Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-12911 | |
Entity Registrant Name | GRANITE CONSTRUCTION INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0239383 | |
Entity Address, Address Line One | 585 W. Beach Street | |
Entity Address, City or Town | Watsonville | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95076 | |
City Area Code | 831 | |
Local Phone Number | 724-1011 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | GVA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,686,890 | |
Entity Central Index Key | 0000861459 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents ($121,963 and $120,224 related to consolidated construction joint ventures (“CCJVs”)) | $ 366,746 | $ 417,663 |
Short-term marketable securities | 10,500 | 35,863 |
Receivables, net ($54,659 and $62,040 related to CCJVs) | 709,248 | 598,705 |
Contract assets ($92,513 and $68,520 related to CCJVs) | 309,376 | 262,987 |
Inventories | 119,060 | 103,898 |
Equity in construction joint ventures | 157,070 | 171,233 |
Other current assets ($5,080 and $5,590 related to CCJVs) | 34,168 | 53,102 |
Total current assets | 1,706,168 | 1,643,451 |
Property and equipment, net ($7,295 and $7,557 related to CCJVs) | 670,876 | 662,864 |
Investments in affiliates | 93,499 | 92,910 |
Goodwill | 146,768 | 155,004 |
Intangible assets | 107,575 | 117,322 |
Right of use assets | 78,374 | 78,176 |
Deferred income taxes, net | 19,989 | 8,179 |
Other noncurrent assets | 58,120 | 55,634 |
Total assets | 2,881,369 | 2,813,540 |
Current liabilities | ||
Current maturities of long-term debt | 1,510 | 39,932 |
Accounts payable ($65,499 and $62,755 related to CCJVs) | 450,656 | 408,363 |
Contract liabilities ($58,170 and $50,929 related to CCJVs) | 262,198 | 243,848 |
Accrued expenses and other current liabilities ($6,568 and $5,426 related to CCJVs) | 302,039 | 337,740 |
Total current liabilities | 1,016,403 | 1,029,883 |
Long-term debt | 737,436 | 614,781 |
Long-term lease liabilities | 64,995 | 63,548 |
Deferred income taxes, net | 3,272 | 3,708 |
Other long-term liabilities | 71,848 | 74,654 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, $0.01 par value, authorized 3,000,000 shares, none outstanding | 0 | 0 |
Common stock, $0.01 par value, authorized 150,000,000 shares; issued and outstanding: 43,686,508 shares as of June 30, 2024 and 43,944,118 shares as of December 31, 2023 | 437 | 439 |
Additional paid-in capital | 435,271 | 474,134 |
Accumulated other comprehensive income | 270 | 881 |
Retained earnings | 495,679 | 501,844 |
Total Granite Construction Incorporated shareholders’ equity | 931,657 | 977,298 |
Non-controlling interests | 55,758 | 49,668 |
Total equity | 987,415 | 1,026,966 |
Total liabilities and equity | $ 2,881,369 | $ 2,813,540 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cash and cash equivalents ($121,963 and $120,224 related to consolidated construction joint ventures (“CCJVs”)) | $ 366,746 | $ 417,663 |
Receivables, net ($54,659 and $62,040 related to CCJVs) | 709,248 | 598,705 |
Contract assets ($92,513 and $68,520 related to CCJVs) | 309,376 | 262,987 |
Other current assets ($5,080 and $5,590 related to CCJVs) | 34,168 | 53,102 |
Property and equipment, net ($7,295 and $7,557 related to CCJVs) | 670,876 | 662,864 |
Accounts payable ($65,499 and $62,755 related to CCJVs) | 450,656 | 408,363 |
Contract liabilities ($58,170 and $50,929 related to CCJVs) | 262,198 | 243,848 |
Accrued expenses and other current liabilities ($6,568 and $5,426 related to CCJVs) | $ 302,039 | $ 337,740 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (shares) | 3,000,000 | 3,000,000 |
Preferred stock, outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, issued (shares) | 43,686,508 | 43,944,118 |
Common stock, outstanding (shares) | 43,686,508 | 43,944,118 |
Consolidated Construction Corporate Joint Venture | ||
Cash and cash equivalents ($121,963 and $120,224 related to consolidated construction joint ventures (“CCJVs”)) | $ 121,963 | $ 120,224 |
Receivables, net ($54,659 and $62,040 related to CCJVs) | 54,659 | 62,040 |
Contract assets ($92,513 and $68,520 related to CCJVs) | 92,513 | 68,520 |
Other current assets ($5,080 and $5,590 related to CCJVs) | 5,080 | 5,590 |
