Granite Construction Incorporated · NYSE:GVA
Granite Construction — Investor Presentation (May 2025)
26 slides from Granite Construction's investor presentation, May 1, 2025
Slide 1: May 2025 Investor Presentation
May 2025 Investor Presentation © 2025 Granite Construction. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor Any statements contained in this presentation that are Litigation Reform Act of 1995. These forward-looking financial growth and the drivers of such growth, 2027 not based on historical facts, including statements statements are identified by words such as “future,” revenue, adjusted EBI
Slide 3: Founded in 1922, Headquartered in Watsonville, CA, NYSE: GVA
• Founded in 1922 • Headquartered in Watsonville, CA • Publicly traded since 1990, NYSE: GVA • One of the largest diversified, vertically integrated civil contractors and construction materials producers in the U.S. • Geographically diverse public and private client base • Thoughtful project pursui
Slide 4: Our Markets & Customers
Our Markets & Customers Granite serves customers in both public and private sectors within our reportable business segments: Construction and Materials. Our expertise allows us to provide infrastructure solutions in a range of markets as a diversified civil contractor and materials producer. ENR | E
Slide 5: Where We Work
Where We Work © 2025 Granite Construction. All Rights Reserved. 5
Slide 6: Home Market Strategy a Key Differentiator
Home Market Strategy a Key Differentiator Client Centric Focus Home Market Community Engagement Market Intelligence & Insight Blended Project Portfolio Owner and Regulator Relationships Readily Available Resources We will focus on home markets where these attributes exist, among others. With these a
Slide 7: California DOT Budget
California DOT Budget Caltrans Expenditure Allocations $9,568 $9,842 $9,023 $8,272 $3,705 $4,061 $2,934 $5,841 $2,925 $1,994 $6,089 $6,137 $5,347 $5,507 $3,846 FY21/22A FY22/23A FY23/24A FY24/25F FY25/26 Proposed Budget Local Assistance Capital Outlay Projects Source: California Department of Transp
Slide 8: California Senate Bill (SB-1) 10 Year Revenue and Allocation
California Senate Bill 1 (SB-1) 10 Year Revenue and Allocation 10 Year SB-1 Revenue and Allocation $7,263 $6,947 $6,653 $7,163 $6,313 $6,847 $6,553 $6,213 $5,245 $5,235 $5,079 $5,169 $5,314 $4,280 $4,257 $4,980 $3,673 $4,180 $4,157 $3,384 $3,515 $3,199 $2,840 $2,844 $3,490 $2,489 $2,617 $3,332 $3,16
Slide 9: Vertical Integration Empowers Home Markets
Vertical Integration Empowers Home Markets Why Vertical Integration? » Compete in markets where owning materials is necessary External AGG Sales External HMA Sales » Maximize productivity and scheduling Aggregate Production HMA Production Construction » Ensure quality materials Operations » Leverage
Slide 10: $5.7B High-Quality CAP with Risk-adjusted Procurement Types
Bid-Build Procurement $5.7B High-Quality CAP with Risk-adjusted Procurement Types • Project duration typically several months to 3 years • Traditional method with owners preparing the design and construction and transportation management plans • Contractors compete on a competitive low-bid process •
Slide 11: Materials Segment Results
Materials Segment Results Pricing (Internal and External Sales) Volume (Internal and External Sales) Average Selling Price Q1’24 Q1’25 YOY 2023 2024 YOY Sales Volume Q1’24 Q1’25 YOY 2023 2024 YOY (per ton) Change Change (tons) Change Change Aggregates $14.99 $15.64 4% $14.87 $16.08 8% Aggregates 3,2
Slide 12: Investment Framework Supports Long-term Growth
Investment Framework Supports Long-term Growth SUPPORT & Solidify and Bolster EXPAND & Expand Into New Core Competencies STRENGTHEN and Strengths TRANSFORM Geographies INVESTMENT CATEGORIES INVESTMENT CATEGORIES Strengthen & Bolt-on: Civil Automation Expand Home Construction & & Reserve VI Expansion
Slide 13: Granite Investment Framework – Expand and Transform
Granite Investment Framework – Expand and Transform Lehman-Roberts/MSG VI Expansion & Platform Operational Footprint Expanded Granite’s footprint and created a new platform in the Southeast (AR, TN, MS) through the acquisition of Lehman-Roberts, Memphis Stone & Gravel, and Dickerson & Bowen Profitab
Slide 14: Aggregate Reserves
