) Granite's Construction and Materials segments both demonstrated strong year-over-year growth in revenue and gross profit, driven by acquisitions, improved execution, and higher volumes [Construction Segment Performance](index=2&type=section&id=Construction%20Segment%20Performance) The Construction segment experienced year-over-year revenue growth, primarily driven by the newly acquired Dickerson & Bowen business, with increased gross profit due to improved project execution and favorable claim settlements, and record CAP indicating strong future organic growth potential - Revenue increased year-over-year, primarily driven by the newly acquired Dickerson & Bowen business. Legacy business revenue was consistent and is expected to accelerate in the second half of the year[13](index=13&type=chunk) - Gross profit increased year-over-year due to improved project execution across a higher quality project portfolio and favorable claim settlements[13](index=13&type=chunk) - CAP increased **$324 million** sequentially to **$6.1 billion** and **$488 million** year-over-year, with a robust bidding pipeline in both public and private markets[14](index=14&type=chunk) Construction Segment Financials (Three & Six Months Ended June 30, in thousands) | Metric | Q2 2025 | Q2 2024 | Q2 YoY Change | H1 2025 | H1 2024 | H1 YoY Change | Source Chunk | | :------- | :--------------------- | :--------------------- | :------------ | :--------------------- | :--------------------- | :------------ | :----------- | | Revenue | $937,426 | $917,954 | +2.1% | $1,552,044 | $1,513,167 | +2.6% | 11 | | Gross profit | $153,666 | $135,372 | +13.5% | $239,104 | $192,200 | +24.4% | 11 | | Gross profit as a percent of revenue | 16.4% | 14.7% | +1.7 pp | 15.4% | 12.7% | +2.7 pp | 11 | [Materials Segment Performance](index=2&type=section&id=Materials%20Segment%20Performance) The Materials segment demonstrated strong year-over-year improvements in revenue, gross profit, and cash gross profit for both the second quarter and the first six months of 2025, primarily driven by higher aggregates and asphalt volumes and increased aggregate sales prices - Revenue, gross profit, and cash gross profit improved year-over-year primarily driven by higher aggregates and asphalt volumes and higher aggregate sales prices[16](index=16&type=chunk) Materials Segment Financials (Three & Six Months Ended June 30, in thousands) | Metric | Q2 2025 | Q2 2024 | Q2 YoY Change | H1 2025 | H1 2024 | H1 YoY Change | Source Chunk | | :-------------------------------- | :--------------------- | :--------------------- | :------------ | :--------------------- | :--------------------- | :------------ | :----------- | | Revenue | $188,538 | $164,532 | +14.6% | $273,467 | $241,594 | +13.2% | 15 | | Gross profit | $45,433 | $29,339 | +54.9% | $43,844 | $26,796 | +63.6% | 15 | | Gross profit as a percent of revenue | 24.1% | 17.8% | +6.3 pp | 16.0% | 11.1% | +4.9 pp | 15 | | Cash gross profit | $59,001 | $39,300 | +50.1% | $69,478 | $46,516 | +49.4% | 15 | | Cash gross profit as a % of revenue | 31.3% | 23.9% | +7.4 pp | 25.4% | 19.3% | +6.1 pp | 15 | [Materials Product Line Performance (Three Months Ended June 30, 2025)](index=12&type=section&id=Materials%20Product%20Line%20Performance%20%28Three%20Months%20Ended%20June%2030%2C%202025%29) In Q2 2025, the Materials segment's Aggregate product line saw increased sales tons and average selling price, contributing to higher gross profit and cash gross profit, while the Asphalt product line also experienced growth in sales tons, leading to improved gross profit and cash gross profit Materials Product Line Performance (Q2 2025 vs. Q2 2024, in thousands) | Metric | Aggregate Q2 2025 | Aggregate Q2 2024 | Asphalt Q2 2025 | Asphalt Q2 2024 | Source Chunk | | :-------------------------- | :------------------ | :------------------ | :---------------- | :---------------- | :----------- | | External revenue | $59,643 | $54,347 | $128,625 | $109,372 | 41 | | Sales tons | 6,299 | 5,658 | 2,329 | 2,163 | 41 | | Average selling price per ton | $16.76 | $16.36 | $79.85 | $79.49 | 41 | | Gross profit | $24,869 | $23,014 | $29,770 | $26,593 | 41 | | Gross profit as a % of revenue | 23.6% | 24.9% | 16.0% | 15.5% | 41 | | Cash gross profit | $34,299 | $29,574 | $33,830 | $29,270 | 41 | | Cash gross profit as a % of revenue | 32.5% | 31.9% | 18.2% | 17.0% | 41 | [Materials Product Line Performance (Six Months Ended June 30, 2025)](index=13&type=section&id=Materials%20Product%20Line%20Performance%20%28Six%20Months%20Ended%20June%2030%2C%202025%29) For the first six months of 2025, both Aggregate and Asphalt product lines within