Granite secures $113 million military construction contract from Investing.com

WATSONVILLE, Calif. – Granite Construction Incorporated (NYSE: GVA), in a joint venture with Obayashi Corporation, has been awarded a contract valued at approximately $113 million for new construction at Marine Corps Base Camp Blaz (MCCB). The project, funded by the U.S. Department of Defense under the Military Construction (MILCON) program, will be added to Granite’s backlog in the third quarter.

The contract includes the construction of several lower-level buildings for the Marine Expeditionary Force’s 9th Engineer Support Battalion. These reinforced concrete structures are designed to support various support services, including an automotive repair shop, an electrical and communications maintenance shop, storage facilities, a vehicle wash facility, and a vehicle parking area.

This project underscores Granite’s ongoing involvement at MCCB, having already played a key role in the construction of the base’s main housing facilities. The company underscores its ongoing commitment to supporting the U.S. Marine Corps’ strategic objectives in the Pacific.

Curt Haldeman, Granite’s vice president of regional operations, said he was honored to continue the partnership with NAVFAC Pacific and emphasized the importance of the contract to Granite’s contribution to the relocation of Marines from Okinawa to Guam.

Construction is scheduled to begin in October 2024 and completion is expected in January 2027.

Granite, known as America’s Infrastructure Company™, has been a major player in the diversified construction and building materials sector since 1922. The company prides itself on its ethical standards, safety leadership, and award-winning quality and sustainability practices.

In other recent news, Granite Construction Incorporated reported a strong second quarter with a 22% increase in construction revenue and 20% overall revenue growth. The company also reported a notable 60% increase in gross profit. In addition, Granite announced the strategic acquisition of Dickerson & Bowen, which is expected to close in the third quarter and will expand the company’s presence in the Southeastern United States.

Granite Construction also made leadership changes by appointing Ms. Woolsey as the new CFO and entering into a separation and transition agreement with the outgoing CFO, Ms. Curtis. Additionally, the company has won several significant contracts, including a $65 million contract for the SR-30 Improvement Project with the Utah Department of Transportation, a $45 million contract to upgrade the John Wilkie Safety Roadside Rest Area on Interstate 40, and a $38 million contract to improve the Highway 101 corridor in southern Santa Barbara.

These recent developments are supported by a portfolio of committed and contracted projects valued at $5.6 billion. As part of its future plans, Granite intends to increase disclosure in the materials business in 2025 for greater financial transparency and will announce targets for 2025, 2026 and 2027 in the upcoming third quarter.

InvestingPro Insights

As Granite Construction Incorporated announces its significant contract for construction at Marine Corps Base Camp Blaz, investors and stakeholders may find the following InvestingPro Insights particularly relevant. With a market capitalization of $3.46 billion, Granite is well positioned to leverage its extensive industry experience to execute on this project. The company’s revenue growth has been robust, with a notable increase of 16.84% over the trailing twelve months to the second quarter of 2024, suggesting strong financial performance that could support the successful execution of the new contract.

InvestingPro Tips suggests that Granite Construction’s net income is expected to grow this year, a positive sign that aligns with the company’s recent contract win and potential future earnings. In addition, two analysts have upgraded their earnings forecasts for the coming period, indicating an optimistic mood in the financial community about Granite’s prospects.

From a valuation perspective, Granite trades at a price-to-earnings ratio of 38.6, with an adjusted P/E of 36.17 for the trailing twelve months through the second quarter of 2024. The company’s price-to-earnings-growth (PEG) ratio is 0.6, which could indicate that the stock may be undervalued relative to its earnings growth. In addition, with a dividend yield of 0.66%, Granite has demonstrated its commitment to shareholder returns, making dividend payments for 35 consecutive years.

For investors seeking additional insights, 16 more InvestingPro Tips are available that provide comprehensive analysis and could guide investment decisions related to Granite Construction Incorporated. To explore these tips, visit https://www.investing.com/pro/GVA.

This translation was generated using artificial intelligence. For more information, please see our Terms of Use.