Financial Data and Key Metrics Changes - Revenue increased 14% to $4 billion in 2024 [24] - Gross profit increased 44% to $573 million [24] - Adjusted net income increased 45% to $214 million [24] - Adjusted EBITDA increased 44% to $402 million [24] - Operating cash flow increased 148% to $456 million [24][31] Business Line Data and Key Metrics Changes Construction Segment - Revenue increased $28 million or 3% year-over-year to $821 million [26] - Gross profit improved $56 million to $128 million with a segment gross profit margin of 16% [27] - The increase in gross profit margin was driven by a higher quality project portfolio [27] Materials Segment - Revenue increased $16 million with gross profit up slightly to $23 million [28] - Cash gross profit increased $7 million year-over-year to $37 million or 21% for the quarter [29] - Cash gross profit margin improved by 240 basis points year-over-year to 21.4% for the full year [30] Market Data and Key Metrics Changes - State transportation budgets are near record levels, supported by the Federal Infrastructure Bill [14][15] - Approximately 75% of the construction segment is publicly funded, with strong opportunities in water infrastructure and commercial site development [16][18] Company Strategy and Development Direction - The company is focused on growing its businesses while generating strong cash flow and delivering consistent profitability [12] - Plans to explore potential acquisitions to expand its vertically integrated strategy into new markets [12][22] - Targeting two to three M&A deals per year to strengthen its Western and Southeastern footprints [22] Management Comments on Operating Environment and Future Outlook - The management believes the current construction market is the strongest seen in years, with significant opportunities for growth [14] - Expectations for organic revenue growth in the construction segment driven by a strong market environment [22] - Anticipated adjusted EBITDA margin range for 2025 is 11% to 12%, representing a 10% to 20% increase from 2024 [40] Other Important Information - The company ended the year with $586 million in cash and marketable securities [33] - Plans to invest in capital expenditures in the range of $140 million to $160 million for strategic materials investment and automation projects [37] Q&A Session Summary Question: Sales guidance and margin expansion - Management discussed that the low end of sales guidance implies a modest decline, but margin expansion is expected due to strong CAP and project quality [45][48] Question: Regional market outlook for 2025 - Management indicated strong performance across all geographies, with expectations for continued growth in CAP and project awards [62][65] Question: Free cash flow expectations for 2025 - Management expressed satisfaction with cash flow performance and targeted free cash flow around 50% of EBITDA going forward [80] Question: Inflation expectations in 2025 - Management anticipates inflation closer to 3%, which is already factored into pricing strategies [84] Question: Gain on sales of assets - Management confirmed that a gain on the sale of an asset expected in Q4 was pushed to 2025, which could positively impact guidance [90][91]

Q4 2024 Earnings Presentation © 2025 Granite Construction. All Rights Reserved. Safe Harbor Any statements contained in this presentation that are not based on historical facts, including statements regarding future events, occurrences, circumstances, opportunities, targets, activities, performance, growth, demand, strategy, strategic goals, shareholder value, outcomes, outlook, medium-term financial growth and the drivers of such growth, expectation for larger M&A with a 2.5x long term leverage target, 202 ...