the Materials segment showed increased external revenue, sales tons, and improved gross and cash gross profits compared to the prior year, contributing to the segment's overall strong performance Materials Product Line Performance (H1 2025 vs. H1 2024, in thousands) | Metric | Aggregate H1 2025 | Aggregate H1 2024 | Asphalt H1 2025 | Asphalt H1 2024 | Source Chunk | | :-------------------------- | :------------------ | :------------------ | :---------------- | :---------------- | :----------- | | External revenue | $100,045 | $90,436 | $173,063 | $150,185 | 43 | | Sales tons | 10,067 | 8,886 | 3,062 | 2,712 | 43 | | Average selling price per ton | $16.34 | $15.86 | $80.81 | $80.88 | 43 | | Gross profit | $28,609 | $20,904 | $26,966 | $22,014 | 43 | | Gross profit as a % of revenue | 17.4% | 14.8% | 10.9% | 10.0% | 43 | | Cash gross profit | $46,359 | $34,585 | $34,696 | $27,903 | 43 | | Cash gross profit as a % of revenue | 28.2% | 24.5% | 14.0% | 12.7% | 43 | [Outlook and Strategic Initiatives](index=3&type=section&id=Outlook%20and%20Strategic%20Initiatives) Granite updated its 2025 fiscal year guidance to reflect recent strategic acquisitions, which are expected to enhance adjusted EBITDA margin and cash flows [2025 Fiscal Year Guidance Update](index=3&type=section&id=2025%20Fiscal%20Year%20Guidance%20Update) Granite has updated its 2025 fiscal year guidance to incorporate the impact of recent acquisitions, projecting increased revenue and an improved adjusted EBITDA margin, while SG&A expenses and the effective tax rate remain consistent with previous estimates Updated 2025 Fiscal Year Guidance | Metric | Guidance Range | Notes | Source Chunk | | :-------------------------- | :------------- | :------ | :----------- | | Revenue | $4.35B - $4.55B | Includes ~$150M from new acquisitions | 21 | | Adjusted EBITDA margin | 11.25% - 12.25% | Increased | 21 | | SG&A expense | ~9.0% of revenue | Unchanged, includes ~$40M stock-based compensation | 21 | | Effective tax rate for adjusted net income | Mid-20s | Unchanged | 21 | | Capital expenditures | $140M - $160M | Unchanged | 21 | [Strategic Acquisitions and Capital Allocation](index=1&type=section&id=Strategic%20Acquisitions%20and%20Capital%20Allocation) Granite's recent acquisitions of Warren Paving and Papich Construction are aligned with its capital allocation strategy to invest in high-quality businesses that strengthen and expand home markets, expected to be immediately accretive to adjusted EBITDA margin and cash flows, with the company well-positioned for future M&A opportunities - Two acquisitions announced: one in the Southeast providing significant aggregate supply on the Mississippi River, and another in California strengthening business with additional aggregates and a leading civil construction business[4](index=4&type=chunk) - Acquisitions are in alignment with capital allocation strategy to invest in high-quality businesses that strengthen and expand home markets and are immediately accretive to **adjusted EBITDA margin** and **cash flows**[18](index=18&type=chunk) - Pro-forma leverage is well within target, and an expanded credit facility positions the company to act on future M&A opportunities[18](index=18&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides an overview of Granite's identity, details regarding its Q2 2025 conference call, and important disclaimers about forward-looking statements [About Granite](index=3&type=section&id=About%20Granite) Granite Construction Incorporated, established in 1922, is a leading diversified vertically-integrated civil contractor and construction materials producer in the United States, guided by its Code of Conduct and Core Values emphasizing safety, quality, and sustainability - Granite is America's Infrastructure Company™, one of the largest diversified vertically-integrated civil contractors and construction materials producers in the United States[20](index=20&type=chunk) - The company's Code of Conduct and strong Core Values guide its operations, upholding high ethical standards and leadership in safety, quality, and sustainability[20](index=20&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Granite hosted a conference call on August 7, 2025, to discuss its second quarter 2025 results, with investors able to access a live audio webcast or dial-in, and replays available for a limited period - Conference call held on **August 7, 2025**, at **8:00 a.m. Pacific Time/11:00 a.m. Eastern Time** to discuss Q2 2025 results[19](index=19&type=chunk) - Live audio webcast available on the Investor Relations website (https://investor.graniteconstruction.com) and via