Sep 30, 2022

Granite Q3 2022 Earnings Report

Granite reported strong third-quarter results driven by improved profitability and a robust market environment.

Key Takeaways

Granite Construction Incorporated announced third-quarter results with net income totaling $73 million, or $1.44 per diluted share. The company is raising its full-year 2022 adjusted EBITDA margin guidance to 6% to 7%.

Construction gross profit margin, excluding ORP, was 14.8%.

CAP (Committed and Awarded Projects) exceeded $4 billion.

The company is raising its full-year 2022 adjusted EBITDA margin guidance to 6% to 7%.

Mid-point of 2023 adjusted EBITDA margin guidance is expected to be at least 8%.

Total Revenue
$1.01B
Previous year: $1.06B
-4.9%
EPS
$1.41
Previous year: $0.93
+51.6%
Committed and Awarded Projects
$4B
Gross Profit
$139M
Previous year: $120M
+15.9%
Cash and Equivalents
$171M
Previous year: $439M
-61.0%
Free Cash Flow
$64.1M
Previous year: $64.4M
-0.4%
Total Assets
$4B
Previous year: $2.56B
+56.1%

Granite

Granite

Forward Guidance

For the 2022 fiscal year, revenue is updated to a range of $3.2 billion to $3.3 billion. The company raised adjusted EBITDA margin range of 6% - 7%.

Positive Outlook

  • Revenue updated to a range of $3.2 billion to $3.3 billion
  • SG&A expense unchanged in the range of 8.0% to 8.5% of revenue
  • Adjusted effective tax rate range unchanged at low-to-mid-20s
  • Adjusted EBITDA margin (2) range of 6% - 7%