Net income and total revenue were up in the third quarter at Granite Construction, which experienced gains in its materials business.
Granite’s net income in the third quarter totaled $79 million, an increase of 36 percent versus the prior-year period. The company’s third-quarter revenue increased 14 percent year over year to $1.3 billion.
Revenue in Granite’s materials business increased year over year by $24 million. Revenue from acquired businesses and higher aggregate and asphalt prices were contributing factors, the company says.
Additionally, Granite says gross profit in its materials business increased due to the same factors.
“In the third quarter, we continued to build on our momentum with revenue growth and margin expansion,” says Kyle Larkin, president and CEO at Granite. “Revenue grew 14 percent year over year, resulting in another record quarter. The market continues to be robust, and we added to our CAP (committed and awarded projects) 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 percent of revenue for the year.”
Larkin’s optimism extends beyond the rest of this year.
“We believe we are still in the early stages of experiencing the benefits from the federal infrastructure bill that should continue to support the public market for years to come, and we see numerous opportunities to grow in a healthy private market over the next three years,” he says.
