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NEW YORK - Granite Construction Incorporated (NYSE:GVA) reported mixed first quarter results on Wednesday, with earnings surpassing expectations but revenue falling short. The company’s shares dropped 2% following the announcement.
The construction materials company posted adjusted earnings per share of $0.01 for the first quarter, significantly beating the analyst estimate of -$0.52. However, revenue came in at $614.62 million, missing the consensus estimate of $705.95 million and lower than the $700 million reported in the same quarter last year.
Despite the revenue miss, Granite Construction saw improvements in profitability. Gross profit increased by $30 million to $84 million compared to the same period last year. Adjusted EBITDA doubled to $28 million from $14 million in the prior-year quarter.
The company’s Committed and Awarded Projects (CAP) grew by $444 million sequentially to reach a record $5.7 billion, indicating a strong pipeline of future work.
Kyle Larkin, Granite Construction’s President and CEO, expressed optimism about the company’s outlook, stating, "We are off to a great start in 2025. Bidding opportunities have consistently increased over the past several years. This trend has continued in 2025, as demonstrated by our record CAP of $5.7 billion at the end of the quarter."
For the full year 2025, Granite Construction provided revenue guidance of $4.2-4.4 billion, in line with the analyst consensus of $4.29 billion.
The company reported operating cash flow of $4 million for the quarter, which it says is on track to meet its target of 9% operating cash flow as a percentage of revenue for the year.
Granite Construction’s shares were down 2% following the earnings release.
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