Granite Construction Incorporated · NYSE:GVA

Granite Construction — Investor Presentation (August 2023)

19 slides from Granite Construction's investor presentation, August 2023

  1. Slide 1: Granite Construction Investor Presentation August 2023

    Granite Construction Investor Presentation August 2023 © 2023 Granite Construction. All Rights Reserved.

  2. Slide 2: Safe Harbor

    Safe Harbor Any statements contained in this presentation judgment of senior management and reflect our particularly those described in our Annual that are not based on historical facts, including current expectations regarding future events, Report on Form 10-K and Quarterly Reports on statements r

  3. Slide 3: Company overview: founded 1922, 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 pursuit

  4. Slide 4: Our Markets

    Our Markets ENR | Engineering News-Record CONSTRUCTION TRANSPORTATION FEDERAL PAVEMENT PRESERVATION Ranked #1 Infrastructure that drives the movement of goods and people Projects built for those who protect and serve our community Roadway solutions for residential street, highway, and commercial cli

  5. Slide 5: Our Operating Groups

    Our Operating Groups CAP by Operating Group 28% Q2 43% 2023 Florida 29% California Central Mountain Office Locations California Group Central Group Mountain Group Water Resources & Mineral Services © 2023 Granite Construction. All Rights Reserved. 5

  6. Slide 6: De-Risking the Project Portfolio, Q2'23 CAP at $5.4B

    De-Risking the Project Portfolio, Q2’23 CAP at $5.4B Diverse Procurement Type $82 , $204 , $70 , $943 , 2% 4% 1% 22% Q2 $2,244 Q2 $2,919 $1,160 2020* $2,101 49% 41% 2023 54% 27% Bid Build Best Value** Design Build Other *Q2’2020 includes Granite Inliner which was sold in March 2022 **Best value proc

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: Strategy to Support Long-Term Organic Revenue Growth

    Strategy to Support Long-Term Organic Revenue Growth $3.6 - $3.9 $3.35 - $3.45 Strong public funding and resilient private $3.3 $0.5 $0.5 market supports organic revenue growth $0.5 $3.1 - $3.4 $2.85 - $2.95 Infrastructure Bill is lifting the market and are expected to continue to build $2.8 Califor

  10. Slide 10: Increase in Gross Profit through Execution

    Increase in Gross Profit through Execution Construction* Materials* $600 $80 $65 - $80 $500 $440 - $540 $70 $65 $63 $60 $57 $400 $365 15.0% - $351 14.0% - 17.4% $50 17.0% $103 $316 16.0% 14.0% $51 13.1% $300 14.5% $33 $40 13.7% 12.7% $30 $200 10.8% 8.8% 9.9% $300 $20 $283 $100 $262 $10 $- $- FY 2020

  11. Slide 11: Enhancing Value through Execution

    Enhancing Value through Execution Revenue SG&A Adjusted EBITDA Margin $3.6 - $3.9 $3.35 - $3.45 8.0% - 8.5% 9.0% - 11.0% 7.5% - 8.0% 7.5% - 8.5% 6.4% FY 2023F FY 2024F FY 2023F FY 2024F FY 2022 FY 2023F FY 2024F $ in billions © 2023 Granite Construction. All Rights Reserved. 11

  12. Slide 12: Q2 2023 Results

    Q2 2023 Results Total Revenue $899 M Construction Revenue $749 M Materials Revenue $149 M Adjusted Net Income $46 M Laguna Seca Raceway Pedestrian Bridge Monterey, CA Adjusted Diluted EPS $1.03 Q2 2023 Highlights Adjusted EBITDA • Revenue increased $50 million YOY led by the California and Mountain

  13. Slide 13: Construction Segment

    Construction Segment Total Company CAP by Group • Total CAP of $5.4 billion, up $334 million or 6.5% sequentially and an increase of 29% YOY $1,065 , $1,519 , $1,492 , $1,600 , 25% 36% 28% 29% California Group Q2 Q2 2022 2023 • Total CAP of $2.3 billion, up $432 million or 23% sequentially and an in

  14. Slide 14: Materials Segment

    Materials Materials Segment Segment Revenue by Product* Revenue by Group • Volumes rebounded from a wet first quarter o Q2 asphalt volumes flat YOY 2% o Q2 aggregate volumes up 9% YOY led by increases in 12% California, Alaska and Nevada 33% YTD YTD 52% 2023 65% 36% 2023 • Price increases in both as

  15. Slide 15: Why Granite?

    Why Granite? • De-risked CAP portfolio led by best value and less complex projects resulting in expected increased and consistent profitability • Gross profit margin improving inline to meet 2024 EBITDA margin target through: o Higher bid day margins o Consistent execution • Robust market environmen

  16. Slide 16: Thank you. Questions?

    Thank you. Questions? © 2023 Granite Construction. All Rights Reserved.

  17. Slide 17: Appendix

    Appendix The tables below contain financial information measures, to indicate the impact of the financial measures. The methods used by the calculated other than in accordance with U.S. following: Company to calculate its non-GAAP financial generally accepted accounting principles • Other costs, net

  18. Slide 18: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation © 2023 Granite Construction. All Rights Reserved. 18

  19. Slide 19: Adjusted NI Reconciliation

    Adjusted NI Reconciliation © 2023 Granite Construction. All Rights Reserved. 19

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