LOGAN, Utah - Granite Construction Incorporated (NYSE:GVA) has been awarded a contract worth approximately $65 million by the Utah Department of Transportation to undertake Phase 2 of the SR-30 Improvement Project in Logan, Utah. The project, which commenced in July 2024, is slated for completion by December 2025 and is funded through UDOT and federal contributions.
This new phase follows Granite's successful delivery of Phase 1 in 2023, which secured the company's position as the low bidder for the subsequent stage. "The successful completion of Phase 1 in 2023 positioned us as the low bidder for Phase 2, ensuring our structures, pipe, and earthwork crews will remain engaged through late 2024 and most of the 2025 season," stated Jason Klaumann, Granite Vice President of Regional Operations. He also expressed enthusiasm for continuing the partnership with UDOT Region 1 to deliver critical improvements for the Logan community.
The SR-30 corridor enhancements are designed to accommodate a mixed traffic profile, including public transport, farm equipment, and non-motorized users such as cyclists and runners. Upgrades include a 12-foot-wide multi-use path, wider shoulders, additional turning lanes, and advanced warning signs for railroad crossings. Environmental considerations are integral to the project, with plans for two new precast box culverts and the widening of a concrete girder bridge to better serve the Logan River/Cutler Marsh area.
Additional infrastructure upgrades encompass guardrail, Advanced Traffic Management Systems (ATMS), lighting, signalization, and improvements to storm drain, water, sewer, and landscaping.
Granite, known as America's Infrastructure Company™, has a longstanding presence in the construction industry, with incorporation dating back to 1922. The company prides itself on ethical standards, safety leadership, and award-winning quality and sustainability practices.
The announcement of this contract award is based on a press release statement from Granite.
In other recent news, Granite Construction Incorporated has reported significant financial growth in its second quarter, with a 22% increase in revenue within its Construction segment, an overall revenue surge of 20%, and a substantial 60% rise in gross profit. The company has 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.
In addition, Granite has secured two major contracts from the California Department of Transportation (Caltrans). A $45 million contract for the upgrade of the John Wilkie Safety Roadside Rest Area on Interstate 40 and a $38 million contract to enhance the Highway 101 corridor in southern Santa Barbara. Both projects are expected to commence in September 2024.
These recent developments indicate continued growth for Granite, supported by a $5.6 billion committed and awarded projects portfolio. As part of its future plans, the company 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) embarks on Phase 2 of the SR-30 Improvement Project, investors and stakeholders may find the following insights from InvestingPro particularly relevant. Granite's net income is expected to grow this year, a positive signal for the company's financial health as it undertakes this significant infrastructure project. Additionally, two analysts have revised their earnings upwards for the upcoming period, reflecting an optimistic outlook on the company's performance.
InvestingPro Data for Granite Construction reveals a market cap of $3.14 billion and a P/E ratio that stands at 35.46. While the company is trading at a high earnings multiple, it's worth noting that the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 32.82. Furthermore, Granite Construction has demonstrated strong revenue growth of 16.84% over the last twelve months as of Q2 2024, underlining the company's expanding operations and potential for increased profitability.
Investors may also be interested to know that Granite Construction has maintained dividend payments for 35 consecutive years, showcasing its commitment to shareholder returns. For those seeking more insights, InvestingPro offers additional tips on Granite Construction, which can be accessed through the dedicated link: https://www.investing.com/pro/GVA.
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