Granite Construction (GVA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 4.1% year-over-year to $700 million, with gross profit up 54.5% to $84 million and adjusted EBITDA doubling to $28 million; adjusted net income turned positive at $224 thousand.

• Net loss attributable was $33.7 million, with diluted EPS at $(0.77), but adjusted diluted EPS improved to $0.01.

• Committed and Awarded Projects (CAP) reached a record $5.7 billion, up $444 million sequentially and 8.4% from year-end 2024.

• Performance aligned with expectations, confirming 2025 guidance and 2027 financial targets.

• Strong public sector bidding environment and strategic M&A, including the Dickerson & Bowen acquisition, fueled growth.

Financial highlights

• Construction segment revenue grew 3.3% to $615 million; Materials segment revenue increased 10% to $85 million.

• Gross margin improved to 12% from 8% year-over-year; construction gross profit margin reached 14%.

• Adjusted EBITDA margin rose to 4.0% from 2.1% year-over-year.

• Operating cash flow was $4 million, with cash and marketable securities at $513 million at quarter-end.

• SG&A expenses increased to $116 million (16.6% of revenue), mainly due to higher stock-based compensation and labor costs.

Outlook and guidance

• 2025 revenue guidance remains $4.2–$4.4 billion, with adjusted EBITDA margin of 11–12%.

• Operating cash flow target of 9% of revenue for 2025 remains on track.

• Capital expenditures projected at $140–$160 million, including $50 million for strategic materials investments.

• Management confident in meeting 2025 guidance and 2027 financial targets, with margin improvement expected year-over-year.

• Materials segment volumes expected to be consistent year-over-year, with high single-digit price increases for aggregates.