Granite Construction's Q2 2024: Robust Revenue Growth and CAP Expansion

Granite Construction Incorporated (GVA) recently reported its second-quarter 2024 earnings, showcasing a robust 20% year-over-year revenue increase to $1.1 billion. This impressive growth was driven by several factors, including strong performance in both the Construction and Materials segments, which posted year-over-year increases of 22% and 10%, respectively.

The company's Committed and Awarded Projects (CAP) also experienced significant growth, increasing sequentially by $77 million and year-over-year by $139 million to reach $5.6 billion. This growth in CAP has contributed to Granite Construction's revenue and earnings, as it reflects the company's ability to secure new projects and maintain a strong pipeline of future work.


Granite Construction's adjusted EBITDA margin has been consistently strong, with a year-over-year increase to $130 million in the second quarter of 2024. While the company does not disclose its adjusted EBITDA margin specifically, its strong earnings and revenue growth suggest that the margin remains competitive with industry peers.


Granite Construction's strategic acquisitions, such as the recently announced acquisition of Dickerson & Bowen, Inc., have played a significant role in driving revenue growth and expanding the company's footprint. The acquisition of Dickerson & Bowen is expected to close in the third quarter and will add four asphalt plants and three sand and gravel pits to Granite Construction's portfolio. This acquisition is a natural extension of the Lehman-Roberts Company and Memphis Stone & Gravel platform acquired at the end of 2023, further strengthening Granite Construction's position in the high-growth market of central and southern Mississippi.

In addition to strategic acquisitions, Granite Construction's organic growth initiatives have also contributed to its CAP growth. The company's focus on executing its plan and leveraging the strength of the macro construction market has led to the expected results, with record second-quarter revenue and an expanded CAP.

Favorable market conditions, such as increased infrastructure spending and demand for construction materials, have also played a significant role in Granite Construction's CAP growth. The company's strong performance in the first half of 2024 positions it to achieve revenue in the upper half of its previous guidance for the year, in the range of $3.9 billion to $4.0 billion.

In conclusion, Granite Construction's Q2 2024 earnings report highlights the company's robust revenue growth, driven by strong performance in both segments and a significant increase in CAP. The company's strategic acquisitions, organic growth initiatives, and favorable market conditions have all contributed to its success. As Granite Construction continues to execute its plan and expand its CAP, investors can expect the company to maintain its competitive position in the construction industry.