Granite Construction Incorporated (GVA) Bundle
A Brief History of Granite Construction Incorporated
Company Overview
Granite Construction Incorporated (GVA) is a leading construction and materials company headquartered in Watsonville, California. Established in 1922, the company specializes in the construction of infrastructure such as highways, bridges, and airports, alongside providing materials such as asphalt and aggregates.
Financial Performance
As of September 30, 2024, Granite Construction reported total revenue of $1,275,510 thousand for the third quarter, compared to $1,116,820 thousand for the same period in 2023, reflecting a year-over-year increase of approximately 14.3%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $1,275,510 | $1,116,820 | +14.3% |
| Gross Profit | $202,949 | $166,643 | +21.8% |
| Net Income | $78,951 | $57,624 | +37.0% |
| Operating Income | $104,298 | $73,818 | +41.3% |
| Earnings Per Share (Diluted) | $1.54 | $1.18 | +30.5% |
Recent Acquisitions
Granite Construction has been active in expanding its operations through strategic acquisitions. Notably, on November 30, 2023, the company acquired LRC/MSG for $278.0 million. This acquisition was financed through a combination of a $150.0 million senior secured term loan and a $100 million draw from its revolving credit facility.
Revenue Breakdown
The revenue for the construction segment for nine months ended September 30, 2024, is detailed below:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Public Construction | $1,944,795 | 75.0% |
| Private Construction | $649,077 | 25.0% |
| Total Construction Revenue | $2,593,872 | 100% |
Cash Flow and Debt Management
Granite's cash flow management has shown resilience, with net cash provided by operating activities totaling $93,392 thousand for the nine months ended September 30, 2024, compared to $7,878 thousand in 2023. The company has also maintained a robust balance sheet with total equity of $1,069,679 thousand as of September 30, 2024.
Market Outlook and Strategy
Granite Construction continues to focus on enhancing its capabilities through technology and sustainable practices in construction. The company aims to leverage its extensive project backlog, which includes $5.6 billion in committed and awarded projects as of September 30, 2024. This positions Granite for continued growth in the competitive construction market.
A Who Owns Granite Construction Incorporated (GVA)
Shareholder Composition
As of 2024, Granite Construction Incorporated (GVA) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% |
| Institutional Investor | BlackRock, Inc. | 8.7% |
| Institutional Investor | State Street Corporation | 6.8% |
| Mutual Fund | American Funds | 5.2% |
| Individual Shareholder | Various (Retail Investors) | 68.8% |
Institutional Ownership Analysis
The institutional ownership of Granite Construction reflects a significant interest from major financial institutions. As of the latest report, institutional investors hold approximately 31% of total shares outstanding. The top three institutional shareholders are:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 4,600,000 | 10.5% |
| BlackRock, Inc. | 3,800,000 | 8.7% |
| State Street Corporation | 3,000,000 | 6.8% |
Recent Changes in Ownership
In 2024, Granite Construction saw some fluctuations in its shareholder composition. Notable changes include:
- Vanguard increased its holdings by approximately 250,000 shares.
- BlackRock adjusted its position, increasing its stake by 200,000 shares.
- Various retail investors collectively hold a significant portion, with a notable increase in share purchases during Q2 2024.
Equity Structure
As of September 30, 2024, the total number of shares outstanding for Granite Construction is 43,704,841 shares. The company has a well-structured equity composition, including:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $437 |
| Additional Paid-In Capital | $437,343 |
| Accumulated Other Comprehensive Income | $437 |
| Retained Earnings | $568,877 |
| Total Shareholders' Equity | $1,007,094 |
Non-Controlling Interests
Granite Construction also reports non-controlling interests totaling $62,585,000 as of September 30, 2024. This reflects the equity interests held by minority shareholders in consolidated subsidiaries.
Recent Financial Performance
Granite Construction's financial performance continues to attract investor interest. For the nine months ended September 30, 2024, the company reported:
- Total Revenue: $3,030,271,000
- Net Income: $84,863,000
- Earnings Per Share: $1.93
Conclusion
Granite Construction's ownership structure reflects a blend of institutional and individual investors, with significant support from major investment firms. The company continues to perform well financially, contributing to its attractiveness as an investment opportunity.
