[Financial Performance Overview](index=1&type=section&id=Granite%20Reports%20Third%20Quarter%202024%20Results) [Third Quarter 2024 Results](index=1&type=section&id=Third%20Quarter%202024%20Results) Granite reported strong third-quarter 2024 results with a 14% year-over-year revenue increase to $1.3 billion, with net income and earnings per share seeing significant growth, and record Committed and Awarded Projects (CAP) of $5.6 billion Q3 2024 Key Financial Metrics | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1.3 billion | $1.1 billion | +14% YoY | | **Net Income** | $79 million | $58 million | +36.2% YoY | | **Diluted EPS** | $1.57 | $1.13 | +38.9% YoY | | **Adjusted Net Income** | $91 million | $77 million | +18.2% YoY | | **Adjusted Diluted EPS** | $2.05 | $1.72 | +19.2% YoY | | **Gross Profit** | $203 million | $167 million | +21.6% YoY | | **Adjusted EBITDA** | $149 million | $126 million | +18.3% YoY | - Committed and Awarded Projects (CAP) reached a record **$5.6 billion**, showing a sequential increase of **$44 million** and a year-over-year increase of **$35 million**[1](index=1&type=chunk)[3](index=3&type=chunk) - The company expanded its southeast home market through the acquisition of Dickerson & Bowen, Inc[1](index=1&type=chunk) [Nine Months 2024 Results](index=1&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202024%20Results) For the first nine months of 2024, Granite's revenue grew by $455 million to $3.0 billion, with net income surging to $85 million, a substantial increase from $18 million in the prior-year period Nine Months 2024 Key Financial Metrics | Metric | Nine Months 2024 | Nine Months 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $3.0 billion | $2.6 billion | +17.5% YoY | | **Net Income** | $85 million | $18 million | +372.2% YoY | | **Diluted EPS** | $1.79 | $0.40 | +347.5% YoY | | **Adjusted Net Income** | $158 million | $110 million | +43.6% YoY | | **Adjusted Diluted EPS** | $3.56 | $2.47 | +44.1% YoY | | **Gross Profit** | $422 million | $302 million | +39.7% YoY | | **Adjusted EBITDA** | $293 million | $204 million | +43.6% YoY | - Year-to-date operating cash flow increased by **$249 million** compared to the same period in the prior year[1](index=1&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) [Construction Segment](index=2&type=section&id=Construction%20Segment) The Construction segment delivered strong year-over-year growth in both the third quarter and the first nine months of 2024, driven by higher CAP levels, favorable weather, and contributions from acquisitions, with gross profit margin also expanding Construction Segment Performance (in thousands) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $1,080,705 | $945,698 | $2,593,872 | $2,198,527 | | **Gross Profit** | $170,685 | $137,162 | $362,885 | $253,021 | | **Gross Profit Margin** | 15.8% | 14.5% | 14.0% | 11.5% | - Committed and Awarded Projects (CAP) increased to a record **$5.6 billion**, providing a strong foundation for future revenue[7](index=7&type=chunk) [Materials Segment](index=2&type=section&id=Materials%20Segment) The Materials segment reported revenue growth of 13.8% in Q3 and 15.8% year-to-date, primarily due to contributions from acquired businesses and higher asphalt and aggregate sales prices, reflecting the positive impact of acquisitions and pricing power Materials Segment Performance (in thousands) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $194,805 | $171,122 | $436,399 | $376,913 | | **Gross Profit** | $32,264 | $29,481 | $59,060 | $49,067 | | **Gross Profit Margin** | 16.6% | 17.2% | 13.5% | 13.0% | | **Cash Gross Profit** | $43,202 | $36,203 | $89,718 | $67,581 | - Revenue growth was driven by acquired businesses and higher sales prices, which successfully offset a decrease in asphalt volumes[8](index=8&type=chunk) [Outlook and Strategy](index=1&type=section&id=Outlook%20and%20Strategy) [2024 Full-Year Guidance](index=3&type=section&id=2024%20Full-Year%20Guidance) Granite updated its full-year 2024 guidance, maintaining its revenue forecast while narrowing and raising the adjusted EBITDA margin range to 10%-11%, and increasing its SG&A expense forecast due to higher incentive compensation Updated 2024 Full-Year Guidance | Metric | Updated 2024 Guidance | Previous 2024 Guidance | | :--- | :--- | :--- | | **Revenue** | $3.9B - $4.0B | Unchanged | | **Adjusted EBITDA Margin** | 10% - 11% | 9.5% - 11.5% | | **SG&A as % of Revenue** | 8.3% - 8.5% | 7.5% - 8.0% | | **Effective Tax Rate (Adjusted)** | Mid-20s | Not specified | | **Capital Expenditures** | ~$130 million | Not specified | [Long-Term Targets and Market View](index=1&type=section&id=Long-Term%20Targets%20and%20Market%20View) The CEO expressed a positive long-term outlook, targeting organic growth of 6-8% CAGR through 2027, supported by the federal infrastructure