Granite Secures $34M Contract to Improve OAK Perimeter Dike

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]