Financial Performance - Fourth Quarter 2024 net income was $41 million, or $0.84 per diluted share, compared to $26 million, or $0.55 per diluted share in the prior year, representing a 57.7% increase in net income year-over-year [3]. - Fiscal Year 2024 net income totaled $126 million, or $2.62 per diluted share, compared to $44 million, or $0.97 per diluted share in the prior year, marking a 186.4% increase in net income year-over-year [5]. - Total revenue for the year ended December 31, 2024, was $4,007,574, an increase of 14.1% compared to $3,509,138 in 2023 [26]. - Gross profit for the year ended December 31, 2024, was $572,697, representing a 44.3% increase from $396,399 in 2023 [26]. - Net income attributable to Granite Construction for the year ended December 31, 2024, was $126,346, a significant increase from $43,599 in 2023 [26]. - Operating income for the year ended December 31, 2024, was $207,363, compared to $80,062 in 2023, indicating a 158.5% increase [26]. - Basic net income per share for the year ended December 31, 2024, was $2.88, compared to $0.99 in 2023, representing a 189.9% increase [26]. - Net income attributable to Granite Construction for Q4 2024 was $41.5 million, up from $26.0 million in Q4 2023, representing a 59.5% increase [34]. - EBITDA for Q4 2024 reached $96.1 million, compared to $61.7 million in Q4 2023, reflecting a 55.5% growth [34]. - Adjusted net income attributable to Granite Construction for Q4 2024 was $55.7 million, compared to $37.7 million in Q4 2023, representing a 47.8% increase [38]. - The company reported a diluted net income per share of $0.84 for Q4 2024, compared to $0.55 in Q4 2023, reflecting a 52.7% increase [38]. Revenue and Growth - Fourth Quarter 2024 revenue increased 5% year-over-year to $977 million, while Fiscal Year 2024 revenue increased 14% year-over-year to $4.0 billion [8]. - Revenue for Q4 2024 was $977 million, up from $934 million in Q4 2023, showing a growth of 4.6% [35]. - The company anticipates continued organic revenue growth of 6.0% to 8.0% through 2027, supported by a strong project portfolio and market environment [16]. Operational Efficiency - Adjusted EBITDA for Fiscal Year 2024 increased by $123 million to $402 million compared to $279 million in the prior year, reflecting a significant improvement in operational efficiency [10]. - Adjusted EBITDA for the fiscal year 2024 was $401.7 million, a significant increase from $279.4 million in 2023, marking a 43.7% rise [34]. - The adjusted EBITDA margin for the fiscal year 2024 was 10.0%, up from 8.0% in 2023, indicating improved operational efficiency [34]. - The net income margin improved to 4.2% in Q4 2024 from 2.8% in Q4 2023, indicating enhanced profitability [34]. - Cash gross profit for Q4 2024 was $37.1 million, with a cash gross profit margin of 23.8%, up from 21.8% in Q4 2023 [42]. Assets and Liabilities - Cash and cash equivalents increased to $578,330 as of December 31, 2024, compared to $417,663 at the end of 2023, reflecting a 38.5% increase [28]. - Total assets grew to $3,025,655 as of December 31, 2024, up from $2,813,540 in 2023, marking a 7.5% increase [24]. - The company reported a total current liabilities of $1,031,959 as of December 31, 2024, slightly up from $1,029,883 in 2023 [24]. - Long-term debt increased to $737,939 as of December 31, 2024, from $614,781 in 2023, reflecting a 20.1% increase [24]. Future Projections - The company expects 2025 revenue in the range of $4.2 billion to $4.4 billion, with an adjusted EBITDA margin of 11.0% to 12.0% [20]. - Capital expenditures for 2025 are projected to be approximately $140 million to $160 million, including strategic materials investments of about $50 million [16]. - Committed and Awarded Projects (CAP) totaled $5.3 billion, a decrease of $324 million sequentially and $250 million year-over-year, with expectations for significant project awards in the first half of 2025 [12]. Cash Position - Granite has $586 million in cash and marketable securities, positioning the company well for M&A opportunities and strategic investments [4].

Group 1 - The company Granite Construction Incorporated (NYSE: GVA) is recognized as a provider of infrastructure solutions and has been viewed positively for several years [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting the potential for value and growth in the oil and natural gas sector [1] Group 2 - Subscribers to Crude Value Insights benefit from a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement and information sharing [2]

Project Details - Granite Construction Incorporated (GVA) has been awarded an $88 million project by the California Department of Transportation (Caltrans) to improve a portion of Ortega Highway State Route 74 (SR 74) [1] - The project will be funded by state and federal sources, with construction expected to begin in April 2025 and be completed by November 2026 [1] - GVA will include this project in its first quarter of 2025 Committed and Awarded Projects (CAP) [1] Work Scope - The project involves widening shoulders and roadways, installing centerline and edge line rumble strips, and resurfacing the highway to improve safety and efficiency [2] - These enhancements will provide vehicle buffer room, significantly improving safety on the narrow two-lane mountainous highway [2] Strategic Importance - The contract builds on Granite's ongoing efforts on this stretch of highway over the past few years, aligning with its strategic goal of expanding its footprint in the Inland Empire of Southern California [3] - Granite is focusing on growing a high-quality CAP portfolio, leveraging positive public funding and a resilient private market to deliver larger projects while minimizing risk [3] CAP Growth - During the third quarter of 2024, Granite added $44 million to its CAP, bringing the total to $5.6 billion, a $44 million sequential increase and a $35 million year-over-year increase [4] - Best-value projects represented 42% ($2.4 billion) of the company's CAP at the end of the quarter, an increase of $31 million from the year-ago quarter [4] Best-Value Projects - Best-value projects include construction manager, general contractor, and progressive design builds, which Granite believes are more efficiently constructed and have a solid growth trajectory [5] Stock Performance - GVA's shares have gained 39.9% in the past six months, slightly below the Zacks Building Products - Heavy Construction industry's 41.8% growth [7] - The company believes strong opportunities across public and private markets will likely foster growth in the upcoming period [8] Industry Comparison - Weyerhaeuser Company (WY) has a Zacks Rank 1 (Strong Buy) and delivered a trailing four-quarter earnings surprise of 41.6% on average, with a 1.6% loss in the past six months [10] - Frontdoor, Inc. (FTDR) has a Zacks Rank 1 and delivered a trailing four-quarter earnings surprise of 269% on average, with a 57.7% gain in the past six months [10] - MasTec, Inc. (MTZ) has a Zacks Rank 2 (Buy) and delivered a trailing four-quarter earnings surprise of 40.2% on average, with a 53.8% gain in the past six months [11]

