Granite Construction (GVA) Investor presentation summary

Company overview and strategy

• Founded in 1922, headquartered in Watsonville, CA, and publicly traded since 1990 on NYSE; one of the largest diversified, vertically integrated civil contractors and materials producers in the U.S.

• Operates across a geographically diverse public and private client base, with a home market-based strategy and focus on organic growth and M&A.

• Serves both public and private sectors in construction and materials, including highways, bridges, rail, renewables, mining, water, and commercial markets.

• Home market strategy emphasizes client-centric focus, community engagement, market intelligence, and strong owner/regulator relationships.

• Vertical integration enables productivity, quality, cost advantages, and logistical efficiencies in core markets.

Market presence and operations

• Operations span most U.S. states, with materials (aggregate and asphalt) production in key regions.

• Recent expansion in the Southeast through acquisitions, adding significant asphalt plants and aggregate reserves.

• Aggregate reserves increased year-over-year, supporting long-term materials supply.

• California Senate Bill 1 provides a robust funding environment, with state and local expenditures supporting infrastructure projects.

• Project portfolio includes a mix of bid-build and best value procurement types, with a $5.3B committed and awarded projects (CAP) backlog.

Financial performance and guidance

• FY 2024 revenue reached $4.0B (+14% YOY), with construction revenue at $3.4B (+14%) and materials revenue at $592M (+15%).

• Adjusted EBITDA for FY 2024 was $402M (+44% YOY), with a margin of 10% (+200bps YOY); operating cash flow was $456M (+148% YOY).

• Q4 2024 results showed continued growth: total revenue $977M (+5% YOY), adjusted net income $56M (+48% YOY), and adjusted EBITDA $109M (+43% YOY).

• 2025 guidance projects revenue of $4.2–$4.4B, adjusted EBITDA margin of 11–12%, and continued strong cash generation.

• Medium-term targets include 6–8% organic growth CAGR, 12–14% adjusted EBITDA margin, and 6–8% free cash flow margin by 2027.