Granite Construction Reports Strong Q3 2024 Growth

Granite Construction ( (GVA) ) has released its Q3 earnings. Here is a breakdown of the information Granite Construction presented to its investors.

Granite Construction Incorporated, established in 1922, is a leading diversified construction and construction materials company in the United States, renowned for its safety, quality, and sustainability initiatives. The company operates within the civil construction sector, offering a comprehensive range of infrastructure services.

In its recent earnings announcement for the third quarter of 2024, Granite Construction reported a significant revenue increase of 14% year-over-year, reaching $1.3 billion. The company also achieved a diluted earnings per share (EPS) of $1.57, with an adjusted EPS of $2.05, marking a notable improvement from the previous year. Additionally, Granite recorded a record level of Committed and Awarded Projects (CAP), indicating a strong project pipeline.

Key financial highlights include a $36 million increase in gross profit, reaching $203 million, and an adjusted EBITDA of $149 million, up from $126 million the prior year. The company’s Construction and Materials segments both experienced a 14% growth in revenue, contributing to a year-to-date operating cash flow increase of $249 million. The acquisition of Dickerson & Bowen, Inc. further expanded Granite’s presence in the southeast home market, aligning with its strategic growth initiatives.

Looking ahead, Granite Construction remains optimistic about its future performance, aiming for organic growth with a compound annual growth rate (CAGR) of 6% to 8% through 2027. The company anticipates continued margin expansion and cash flow growth, backed by a strong balance sheet and robust market conditions. Granite also plans to explore further acquisition opportunities to enhance its vertically integrated operations and return value to shareholders through share repurchases.