Granite(US:GVA)2025-11-06 22:07Financial Performance - Total revenue for Q3 2025 was $1,433.5 million, a 12.4% increase from $1,275.5 million in Q3 2024[143] - Gross profit for Q3 2025 was $260.5 million, up 28.3% from $202.9 million in Q3 2024[143] - The company’s net income attributable to Granite Construction for Q3 2025 was $102.9 million, compared to $79.0 million in Q3 2024[143] - Gross profit for the construction segment increased by $21.7 million (12.7%) for the three months ended September 30, 2025, and by $68.6 million (18.9%) for the nine months ended September 30, 2025, compared to 2024[155] - Materials gross profit surged by $35.9 million (111.4%) for the three months and by $53.0 million (89.7%) for the nine months ended September 30, 2025, compared to 2024, primarily due to higher volumes and sales prices[156] Revenue Breakdown - Materials revenue increased by $76.2 million (39.1%) in Q3 2025 compared to Q3 2024, driven by higher sales volumes and prices[147] - Construction revenue for Q3 2025 increased by $81.8 million (7.6%) compared to Q3 2024, primarily due to contributions from recently acquired businesses[145] Project and Funding Information - Committed and Awarded Projects (CAP) balance was $6.3 billion at the end of Q3 2025, supported by a positive public funding environment[136] - Significant additions to CAP included $350 million for a drainage improvement project in Illinois and $158 million for a federal project in Guam[150] - The Infrastructure Investment and Jobs Act (IIJA) has provided $550 billion in incremental funding over five years, boosting project lettings[133] - Public work projects account for approximately 85% of the company's portfolio, heavily reliant on federal, state, and local funding[133] Expenses and Costs - Selling, general and administrative (SG&A) expenses for the three months ended September 30, 2025, totaled $101.6 million, an increase of $10.0 million compared to the same period in 2024, mainly due to higher salaries and related expenses[157] - Other costs, net for the three months ended September 30, 2025, were $16.0 million, up from $8.5 million in 2024, primarily due to acquisition and integration costs[158] Tax and Income - The provision for income taxes for the three months ended September 30, 2025, was $38.1 million, with an effective tax rate of 25.8%[161] - The amount attributable to non-controlling interests for the three months ended September 30, 2025, was $(6.5) million, reflecting increased profitability on joint venture projects[163] Liquidity and Cash Flow - The company expects its primary sources of liquidity to be sufficient to meet working capital needs and capital expenditures for the next twelve months[167] - As of September 30, 2025, total cash, cash equivalents, and marketable securities amounted to $616.5 million, an increase from $585.6 million as of December 31, 2024[170] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $289.6 million, representing a $6.1 million increase compared to the same period in 2024[176] - Cash used in investing activities increased to $947.8 million for the nine months ended September 30, 2025, primarily due to a $569.6 million increase in cash used for acquisitions[177] - Cash provided by financing activities was $521.7 million for the nine months ended September 30, 2025, reflecting a $549.5 million increase compared to the same period in 2024[178] Debt and Financial Compliance - As of September 30, 2025, the company had $580.4 million of unused availability under its $600.0 million Revolver[169] - The principal amount of $373.8 million for the 3.25% Convertible Notes has been classified as a current liability as of September 30, 2025[169] - The company is in compliance with the financial covenants of its Credit Agreement as of September 30, 2025[183]