Granite Constr Inc Stock Price, News & Analysis

Granite Construction Incorporated (NYSE: GVA) has completed the acquisition of Dickerson & Bowen, Inc. (D&B), a leading regional aggregates, asphalt, and highway construction company in Mississippi. This acquisition adds three sand and gravel pits and four asphalt plants to Granite's southeast home market, extending its footprint to central and southern Mississippi. The purchase complements Granite's 2023 acquisition of Lehman-Roberts Company / Memphis Stone & Gravel, strengthening its presence in the Memphis metropolitan and Mississippi markets.

Granite's CEO, Kyle Larkin, emphasized that this acquisition aligns with the company's 'strengthen and expand' capital allocation strategy, focusing on vertically integrated construction and materials operations. The company financed the acquisition through cash on hand and continues to evaluate M&A opportunities within its existing footprint and in new geographies.

Granite Construction Incorporated (NYSE: GVA) reported strong Q2 2024 results, with revenue increasing 20% year-over-year to $1.1 billion. The company posted a Q2 diluted EPS of $0.76 and adjusted diluted EPS of $1.73. Committed and Awarded Projects (CAP) reached $5.6 billion, a sequential increase of $77 million.

Granite also announced an agreement to acquire Dickerson & Bowen, Inc., a leading regional aggregates, asphalt, and highway construction company in Mississippi. This acquisition is expected to close in Q3 and will expand Granite's footprint in the high-growth market south through Jackson, Mississippi.

The company narrowed its 2024 revenue guidance to the upper half of the previous range, now $3.9 billion to $4.0 billion. Other guidance metrics remain unchanged, including adjusted EBITDA margin of 9.5% to 11.5% and SG&A expense of 7.5% to 8.0% of revenue.

Granite (NYSE:GVA) has been awarded a $27 million contract by Caltrans to enhance a 19-mile stretch of State Route 33 in Kern County, California. The project, set to begin in November 2024 and complete in January 2026, involves widening shoulders, resurfacing, and improving drainage systems. Key features include:

• Adding 5-foot shoulders on both sides
• Utilizing 115,160 tons of Hot Mix Asphalt from Granite's local facility
• Replacing 19 drainage systems and constructing new culverts
• Enhancing road safety and driving conditions

This project showcases Granite's vertically integrated business model and builds on their 50-year history in Kern County.

Granite Construction Incorporated (NYSE: GVA) has announced the timing for its Q2 2024 earnings release and investor conference call. The company will release its financial results for the quarter ended June 30, 2024, before market opens on Thursday, August 1, 2024. An investor conference call is scheduled for 8:00 a.m. PT on the same day.

Investors can access the live audio webcast of the call on Granite's Investor Relations website. Alternatively, they can dial in at 1-877-328-5503 (US) or 1-412-317-5472 (international). An archive of the webcast will be available approximately one hour after the call, and a replay will be accessible until August 8, 2024, by calling 1-877-344-7529 (US) or 1-412-317-0088 (international) with the replay access code 7954492.

Granite (NYSE:GVA) has secured a $20 million contract from the Coachella Valley Association of Governments (CVAG) to build a segment of a 40-mile multimodal pathway in Southern California, linking Palm Springs to Thermal. Scheduled to start in July 2024 and finish by July 2025, the pathway will serve pedestrians, bicyclists, and low-speed electric vehicles, easing vehicular traffic and promoting outdoor activity. This project will enhance community connectivity and aligns with Granite's home market strategy. The Desert Cities Asphalt Plant, a Granite facility, will supply some of the materials for this development.

Granite (NYSE:GVA) announced that Lehman-Roberts, a Granite company, has been selected as a subcontractor by Dement Construction Company for a Tennessee Department of Transportation (TDOT) project. Funded by federal and TDOT funds, Lehman-Roberts' $21 million contract will be part of Granite's second-quarter CAP. This Phase 2 project aims to add lanes and overpasses over two miles to ease congestion and enhance transportation efficiency. Lehman-Roberts will produce 178,000 tons of hot mix asphalt, while Granite-owned Memphis Stone & Gravel will supply 2,600 tons of washed sand, 182,000 tons of clay gravel, and 32,000 tons of screened gravel. The project is set to start in July 2024 and finish in July 2028.

Granite (NYSE:GVA) announced that its joint venture, GKJV-II, will undertake a $113 million project to remove and replace the Lafayette Bascule Bridge in Bay City, Michigan. This joint venture with Kraemer North America was awarded the contract by the Michigan Department of Transportation (MDOT) and is funded by the Federal Highway Administration (FHWA) and MDOT. The project, leveraging the team's expertise in movable bridge and marine construction, will be included in Granite's second-quarter CAP. Key works include demolition, cofferdam installation, new substructures, bascule piers, structural steel, machinery, bridge house, and approach spans. With work starting in Fall 2024 and expected completion by Summer 2027, this marks Granite's third bascule bridge project in Bay City. The company aims to enhance infrastructure and community quality of life through this initiative.

Granite (NYSE:GVA) has secured a $16 million contract from the City of Salinas to enhance safety and traffic flow on East Boronda Road. This project includes widening the road, constructing a multi-lane roundabout, adding bioretention facilities, bike lanes, sidewalks, ADA-compliant ramps, and more. The initiative will benefit pedestrians and cyclists, especially those commuting to a nearby elementary school. Funding is provided by the City of Salinas, and the project will be included in Granite’s second-quarter CAP. The project will start in Q3 2024 and complete by Fall 2025, with materials supplied by Granite’s local facilities.

Granite (NYSE:GVA) has been awarded a $25 million contract by the City of Everett to replace the Edgewater Creek Bridge, originally built in 1946. The project, funded by federal grants and local funds, will be included in Granite’s second-quarter CAP. This bridge replacement, featuring engineering challenges due to steep and unstable soils, will require the construction of a trestle for access. The site is located near Granite’s regional office, strengthening ties with the City of Everett. Construction is set to begin in November 2024 and complete by January 2026. Granite’s local facilities will supply the necessary materials.