Granite Construction Inc. announced results for the fourth quarter and year ended Dec. 31, 2022. Fourth quarter 2022 net income totaled $22 million, or $0.46 per diluted share, compared to a net loss of $13 million, or $0.29 per diluted share, in the same period of the prior year. Fourth quarter 2022 adjusted net income totaled $25 million, or $0.56 per diluted share, compared to adjusted net income of $2 million, or $0.04 per diluted share, in the same period of the prior year.
Fiscal year 2022 net income totaled $83 million, or $1.70 per diluted share, and net income margin was 2.5% compared to net income of $10 million, or $0.21 per diluted share, and net income margin of 0.3% in the prior fiscal year.
Fiscal year 2022 adjusted net income totaled $104 million, or $2.31 per diluted share, compared to adjusted net income of $83 million, or $1.80 per diluted share, in the prior fiscal year.
Revenue decreased $201 million to $3.3 billion in 2022, compared to $3.5 billion in the prior year. Comparable revenue, which excludes Granite Inliner revenue of $36 million and $224 million for 2022 and 2021, respectively, decreased $13 million year-over-year.
Gross profit increased $6 million in 2022 to $369 million, compared to $363 million in the prior year. Comparable gross profit, which excludes Granite Inliner gross profit of $5 million and $22 million for 2022 and 2021, respectively, increased $23 million year-over-year.
The Materials segment finished the year strong in the fourth quarter with higher volumes and sales prices driving a revenue increase year-over-year. Gross profit and gross profit margin during the fourth quarter increased significantly as a result of sales price increases and cost efficiencies driven by higher volumes and decreases in fuel and energy costs.
For 2022, materials revenue increased due to higher sales prices, which included energy surcharges implemented earlier in the year, across all operating groups as well as higher aggregate volumes. Gross profit increased in 2022 due to the higher revenue and greater volumes while gross profit margin decreased due to the impact of higher fuel and energy costs earlier in the year.
“In the first quarter of 2022, we introduced our 2024 strategic plan, the roadmap for the transformation of Granite and the path we intend to follow to achieve sustainable growth and increased profit margins,” said Kyle Larkin, Granite president and chief executive officer. “During 2022, we were singularly focused on implementing our plan by, among other things, focusing on higher margin, less risky work in our home markets. I am delighted to report that this has enabled us to achieve improved adjusted EBITDA margin in 2022 and the highest quality CAP portfolio in recent history. We expect to continue improving our adjusted EBITDA margin in line with our 2024 target. As I have stated previously, the market environment is strong, and we believe it will strengthen in 2023 with increased IIJA funding providing us opportunities to continue to build high quality CAP in 2023. Our plan is working.”