Granite's Southeast Home Market Expansion

Rhea-AI Summary

Granite (NYSE:GVA) is expanding its Southeast home market presence through multiple infrastructure projects following its acquisitions of Lehman-Roberts, Memphis Stone & Gravel (MSG), and Dickerson & Bowen Inc. The company secured three major projects: the Olive Branch Airport taxiway rehabilitation (2,750 tons of asphalt), the US 61 Tunica County project (34,000 tons of asphalt and 20,000 tons of shoulder gravel), and the SR 547 Claiborne County overlay project (22,500 tons of asphalt and 1,800 tons of granular material). All projects are scheduled for completion between July and October 2025.

Positive

• Strategic expansion in Southeast market through multiple infrastructure projects
• Secured three significant construction contracts
• Projects provide both construction revenue and materials business opportunities
• Demonstrates successful integration of recent acquisitions

Negative

• None.

Insights

Market Research Analyst

The Southeast expansion strategy through multiple infrastructure projects represents a calculated move to strengthen Granite's regional presence. The combined projects, totaling over 59,250 tons of hot mix asphalt production and significant aggregate materials supply, demonstrate effective vertical integration following recent acquisitions. The strategic positioning in airport infrastructure, highway rehabilitation and state transportation projects diversifies revenue streams while maximizing operational synergies between construction and materials divisions.

The projects' timing, spanning from late 2024 through 2025, provides stable revenue visibility and helps maintain consistent capacity utilization across newly acquired assets. While individual project values weren't disclosed, the scope and scale suggest meaningful contribution to backlog. The focus on public infrastructure contracts also offers relative stability and predictable cash flows, particularly valuable given current market uncertainties.

WATSONVILLE, Calif.--(BUSINESS WIRE)-- Granite (NYSE:GVA) continues to expand its home market strategy in the Southeast through various projects, leveraging its recent acquisitions of Lehman-Roberts, Memphis Stone & Gravel (MSG), and Dickerson & Bowen Inc. (D&B).

The following projects demonstrate versatility in the construction and materials industry in the region:

• Olive Branch Airport taxiway rehabilitation, Mississippi: Lehman-Roberts was recently awarded this project which consists of repairing and improving the existing asphalt pavement on a portion of the taxiway. They are calling it a “rehabilitation” of the taxiway, which consists of approximately 2,750 tons of hot mix asphalt (HMA). The estimated completion date is August 2025.
• Mississippi Department of Transportation (MDOT) Tunica County US 61 from Clayton to State Aid Road 72: Lehman-Roberts kicked off this project in September 2024, which includes Scrub Sealing & Overlaying approximately 10 miles of US 61 from Clayton to State Aid Road 72. Lehman-Roberts will produce 34,000 tons of HMA, and MSG will supply 20,000 tons of material for shoulder gravel. Work on this project began in August 2024 and is set for completion in July 2025.
• MDOT Claiborne County: D&B will overlay approximately 19 miles of SR 547 from the Copiah County Line to US 61 in Port Gibson. D&B will produce approximately 22,500 tons of HMA to complete the project. In addition, D&B’s Brookhaven plant will supply approximately 1,800 tons of Class 5, Group D Granular material. The project is projected to start in late October 2024 and is scheduled to be completed in October 2025.

"We are excited to announce these new contract awards," said Patrick Nelson, Granite Vice President of Regional Operations. "These projects not only enhance our construction backlog but also boost our asphalt and aggregate materials businesses. These new awards reflect our ongoing dedication to providing top-notch construction services to our clients and support our mission of serving our communities and improving their infrastructure."

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.

About Lehman-Roberts and sister company Memphis Stone & Gravel

Lehman-Roberts, a Granite Company, and Memphis Stone & Gravel, a Granite Company, have been a part of the fabric of the Mid-South for more than a combined 190 years. Today, the companies continue to build upon a long tradition of quality, trust and a strong culture that distinguishes them among competitors in the road construction, asphalt and aggregates industries. With an impressive record and vibrant leadership, it is well poised for its next 190 years of success. For more information, please call (901) 774-4000 or visit www.lehmanroberts.com.

About Dickerson & Bowen

Dickerson & Bowen has been paving the way for growth and development since 1947 by providing high quality raw materials, asphalt mixes, and paving capabilities. With a long-standing legacy and strong leadership, D&B strives to provide excellence through infrastructure for Mississippi motorists and residents. For more information, please visit www.dandbinc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029289050/en/

Granite Contacts

Media

Erin Kuhlman 831-768-4111

Investors

Wenjun Xu - 831-761-7861

Source: Granite

FAQ

What new projects did Granite (GVA) secure in the Southeast region?

Granite secured three projects: Olive Branch Airport taxiway rehabilitation, US 61 Tunica County overlay project, and SR 547 Claiborne County overlay project, all scheduled for completion in 2025.

How many tons of asphalt will be used in Granite's (GVA) Tunica County US 61 project?

The Tunica County US 61 project will use 34,000 tons of hot mix asphalt (HMA) produced by Lehman-Roberts, plus 20,000 tons of shoulder gravel material supplied by MSG.

When will Granite's (GVA) Olive Branch Airport taxiway rehabilitation project be completed?

The Olive Branch Airport taxiway rehabilitation project is estimated to be completed in August 2025.