Granite(US:GVA)2025-05-01 21:04Financial Performance - Total revenue for the three months ended March 31, 2025, was $699.5 million, an increase of $27.3 million, or 4.1%, compared to $672.3 million in 2024[102] - Gross profit for the same period was $83.8 million, representing a 54.1% increase from $54.3 million in 2024, with a gross profit margin of 12.0%[111] - Construction revenue for the three months ended March 31, 2025, was $614.6 million, a 3.3% increase from $595.2 million in 2024, with public construction revenue decreasing to 64.4% of total construction revenue[104] - Materials revenue increased by $7.9 million, or 10.2%, to $84.9 million, driven by higher aggregates and asphalt volumes[105] - Construction gross profit increased by $28.6 million, or 50.3%, due to higher revenue and improved project execution[111] Project and Contract Information - Committed and Awarded Projects (CAP) balance was $5.7 billion as of March 31, 2025, an increase of $443.9 million, or 8.4%, from $5.3 billion at December 31, 2024[100] - Public sector projects accounted for approximately 80.6% of the total CAP, increasing from 77.8% at the end of 2024[108] - The company acquired Dickerson & Bowen, Inc. on August 9, 2024, contributing $10.1 million to construction revenue in Q1 2025[101] Expenses and Income - Selling, General and Administrative (SG&A) expenses for Q1 2025 totaled $115.9 million, an increase of $27.9 million (31.7%) compared to $87.99 million in Q1 2024, with SG&A as a percentage of revenue rising to 16.6% from 13.1%[112] - Other costs, net for Q1 2025 were $9.426 million, a decrease of $1.584 million (14.4%) from $11.01 million in Q1 2024, primarily related to ongoing civil litigation costs[113] - Total other income, net for Q1 2025 was $332,000, a decrease of $4.664 million compared to a net expense of $4.332 million in Q1 2024, driven by a $2.9 million decrease in equity income from affiliates[114] - The benefit from income taxes for Q1 2025 was $(11.756) million, compared to $(9.526) million in Q1 2024, with an effective tax rate of 29.3%, up from 24.4%[115] - The amount attributable to non-controlling interests increased to $(5.329) million in Q1 2025 from $(1.541) million in Q1 2024, reflecting new joint venture projects[116] Cash Flow and Capital Expenditures - Capital expenditures for Q1 2025 were $32.2 million, an increase of $4.3 million (15.4%) from $27.9 million in Q1 2024, with anticipated total capital expenditures for 2025 projected between $140 million and $160 million[125] - Cash provided by operating activities for Q1 2025 was $3.647 million, a decrease of $20.426 million (84.8%) from $24.073 million in Q1 2024, primarily due to a $33.3 million decrease in cash provided by working capital[126][128] - Cash used in investing activities for Q1 2025 was $(156.310) million, an increase of $145.548 million compared to $(10.762) million in Q1 2024, mainly due to $134.7 million in marketable securities purchases[129] - Cash used in financing activities for Q1 2025 was $(46.593) million, a decrease of $62.626 million compared to $(109.222) million in Q1 2024, primarily due to the repayment of a revolving credit facility balance[130] - As of March 31, 2025, total cash, cash equivalents, and marketable securities amounted to $513.077 million, down from $585.641 million as of December 31, 2024[122] Compliance and Share Repurchase - As of March 31, 2025, the company was in compliance with the financial covenants in the Credit Agreement, maintaining a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Leverage Ratio[135] - The Board of Directors authorized a share repurchase program of up to $300.0 million, with $189.5 million remaining available as of March 31, 2025, after repurchasing 200 shares in the three months ended[136] - Future share repurchases will depend on market conditions, securities law limitations, and other factors[137] Market Risk - There has been no material change in the company's exposure to market risk, except for diversification of the investment portfolio as disclosed in the financial statements[139] Economic Factors - The federal Infrastructure Investment and Jobs Act has increased federal funding for infrastructure projects to its highest level in over 60 years, with $550 billion allocated over five years[97] - The company has implemented proactive measures to mitigate macro-economic factors, including fixed forward purchase contracts and energy surcharges[99]