Granite Construction Incorporated · NYSE:GVA
Granite Construction — Investor Presentation (February 2025)
23 slides from Granite Construction's investor presentation, Feb 13, 2025
Slide 1: February 2025 Investor Presentation
February 2025 Investor Presentation © 2025 Granite Construction. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor Any statements contained in this presentation that are not “appears,” “may,” “will,” “should,” “could,” “would,” or estimates that may prove to be incorrect. In addition, our based on historical facts, including statements regarding "guidance," “continue,” and the negatives thereof or ot
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 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 Senate Bill 1 (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 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
Slide 9: 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 10: 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 11: $5.3B High-Quality CAP with Risk-adjusted Procurement Types
Bid-Build Procurement $5.3B 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 12: 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 13: 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 14: 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 15: Q4 & FY 2024 Results
Q4 & FY 2024 Results Q4 2024 FY 2024 Total Revenue Total Revenue $977 M $4,008 M + 5% YOY +14% YOY Construction Revenue Construction Revenue $821 M $3,415 M + 3% YOY + 14% YOY Materials Revenue Materials Revenue $156 M $592 M + 11% YOY + 15% YOY Adjusted Net Income Adjusted Net Income $56 M $214 M +
Slide 16: Construction Segment
Construction Segment CAP History $5,546 $5,620 $5,296 $4,485 $135 , 3% $111 , 2% $131 , 2% • Q4’24 Construction revenue increased 3% year-over- $4,010 $49 , 1% $159 , 3% year driven by strong market environment and revenue $20 , 1% $160 , 3% $143 , 3% from acquired companies $213 , 5% $401 , 10% $2,
Slide 17: Materials Segment
Materials Materials Segment Segment Materials Gross Profit And Cash Gross Profit Margin* 21.4% 19.0% 18.0% • Cash gross profit margin growth driven by improved pricing and 7.6% 4.8% 5.2% operational efficiency • Price increases met 2024 target expectations 13.2% 13.8% 13.8% • 2025 price increase exp
Slide 18: Why Granite?
Why Granite? • Revenue growth continued in Q4’24 and expect to continue the strong growth in 2025 • Expect to build CAP in 2025 supported by continued strong public and private market environment • Healthy state budgets across Granite's geographies • 2025 adjusted EBITDA margin guidance in the range
Slide 19: Appendix
Appendix The tables below contain financial information calculated • Other costs, net as described above; operations and cash flows must be considered when other than in accordance with U.S. generally accepted • Transaction costs which include acquired intangible assessing the Company's actual finan
Slide 20: Materials Segment Cash Gross Profit
Materials Segment Cash Gross Profit GRANITE CONSTRUCTION INCORPORATED MATERIALS SEGMENT CASH GROSS PROFIT RECONCILIATION (Unaudited - in thousands) Three Months Ended Years Ended December 31, December 31, 2024 2023 2022 2024 2023 2022 Gross profit $22,635 $22,277 $24,648 $81,695 $71,344 $65,613 Gros
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation GRANITE CONSTRUCTION INCORPORATED (1) We define EBITDA as GAAP net income attributable to Granite Construction EBITDA AND ADJUSTED EBITDA(1) Incorporated, adjusted for net interest expense, taxes, depreciation, depletion and (Unaudited - dollars in thousands) amortizat
Slide 22: Adjusted NI Reconciliation
Adjusted NI Reconciliation (1) In the first quarter of 2024, we revised the adjusted net income calculation to exclude the GRANITE CONSTRUCTION INCORPORATED impact of stock-based compensation expense. Prior period adjusted net income and diluted ADJUSTED NET INCOME RECONCILIATION (Unaudited - in tho
Slide 23: Thank you. Questions?
Thank you. Questions? © 2025 Granite Construction. All Rights Reserved. 23
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