Granite Announces $65 Million Phase 2 of SR-30 Improvement Project in Logan, Utah

Rhea-AI Summary

Granite (NYSE:GVA) has been awarded a $65 million contract by the Utah Department of Transportation (UDOT) for Phase 2 of the SR-30 Improvement Project in Logan, Utah. The project, funded by UDOT and Federal sources, aims to enhance the SR-30 corridor, which serves diverse traffic including public travelers, farm equipment, horses, cyclists, and runners. Key improvements include:

• A 12-foot-wide multi-use path with a concrete box underpass
• Wider shoulders and turning lanes
• Advanced warning signs for railroad crossings
• Two new precast box culverts
• Widening of a concrete girder bridge

The project also includes infrastructure upgrades such as guardrail, ATMS, lighting, signalization, and various utility improvements. Phase 2 began in July 2024 and is expected to complete in December 2025.

Positive

• Secured a $65 million contract for Phase 2 of SR-30 Improvement Project
• Strengthens ongoing relationship with UDOT
• Ensures engagement of Granite's structures, pipe, and earthwork crews through late 2024 and most of 2025
• Successful completion of Phase 1 in 2023 positioned Granite as the low bidder for Phase 2

Negative

• None.

Insights

Construction Industry Analyst

The $65 million contract for Phase 2 of the SR-30 Improvement Project represents a significant win for Granite, showcasing their strong position in the infrastructure sector. This project's scope, including roadway enhancements and safety features, aligns with the growing demand for improved transportation infrastructure. The multi-year timeline (July 2024 to December 2025) provides Granite with a stable revenue stream and workload for their crews, which is important for construction companies. The project's diverse elements, from multi-use paths to environmental considerations, demonstrate Granite's versatility and could potentially open doors to similar contracts in the future. However, investors should note that while this contract is substantial, it's important to consider it in the context of Granite's overall project portfolio and financial health.

Transportation Infrastructure Expert

The SR-30 Improvement Project exemplifies a comprehensive approach to modern transportation infrastructure. The inclusion of a 12-foot-wide multi-use path and underpass addresses the growing emphasis on multi-modal transportation, catering to cyclists and pedestrians alongside vehicular traffic. This aligns with current urban planning trends and could serve as a model for future projects. The focus on safety, with advanced warning signs for railroad crossings and wider shoulders, is particularly noteworthy. These improvements are likely to reduce accidents and improve traffic flow, potentially leading to economic benefits for the Logan area. The project's consideration of environmental factors, such as accommodating the Logan River / Cutler Marsh area, also reflects a balanced approach to infrastructure development that could be viewed favorably by environmentally conscious stakeholders.

Financial Analyst

From a financial perspective, this $65 million contract is a positive development for Granite. The inclusion of the project in the company's second-quarter CAP suggests it was anticipated, which is reassuring for financial planning. The multi-year nature of the project provides revenue visibility through 2025, a valuable asset in the often cyclical construction industry. Granite's success in securing Phase 2 after completing Phase 1 demonstrates their ability to leverage past performance for future gains, a key factor in sustainable growth. However, investors should consider the profit margins typically associated with government infrastructure projects, which can be lower than private sector work. The project's reliance on both state (UDOT) and federal funding also highlights the importance of government spending patterns on Granite's future prospects. While this contract is positive, it's important to evaluate it within the context of Granite's overall financial health and project pipeline.

WATSONVILLE, Calif.--(BUSINESS WIRE)-- Granite (NYSE:GVA) has been awarded an approximately $65 million contract by the Utah Department of Transportation (UDOT) to commence Phase 2 of the SR-30 Improvement Project in Logan, Utah. Project funding will come from UDOT and Federal funds and was included in Granite’s second-quarter CAP.

“This project is a strategic win for Granite as it strengthens our ongoing relationship with UDOT,” said Jason Klaumann, Granite Vice President of Regional Operations. “The successful completion of Phase 1 in 2023 positioned us as the low bidder for Phase 2, ensuring our structures, pipe, and earthwork crews will remain engaged through late 2024 and most of the 2025 season. Our team is excited to continue working with UDOT Region 1 and deliver these critical improvements for the Logan community.”

The SR-30 corridor accommodates a diverse traffic mix, including the traveling public, farm equipment, horses, cyclists, and runners. The improvements will include a 12-foot-wide multi-use path with a cast-in-place concrete box underpass, wider shoulders, turning lanes, and advanced warning signs for railroad crossings. Also, the project will feature two new precast box culverts and widening one concrete girder bridge to accommodate the Logan River / Cutler Marsh area.

Key elements of the project include:

• Multi-use Path: A 12-foot-wide path for pedestrians and cyclists.
• Roadway Enhancements: Wider shoulders and turning lanes for improved traffic flow.
• Safety Features: Advanced warning signs for railroad crossings.
• Environmental Considerations: Installation of two new precast box culverts and the widening of one concrete girder bridge.
• Infrastructure Upgrades: Guardrail, ATMS, lighting, signalization, storm drain, water, sewer, and landscaping improvements.

Granite looks forward to the successful execution of Phase 2 and the impact it will have on the local community and infrastructure.

Phase 2 kicked off in July 2024 and is expected to be completed in December 2025.

About Granite

Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite civil construction provider. Granite’s Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, graniteconstruction.com, and connect with Granite on LinkedIn, X, Facebook, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910607489/en/

Granite Contacts

Media

Erin Kuhlman 831-768-4111

Investors

Wenjun Xu - 831-761-7861

Source: Granite

FAQ

What is the value of Granite's contract for Phase 2 of the SR-30 Improvement Project?

Granite (NYSE:GVA) has been awarded an approximately $65 million contract for Phase 2 of the SR-30 Improvement Project in Logan, Utah.

When is the expected completion date for Phase 2 of Granite's SR-30 Improvement Project?

Phase 2 of the SR-30 Improvement Project is expected to be completed in December 2025.

What are the main improvements included in Granite's SR-30 project?

The main improvements include a 12-foot-wide multi-use path, wider shoulders, turning lanes, advanced warning signs for railroad crossings, two new precast box culverts, and widening of a concrete girder bridge.

How does the SR-30 Improvement Project benefit Granite (GVA) strategically?

The project strengthens Granite's relationship with UDOT and ensures engagement of their structures, pipe, and earthwork crews through late 2024 and most of 2025, positioning them for future opportunities.