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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.
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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