dial-in[19](index=19&type=chunk) - An archive of the webcast and a replay were available after the live call through **August 14, 2025**[19](index=19&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement regarding forward-looking statements within the news release, highlighting that such statements are based on management's current beliefs and estimates, involve inherent risks and uncertainties, and may not be realized, advising readers not to place undue reliance on them - Statements not based on historical facts, including future events, performance, growth, and **2025 fiscal year guidance**, constitute forward-looking statements[22](index=22&type=chunk) - These statements are based on management's current beliefs, assumptions, and estimates, which may not be realized due to numerous risks and uncertainties beyond the company's control[22](index=22&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and the company undertakes no obligation to revise or update them, except as required by law[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Granite's condensed consolidated balance sheets, statements of operations, and cash flows, highlighting key financial positions and performance for the periods presented [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show Granite's financial position as of June 30, 2025, compared to December 31, 2024, with total assets increasing slightly due to higher receivables and long-term marketable securities, while cash and cash equivalents decreased and total liabilities rose Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | **ASSETS** | | | | | Cash and cash equivalents | $322,017 | $578,330 | -$256,313 | | Total current assets | $1,691,615 | $1,716,663 | -$25,048 | | Total assets | $3,105,991 | $3,025,655 | +$80,336 | | **LIABILITIES AND EQUITY** | | | | | Total current liabilities | $1,076,151 | $1,031,959 | +$44,192 | | Total liabilities and equity | $3,105,991 | $3,025,655 | +$80,336 | | Total Granite Construction Incorporated shareholders' equity | $1,062,748 | $1,015,226 | +$47,522 | | Total equity | $1,114,355 | $1,079,363 | +$34,992 | - Receivables, net increased from **$511,742 thousand** at December 31, 2024, to **$704,988 thousand** at June 30, 2025[25](index=25&type=chunk) - Long-term marketable securities increased from **$0** at December 31, 2024, to **$98,069 thousand** at June 30, 2025[25](index=25&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations highlight significant year-over-year improvements for both the three and six months ended June 30, 2025, with increased revenue and gross profit leading to substantial growth in operating income and net income attributable to Granite, despite higher SG&A expenses Condensed Consolidated Statements of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | Source Chunk | | :--------------------------------------- | :------ | :------ | :------ | :------ | :----------- | | Revenue | $1,125,964 | $1,082,486 | $1,825,511 | $1,754,761 | 27 | | Gross profit | $199,099 | $164,711 | $282,948 | $218,996 | 27 | | Selling, general and administrative expenses | $85,887 | $70,052 | $201,798 | $158,045 | 27 | | Operating income | $103,565 | $85,821 | $63,814 | $42,521 | 27 | | Income before income taxes | $107,559 | $59,550 | $67,476 | $20,582 | 27 | | Net income | $80,345 | $38,857 | $52,018 | $9,415 | 27 | | Net income attributable to Granite | $71,700 | $36,895 | $38,044 | $5,912 | 27 | | Diluted EPS | $1.42 | $0.76 | $0.84 | $0.13 | 27 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Granite reported net cash provided by operating activities of $5.4 million, a decrease from the prior year, with significant net cash outflows from investing activities due to marketable securities and property purchases, and cash used in financing activities for debt repayments and distributions Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $5,438 | $22,084 | -$16,646 | | Net cash used in investing activities | $(207,255) | $(50,122) | -$157,133 | | Net cash used in financing activities | $(54,496) | $(22,879) | -$31,617 | | Net decrease in cash and cash equivalents | $(256,313) | $(50,917) | -$205,396 | | Cash and cash equivalents at end of period | $322,017 | $366,746 | -$44,729 | - Purchases of marketable securities amounted to **$172,578 thousand** in H1 2025, compared to none in H1 2024[29](index=29&type=chunk) - Stock-based compensation increased significantly from **$15,084 thousand** in H1 2024 to **$34,632 thousand** in H1 2025[29](index=29&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines Granite's non-GAAP financial measures and provides reconciliations to their