Property and equipment, net ($7,295 and $7,557 related to CCJVs) | 7,295 | 7,557 |
Accounts payable ($65,499 and $62,755 related to CCJVs) | 65,499 | 62,755 |
Contract liabilities ($58,170 and $50,929 related to CCJVs) | 58,170 | 50,929 |
Accrued expenses and other current liabilities ($6,568 and $5,426 related to CCJVs) | $ 6,568 | $ 5,426 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||
Total revenue | $ 1,082,486 | $ 898,552 | $ 1,754,761 | $ 1,458,620 |
Cost of revenue | ||||
Total cost of revenue | 917,775 | 795,466 | 1,535,765 | 1,323,175 |
Gross profit | 164,711 | 103,086 | 218,996 | 135,445 |
Selling, general and administrative expenses | 70,052 | 64,563 | 158,045 | 137,685 |
Other costs, net | 10,225 | 13,607 | 21,235 | 18,130 |
Gain on sales of property and equipment, net | (1,387) | (3,944) | (2,805) | (5,981) |
Operating income (loss) | 85,821 | 28,860 | 42,521 | (14,389) |
Other (income) expense | ||||
Loss on debt extinguishment | 27,824 | 51,052 | 27,824 | 51,052 |
Interest income | (3,600) | (3,232) | (10,302) | (6,994) |
Interest expense | 5,337 | 4,131 | 13,420 | 7,022 |
Net income from affiliates | (4,557) | (7,044) | (8,527) | (12,231) |
Other (income) expense, net | 1,267 | (1,225) | (476) | (3,175) |
Total other expense, net | 26,271 | 43,682 | 21,939 | 35,674 |
Income (loss) before income taxes | 59,550 | (14,822) | 20,582 | (50,063) |
Provision for (benefit from) income taxes | 20,693 | 9,024 | 11,167 | (445) |
Net income (loss) | 38,857 | (23,846) | 9,415 | (49,618) |
Amount attributable to non-controlling interests | (1,962) | 6,846 | (3,503) | 9,595 |
Net income (loss) attributable to Granite Construction Incorporated | $ 36,895 | $ (17,000) | $ 5,912 | $ (40,023) |
Net loss per share attributable to common shareholders | ||||
Basic (USD per share) | $ 0.84 | $ (0.39) | $ 0.13 | $ (0.91) |
Diluted (USD per share) | $ 0.76 | $ (0.39) | $ 0.13 | $ (0.91) |
Weighted average shares outstanding: | ||||
Basic (shares) | 44,060 | 43,892 | 44,024 | 43,829 |
Diluted (shares) | 52,727 | 43,892 | 44,593 | 43,829 |
Construction | ||||
Revenue | ||||
Total revenue | $ 917,954 | $ 749,413 | $ 1,513,167 | $ 1,252,829 |
Cost of revenue | ||||
Total cost of revenue | 782,582 | 670,259 | 1,320,967 | 1,136,970 |
Materials | ||||
Revenue | ||||
Total revenue | 164,532 | 149,139 | 241,594 | 205,791 |
Cost of revenue | ||||
Total cost of revenue | $ 135,193 | $ 125,207 | $ 214,798 | $ 186,205 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 38,857 | $ (23,846) | $ 9,415 | $ (49,618) |
Other comprehensive income (loss), net of tax | ||||
Net unrealized loss on cash flow hedges, net of tax | (735) | (366) | (146) | (558) |
Less: reclassification for net gains (losses) included in interest expense, net of tax | (144) | 112 | 82 | 112 |
Net change | (879) | (254) | (64) | (446) |
Foreign currency translation adjustments, net | (141) | 396 | (547) | 453 |
Other comprehensive income (loss), net of tax | (1,020) | 142 | (611) | 7 |
Comprehensive income (loss), net of tax | 37,837 | (23,704) | 8,804 | (49,611) |
Non-controlling interests in comprehensive (income) loss, net of tax | (1,962) | 6,846 | (3,503) | 9,595 |
Comprehensive income (loss) attributable to Granite Construction Incorporated, net of tax | $ 35,875 | $ (16,858) | $ 5,301 | $ (40,016) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Granite Shareholders’ Equity | Non-controlling Interests | |||||
Beginning balances (in shares) at Dec. 31, 2022 | 43,743,907 | |||||||||||
Beginning balances at Dec. 31, 2022 | $ 985,145 | $ 437 | $ 470,407 | $ 788 | $ 481,384 | $ 953,016 | $ 32,129 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | (49,618) | (40,023) | (40,023) | (9,595) | ||||||||
Other comprehensive income (loss) | 7 | 7 | 7 | |||||||||
Repurchases of common stock (shares) | [1] | (93,602) | ||||||||||
Repurchases of common stock | [1] | (3,767) | (3,766) | (3,767) | ||||||||
RSUs vested (shares) | 261,362 | |||||||||||
RSUs vested | 0 | $ 3 | (3) | |||||||||
Dividends on common stock | (11,414) | 150 | (11,564) | (11,414) | ||||||||
RSUs vested | 17,374 | 17,374 | ||||||||||
Stock-based compensation expense and other (in shares) | 7,147 | |||||||||||