bill and a healthy private market, with plans for materials-focused acquisitions and share repurchases - The company's 2027 financial targets anticipate organic revenue growth at a CAGR of **6% to 8%**, with continued adjusted EBITDA margin expansion[3](index=3&type=chunk) - Management believes the public market will be supported for years by the federal infrastructure bill and sees numerous growth opportunities in the private market[3](index=3&type=chunk) - Future capital allocation strategy includes pursuing bolt-on and larger materials-focused acquisitions and returning value to shareholders through share repurchases[3](index=3&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, Granite's balance sheet showed total assets of $3.13 billion, an increase from $2.81 billion at the end of 2023, supported by increases in cash, receivables, and goodwill, while total liabilities also rose and total equity saw a modest increase Key Balance Sheet Items (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $1,814,102 | $1,643,451 | | **Total Assets** | $3,130,925 | $2,813,540 | | **Total Current Liabilities** | $1,164,826 | $1,029,883 | | **Total Liabilities** | $2,061,246 | $1,786,574 | | **Total Equity** | $1,069,679 | $1,026,966 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations for the third quarter and first nine months of 2024 reflects strong top-line growth translating to significantly improved profitability, with total revenue increasing to $3.03 billion and net income attributable to Granite surging to $84.9 million for the nine months ended September 30, 2024 Key Income Statement Items (in thousands) | Account | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $1,275,510 | $1,116,820 | $3,030,271 | $2,575,440 | | **Gross Profit** | $202,949 | $166,643 | $421,945 | $302,088 | | **Operating Income** | $104,298 | $73,818 | $146,819 | $59,429 | | **Net Income Attributable to Granite** | $78,951 | $57,624 | $84,863 | $17,601 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operating activities was $283.5 million, a significant improvement from the prior-year period, while investing activities used $211.1 million and financing activities used $27.8 million, resulting in a $44.6 million increase in cash and cash equivalents Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $283,549 | $34,198 | | **Net Cash used in Investing Activities** | ($211,107) | ($89,270) | | **Net Cash provided by (used in) Financing Activities** | ($27,819) | $53,205 | | **Net Increase (Decrease) in Cash** | $44,623 | ($1,867) | | **Cash and Cash Equivalents at End of Period** | $462,286 | $292,124 | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [EBITDA and Adjusted EBITDA Reconciliation](index=11&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) The company's non-GAAP measures show strong underlying performance, with Adjusted EBITDA increasing to $149.3 million in Q3 2024 and the margin improving to 11.7%, while for the nine-month period, Adjusted EBITDA grew to $293.2 million EBITDA and Adjusted EBITDA (in thousands) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Income Attributable to Granite** | $78,951 | $57,624 | $84,863 | $17,601 | | **EBITDA** | $138,768 | $104,542 | $218,541 | $105,913 | | **Adjusted EBITDA** | $149,280 | $126,313 | $293,196 | $203,568 | | **Adjusted EBITDA Margin** | 11.7% | 11.3% | 9.7% | 7.9% | [Adjusted Net Income Reconciliation](index=12&type=section&id=Adjusted%20Net%20Income%20Reconciliation) After adjustments, Granite's adjusted net income for Q3 2024 was $90.5 million, or $2.05 per diluted share, compared to $76.7 million, or $1.72 per diluted share, in Q3 2023, with adjusted diluted EPS for the nine-month period reaching $3.56 Adjusted Net Income and EPS | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Net Income (in thousands)** | $78,951 | $57,624 | $84,863 | $17,601 | | **Adjusted Net Income (in thousands)** | $90,535 | $76,654 | $158,303 | $109,724 | | **GAAP Diluted EPS** | $1.57 | $1.13 | $1.79 | $0.40 | | **Adjusted Diluted EPS** | $2.05 | $1.72 | $3.56 | $2.47 | [Materials Segment Cash Gross Profit Reconciliation](index=13&type=section&id=Materials%20Segment%20Cash%20Gross%20Profit%20Reconciliation) The Materials segment's cash gross profit, a non-GAAP measure, was $43.2 million in Q3 2024, up from $36.2 million in Q3 2023, with the cash gross profit margin improving to 22.2% from 21.2%, indicating stronger operational profitability before non-cash charges Materials Segment Cash Gross Profit (in thousands) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Gross Profit** | $32,264 | $29,481 | $59,060 | $49,067 | | **Depreciation, Depletion & Amortization** | $10,938 | $6,722 | $30,658 | $18,514 | | **Cash Gross Profit** | $43,202 | $36,203 | $89,718 | $67,581 | | **Cash Gross Profit Margin** | 22.2% | 21.2% | 20.6% | 17.9% |