Granite Construction Incorporated (GVA) Mission Statement
Overview
Granite Construction Incorporated's mission statement emphasizes its commitment to "Building a Sustainable Future." The company aims to deliver high-quality construction services while promoting environmental stewardship and community engagement.
Financial Performance
As of September 30, 2024, Granite Construction reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenue | $1,275,510,000 | $1,116,820,000 | $3,030,271,000 | $2,575,440,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | $202,949,000 | $166,643,000 | $421,945,000 | $302,088,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Income | $104,298,000 | $73,818,000 | $146,819,000 | $59,429,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
How Granite Construction Incorporated (GVA) WorksFinancial OverviewAs of September 30, 2024, Granite Construction Incorporated (GVA) reported total revenue of $1,275,510 thousand for the three months ended, compared to $1,116,820 thousand in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $3,030,271 thousand, an increase from $2,575,440 thousand in 2023.
Revenue Breakdown by SegmentThe revenue for Granite Construction is segmented into Construction and Materials. For the three months ended September 30, 2024, the breakdown is as follows:
Contract Assets and LiabilitiesAs of September 30, 2024, Granite reported contract assets of $321,653 thousand and contract liabilities of $292,641 thousand. This reflects the company's ongoing engagements in various construction projects.
Committed and Awarded ProjectsGranite's committed and awarded projects, which include unearned revenue, total $5,619,795 thousand as of September 30, 2024. This includes:
Capital ExpendituresIn the nine months ended September 30, 2024, Granite incurred capital expenditures of $108,167 thousand, reflecting investments in construction equipment and facilities. Cash Flow AnalysisGranite Construction's cash flows from operating activities for the nine months ended September 30, 2024 were $283,549 thousand, a significant increase from $34,198 thousand in 2023.
Debt ObligationsAs of September 30, 2024, Granite's total long-term debt amounted to $737,458 thousand, reflecting the company's financing strategies for growth and project execution.
How Granite Construction Incorporated (GVA) Makes MoneyRevenue SegmentsGranite Construction Incorporated (GVA) generates revenue primarily from two segments: Construction and Materials. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
Construction RevenueIn the construction segment, revenue for the nine months ended September 30, 2024, was $2,593,872, a significant increase from $2,198,527 in the same period of 2023. This growth can be attributed to:
Within the construction segment, public sector projects accounted for 75.0% of the revenue, totaling $1,944,795, while private sector projects contributed 25.0%, or $649,077. Materials RevenueThe materials segment reported revenue of $436,399 for the nine months ended September 30, 2024, compared to $376,913 in the prior year. The increase was driven by:
Gross Profit and Operating IncomeGranite Construction's gross profit for the nine months ended September 30, 2024, was $421,945, representing a gross margin of approximately 13.9%. This was an increase from $302,088 in the same period of 2023. The operating income for the same period was reported at $146,819, up from $59,429 in 2023. Unearned Revenue and BacklogAs of September 30, 2024, Granite Construction had unearned revenue totaling $3,884,146, with approximately $2.7 billion expected to be recognized within the next twelve months. This backlog is crucial for future revenue recognition, indicating strong demand for their services. Net Income and Earnings Per ShareThe net income attributable to Granite Construction for the nine months ended September 30, 2024, was $84,863, a notable increase from $17,601 in the previous year. The diluted earnings per share increased to $1.79 from $0.40. Financial Overview and Performance MetricsGranite Construction's financial performance metrics for the nine months ended September 30, 2024, are summarized as follows:
Acquisitions and Strategic GrowthGranite Construction's growth strategy includes acquisitions that enhance its operational capacity and market reach. Notably, the acquisition of LRC/MSG for $278 million in late 2023 has contributed significantly to both construction and materials revenue. Cash Flow AnalysisFor the nine months ended September 30, 2024, cash provided by operating activities was $283,549, a substantial increase from $34,198 in 2023. This increase was driven by improved net income and working capital management. Conclusion on Revenue GenerationGranite Construction's diversified revenue streams from construction and materials, along with strategic acquisitions and strong backlog, position the company favorably for continued growth and profitability in the infrastructure sector.
Granite Construction Incorporated (GVA) DCF Excel Template 5-Year Financial Model 40+ Charts & Metrics DCF & Multiple Valuation Free Email Support Article updated on 8 Nov 2024Resources:
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