The chart below shows how GVA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GVA sees a -3.88% change in stock price 10 days leading up to the earnings, and a +4.33% change 10 days following the report. On the earnings day itself, the stock moves by +3.74%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue Growth: Revenue increased 14% year over year to $4 billion, demonstrating strong growth across the company.
Gross Profit Surge: Gross profit increased 44% to $573 million, reflecting improved project execution and a higher quality project portfolio.
Adjusted EBITDA Increase: Adjusted EBITDA rose 44% to $402 million, resulting in an adjusted EBITDA margin of 10% for the year.
Cash Flow Surge: Operating cash flow surged 148% to $456 million, indicating significant cash generation capabilities and operational efficiency improvements.
Reserves Growth and Future Potential: Aggregate reserves increased by 20% year over year to 1.6 billion tons, positioning the company for future growth in the materials segment.
Negative
2025 Revenue Growth Projections: Revenue growth guidance for 2025 is projected at $4.2 billion to $4.4 billion, indicating a modest decline at the low end compared to 2024's $4 billion, suggesting potential challenges in maintaining growth momentum.
EBITDA Margin Guidance 2025: Adjusted EBITDA margin guidance for 2025 is set at 11% to 12%, which, while representing an increase, is contingent on achieving higher performance levels that may not be guaranteed given market uncertainties.
Construction Segment Performance Issues: The Construction segment experienced project delays, which impacted overall performance, despite a year-over-year revenue increase of only 3% to $821 million, indicating potential operational inefficiencies.
Materials Segment Revenue Concerns: The Materials segment's revenue increase of just $16 million year-over-year to $150 million reflects limited organic growth, primarily driven by acquisitions rather than internal expansion, raising concerns about sustainable growth.
Stock-Based Compensation Impact: A projected increase in stock-based compensation expense of $45 million in 2025 could pressure margins, as it is expected to account for approximately 9% of revenue, potentially impacting overall profitability.
Earnings call transcript: Granite Construction Q4 2024 earnings beat forecasts
GVA.N
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