One of my better calls over the last year or so has been Granite Construction (NYSE: GVA ), a company that focuses on the construction and rehabilitation of roads, bridges, rail lines, airports, and more. It is also involved in 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 ...

Core Insights - Granite Construction Incorporated (GVA) has secured a $34 million contract for seismic improvements at Oakland International Airport, aimed at protecting the runway from water intrusion [1] - The project will utilize cement deep soil mixing (CDSM) to strengthen 4,200 linear feet of the dike, with construction expected to start in Q1 2025 and finish by Q3 2026 [2] - GVA's revenue for 2024 is projected to be between $3.9 billion and $4 billion, with an adjusted EBITDA margin of 9.5% to 11.5% [6] Company Performance - GVA's shares have increased by 33.8% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry's growth of 19.6% [5] - The company has consistently received contracts due to strong execution and is expanding its business through acquisitions and investments [5] - In 2023, GVA reported revenues of $3.5 billion, with SG&A at 8.4% and an adjusted EBITDA margin of 8% [6] Earnings Outlook - EPS estimates for 2024 remain stable at $5.24, indicating a year-over-year growth of 66.9% [7] - GVA has exceeded analysts' EPS expectations in three of the last four quarters, averaging a 26.4% beat [7] Market Position - GVA is focused on building a high-quality CAP portfolio, benefiting from a favorable public funding environment and a resilient private market [3] - The company's CAP includes unearned revenue and other awards, reflecting its future revenue expectations from executed contracts [4]

Granite Construction Incorporated (GVA) secured a significant contract valued at approximately $113 million for constructing new facilities at Marine Corps Base Camp Blaz (MCCB). The construction will be carried out in partnership with Obayashi Corporation through the Granite-Obayashi 2 Joint Venture. GVA stock moved up 0.5% during the trading session on Sept. 24. Key Project Highlights This project will be funded by the Department of Defense's (DOD) Military Construction (MILCON) program and will be includ ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Eve ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potent ...

Granite Construction Incorporated (GVA) recently announced a win with the Utah Department of Transportation ("UDOT"), securing a $65 million contract for Phase 2 of the SR-30 Improvement Project in Logan, UT. This deal builds on Granite's successful completion of Phase 1 in 2023, positioning the company as the preferred low bidder for the next phase of the project. GVA stock gained 0.7% during the trading session on Sept. 10. Boost to Granite's Stock Value This contract, funded by UDOT and federal sources, ...

Granite Construction Incorporated (GVA) secured a $38-million contract from the California Department of Transportation (Caltrans) for the Highway 101 mainline segment. This contract involves adding peak-hour High Occupancy Vehicle (HOV) lanes and reconstructing the highway in southern Santa Barbara. The project, funded by Caltrans and local sources, was included in GVA's second-quarter Committed and Awarded Projects (CAP). The latest Highway 101 mainline segment marks Granite's sixth project under its Cons ...

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Granite Construction (GVA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question. Granite Construction is a member of our Construction group, which includes 91 d ...

Granite Construction Incorporated (GVA) has acquired Dickerson & Bowen, Inc. (D&B), a leading regional aggregates, asphalt, and highway construction company serving Central and Southern Mississippi, in cash. This bolt-on buyout is highly complementary to GVA's prior acquisition of Lehman-Roberts Company and Memphis Stone & Gravel (LRC and MSG). This materials-focused business also builds on Granite's footprint in the Southeast, serving as a growth platform in the Memphis metropolitan and Mississippi markets ...