Granite Construction Reports Strong Q4 and Fiscal Year 2024 Results
Granite Construction Incorporated, a leading diversified civil contractor and construction materials producer, has released its financial results for the fourth quarter and fiscal year ended December 31, 2024. The company reported significant growth in revenue, net income, and other key financial metrics, reflecting a robust market environment and effective project execution.
Financial Highlights
Granite Construction's fourth quarter revenue increased by 5% year-over-year to $977 million, while fiscal year revenue saw a 14% rise to $4.0 billion. The company reported a Q4 diluted EPS of $0.84 and an adjusted diluted EPS of $1.23. For the fiscal year, diluted EPS was $2.62, with an adjusted diluted EPS of $4.82. Operating cash flow for the fiscal year was $456 million, representing 11.4% of revenue. The company's Committed and Awarded Projects (CAP) stood at $5.3 billion.
Business and Operational Highlights
Granite's construction segment revenue increased by 3.5% in Q4 and 14.1% for the fiscal year, driven by a strong market environment, acquisitions, and favorable weather conditions. The construction segment's gross profit margin improved significantly, reaching 15.6% in Q4 and 14.4% for the fiscal year. The materials segment also saw revenue growth of 11.4% in Q4 and 14.6% for the fiscal year, primarily due to higher asphalt and aggregate prices and acquisitions.
Strategic Initiatives and Corporate Developments
Granite Construction has been actively pursuing strategic initiatives, including mergers and acquisitions, to enhance its market position. The company ended the year with $586 million in cash and marketable securities, positioning it well for future M&A opportunities and strategic investments. Additionally, the company has been focused on maintaining SG&A discipline and expanding margins.
Management's Perspective
Kyle Larkin, Granite's President and CEO, expressed gratitude to the company's teams for their hard work and dedication, highlighting that 2024 was a record year for Granite. Larkin emphasized the company's strong market position and the attractive opportunities created by high levels of public funding and private investment. He also mentioned the company's focus on organic revenue growth, M&A execution, and consistent cash flow generation as they drive toward their 2027 targets.
Future Outlook
Looking ahead to 2025, Granite Construction has provided guidance for revenue in the range of $4.2 billion to $4.4 billion and an adjusted EBITDA margin of 11.0% to 12.0%. The company expects SG&A expenses to be approximately 9.0% of revenue, inclusive of an estimated $45 million in stock-based compensation expense. The effective tax rate for adjusted net income is projected to be in the mid-20s, with capital expenditures ranging from $140 million to $160 million.
SEC Filing: GRANITE CONSTRUCTION INC [ GVA ] - 8-K - Feb. 13, 2025