Loading...
•
Jun 30, 2022
Granite Q2 2022 Earnings Report
Granite reported a net loss due to ORP costs but saw strength in its core business.
Key Takeaways
Granite Construction Incorporated reported a net loss of $(2) million, or $(0.05) per diluted share, for the quarter ended June 30, 2022. The results were impacted by additional costs in the Old Risk Portfolio (ORP). However, the core business is getting stronger, with improved gross profit margins excluding the ORP and higher quality CAP in mix and margin.
Second quarter results were impacted by additional costs in the ORP.
Estimate of remaining ORP work going into 2023 is on track and remains largely unchanged.
Core business is getting stronger, illustrated by improved gross profit margins excluding the ORP and higher quality CAP in mix and margin.
Accrued $12 million for an expected resolution of the SEC investigation.
Granite
Granite
Forward Guidance
For the 2022 fiscal year, the Company is revising adjusted EBITDA margin guidance to a range of 5.5% - 6.5% from a range of 6% - 8%. The remaining guidance below is unchanged:
Positive Outlook
- Low single digit growth in revenue from continuing operations
- SG&A expense from continuing operations in the range of 8.0% to 8.5% of revenue
- Low-to-mid-20s effective tax rate range
- Capital expenditures in the range of $100 million to $115 million