Granite Construction (GVA) Investor presentation summary

Company overview and strategy

• Operates as a leading diversified, vertically integrated civil contractor and materials producer with a broad geographic footprint and a home market strategy focused on competitive advantages and organic/M&A growth.

• Serves both public and private clients across construction and materials segments, with expertise in highways, bridges, rail, renewables, mining, water, and commercial projects.

• Vertical integration enables control over aggregate and asphalt production, maximizing productivity, quality, and cost efficiency.

• Investment framework prioritizes strengthening core competencies, expanding home markets, and pursuing bolt-on acquisitions and automation.

Recent acquisitions and market expansion

• Acquired Warren Paving and Papich Construction for $710M, expected to add $425M in annual revenue and 18% adjusted EBITDA margin, enhancing vertical integration and aggregate reserves.

• Warren Paving brings >400 million tons of reserves and a strong Southeast platform, while Papich Construction adds significant materials and infrastructure capabilities in Central California.

• Pro forma, aggregate sales volumes are expected to rise 27% annually, and reserves/resources by 30%.

• Southeast market growth is supported by robust public funding, digital infrastructure investments, and state initiatives in Mississippi and Louisiana.

Financial performance and segment results

• Q2 2025 revenue reached $1.13B, up 4% YOY, with construction revenue at $937M and materials revenue at $189M.

• Adjusted EBITDA was $152M (13.5% margin), up 150 bps YOY; adjusted net income was $86M, and adjusted diluted EPS was $1.93.

• Materials segment saw margin expansion, with aggregate and asphalt volumes up 11% and 8% YOY, respectively, and higher sales prices.

• Construction segment achieved a record $6.1B CAP, with gross profit margin at 16% due to improved project execution and favorable claim settlements.