WATSONVILLE, Calif. - Infrastructure company Granite (NYSE:GVA) has been awarded an $89 million subcontract as part of the United Airlines Terminal B Airside Transformation at George Bush Intercontinental Airport in Houston, Texas. The project, which is part of a broader $2 billion initiative funded by United Airlines and the City of Houston, will see the renovation of one of the airport's oldest terminals.
Granite's role in the transformation program includes the demolition and reconstruction of the north concrete apron, which will clear the way for a new terminal structure featuring additional gates and modern amenities for passengers. The work scope detailed in the announcement encompasses approximately 126,000 square yards of demolition and 154,000 square yards of concrete paving, along with service roads, earthwork, utility coordination, and drainage work.
The project is expected to commence in Summer 2024 and is slated for completion by April 2026. This undertaking is in line with Granite's strategic plan to diversify its portfolio in the Texas region and solidify its operational presence in the Houston area.
Domingo Gonzalez, Granite Area Manager, stated the company's pride in contributing to the enhancements at Terminal B, which will serve millions of travelers in the future. Nick Godkin, Granite Construction (NYSE:GVA) Manager, emphasized the company's expertise in concrete paving as a pivotal element in transforming the airport's infrastructure.
Granite, described as America's Infrastructure Company™, has been incorporated since 1922 and stands as one of the largest diversified construction and materials companies in the United States. The company prides itself on its ethical standards, safety leadership, and award-winning quality and sustainability practices.
The information in this article is based on a press release statement from Granite.
InvestingPro Insights
As Granite (NYSE:GVA) secures a significant subcontract for the transformation of George Bush Intercontinental Airport's Terminal B, the company's financial health and stock performance come into focus. With a market capitalization of $2.75 billion, Granite is positioned as a substantial player in the construction and materials sector. The company's recent performance metrics provide a glimpse into its financial standing and market sentiment.
InvestingPro data highlights a robust 12.9% revenue growth over the last twelve months as of Q1 2024, indicating a positive trajectory in the company's financial performance. This growth is further accentuated by a quarterly revenue increase of 20.03% in Q1 2024. However, it is worth noting that Granite's gross profit margin stands at 11.55%, which points to the challenges in maintaining higher profitability amidst operational costs.
Investors are paying attention to Granite's earnings multiple, with the stock trading at a P/E ratio of 76.39. While this signals a high valuation compared to earnings, it's important to consider the company's expected net income growth this year. The company's stock has also demonstrated resilience, generally trading with low price volatility, which may appeal to investors seeking stability in their portfolio.
For those interested in diving deeper into Granite's financials and stock performance, InvestingPro offers additional insights. There are 13 more InvestingPro Tips available, including analysis on the company's dividend consistency, debt levels, and recent stock price movements. With these insights, investors can make more informed decisions about their investment strategies. To explore these tips further, visit https://www.investing.com/pro/GVA and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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