Dividends on common stock ($0.13 per share per quarter) | 6,968 | 6,968 | 6,968 | |||||||||
Capped call transactions | (39,379) | (39,379) | (39,379) | |||||||||
Redemption of warrants | (13,201) | (13,201) | (13,201) | |||||||||
Loss on debt extinguishment (shares) | 1,390,500 | |||||||||||
Extinguishment of debt | 49,335 | $ 14 | 49,321 | 49,335 | ||||||||
Exercise of bond hedge (in shares) | (1,390,516) | |||||||||||
Exercise of bond hedge | 0 | $ (14) | 14 | |||||||||
Ending balances (in shares) at Jun. 30, 2023 | 43,918,798 | |||||||||||
Ending balances at Jun. 30, 2023 | 941,450 | $ 439 | 470,511 | 795 | 429,797 | 901,542 | 39,908 | |||||
Beginning balances (in shares) at Mar. 31, 2023 | 43,880,224 | |||||||||||
Beginning balances at Mar. 31, 2023 | 972,411 | $ 439 | 471,782 | 653 | 452,583 | 925,457 | 46,954 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | (23,846) | (17,000) | (17,000) | (6,846) | ||||||||
Other comprehensive income (loss) | 142 | 142 | 142 | |||||||||
Repurchases of common stock (shares) | (6,342) | |||||||||||
Repurchases of common stock | (244) | $ (1) | (243) | 0 | (244) | |||||||
RSUs vested (shares) | 37,394 | |||||||||||
RSUs vested | 0 | $ 1 | (1) | |||||||||
Dividends on common stock | (5,710) | 76 | (5,786) | (5,710) | ||||||||
RSUs vested | (200) | (200) | ||||||||||
Stock-based compensation expense and other (in shares) | 7,538 | |||||||||||
Dividends on common stock ($0.13 per share per quarter) | 2,142 | 2,142 | 2,142 | |||||||||
Capped call transactions | (39,379) | (39,379) | (39,379) | |||||||||
Redemption of warrants | (13,201) | (13,201) | (13,201) | |||||||||
Loss on debt extinguishment (shares) | 1,390,500 | |||||||||||
Extinguishment of debt | 49,335 | $ 14 | 49,321 | 49,335 | ||||||||
Exercise of bond hedge (in shares) | (1,390,516) | |||||||||||
Exercise of bond hedge | 0 | $ (14) | 14 | |||||||||
Ending balances (in shares) at Jun. 30, 2023 | 43,918,798 | |||||||||||
Ending balances at Jun. 30, 2023 | $ 941,450 | $ 439 | 470,511 | 795 | 429,797 | 901,542 | 39,908 | |||||
Beginning balances (in shares) at Dec. 31, 2023 | 43,944,118 | 43,944,118 | ||||||||||
Beginning balances at Dec. 31, 2023 | $ 1,026,966 | $ 439 | 474,134 | 881 | 501,844 | 977,298 | 49,668 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 9,415 | 5,912 | 5,912 | 3,503 | ||||||||
Other comprehensive income (loss) | (611) | (611) | (611) | |||||||||
Repurchases of common stock (shares) | [1] | (366,567) | ||||||||||
Repurchases of common stock | (21,144) | [1] | $ (3) | [1] | (20,636) | [1] | (505) | (21,144) | [1] | |||
RSUs vested (shares) | 365,440 | |||||||||||
RSUs vested | 0 | $ 4 | (4) | |||||||||
Dividends on common stock | (11,420) | 152 | (11,572) | (11,420) | ||||||||
RSUs vested | 2,587 | 2,587 | ||||||||||
Stock-based compensation expense and other (in shares) | 4,400 | |||||||||||
Dividends on common stock ($0.13 per share per quarter) | 15,345 | 15,345 | 15,345 | |||||||||
Capped call transactions | (34,189) | (34,189) | (34,189) | |||||||||
Redemption of warrants | 466 | 466 | 466 | |||||||||
Exercise of bond hedge (in shares) | (260,883) | |||||||||||
Exercise of bond hedge | $ 0 | $ (3) | 3 | |||||||||
Ending balances (in shares) at Jun. 30, 2024 | 43,686,508 | 43,686,508 | ||||||||||
Ending balances at Jun. 30, 2024 | $ 987,415 | $ 437 | 435,271 | 270 | 495,679 | 931,657 | 55,758 | |||||
Beginning balances (in shares) at Mar. 31, 2024 | 44,149,644 | |||||||||||
Beginning balances at Mar. 31, 2024 | 1,004,605 | $ 441 | 479,679 | 1,290 | 465,048 | 946,458 | 58,147 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 38,857 | 36,895 | 36,895 | 1,962 | ||||||||
Other comprehensive income (loss) | (1,020) | (1,020) | (1,020) | |||||||||
Repurchases of common stock (shares) | (231,133) | |||||||||||
Repurchases of common stock | (13,726) | $ (1) | (13,220) | (505) | (13,726) | |||||||
RSUs vested (shares) | 24,046 | |||||||||||
Dividends on common stock | (5,680) | 79 | (5,759) | (5,680) | ||||||||
RSUs vested | (4,351) | (4,351) | ||||||||||
Stock-based compensation expense and other (in shares) | 4,834 | |||||||||||
Dividends on common stock ($0.13 per share per quarter) | 2,453 | 2,453 | 2,453 | |||||||||
