Today, Granite Construction Incorporated (NYSE:GVA), a heavy construction contractor based in Watsonville, California, disclosed executive-level changes in a recent filing with the U.S. Securities and Exchange Commission (SEC). The company announced the appointment of a new Chief Financial Officer (CFO) and outlined the separation terms for the outgoing officer.
Ms. Woolsey, the newly appointed Executive Vice President and CFO, will commence her role with an annual base salary of $500,000 effective today. Her compensation package includes an increased target annual incentive opportunity, a long-term incentive plan for the 2025 to 2027 performance period, and a $100,000 restricted stock unit grant vesting over three years. Additionally, she will receive a monthly vehicle allowance of $1,000 and is covered under the company's Executive Retention and Severance Plan III.
Concurrently, Granite Construction has entered into a Separation and Transition Agreement with Ms. Curtis, the former CFO. Under the agreement, Ms. Curtis will serve as Senior Financial Advisor until March 31, 2025, and will continue to receive her current base salary. She will remain eligible for her 2024 Annual Incentive Plan award and payouts under her long-term incentive plan awards, which will be prorated and paid in cash for the relevant performance periods.
Moreover, Ms. Curtis will be provided with 18 months of COBRA health coverage at the company's expense. The agreement includes standard provisions such as non-solicit, non-disparagement, and a general release and waiver.
In other recent news, Granite Construction Incorporated reported a strong second quarter, with a 22% increase in revenue within its Construction segment and a 20% overall revenue surge. The company also noted a significant 60% rise in gross profit.
Granite secured several notable contracts, including a $65 million contract with the Utah Department of Transportation for Phase 2 of the SR-30 Improvement Project, a $45 million contract with the California Department of Transportation (Caltrans) for the upgrade of the John Wilkie Safety Roadside Rest Area on Interstate 40, and a $38 million contract from Caltrans to enhance the Highway 101 corridor in southern Santa Barbara.
The company also announced the acquisition of Dickerson & Bowen, set to close in the third quarter, marking a strategic move to expand Granite's presence in the Southeastern market. These recent developments are supported by a $5.6 billion committed and awarded projects portfolio.
As part of its future plans, Granite intends to increase disclosures around the Materials business in 2025 for better financial visibility and provide future targets for 2025, 2026, and 2027 in the upcoming third quarter.
InvestingPro Insights
As Granite Construction Incorporated (NYSE:GVA) navigates through its executive transition, investors may find the latest data and insights from InvestingPro useful for understanding the company's financial position. The company's market capitalization stands at $3.38 billion, reflecting its stature in the heavy construction industry. An encouraging sign for investors is the company's revenue growth; over the last twelve months leading up to Q2 2024, Granite Construction has seen its revenue increase by 16.84%, with a particularly strong quarterly revenue growth rate of 20.47%. This indicates a positive trajectory in the company's operations and could be a sign of robust business performance.
InvestingPro Tips suggest that Granite Construction's net income is expected to grow this year, which pairs well with the 16 analysts who have revised their earnings upwards for the upcoming period. This could signal confidence in the company's profitability and future prospects. Additionally, the company has a track record of maintaining dividend payments for 35 consecutive years, demonstrating a commitment to returning value to shareholders. For investors looking for more in-depth analysis, there are over 16 additional tips available on InvestingPro, providing a comprehensive view of the company's financial health and investment potential.
Furthermore, the company's P/E ratio, as of Q2 2024, is 35.28, while the PEG ratio stands at a modest 0.58, suggesting that the company's earnings growth may not be fully reflected in its current share price. This could represent an opportunity for investors who believe in the company's growth potential. With a strong return over the last year, as evidenced by a 97.3% one-year price total return, Granite Construction's stock performance has been robust, trading near its 52-week high, which could be indicative of investor confidence in the company's direction and leadership.
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