Granite Construction (GVA) Investor presentation summary

Company overview and strategy

• Founded in 1922, operates as a major diversified civil contractor and materials producer with a home market strategy and focus on organic growth and acquisitions.

• Serves both public and private sectors across construction and materials segments, with a geographically diverse client base.

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

• Recent acquisitions in the Southeast (Lehman-Roberts, Memphis Stone & Gravel, Dickerson & Bowen) expand footprint and provide access to significant reserves.

• Investment framework prioritizes strengthening core competencies, expanding home markets, and targeted M&A.

Market environment and funding

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

• California Senate Bill 1 provides stable, long-term revenue and expenditure outlook for infrastructure projects.

• Infrastructure Bill continues to support market growth and significant bid opportunities.

• Healthy state budgets and robust public and private market demand underpin growth.

Financial performance and guidance

• Q2 2024 revenue reached $1,082M, up 20% YOY, with construction and materials segments both contributing.

• Adjusted EBITDA margin rose to 12.0%, a 290bps increase YOY; adjusted net income was $77M.

• Operating cash flow improved to $22M, reversing a prior year outflow.

• 2024 revenue guidance is $3.9–$4.0B, with adjusted EBITDA margin expected at 9.5%–11.5%.

• SG&A as a percentage of revenue forecasted at 8.0% for 2024.