Granite Construction Inc. announced results for the quarter ended March 31, reporting a net loss of $23 million, or $0.53 per diluted share, compared to net loss of $27 million, or $0.58 per diluted share, for the same period in the prior year.
Revenue decreased $94 million to $560 million compared to $654 million in the same period in the prior year. Comparable revenue, which excludes Granite Inliner revenue of $36 million in the prior year, decreased $58 million year-over-year.
Gross profit decreased $28 million to $32 million compared to $60 million in the same period in the prior year.
Selling, general and administrative expenses increased $3 million to $73 million or 13.1% of revenue, compared to $70 million or 10.7% of revenue in the same period in the prior year.
“With extreme weather in parts of our business, this was not the start of the year that we were hoping for; however, I am confident that we are on the right path to realizing the targets of our strategic plan,” said Kyle Larkin, Granite president and chief executive officer. “We have made significant strides not only in de-risking our portfolio, but also rebuilding the portfolio with work aligned with our financial targets. Despite a slow first quarter of 2023 that was significantly impacted by weather across the western U.S., I am very encouraged by the current market environment and opportunities ahead of us. Our first quarter CAP of $5.1 billion is a record for Granite, an increase of 14% from the fourth quarter and an increase of 30% from the first quarter of 2022. Impressively, this increase was achieved while being more selective and bidding fewer projects at improved margins than the first quarter of 2022.”
Larkin continued, “In the first few months of 2023, we also completed two bolt-on materials acquisitions in support of our home markets in Nevada and the Pacific Northwest. These transactions are representative of the acquisitions contemplated in our strategic plan: bolt-on materials-focused acquisitions in or adjacent to established home markets which strengthen and provide our home markets with opportunities to grow with low integration risk.”