WATSONVILLE, Calif. - Granite Construction Incorporated (NYSE:GVA) has been awarded a $48 million contract to replace two fish barrier culverts with three new passable structures along Interstate 5 in Snohomish County, Washington. The contract, announced today, was granted by the Washington State Department of Transportation (WSDOT) and will be funded by WSDOT, with financials expected to impact Granite's second-quarter capital expenditure.
The initiative, known as the Secret Creek project, will enhance Granite's existing partnership with WSDOT's Mt. Baker Area, following the successful completion of the Padden Creek project in September 2022. The new project supports WSDOT's compliance efforts with environmental injunctions, aiming for completion by 2030.
Granite's Vice President of Regional Operations, Mike Stein, expressed enthusiasm for the project's alignment with the company's strategic objectives and its positive contribution to local ecosystems. Stein emphasized Granite's commitment to providing innovative and sustainable solutions for both clients and communities.
The Secret Creek project is set to commence in June 2024 and is slated for completion by December 2026. Granite plans to utilize 95,000 tons of gravel from its Conway Aggregate Facility in Mount Vernon, Washington, to support the construction.
Granite, recognized as America's Infrastructure Company™, has been a significant player in the construction sector since 1922. The company is known for its diversified construction and construction materials services across the United States. Granite prides itself on its ethical standards, safety leadership, and award-winning quality and sustainability practices.
InvestingPro Insights
Granite Construction Incorporated's (NYSE:GVA) recent contract win is a testament to its continued growth and strategic partnerships. To provide further context on the company's financial health and market performance, several key metrics from InvestingPro are noteworthy:
- The company boasts a market capitalization of approximately $2.72 billion USD, reflecting its significant presence in the construction sector.
- Granite's Price/Earnings (P/E) ratio stands at a high 75.6, indicating that investors have high expectations of future earnings growth, despite the company trading at a premium compared to some of its peers.
- With a steady revenue growth of 12.9% over the last twelve months as of Q1 2024, Granite showcases its ability to expand its operations and increase its market share.
As for InvestingPro Tips, it's important to highlight that Granite Construction is expected to see net income growth this year and has maintained dividend payments for an impressive 35 consecutive years, signaling a potential appeal for income-seeking investors. Additionally, the company has a strong track record of returns, with a 69.08% price total return over the past year, which could attract investors looking for robust performance in the construction sector. For those interested in deeper analysis, there are 14 additional InvestingPro Tips available, which can be accessed by visiting the InvestingPro platform for Granite Construction at https://www.investing.com/pro/GVA.
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