Aggregate Reserves 1,552 1,290 495 1,126 277 996 247 231 1,013 1,057 879 765 2021 2022 2023 2024 Tons in millions Proven and probable reserves Measured, indicated and inferred reserves © 2025 Granite Construction. All Rights Reserved. 14
Slide 15: Medium-Term Financial Growth Formula
Medium-Term Financial Growth Formula 2027 Targets Robust public funding environment led by the • 6% - 8% Organic Growth CAGR IIJA expected to continue to drive opportunities for organic growth. Private investment in Revenue • Continued bolt-on M&A • Expectation for larger M&A with a 2.5x long-term l
Slide 16: 2025 Guidance – Accelerating Growth and Shareholder Return
2025 Guidance – Accelerating Growth and Shareholder Return Revenue SG&A Adjusted EBITDA Margin (Percentage of Revenue) $4.2 - $4.4 9.0% 11.0% - 12.0% $4.0 8.3% 10.0% 1.0% 0.4% 7.9% 8.0% FY 2024 FY 2025F FY 2024 FY 2025F FY 2024 FY 2025F Stock-based compensation SG&A Excluding Stock-Based Comp $ in b
Slide 17: Capital Allocation Priorities
Capital Allocation Priorities 1 Maintain current level of dividend 2 Support business operations via maintenance capex (1.5% - 2.0% of annual revenue) 3 Focused growth capex and M&A to drive growth and efficiencies 4 Target 2.5x long-term leverage 5 Opportunistic share repurchase when cash is in exc
Slide 18: Q1 2025 Results
Q1 2025 Results Q1 2025 YOY Change Total Revenue Total Revenue $700 M + $28 M Construction Revenue Construction Revenue $615 M + $19 M Materials Revenue Materials Revenue $85 M + $8M Adjusted Net Income Adjusted Net Income $0.2 M + $9 M Adjusted Diluted EPS Adjusted Diluted EPS $0.01 + $0.22 Q1’2025
Slide 19: Materials Segment
Materials Materials Segment Segment • Committed to strengthening and growing the Materials business • Investment focus on materials-led M&A, reserve expansion, plant automation, new plants and facility upgrades • Cash gross profit margin growth driven by improved pricing and operational efficiency •
Slide 20: Construction Segment
Construction Segment • CAP increased $444M sequentially to new Granite record of $5.7B • Q1’2025 bidding environment continues to be robust, highlighted by California, Texas and the Federal division • Construction gross profit margin expected to grow over 1% YOY in 2025 • Continuing to explore acqui
Slide 21: Why Granite?
Why Granite? • Q1’2025 performance in line with expectations with continued support from the public market environment and opportunities in the private market • Confirming 2025 guidance and 2027 financial targets • Positive operating cash flow in Q1’25 and continue to target 9% operating cash flow a
Slide 22: Appendix
Appendix The tables below contain financial information calculated other than • Other costs, net as described above; Items that may have a significant impact on the Company's financial in accordance with U.S. generally accepted accounting principles • Transaction costs which include acquired intangi
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation GRANITE CONSTRUCTION INCORPORATED (1) We define EBITDA as GAAP net income/loss attributable to Granite Construction Incorporated, adjusted for net interest expense, taxes, depreciation, depletion and EBITDA AND ADJUSTED EBITDA(1) amortization. Adjusted EBITDA and adjus
Slide 24: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation GRANITE CONSTRUCTION INCORPORATED (1) The tax effect of adjusting items was calculated using the Company’s estimated annual ADJUSTED NET INCOME (LOSS) RECONCILIATION statutory tax rate. (Unaudited - in thousands, except per share data) (2) Due to net loss fo
Slide 25: Materials Segment Product Line Information
Materials Segment Product Line Information GRANITE CONSTRUCTION INCORPORATED MATERIALS SEGMENT PRODUCT LINE INFORMATION NM - not meaningful (Unaudited - in thousands, except selling price data) (1) The Aggregate product line includes aggregates and recycled materials. The Asphalt Materials Product L
Slide 26: Materials Segment Product Line Information
Materials Segment Product Line Information GRANITE CONSTRUCTION INCORPORATED MATERIALS SEGMENT PRODUCT LINE INFORMATION NM - not meaningful (Unaudited - in thousands, except selling price data) (1) The Aggregate product line includes aggregates and recycled materials. The Asphalt Materials Product L
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