Granite Construction Inc. announced results for the quarter ended Sept. 30, and the first nine months of the year.
Net income in the third quarter 2023 totaled $58 million, or $1.13 per diluted share, compared to net income of $69 million, or $1.36 per diluted share, for the same period in the prior year. Adjusted net income totaled $75 million, or $1.69 per diluted share, compared to adjusted net income of $57 million, or $1.28 per diluted share, for the same period in the prior year.
- Revenue increased $108 million to $1.1 billion compared to $1.0 billion for the same period in the prior year. Both Construction and Materials segments posted year-over-year increases with the California and Mountain Groups up 15% and 11%, respectively, as well as a slight increase in revenue in the Central Group.
- Gross profit increased $52 million to $167 million compared to $115 million for the same period in the prior year.
Net income for the nine months ended Sept. 30, 2023 totaled $18 million, or $0.40 per diluted share, compared to net income of $61 million, or $1.25 per diluted share, for the same period in the prior year. Adjusted net income totaled $103 million, or $2.32 per diluted share, compared to adjusted net income of $79 million, or $1.75 per diluted share, for the same period in the prior year.
Materials revenue and gross profit for the three and nine months ended Sept. 30 increased compared to the same periods of the prior year driven by higher asphalt and aggregate sales prices. Additionally, in 2023, oil and energy costs have normalized compared to the significant inflation in 2022 which negatively impacted materials gross profit margin in the prior year.
“I am pleased with our third quarter performance,” said Kyle Larkin, Granite president and chief executive officer. “These results demonstrate the strong progress we are making towards the goals identified in our strategic plan that we introduced just over two years ago. We have built record CAP while also de-risking our project portfolio by focusing on best value projects. During this same time, we have also bolstered our materials business through both greenfield and bolt-on investments, and we improved segment margins. We are growing revenue and increasing adjusted EBITDA margin and believe we are on track to reach our 2024 financial targets.”