Granite Construction Q2 revenue misses expectations
Overview
Granite Q2 revenue rises 4% yr/yr, misses analyst expectations, per LSEG data
Adjusted EPS of $1.93 for Q2 beats consensus, per LSEG data
The infrastructure contractor and construction materials producer raises 2025 guidance post acquisitions
Outlook
Company raises 2025 revenue guidance to $4.35 bln-$4.55 bln
Granite expects $150 mln revenue from new acquisitions in 2025
Adjusted EBITDA margin guidance increased to 11.25%-12.25%
SG&A expenses projected at 9% of revenue, including $40 mln stock-based compensation
Result Drivers
ACQUISITIONS - Revenue growth driven by acquisition of Dickerson & Bowen, boosting Q2 results
PROJECT EXECUTION - Improved project execution and favorable claim settlements contributed to increased gross profit
CAP INCREASE - Record CAP rose $324 mln sequentially, reflecting strong bidding opportunities
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $1.13 bln | $1.16 bln (2 Analysts) |
Q2 Adjusted EPS | Beat | $1.93 | $1.7 (2 Analysts) |
Q2 EPS |
| $1.42 |
|
Q2 Adjusted Net Income | Beat | $86 mln | $79.80 mln (1 Analyst) |
Q2 Net Income |
| $72 mln |
|
Q2 Adjusted EBITDA | Beat | $152 mln | $143.20 mln (1 Analyst) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Granite Construction Inc is $108.00, about 13.6% above its August 6 closing price of $93.34
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nBw2H8RgWa
