Thu, May 1, 9:11 PM (21 days ago)
**Granite Construction Incorporated (GVA) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $699.5 million, up 4% from $672.3 million in Q1 2024. - **Gross Profit:** $83.8 million, a significant increase from $54.3 million in Q1 2024. - **Operating Loss:** $39.8 million, slightly improved from $43.3 million in Q1 2024. - **Net Loss:** $33.7 million, compared to $31.0 million in Q1 2024. - **Earnings per Share (EPS):** $(0.77) basic and diluted, compared to $(0.70) in Q1 2024. **Profit Margins:** - **Gross Margin:** 12.0% (up from 8.1% in Q1 2024). - **Operating Margin:** -5.7% (improved from -6.4% in Q1 2024). **Cash Flow:** - **Operating Cash Flow:** $3.6 million, down from $24.1 million in Q1 2024. - **Investing Cash Flow:** -$156.3 million, significantly lower than -$10.8 million in Q1 2024. - **Financing Cash Flow:** -$46.6 million, improved from -$109.2 million in Q1 2024. **Earnings Changes:** - **Revenue Growth:** Driven by new projects and favorable weather conditions. - **Gross Profit Improvement:** Due to higher revenue and better project execution. - **Operating Loss Reduction:** Despite increased SG&A expenses, primarily due to higher stock-based compensation. **Quarterly Performance Discussion:** - **Revenue Growth:** Construction revenue increased by $19.4 million (3.3%) due to new projects and acquisitions (D&B contributed $10.1 million). - **Materials Revenue:** Increased by $7.9 million (10.2%) due to higher volumes and prices. - **Committed and Awarded Projects (CAP):** Increased by $443.9 million (8.4%) to $5.7 billion, driven by public sector projects. **Trends and Uncertainties:** - **Economic Environment:** Positive funding environment for public projects, supported by the IIJA and state/local measures. - **Inflation and Supply Chain:** Continued impact on costs and project schedules. - **Weather Conditions:** Affect construction schedules and profitability, particularly in Q1 and Q4. **Future Operations Impact:** - **Capital Expenditures:** Anticipated to be $140-$160 million in 2025, including $50 million in strategic materials investments. - **Liquidity:** Sufficient to meet working capital needs, capital expenditures, and financial commitments. - **Debt and Credit:** Compliance with covenants, with $330.4 million in unused availability under the credit agreement. **Segment Performance:** - **Construction:** Revenue up 3.3%, gross profit up 50.3%. - **Materials:** Revenue up 10.2%, gross loss decreased by 37.5%. **Management's Outlook:** - **Positive Funding Environment:** Expected to continue driving CAP growth. - **Acquisitions:** D&B acquisition impacts comparability but contributes to revenue growth. - **Economic Uncertainties:** Inflation, supply chain, and labor constraints may negatively impact future performance.