Capped call transactions | (34,189) | (34,189) | (34,189) | |||||||||
Redemption of warrants | 466 | 466 | 466 | |||||||||
Exercise of bond hedge (in shares) | (260,883) | |||||||||||
Exercise of bond hedge | $ 0 | $ (3) | 3 | |||||||||
Ending balances (in shares) at Jun. 30, 2024 | 43,686,508 | 43,686,508 | ||||||||||
Ending balances at Jun. 30, 2024 | $ 987,415 | $ 437 | $ 435,271 | $ 270 | $ 495,679 | $ 931,657 | $ 55,758 | |||||
[1]This amount represents employee tax withholding for restricted stock units ("RSUs") vested under our equity incentive plans in 2024 and 2023 and stock repurchased in 2024 under the Board approved repurchase plan. During the six months ended June 30, 2024 and 2023, there were 141,567 shares and 93,602 shares, respectively, withheld related to employee taxes for RSUs. During the six months ended June 30, 2024, we also repurchased 225,000 shares under the share repurchase program. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||
Net income (loss) | $ 9,415 | $ (49,618) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 58,468 | 41,528 |
Amortization related to long-term debt | 2,334 | 988 |
Loss on debt extinguishment | 27,824 | 51,052 |
Gain on sales of property and equipment, net | (2,805) | (5,981) |
Stock-based compensation | 15,084 | 6,702 |
Equity in net (income) loss from unconsolidated construction joint ventures | (752) | 4,005 |
Net income from affiliates | (8,527) | (12,231) |
Other non-cash adjustments | (348) | (7) |
Changes in assets and liabilities: | ||
Receivables | (109,787) | (171,469) |
Contract assets, net | (28,028) | (46,469) |
Inventories | (15,172) | (3,439) |
Contributions to unconsolidated construction joint ventures | (2,000) | (14,710) |
Distributions from unconsolidated construction joint ventures and affiliates | 15,861 | 6,246 |
Other assets, net | 16,461 | (6,464) |
Accounts payable | 50,680 | 51,552 |
Accrued expenses and other liabilities, net | (6,624) | 29,367 |
Net cash provided by (used in) operating activities | 22,084 | (118,948) |
Investing activities | ||
Maturities of marketable securities | 25,000 | 30,000 |
Purchases of property and equipment | (66,861) | (79,689) |
Proceeds from sales of property and equipment | 4,229 | 10,564 |
Proceeds from company owned life insurance | 0 | 1,545 |
Return of investment in affiliates | 693 | 0 |
Cash paid for purchase price adjustments on business acquisition (See Note 3) | (13,183) | 0 |
Acquisition of business | 0 | (26,933) |
Collection of notes receivable | 0 | 135 |
Net cash used in investing activities | (50,122) | (64,378) |
Financing activities | ||
Proceeds from issuance of convertible notes (See Note 14) | 373,750 | 373,750 |
Amount drawn under revolver | 0 | 55,000 |
Debt principal repayments | (309,808) | (249,589) |
Capped call transactions | (46,046) | (53,035) |
Redemption of warrants | 586 | |
Redemption of warrants | (13,201) | |
Debt issuance costs | (9,654) | (9,806) |
Cash dividends paid | (11,452) | (11,391) |
Repurchases of common stock | (21,144) | (3,766) |
Contributions from non-controlling partners | 17,000 | 22,400 |
Distributions to non-controlling partners | (16,372) | (6,850) |
Other financing activities, net | 261 | 269 |
Net cash provided by (used in) financing activities | (22,879) | 103,781 |
Net decrease in cash and cash equivalents | (50,917) | (79,545) |
Cash and cash equivalents at beginning of period | 417,663 | 293,991 |
Cash and cash equivalents at end of period | 366,746 | 214,446 |
Supplementary Information | ||
Right of use assets obtained in exchange for lease obligations | 10,849 | 19,558 |
Operating lease liabilities | 11,197 | 11,351 |
Interest | 12,444 | 5,531 |
Income taxes | 2,940 | 4,851 |
Deferred taxes related to capped call transactions | 11,857 | 13,656 |
Non-cash investing and financing activities: | ||
RSUs issued, net of forfeitures | 19,992 | 10,981 |
Dividends declared but not paid | 5,679 | 5,709 |
Contributions from non-controlling partners | $ 1,959 | $ 1,822 |
General
General | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Basis of Presentation: The condensed consolidated financial statements included herein have been prepared by Granite Construction Incorporated (“we,” “us,” “our,” the “Company” or “Granite”) pursuant to the rules and regulations of the Securities and Exchange Commission, are unaudited and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023 (“Annual Report”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. Further, the condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to state fairly our financial position at June 30, 2024 and the results of our operations and cash flows for the periods presented. The December 31, 2023 condensed consolidated balance sheet data included herein was derived from audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. During the first quarter of 2024, we reorganized our operational structure to more closely align with our two reportable segments, Construction and Materials. Previously, leaders within our three former operating groups of California, Central and Mountain managed both Construction and Materials operations within each group. This change allows us to better leverage our expertise within each reportable segment with leadership having direct oversight of their respective segment operations. As a result of the reorganization, we will no longer disclose financial information by operating group. There were no material impacts to our unaudited condensed consolidated financial statements and no changes to our reportable segments. Due to the changes in our operational structure and the resulting changes to reporting units, we performed quantitative goodwill impairment tests, immediately before and after the reorganization, on the affected reporting units. Share Repurchase Program: As announced on February 3, 2022, on February 1, 2022, the Board of Directors authorized us to purchase up to $300.0 million of our common stock at management’s discretion. During the three and six months ended June 30, 2024, we repurchased 225,000 shares under this authorization at an average price of $59.32 per share for $13.3 million. The share repurchases are included in Repurchases of common stock on the Condensed Consolidated Statements of Shareholders’ Equity and within Financing activities on the Condensed Consolidated Statement of Cash Flows. As of June 30, 2024, $218.2 million of the authorization remained available. Seasonality: Our operations are typically affected more by weather conditions during the first and fourth quarters of our fiscal year which may alter our construction schedules and can create variability in our revenues and profitability. Therefore, the results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year. Subsequent Event: On July 31, 2024, we agreed, subject to customary closing conditions, to acquire Dickerson & Bowen, Inc. with the transaction expected to close in the third quarter. Dickerson & Bowen is an aggregates, asphalt, and highway construction company serving central and southern Mississippi. This acquisition is not expected to have a material impact on our results of operations. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements We closely monitor all Accounting Standards Updates issued by the Financial Accounting Standards Board and other authoritative guidance. No new accounting pronouncements were recently issued or adopted in the six months ended June 30, 2024 that had or are expected to have a material impact on our financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 24, 2023, we acquired Coast Mountain Resources (2020) Ltd. which changed its name to Granite Infrastructure Canada, Ltd. ("Granite Canada") on May 13, 2024. Granite Canada is a construction aggregate producer based in British Columbia, Canada operating on Malahat First Nation land. Granite Canada results are reported in the Materials segment. This acquisition did not have a material impact on our financial statements. On November 30, 2023 (“acquisition date”), we completed the acquisition of LRC/MSG for $278.0 million, subject to customary closing adjustments, plus an estimated amount related to tax make-whole agreements with the seller. We purchased all of the outstanding equity interests in LRC/MSG and the purchase price was funded by a $150.0 million senior