Granite Construction recently announced results for the quarter and year ended Dec. 31, 2023. Revenue for the full year increased $208 million to $3.5 billion with adjusted net income totaling $140 million.
In the fourth quarter, revenue increased $145 million to $934 million compared to $789 million 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 44% and 14%, respectively, offset by a decrease in revenue of 9% in the Central Group.
“Looking back on 2023, it was a transformative year for Granite as we delivered on our strategic plan. We met our expectations for organic revenue growth and achieved our adjusted EBITDA margin range. We continued to develop our home markets while growing what we believe is the highest quality CAP in Granite’s history by $1 billion year-over-year,” said Kyle Larkin, Granite president and chief executive officer. “We generated operating cash flow in excess of our target at 5.2% of revenue and completed acquisitions that added exclusive rights to 140 million tons of reserves and expanded our vertically integrated footprint to the Southeast. We continue to make significant progress to deliver strong, predictable profitability by focusing on our core construction skills that we have developed and honed over the past 100 years.”
“Our guidance in 2024 reflects significant revenue growth driven by the high level of our CAP, robust construction and materials markets, and contribution from the Lehman-Roberts Company and Memphis Stone & Gravel Company acquisition. Our 2024 adjusted EBITDA margin guidance range remains unchanged, and we expect to see further improvements in operating cash flow,” Larkin concluded.
Granite’s outlook for 2024 includes revenue in the range of $3.8 billion to $4.0 billion with an Adjusted EBITDA margin in the range of 9.0% to 11.0%, led by a transformed project portfolio and improved materials margins.