Granite Construction Incorporated (GVA) has secured a $71 million contract from the U.S. Army Corps of Engineers to expand and modernize the rail yard at Fort Bliss in El Paso, TX. The project, which is fully funded by federal sources, was included in Granite’s third-quarter 2024 Committed and Awarded Projects (CAP), further solidifying the company’s position in government infrastructure work.Shares of Granite gained 2.6% yesterday during the trading session.Boosting Capacity and Efficiency of GVAThe rail y ...

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Financial Data and Key Metrics Changes - Revenue increased by $159 million or 14% year-over-year, reaching $1.1 billion in Q3 2024, driven by higher levels of backlog [43][44] - Gross profit rose by $36 million or 22%, with an adjusted EBITDA improvement of $23 million or 18% [43][44] - Operating cash flow improved significantly by $249 million year-over-year, totaling $284 million for the first nine months of 2024 [47][48] Business Line Data and Key Metrics Changes - In the construction segment, revenue totaled $1.1 billion, reflecting a 14% increase year-over-year, with gross profit margin at 16% [32][44] - The materials segment saw revenue increase by $24 million year-over-year to $195 million, with gross profit up to $32 million [46] - Cash gross profit margins in the materials segment remained strong at 22%, driven by price increases and newly acquired businesses [46] Market Data and Key Metrics Changes - The company reported strong performance across its geographies, particularly in California, Alaska, and Utah [44] - Public funding supports approximately 75% of construction revenue, with expectations for continued growth in both public and private sectors [16][17] - The company anticipates organic revenue growth at a compounded annual growth rate of 6% to 8% through 2027 [19][74] Company Strategy and Development Direction - The company aims to grow revenue and increase margins in both construction and materials segments, with a focus on de-risking its project portfolio and expanding geographically [10][12] - A strategic investment in automation and other projects is expected to drive production costs down and improve margins in the materials segment [26] - The company plans to pursue bolt-on acquisitions and geographical expansion to strengthen its market position [20][21] Management's Comments on Operating Environment and Future Outlook - Management expects the public markets to remain strong, supported by ongoing infrastructure funding from the IIJA [13][14] - The company is optimistic about future revenue growth despite some project delays, which are not unusual in the industry [32][70] - There is confidence in achieving further margin improvements in 2025, driven by a strong project pipeline and operational excellence [56][93] Other Important Information - The company has a strong cash position of $472 million, allowing for potential acquisitions and share repurchases [49][50] - Capital expenditures for the year are expected to be approximately $139 million, with a focus on maintaining discipline in spending [53] - The company narrowed its adjusted EBITDA margin guidance to 10% to 11% for 2024 [52] Q&A Session Summary Question: Long-term outlook on EBITDA margin expansion - Management indicated that the primary driver for EBITDA margin improvement will be the construction segment, with expectations for a ramp-up in Q4 and into 2025 [61][62] Question: Causes of project delays into 2025 - Delays were attributed to owner-driven factors, including notice to proceed delays and changes in conditions [69][70] Question: Organic revenue growth rate and market dynamics - The company expects a 6% to 8% organic revenue growth rate, with more confidence in the public market compared to the private sector [72][74] Question: Capital allocation strategy regarding acquisitions and share repurchases - The company plans to balance investments in M&A and share repurchases, with a focus on maintaining a strong cash position [75][79] Question: Pricing expectations for aggregates and asphalt - The company anticipates high single-digit price increases for aggregates and low single-digit increases for asphalt in 2025, supported by strong public market visibility [86]