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 andconstructionmaterials 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/Mis Actual Consensu

s s

Estimate

Q2 Miss $1.13 $1.16

Revenue bln bln (2

Analysts

)

Q2 Beat $1.93 $1.7 (2

Adjusted Analysts

EPS )

Q2 EPS $1.42

Q2 Beat $86 mln $79.80

Adjusted mln (1

Net Analyst)

Income

Q2 Net $72 mln

Income

Q2 Beat $152 mln $143.20

Adjusted mln (1

EBITDA 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 ( GVA ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)