Granite Construction reported that revenue increased to $563.4 million, up 20.3 percent year-over-year for the quarter ended March 31, 2018. Construction Materials revenue increased 32.5 percent to $45.7 million, compared with $34.5 million last year. However, the company reported a net loss of $11.4 million, compared to a net loss of $23.8 million in the first quarter.
First quarter 2018 results include the impact of acquisition expenses related to Granite’s announced and pending acquisition of Layne Christensen Co. and from its recently completed purchase of LiquiForce.
“We were pleased to deliver solid results with a record-revenue first quarter, carrying through some of the momentum we created in 2017,” said James H. Roberts, president and chief executive officer of Granite Construction. “All three segments delivered strong revenue growth and improved year-over-year margins. Our Construction segment led the way, with the Construction Materials segment producing strong top-line revenue growth in our seasonally weakest quarter. The Large Project Construction segment again produced solid revenue growth and improved profitability, driven primarily by the contribution of newer projects in our portfolio. While work on under-performing, mature projects had less impact in the first quarter, it remained a drag on overall profitability, and it is expected to negatively impact margins through much of 2018.
“The near- and long-term outlook for demand and funding of infrastructure investment continues to improve. Backlog trends remain steady, even with more than 20 percent revenue growth in the first quarter. Large Project Construction segment backlog at $2.61 billion and Construction segment backlog at nearly $1 billion points to continued solid demand,” Roberts said. “The integration of LiquiForce is moving along as planned, and the integration planning related to our announced acquisition of Layne Christensen is progressing very well. Considering the progress that our joint integration teams have made to date, we are increasingly confident that this deal represents the ideal combination of value creation for all stakeholders. We remain on track for a successful closing in the second quarter of 2018.”
Forbes magazine recently recognized Granite as one of America’s Best Mid-Size Employers for the third year in a row. The annual Forbes ranking honors employers based on an independent survey asking how likely employees would be to recommend their employer – and other employers in their respective industries – to someone else.
“We owe this honor to our employees who are the heart and soul of our company,” said Roberts. “Our employees walk and talk our Core Values, the cornerstone of our success for nearly a century. It is because of them that we strive to create rewarding careers while growing our business safely and profitably.”