US-based company Granite Construction has reported an increase in net income and revenue and margin expansion for the third quarter (Q3) of 2024.
Net income attributable to the company reached $79m, or $1.57 per diluted share, marking a notable rise from $58m, or $1.13 per diluted share in the same period the previous year.
Adjusted net income also saw an uptick, amounting to $91m, or $2.05 per diluted share, compared to $77m, or $1.72 per diluted share, year-over-year (YoY).
Revenue for the company climbed by $159m to $1.3bn, up from $1.1bn in the corresponding period of the previous year.
Both the company's Construction and Materials segments contributed to this growth, with each posting a 14% YoY increase.
The company's gross profit followed suit, increasing by $36m to reach $203m, from $167m for the same period in the prior year. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) totalled $149m.
Granite’s committed and awarded projects (CAP) rose by $44m compared to the previous quarter and increased by $35m from the same period last year, reaching a total of $5.6bn.
Granite president and CEO Kyle Larkin said: "In the third quarter, we continued to build on our momentum with revenue growth and margin expansion. Revenue grew 14% year-over-year, resulting in another record quarter.
“The market continues to be robust, and we added to our CAP despite the third quarter being our highest revenue quarter. Our new business model is producing strong operating cash flow, and we expect to significantly exceed our target of 7% of revenue for the year."
During the nine-month period ending 30 September, revenue surged by $455m to $3.0bn, up from $2.6bn in the prior year. The Construction and Materials segments reported YoY growth of 18% and 16%, respectively.
Gross profit for this period also showed a rise of $120m to $422m, compared to $302m in the previous year period. Adjusted EBITDA totalled $293m.
The company expects revenue for full-year 2024 to remain between $3.9bn and $4.0bn. The adjusted EBITDA margin is now expected to be between 10% and 11%, revised from 9.5% to 11.5%.
Meanwhile, capital expenditures are estimated to be around $130m.
