Granite Construction Q2 Earnings Beat Street; To Buy Dickerson & Bowen

(RTTNews) - Granite Construction Incorporated (GVA) Thursday reported better-than-estimated earnings for the second quarter. It also agreed to acquire Dickerson & Bowen, Inc. for undisclosed terms. Further, the company tightened full-year revenue outlook.

For the quarter, the company reported net income of $36.9 million, or $0.76 per share, compared with net loss of $17 million, or $0.39 per share, for the same period in the prior year, mainly driven by growth in revenue.

Earnings, excluding one-time items were $77 million, or $1.73 per share.

Revenue for the quarter increased 20 percent to $1.082 billion from $898.55 million last year.

Analysts expected the company to report earnings of $1.39 per share on revenue of $1.01 billion for the quarter.

Commenting on the acquisition of Dickerson & Bowen, Kyle Larkin, Granite President and CEO said, "Dickerson & Bowen is a natural extension of the Lehman-Roberts Company and Memphis Stone & Gravel platform that we acquired at the end of 2023. This materials-focused, vertically integrated business will expand our existing footprint in this high growth market south through Jackson, Mississippi and to the southern end of the state."

The deal is expected to close in the third quarter.

Looking ahead, the company now expects full-year revenue in the range of $3.9 billion - $4.0 billion compared with the previous outlook of $3.8 billion - $4.0 billion. The consensus estimate stands at $3.9 billion.