Granite Embarks on Multimodal Pathway in the Coachella Valley

Rhea-AI Summary

Granite (NYSE:GVA) has secured a $20 million contract from the Coachella Valley Association of Governments (CVAG) to build a segment of a 40-mile multimodal pathway in Southern California, linking Palm Springs to Thermal. Scheduled to start in July 2024 and finish by July 2025, the pathway will serve pedestrians, bicyclists, and low-speed electric vehicles, easing vehicular traffic and promoting outdoor activity. This project will enhance community connectivity and aligns with Granite's home market strategy. The Desert Cities Asphalt Plant, a Granite facility, will supply some of the materials for this development.

Positive

• Granite awarded a $20 million contract from CVAG for a significant project in Southern California.
• The project strengthens Granite's home market strategy and community presence.
• Pathway construction aligns with environmental sustainability by reducing vehicular traffic.
• Granite’s Desert Cities Asphalt Plant will supply materials, promoting local resource use.

Negative

• None.

Insights

Financial Analyst

The awarding of a $20 million contract to Granite by the Coachella Valley Association of Governments does speak positively to the company’s revenue stream, especially as it will be included in the second-quarter CAP (Construction Aggregate Products). This is important because it indicates immediate revenue recognition, which can positively affect Granite's quarterly earnings. Additionally, the project aligns with Granite’s home market strategy, suggesting a stronger foothold and continuity of revenue in the Coachella Valley, a region where they have firmly established roots since 1992. From a financial perspective, this contract symbolizes stability and local market dominance, which can enhance investor confidence in Granite's future earnings and market position.

Market Research Analyst

Granite's strategy to engage in the construction of a multimodal pathway is a smart move in terms of market positioning. The project likely aligns with broader environmental and infrastructural trends, such as the push for greener transportation solutions and better urban connectivity. By taking on such projects, Granite is not only positioning itself as a key player in sustainable infrastructure but also capitalizing on increasing public and governmental support for environmentally friendly projects. This can open doors for further opportunities in similar projects both locally and nationwide. For retail investors, this is a positive indicator that Granite is not just resting on its laurels but actively pursuing growth in emerging and socially relevant sectors.

WATSONVILLE, Calif.--(BUSINESS WIRE)-- Granite (NYSE:GVA) has been awarded an approximately $20 million contract by the Coachella Valley Association of Governments (CVAG) to construct the next segment of what will ultimately be a 40-mile pathway in Southern California from Palm Springs to Thermal. This project completes segments in the cities of Palm Springs and Cathedral City. Project funding comes from CVAG and will be included in Granite’s second-quarter CAP.

The multimodal pathway will provide a route for pedestrians, bicyclists, and low-speed electric vehicles, reducing vehicular traffic. This pathway will not only connect communities but also provide residents with an alternative outlet for outdoor activity. Granite successfully constructed an on-street portion of the CV Link in Palm Desert in 2021. This new project aligns Granite’s home market strategy, further cementing its position within the Coachella Valley.

“Granite has been a proud member of the Coachella Valley community since 1992 and is honored to be a part of this transformative project,” said Bill Moore, Granite Vice President of Regional Operations. “We have a long history of constructing projects for both the City of Palm Springs and the City of Cathedral City, and much of our craft workforce that will construct this project resides right here in the Coachella Valley.”

Granite’s Desert Cities Asphalt Plant will supply a portion of the materials for the project.

The project is expected to begin in July 2024 and be completed in July of 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/20240711025236/en/

Granite Contacts

Media

Erin Kuhlman - 831-768-4111

Investors

Wenjun Xu - 831-761-7861

Source: Granite

FAQ

What is the value of the contract Granite (NYSE:GVA) received from CVAG?

Granite received a $20 million contract from the Coachella Valley Association of Governments (CVAG).

When will the construction of the multimodal pathway by Granite (NYSE:GVA) begin and end?

Construction is expected to begin in July 2024 and be completed by July 2025.

What is the purpose of the multimodal pathway being constructed by Granite (NYSE:GVA)?

The pathway aims to reduce vehicular traffic and provide a route for pedestrians, bicyclists, and low-speed electric vehicles.

How does the new project align with Granite's (NYSE:GVA) strategy?

The project aligns with Granite's home market strategy and strengthens its position within the Coachella Valley.