Granite Construction (GVA) Investor presentation summary

Company overview and strategy

• Founded in 1922, operates as a large, diversified, vertically integrated civil contractor and materials producer with a broad geographic footprint across the U.S.

• Focuses on both public and private sector clients, with expertise in construction and materials, including highways, bridges, rail, renewables, mining, and commercial projects.

• Employs a home market strategy, leveraging local market intelligence, community engagement, and strong owner/regulator relationships to create competitive advantages.

• Accelerates growth through organic initiatives and targeted M&A, recently expanding in the Southeast via acquisitions.

• Vertical integration enables control over materials, cost efficiencies, and quality assurance.

Market environment and funding

• Robust transportation funding in California, with Caltrans capital project allocations growing 38% YOY in 2023.

• California Senate Bill 1 (SB-1) provides stable, multi-year revenue and expenditure support for infrastructure.

• Strong public funding environment, led by the Infrastructure Investment and Jobs Act (IIJA), continues to drive organic growth opportunities.

• Healthy state budgets and resilient private markets support ongoing project demand.

Financial performance and guidance

• Q3 2024 revenue reached $1,276M, up 14% YOY, with adjusted EBITDA of $149M and margin of 11.7%.

• Construction gross profit margin was 16%, and materials segment saw increased gross profit and cash gross profit margin due to acquisitions and higher sales prices.

• Operating cash flow YTD was $283M, a significant increase from the prior year.

• FY 2024 revenue guidance is $3.9–$4.0B, with adjusted EBITDA margin guidance of 10.0–11.0%.

• 2027 targets include 6–8% organic growth CAGR, 12–14% adjusted EBITDA margin, and 6–8% free cash flow margin.