Granite Construction Incorporated announced its third-quarter 2024 results, reporting net income attributable to Granite of $79 million, or $1.57 per diluted share. Adjusted net income totaled $91 million, or $2.05 per diluted share, compared to $77 million, or $1.72 per diluted share, in the prior year.
Total revenue for the quarter grew 14% year-over-year to $1.275 billion, marking a record quarter for the company. The Construction segment saw revenue increase by 14.3% to $1.08 billion, with gross profit rising 24.4% to $170.7 million, resulting in a 15.8% gross profit margin.
The Materials segment also contributed to growth, with revenue up 13.8% to $194.8 million and cash gross profit increasing 19.3% to $43.2 million. Committed and Awarded Projects (CAP) reached a record $5.6 billion, a sequential increase of $44 million, indicating a robust pipeline for future work.
Despite the strong revenue and margin performance, the adjusted diluted EPS of $2.05 missed analyst consensus estimates of $2.47. The company reaffirmed its 2024 guidance, expecting revenue between $3.9 billion and $4.0 billion, which was slightly below the consensus of $4.01 billion.
Granite's President and CEO, Kyle Larkin, stated that the new business model is producing strong operating cash flow, with expectations to significantly exceed the target of 7% of revenue for the year. The company also highlighted its 2027 financial targets, including organic growth at a CAGR of 6% to 8% and continued adjusted EBITDA margin expansion.
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