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Granite Construction Inc. (NYSE: GVA) is a leading provider of infrastructure solutions in the United States, specializing in heavy civil construction and materials production. Established in 1922 and headquartered in Watsonville, California, Granite has built a reputation for delivering complex, large-scale projects across diverse sectors, including transportation, water resources, energy, and mining. The company serves a wide range of clients at the federal, state, and local levels, as well as private entities, solidifying its position as a trusted partner in the infrastructure industry.
Core Business Segments
Granite operates through two primary business segments: Construction and Materials. The Construction segment encompasses a variety of heavy civil infrastructure projects, such as highways, bridges, airports, rail systems, and water resource facilities. This segment focuses on both new construction and rehabilitation projects, addressing critical infrastructure needs across the United States. The Materials segment supports the Construction division by producing and supplying aggregates, asphalt, and ready-mix concrete, ensuring high-quality inputs for its projects while also serving external customers.
Expertise in Alternative Project Delivery
One of Granite's key differentiators is its expertise in alternative project delivery methods (APDM), including design-build, construction manager/general contractor (CM/GC), and best value procurement. These methods foster collaborative partnerships between Granite, project owners, and designers, ensuring cohesive project execution and cost efficiency. Granite has completed over $12 billion in APDM projects in the past decade, showcasing its ability to manage complex, high-stakes infrastructure initiatives.
Market Position and Competitive Landscape
Operating in a highly competitive industry, Granite distinguishes itself through its extensive portfolio of projects, technical expertise, and ability to deliver innovative solutions. Its vertically integrated business model, combining construction services with materials production, provides a strategic advantage by streamlining project workflows and maintaining quality control. Key competitors in the industry include other major construction and engineering firms, but Granite’s focus on alternative delivery methods and its ability to handle diverse project types position it as a versatile and reliable player.
Client Base and Revenue Streams
Granite serves a diverse client base, including government agencies, municipalities, and private sector entities. The majority of its revenue is derived from the Construction segment, with additional contributions from the Materials segment. By addressing critical infrastructure needs, such as transportation networks, water management systems, and energy facilities, Granite plays a vital role in supporting economic development and public safety.
Commitment to Quality and Innovation
Granite’s long-standing commitment to quality, safety, and innovation underpins its success in the industry. The company leverages advanced construction techniques and state-of-the-art materials production processes to deliver projects that meet or exceed client expectations. Its ability to adapt to complex project requirements and deliver sustainable, cost-effective solutions further enhances its reputation as a trusted infrastructure partner.
Conclusion
Granite Construction Inc. stands out as a cornerstone of the U.S. infrastructure sector, offering a comprehensive range of construction and materials solutions. With nearly a century of experience, a robust portfolio of completed projects, and a focus on alternative project delivery methods, Granite continues to play a pivotal role in shaping the nation’s infrastructure landscape. Its dual focus on construction services and materials production, combined with its commitment to collaboration and innovation, ensures its relevance and reliability in a competitive market.
Granite (NYSE:GVA) has received the Construction Risk Partners Build America Merit Award for its Derby Dam Fish Screen project in McCarran, Nevada. This prestigious accolade recognizes the project as a significant construction achievement of 2021. Previously, the project won the AGC Nevada Chapter’s PINNACLE awards and an Award of Merit from Engineering News-Record. The new fish screen enhances habitat connectivity for the rare Lahontan cutthroat trout, supporting its recovery.
Granite (NYSE:GVA) has secured a significant $20 million road improvement project in Chandler, Arizona. This federally funded initiative is the largest contract awarded to Granite’s newly established Phoenix Area office. The project aims to enhance road safety along Chandler Heights Road, expanding it to at least four lanes, and includes various improvements such as updated sidewalks, traffic signals, and utilities. The project is set to commence in May 2022 and is expected to conclude by July 2023.
Granite (NYSE:GVA) has secured a $75 million contract from the Nevada Department of Transportation for the
Granite Construction (NYSE: GVA) has completed the sale of its trenchless and pipe rehabilitation services business, Inliner, to Inland Pipe Rehabilitation for $159.7 million. CEO Kyle Larkin emphasizes this divestiture aligns with the company's strategic plan, focusing on core civil construction competencies. The proceeds will be used to enhance vertically-integrated services, reduce debt, and facilitate share repurchases. In March, Granite purchased 611,000 shares for $18.5 million, signaling ongoing commitment to shareholder value.
Granite (NYSE:GVA) has secured a $22 million contract for the expansion of the Moreno Valley Metrolink Station funded by the Riverside County Transportation Commission. This project aims to improve the connection between Moreno Valley and Los Angeles, enhancing capacity for rail travelers and reducing highway congestion. The scope includes extending the existing platform, constructing a new platform and canopy, and extensive rail and track improvements. The project is set to begin in June 2022 and is expected to complete by Q3 2023.
Granite (NYSE:GVA) has been awarded a $32 million contract for the State Route 20 Omega Curve Realignment project in Nevada County, California, funded by State and Federal aid. The project aims to enhance safety by realigning two curves in a high-traffic area. Construction is set to begin in April 2022 and complete by summer 2023. Granite's Vice President highlighted the project's complexity due to steep terrain, and the company’s successful partnership with Caltrans played a key role in securing the contract.
Granite (NYSE:GVA) responded quickly to a roadway emergency after a large boulder, measuring 45-feet-wide and 25-feet-tall, blocked US Highway 50 near Echo Summit on March 3. Crews were dispatched on March 4, and after extensive drilling and blasting with Caltrans, the roadway was cleared. Granite is also monitoring the affected slope continuously. The company is actively engaged in emergency repairs following damage from last summer's Caldor Fire in the same area.
Granite Construction reported a net income of $10.1 million ($0.22 per diluted share) for FY 2021, a recovery from a loss of $145.1 million the previous year. Adjusted net income rose to $83.2 million ($1.80 per share), up from $61.1 million. Revenue from continuing operations fell 3.8% to $3.0 billion, while total revenue decreased 1.7% to $3.5 billion. CAP stood at $4.0 billion. However, Q4 showed a net loss of $13.2 million, with revenue down 17.7% to $683.2 million. For 2022, Granite expects low single-digit revenue growth and adjusted EBITDA margins of 6% to 8%.
Granite (NYSE:GVA) has secured three contracts worth approximately $23.8 million from the Ellis-Prairie Soil and Water Conservation District in Ellis County, Texas. These contracts, announced during the fourth quarter of 2021 and expected to contribute to the first quarter of 2022, involve the rehabilitation and upgrading of floodwater retention structures across three sites. The improvements will enhance flood protection and control rainfall runoff. Completion is anticipated by October 2023.
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