Slide 1: Q2 2025 Earnings Presentation
Q2 2025 Earnings Presentation © 2025 Granite Construction. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor Any statements contained in this presentation that are effective tax rate, 2027 financial targets, including operations involve numerous risks and uncertainties, not based on historical facts, including statements revenue, 2-3 acquisitions annually, adjusted EBITDA many of which are beyo
Slide 3: M&A Update
M&A Update © 2025 Granite Construction. All Rights Reserved.
Slide 4: Transaction Overview of Strategic Acquisitions
Transaction Overview of Strategic Acquisitions • Granite acquired Warren Paving and Papich Construction for a combined $710 million, subject to customary closing adjustments Purchase • Combined, the two acquisitions are expected to annually contribute approximately $425 million of revenue and Adjust
Slide 5: Warren Paving at-a-Glance
New Aggregate Warren Paving at-a-Glance New Asphalt • Leading aggregates producer with vertically integrated operations in New Aggregate Yard the Mississippi River and Gulf Coast regions Aggregate • Operates a network of strategically located assets, including one quarry, one sand and gravel operati
Slide 6: Southeast Market Supported by Strong Need for Infrastructure
Southeast Market Supported by Strong Need for Infrastructure Southeast Market Overview DOT Expenditures (2019 – 2024) ($ in billions) • Expanded presence in an attractive market with robust public funding and digital infrastructure spending creates opportunities for future growth $2.2 $2.1 • Mississ
Slide 7: Papich Construction at-a-Glance
Papich Construction at-a-Glance • Papich Construction specializes in infrastructure projects, including road, rail, environmental remediation, site preparation, alternative energy and utilities • Papich Construction is also a leading producer of heavy materials, such as aggregates and various asphal
Slide 8: Q2'25 Results
Q2’25 Results © 2025 Granite Construction. All Rights Reserved.
Slide 9: Materials Segment
Materials Materials Segment Segment • Exceptional quarter of further margin expansion • The second year following the internal realignment placing experts over the materials business and centralizing management functions such as sales and quality control • Driving price increases while focusing on m
Slide 10: Construction Segment
Construction Segment • CAP increased $324M sequentially to new Granite record of $6.1B • Significant opportunities in the upcoming quarters to continue to build CAP • Q2 bidding environment continues to be robust, led by public markets across the country • Q2 Construction gross profit margin expansi
Slide 11: Q2 2025 Results
Q2 2025 Results Q2 2025 YOY Change Total Revenue Total Revenue $1,126 M + $43 M Construction Revenue Construction Revenue $937 M + $19 M Materials Revenue Materials Revenue $189 M + $24M Adjusted Net Income Adjusted Net Income $86 M + $9 M Adjusted Diluted EPS Adjusted Diluted EPS $1.93 + $0.20 Q2’2
Slide 12: Updated 2025 Guidance and 2027 Financial Targets
Updated 2025 Guidance and 2027 Financial Targets 6%- 8% Organic CAGR Revenue 2-3 Acquisitions Annually Adjusted EBITDA Margin $4.35B - $4.55B 2027 Target Free 12.5%-14.5% Cash Flow Margin** 6.5% - 8.5% 11.25%-12.25% 2025 2027 Annual 2025 Guidance includes CAPEX in a range of $140M - $160M, SG&A as a
Slide 13: Concluding Remarks
Concluding Remarks • Q2’2025 and first half performance in line with expectations and our strategic plan • New record CAP fueled by public market opportunities which continue to exceed the prior year • Strong performance in both segments and we are on track to meet our 2025 guidance • Positive opera
Slide 14: Appendix: Non-GAAP Financial Information
Appendix Non-GAAP Financial Information • Loss on debt extinguishment. peer companies, and management uses these non-GAAP The tables below contain financial information calculated financial measures in evaluating the Company's other than in accordance with U.S. generally accepted We also provide mat
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation GRANITE CONSTRUCTION INCORPORATED EBITDA AND ADJUSTED EBITDA(1) (1) We define EBITDA as GAAP net income attributable to Granite Construction Incorporated, adjusted for net interest expense, taxes, depreciation, depletion and amortization. Adjusted (Unaudited - dollars
Slide 16: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation GRANITE CONSTRUCTION INCORPORATED ADJUSTED NET INCOME RECONCILIATION (Unaudited - in thousands, except per share data) Three Months Ended Six Months Ended (1) The tax effect of adjusting items was calculated using our estimated annual statutory tax rate. The tax ef
Slide 17: Materials Segment Product Line Information
Materials Segment Product Line Information GRANITE CONSTRUCTION INCORPORATED MATERIALS SEGMENT PRODUCT LINE INFORMATION (Unaudited - in thousands, except selling price data) NM - not meaningful (1) The Aggregate product line includes aggregates and recycled materials. The Asphalt Materials Product L
Slide 18: Materials Segment Product Line Information
Materials Segment Product Line Information Materials Product Line(1) Total NM - not meaningful Other and Materials Six Months Ended June 30, 2025 Aggregate Asphalt Segment (1) The Aggregate product line includes aggregates and recycled materials. The Asphalt Eliminations(2) product line includes asp
Slide 19: Thank you. Questions?
Thank you. Questions? © 2025 Granite Construction. All Rights Reserved.
Slide 20: Where We Work
Where We Work © 2025 Granite Construction. All Rights Reserved. 20
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: High-Quality CAP with Risk-adjusted Procurement Types
Bid-Build Procurement 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 • Proje
Slide 28: Materials Segment Results
Materials Segment Results Pricing (Internal and External Sales) Volume (Internal and External Sales) Average Selling Price Q2’24 Q2’25 YOY 1H’24 1H’25 YOY Sales Volume Q2’24 Q2’25 YOY 1H’24 1H’25 YOY (per ton) Change Change (tons) Change Change Aggregates $16.36 $16.76 2.4% $15.86 $16.34 3.0% Aggreg
Slide 29: Aggregate Reserves and Resources
Aggregate Reserves and Resources 1,992 440 1,290 495 1,126 277 996 247 231 1,013 1,057 879 765 2021 2022 2023 2024* Proven and probable reserves Measured, indicated and inferred resources Newly Annouced Acquisitions Tons in millions *2024 pro forma includes acquired reserves through recent acquisiti
Slide 30: 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 net leverage ratio 5 Opportunistic share repurchase when cash
Slide 31: Capital Structure
Capital Structure Pro Forma Capital Structure Q2'25 Reported Capital Structure Pro Forma Debt Debt 2030 Credit Facility* 2027 Credit Facility Term Loan ($600M) $600 Revolver ($350M) $0 Revolver ($600M)*** $10 Delay Draw Term Loan ($75M)** $0 3.750% Convertible Senior Notes (Due 2028) $374 3.750% Con