most directly comparable GAAP measures, offering additional insights into operational performance [Non-GAAP Measures Description](index=9&type=section&id=Non-GAAP%20Measures%20Description) Granite provides several non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Materials segment cash gross profit, to offer additional insights into its operating performance, used by management and investors to facilitate comparisons and evaluate performance by excluding certain non-recurring or non-cash items, but not intended as substitutes for GAAP results - Non-GAAP measures like **EBITDA** and **EBITDA margin** are useful for evaluating operating performance and facilitating comparisons between companies with different capital structures and tax rates[30](index=30&type=chunk) - **Adjusted EBITDA** and **Adjusted EBITDA margin** exclude the impact of stock-based compensation, loss on debt extinguishment, and other costs (legal fees, reorganization, acquisition/integration expenses, impairment charges)[30](index=30&type=chunk) - Materials segment **cash gross profit** excludes depreciation, depletion, and amortization to better illustrate operational performance from segment assets[31](index=31&type=chunk) - Non-GAAP measures are provided in addition to, not as alternatives for, GAAP results and may not be comparable to similar measures used by other companies[32](index=32&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation](index=10&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) The reconciliation of GAAP net income to EBITDA and Adjusted EBITDA demonstrates the impact of non-operating and non-cash items on the company's profitability, with both EBITDA and Adjusted EBITDA showing significant year-over-year increases for the three and six months ended June 30, 2025, reflecting improved operational performance after adjustments EBITDA and Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | Source Chunk | | :-------------------------- | :------ | :------ | :------ | :------ | :----------- | | Net income attributable to Granite | $71,700 | $36,895 | $38,044 | $5,912 | 35 | | EBITDA | $136,758 | $89,628 | $123,187 | $79,773 | 35 | | EBITDA margin | 12.1% | 8.3% | 6.7% | 4.5% | 35 | | Adjusted EBITDA | $152,426 | $129,866 | $180,498 | $143,916 | 35 | | Adjusted EBITDA margin | 13.5% | 12.0% | 9.9% | 8.2% | 35 | - Adjustments for Adjusted EBITDA include other costs, net (**$13.3M** in Q2 2025), stock-based compensation (**$2.4M** in Q2 2025), and loss on debt extinguishment (none in Q2 2025, **$27.8M** in Q2 2024)[35](index=35&type=chunk) [Adjusted Net Income Reconciliation](index=11&type=section&id=Adjusted%20Net%20Income%20Reconciliation) The adjusted net income reconciliation provides a clearer view of Granite's underlying profitability by removing the impact of specific non-GAAP adjustments such as other costs, transaction costs, stock-based compensation, and loss on debt extinguishment, resulting in higher adjusted net income and adjusted diluted EPS compared to GAAP figures for both periods Adjusted Net Income Reconciliation (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | Source Chunk | | :--------------------------------------- | :------ | :------ | :------ | :------ | :----------- | | Income before income taxes | $107,559 | $59,550 | $67,476 | $20,582 | 38 | | Adjusted income before income taxes | $127,219 | $104,101 | $132,766 | $94,665 | 38 | | Net income attributable to Granite | $71,700 | $36,895 | $38,044 | $5,912 | 38 | | Adjusted net income attributable to Granite | $86,298 | $76,977 | $86,522 | $67,848 | 38 | | Diluted net income per share attributable to common shareholders | $1.42 | $0.76 | $0.84 | $0.13 | 38 | | Adjusted diluted earnings per share attributable to common shareholders | $1.93 | $1.73 | $1.94 | $1.52 | 38 | - Adjusting items include other costs, net, transaction costs, stock-based compensation, and loss on debt extinguishment, which are added back to GAAP income before income taxes[38](index=38&type=chunk) - The dilutive effect of convertible notes is removed for **adjusted diluted EPS** calculation to reflect the impact of capped call transactions[39](index=39&type=chunk)

Group 1 - Granite Construction operates in the construction industry, providing infrastructure solutions for both public and private clients [1] - The company has shown impressive performance and continues to attract attention in the market [1] Group 2 - Crude Value Insights focuses on the oil and natural gas sector, emphasizing cash flow and the potential for value and growth [1] - Subscribers benefit from a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]