Granite Construction’s materials segment experienced a series of gains in the second quarter, including in revenue and gross profit.
The materials segment’s revenue was up 10.3 percent in the second quarter to $164.5 million. The segment’s gross profit jumped 22.6 percent in the quarter to $29.3 million.
Revenue from acquired businesses and increases in aggregate and asphalt pricing drove second-quarter increases, according to Granite.
Companywide, Granite’s revenue increased by $183 million to $1.1 billion versus the prior-year period. And like Granite’s materials segment, the company’s construction segment posted a quarterly revenue increase (up 22 percent).
“I am pleased with our strong second quarter,” says Kyle Larkin, Granite president and CEO. “Our teams continue to execute on our plan, and we are seeing the expected results.”
Upon releasing its second-quarter financial results, Granite shared that it had come to terms on a deal to acquire Dickerson & Bowen, a construction materials producer based in Brookhaven, Mississippi. Granite expects the transaction to close in the third quarter.
“The acquisition will add four asphalt plants and three sand and gravel pits,” Larkin says. “Dickerson & Bowen is a natural extension of the Lehman-Roberts Co. and Memphis Stone & Gravel platform that we acquired at the end of 2023. This materials-focused, vertically integrated business will expand our existing footprint in this high-growth market south through Jackson, Mississippi, and to the southern end of the state.”