secured term loan, a draw of $100 million under our existing revolver and the remainder from cash on hand. Both the senior secured term loan and the draw under the revolver were fully repaid during the the six months ended June 30, 2024. The acquired businesses are longstanding asphalt paving and asphalt and aggregates producers and suppliers. LRC/MSG operates strategically located asphalt plants and sand and gravel mines serving the greater Memphis area and northern Mississippi. The buyer of LRC/MSG, Granite Southeast, is a wholly-owned subsidiary of Granite Construction Incorporated, and its results have been included in the Construction and Materials segments since the acquisition date. LRC/MSG’s customers are in both the public and private sectors. We have accounted for this transaction in accordance with Accounting Standards Codification ("ASC") Topic 805, Business Combinations (“ASC 805”). Revenue attributable to LRC/MSG for the three and six months ended June 30, 2024 was $45.5 million and $59.5 million, respectively. Gross profit (loss) attributable to LRC/MSG for the three and six months ended June 30, 2024 was a profit of $7.9 million and a loss of $0.7 million, respectively. Preliminary Purchase Price Allocation In accordance with ASC 805, the total purchase price and assumed liabilities were allocated to the net tangible and identifiable intangible assets based on their estimated fair values as of the acquisition date, as presented in the table below. These estimates are subject to revision, which may result in adjustments to the values presented below. We recorded a $22.0 million provisional estimate related to tax make-whole agreements with the seller at the time of the acquisition. In the second quarter of 2024, the former owners of LRC/MSG determined their personal tax burden related to the sale of the businesses which allowed us to finalize our tax make-whole obligation. Our obligation was $7.1 million, which was paid in June 2024. During the six months ended June 30, 2024, we made measurement period adjustments to reflect facts and circumstances in existence as of the acquisition date. These adjustments included a $4.6 million net increase from net working capital adjustments and a $2.2 million net decrease in the value of the net tangible and identifiable intangible assets acquired, offset by a $14.9 million decrease in the estimated obligation associated with the tax make-whole agreements noted above. The impact of these adjustments was a decrease in goodwill of $8.1 million. We paid $13.2 million during the six months ended June 30, 2024 associated with the acquisition of LRC/MSG, which includes $6.1 million for working capital adjustments and $7.1 million for the tax make-whole obligation. As we continue to integrate the acquired business, we may obtain additional information on the acquired identifiable intangible assets which, if significant, may require revisions to preliminary valuation assumptions, estimates and resulting fair values. We expect to finalize these amounts within 12 months from the acquisition date. The following table presents the preliminary purchase price allocation: (in thousands) Assets Cash and cash equivalents $ 12,798 Receivables 18,373 Contract assets 3,388 Inventories 13,738 Other current assets 1,032 Property and equipment 86,329 Right of use assets 15,539 Other noncurrent assets 3,718 Total tangible assets 154,915 Identifiable intangible assets 107,460 Liabilities Accounts payable 6,806 Contract liabilities 3,213 Accrued expenses and other current liabilities 10,166 Long-term lease liabilities 15,558 Other long-term liabilities 5,960 Total liabilities assumed 41,703 Total tangible and identifiable intangible net assets acquired 220,672 Goodwill 72,744 Estimated purchase price $ 293,416 |
Revisions in Estimates
Revisions in Estimates | 6 Months Ended |
Jun. 30, 2024 | |
Quarterly Financial Information Disclosure [Abstract] | |
