How Granite Construction fared in third quarter 2018

By |  November 13, 2018
Headshot: Granite Construction's James Roberts

Roberts

Granite Construction reported a third quarter 2018 net income of $55.7 million, a 21.1 percent increase from the $46 million mark posted in the same period last year.

Earnings per diluted share was $1.17, compared to $1.14 last year. Third quarter and year-to-date 2018 results include after-tax acquisition-related expenses of $11.7 million and $43.4 million, respectively, according to the company.

Revenue increased 10.3 percent to $1.06 billion in the third quarter of 2018, according to the company, compared with $957.1 million in the prior-year period. For the nine months ending Sept. 30, revenue increased 10.9 percent to $2.43 billion, compared with $2.19 billion last year.

“In 2018, Granite has executed our strategy to develop a leadership position as America’s infrastructure company,” says James Roberts, president and CEO of Granite Construction. “Acquisitions have helped us to deliver profitable geographic and end-market diversification, and this action highlights the significant opportunities we have to expand Granite’s platforms for growth in the new transportation, water, speciality and materials segments.”

Our focus has remained intent on improved profitability this year, and our teams, new and old, have delivered. Demand for projects across all segments of our business remains strong as we maintain our deliberate emphasis on improved pricing,” Roberts adds.

In the third quarter specifically, revenue increased 32.1 percent to $129.6 million, compared with $98.1 million in 2017. Year-to-date 2018 revenue increased 30.4 percent to $276.3 million, compared to $211.8 million last year.

In addition, quarterly gross profit improved 9.9 percent to $21.3 million, compared to $19.4 million last year, with a gross profit merger of 16.4 percent, down from 19.8 percent last year. Year-to-date gross profit, however, increased 30.6 percent to $36.3 million from $27.8 million last year, with gross profit merger steady at 13.1 percent.

According to the company, the quarterly and year-to-date revenue and profit growth was attributable primarily to improved external demand across most markets, while maintaining an expectation of overall mid-teen gross margins in the segment.

Zach Mentz

About the Author:

Zach Mentz is the managing editor for Pit & Quarry magazine. He also serves as the managing editor for Portable Plants & Equipment magazine. Zach received a bachelor’s degree in communications and journalism from John Carroll University, where he served as editor in chief for the university’s student newspaper, The Carroll News. His previous experience also includes time spent in the Cleveland Indians communications department.

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