Granite Secures $66M Caltrans Contract for SR99 Interchange

Core Viewpoint - Granite Construction Incorporated (GVA) has secured a $66 million contract from the California Department of Transportation for improvements to the Caldwell Avenue interchange on SR99, which is expected to enhance regional infrastructure and traffic flow [1][4][5]. Project Details - The project includes the construction of two new precast girder bridges, 12 retaining walls, and four new on- and off-ramps controlled by roundabouts [2][3]. - Approximately 216,000 cubic yards of import borrow will be required for roadway expansion, along with upgrades to the drainage system, new pavement markings, roadside signage, and replacement of highway electrical systems [3]. Strategic Growth and Regional Impact - The project is expected to benefit both the traveling public and regional development, aligning with another pavement rehabilitation project in nearby Tulare scheduled for 2025 [4]. - This contract reinforces Granite's leadership in transportation infrastructure and positions the company for continued growth, supported by federal and state funding [5]. CAP and Market Conditions - Granite is focusing on expanding its high-quality committed and awarded projects (CAP) portfolio, which totaled $5.3 billion in 2024, despite a sequential decline of $324 million and a year-over-year decrease of $250 million [6][7]. - Bidding activity remains strong, with expectations for significant project awards in the first half of 2025, indicating potential growth opportunities [7]. Stock Performance - GVA's shares have declined by 15.6% year to date, slightly better than the 16.4% decline in the Zacks Building Products - Heavy Construction industry, with the company optimistic about growth opportunities in public and private markets [9].