Granite Construction Inc. reports net income of $14.1 million for the 2nd quarter of 2017, ended June 30, compared to $14.2 million in the second quarter of 2016. Earnings per diluted share in the quarter was $0.35, about the same as last year.
Additional key points include the following:
- Second quarter consolidated revenue increased 26.2 percent to $762.9 million, compared with $604.6 million in the second quarter of 2016; and increased 17.9 percent to $1.23 billion in the first half of 2017.
- Gross profit increased 1.9 percent to $74.6 million compared with $73.2 million last year; but decreased 11.3 percent to $99.7 million in the first half of 2017.
- Gross profit margin was 9.8 percent compared with 12.1 percent in 2016; and 8.1 percent compared with 10.8 percent last year.
- Cash and marketable securities are $285.9 million, an increase of $47.0 million from the same period in 2016.
- Revenue increased to $762.9 million, up 26.2 percent year-over-year.
- Record Company backlog of $4.1 billion, up 8.4 percent year-over-year.
- Construction materials revenue was $79.2 million compared to last year at $75.9 million.
- Second quarter construction materials gross profit expanded to $11.6 million compared to $10.5 million last year.
- Construction revenue increased 29.6 percent to $429.3 million, compared with $331.3 million last year.
- Construction segment and construction materials segment gross profit margins at 14.6 percent.
- Construction gross profit increased 27.4 percent to $62.5 million compared to $49.1 million last year.
“This is a very exciting time for our business. Our growth expectations for 2017 and 2018 have increased, and our outlook continues to improve across our business,” said James H. Roberts, President and CEO of Granite Construction Inc., in a press release. “Our businesses continue to win new work across the portfolio, with broad project wins driving company backlog above $4 billion for the first time in our company’s 95-year history. For the fifth consecutive quarter, construction segment backlog finished above the $1-billion mark. We are particularly pleased with consistently strong margin performance in the Construction segment and improving margins in the Construction Materials segment. We expect strong growth in both segments in the second half of 2017 and through 2018.
“Granite teams recovered well from challenging winter and spring weather, with solid safety performance across the business in alignment with operations that accelerated through the end of the second quarter,” Roberts continued. “We also continued acceleration to completion on a number of under-performing, mature projects in our Large Project Construction segment portfolio. This will allow our teams to complete these projects in 2017 and 2018, but, as we saw in the first quarter, it created an increased near-term drag on our results.”