Granite Construction Reports $699.5M Revenue in Q1 2025, 4% Increase Year-Over-Year

Granite Construction Incorporated reported a total revenue of $699.5 million for the first quarter of 2025, marking a 4% increase from $672.3 million in the same period of 2024. The company achieved a gross profit of $83.8 million, significantly up from $54.3 million year-over-year. However, Granite recorded an operating loss of $39.8 million, an improvement from the $43.3 million loss reported in the prior year. The net loss attributable to Granite Construction was $33.7 million, compared to a net loss of $31.0 million in the first quarter of 2024.

The increase in revenue was primarily driven by a 3.3% rise in construction revenue, which totaled $614.6 million, bolstered by new project ramp-ups and favorable weather conditions. The acquisition of Dickerson & Bowen, Inc. contributed $10.1 million to construction revenue during the quarter. The materials segment also saw a 10.2% increase in revenue, reaching $84.9 million, largely due to higher sales volumes and prices for aggregates and asphalt, alongside contributions from the newly acquired D&B.

Granite's total assets decreased to $2.9 billion as of March 31, 2025, down from $3.0 billion at the end of 2024. Current assets also fell to $1.5 billion, primarily due to a reduction in cash and cash equivalents, which decreased from $578.3 million to $379.1 million. The company’s liabilities decreased as well, with total current liabilities at $953.6 million, down from $1.0 billion at the end of the previous year. The equity attributable to Granite Construction shareholders was $993.5 million, a decline from $1.0 billion.

In terms of operational developments, Granite's committed and awarded projects (CAP) reached $5.7 billion, reflecting an 8.4% increase from the previous quarter. This growth was supported by a favorable public funding environment, particularly from federal infrastructure initiatives. The company continues to navigate challenges such as inflation and supply chain constraints but remains optimistic about future opportunities driven by ongoing public sector funding and infrastructure needs.

Looking ahead, Granite Construction anticipates continued growth in its project pipeline, supported by the Infrastructure Investment and Jobs Act, which is expected to enhance federal funding for infrastructure projects. The company plans to maintain its focus on strategic investments and operational efficiencies to improve profitability and capitalize on market opportunities.