WATSONVILLE, Calif. - Granite Construction Incorporated (NYSE: NYSE:GVA), in a joint venture with Obayashi Corporation, has been awarded a contract worth approximately $113 million for new construction at Marine Corps Base Camp Blaz (MCCB). The project, funded by the Department of Defense’s Military Construction (MILCON), will be recorded in Granite’s third-quarter CAP.
The scope of the contract includes building several low-rise facilities for the Marine Expeditionary Force’s 9th Engineer Support Battalion. These structures, featuring reinforced concrete, are designed to house various support services such as an auto organization shop, electrical/communications maintenance shop, organic storage, vehicle wash rack, and vehicle laydown area.
This initiative represents Granite’s continued involvement at MCCB, following their primary role in constructing the base's main cantonments. The company emphasizes its ongoing commitment to supporting the U.S. Marine Corps' strategic goals in the Pacific.
Granite’s Vice President of Regional Operations, Curt Haldeman, expressed honor in extending their partnership with NAVFAC Pacific, emphasizing the importance of the contract in reinforcing Granite’s contribution to the Marines’ realignment from Okinawa to Guam.
The construction is scheduled to start in October 2024 and is anticipated to be completed by January 2027.
Granite, known as America’s Infrastructure Company™, has been a significant player in diversified construction and construction materials since 1922. The company prides itself on its ethical standards, safety leadership, and award-winning quality and sustainability practices.
This announcement is based on a press release statement and reflects the latest venture by Granite to bolster its portfolio in military construction projects.
In other recent news, Granite Construction Incorporated reported a robust 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. Further, Granite announced the strategic acquisition of Dickerson & Bowen, expected to close in the third quarter, which will expand the company's Southeastern market presence.
Granite Construction has also made executive-level changes, appointing Ms. Woolsey as the new CFO and entering into a Separation and Transition Agreement with the outgoing CFO, Ms. Curtis. Additionally, the company has secured several notable contracts, including a $65 million contract for the SR-30 Improvement Project with the Utah Department of Transportation, 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.
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) announces its significant contract for construction at Marine Corps Base Camp Blaz, investors and stakeholders may find the following InvestingPro Insights particularly relevant. With a market capitalization of $3.46 billion, Granite is poised to leverage its substantial industry experience to deliver on this new project. The company's revenue growth has been robust, with a notable increase of 16.84% over the last twelve months as of Q2 2024, signaling a strong financial performance that could underpin the successful execution of the new contract.
InvestingPro Tips suggest that Granite Construction's net income is expected to grow this year, a positive sign that aligns with the company's recent contract win and potential future earnings. Additionally, the company has seen 2 analysts revise their earnings upwards for the upcoming period, indicative of a bullish sentiment in the financial community regarding Granite's prospects.
From a valuation perspective, Granite is trading at a P/E ratio of 38.6, with an adjusted P/E ratio of 36.17 for the last twelve months as of Q2 2024. The company's PEG ratio stands at 0.6, which could suggest that the stock is potentially undervalued relative to its earnings growth. Furthermore, with a dividend yield of 0.66%, Granite has demonstrated a commitment to shareholder returns, maintaining dividend payments for 35 consecutive years.
For investors seeking additional insights, there are 16 more InvestingPro Tips available, offering a comprehensive analysis that could further guide investment decisions in relation to Granite Construction Incorporated. To explore these tips, visit https://www.investing.com/pro/GVA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.