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Sep 30, 2024
Granite Q3 2024 Earnings Report
Reported third quarter results with revenue growth and margin expansion.
Key Takeaways
Granite Construction reported a 14% increase in revenue to $1.3 billion and diluted EPS of $1.57, with adjusted diluted EPS of $2.05. The company's CAP reached a record $5.6 billion, driven by strong public and private markets. They anticipate significantly exceeding their target of 7% of revenue for the year in operating cash flow.
Q3 revenue increased 14% year-over-year to $1.3 billion.
Q3 diluted EPS of $1.57 and adjusted diluted EPS of $2.05, compared to $1.13 and $1.72 in the prior year, respectively.
Record Committed and Awarded Projects (“CAP”) of $5.6 billion, a sequential increase of $44 million.
Expanded southeast home market with acquisition of Dickerson & Bowen, Inc.
Granite
Granite
Granite Revenue by Segment
Revenue by Segment
Construction Segment Revenue
CapyFin.comMaterials Segment Revenue
CapyFin.com Forward Guidance
Granite updated its 2024 guidance, with revenue unchanged, adjusted EBITDA margin narrowed, SG&A expense increased, mid-20s effective tax rate for adjusted net income, and capital expenditures expected to be approximately $130 million.
Positive Outlook
- Revenue unchanged in the range of $3.9 billion to $4.0 billion
- Adjusted EBITDA margin in the range of 10% to 11%, narrowed from 9.5% to 11.5%
- Mid-20s effective tax rate for adjusted net income
- Capital expenditures expected to be approximately $130 million
Challenges Ahead
- SG&A expense in a range from 8.3% to 8.5% of revenue from a range of 7.5% to 8.0% of revenue due to increased incentive compensation
Revenue & Expenses
Visualization of income flow from segment revenue to net income