Revisions in Estimates | Revisions in Estimates Our profit recognition related to construction contracts is based on estimates of transaction price and costs to complete each project. These estimates can vary significantly in the normal course of business as projects progress, circumstances develop and evolve, and uncertainties are resolved. Changes in estimates of transaction price and costs to complete may result in the reversal of previously recognized revenue if the current estimate adversely differs from the previous estimate. In addition, the estimated or actual recovery related to estimated costs associated with unresolved affirmative claims and back charges may be recorded in future periods or may be at values below the associated cost, which can cause fluctuations in the gross profit impact from revisions in estimates. When we experience significant revisions in our estimates, we undergo a process that includes reviewing the nature of the changes to ensure that there are no material amounts that should have been recorded in a prior period rather than as revisions in estimates for the current period. For revisions in estimates, generally we use the cumulative catch-up method for changes to the transaction price that are part of a single performance obligation. Under this method, revisions in estimates are accounted for in their entirety in the period of change. There can be no assurance that we will not experience further changes in circumstances or otherwise be required to revise our estimates in the future. In our review of these changes for the three and six months ended June 30, 2024 and 2023, we did not identify any material amounts that should have been recorded in a prior period. There were no increases to revisions which individually had an impact of $5.0 million or more on gross profit during the three months ended June 30, 2024 or 2023. During the six months ended June 30, 2024, there was one project with an increase from revisions in estimates which had an impact to gross profit of $6.1 million and an increase in net income of $4.7 million, none of which was attributable to non-controlling interests. The revision increased the net income per diluted share attributable to common shareholders by $0.11. The increase was due to changes in the estimated transaction price related to unresolved contract modifications resulting from revisions to project work plans, permitting and schedule. During the six months ended June 30, 2023, there was one project with an increase from revisions in estimates which had an impact to gross profit of $6.9 million and a reduction of net loss of $5.2 million, with $2.7 million of that amount attributable to non-controlling interests. The revision decreased the net loss per diluted share by $0.06. The increase was due to decreases in estimated costs from mitigated risks. The projects with decreases from revisions in estimates, which individually had an impact of $5.0 million or more on gross profit, are summarized as follows (dollars in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Number of projects with downward estimate changes 2 1 3 2 Range of reduction in gross profit from each project, net $ 5.3 - 10.1 $ 20.7 $ 5.9 - 17.8 $ 5.9 - 32.1 Decrease to project profitability, net $ 15.5 $ 20.7 $ 30.2 $ 38.0 Decrease to net income/increase to net loss $ 11.9 $ 15.8 $ 23.2 $ 29.0 Amounts attributable to non-controlling interests $ 2.7 $ 10.4 $ 3.2 $ 16.0 Decrease to net income/increase to net loss attributable to Granite Construction Incorporated $ 9.2 $ 5.4 $ 19.9 $ 13.0 Decrease to net income/increase to net loss per diluted share $ 0.17 $ 0.12 $ 0.45 $ 0.30 |
Disaggregation of Revenue
Disaggregation of Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue As discussed in Note 1, during the first quarter of 2024, we reorganized our operational structure to more closely align with our two reportable segments, Construction and Materials. Previously, leaders within our three former operating groups of California, Central and Mountain managed both Construction and Materials operations within each group. As a result of the reorganization, we will no longer disclose financial information by operating group and we have updated our presentation of disaggregated revenue. The prior year disaggregation of revenue amounts have been recast to conform with current period presentation. Revenue is disaggregated by reportable segment (see Note 18) and customer type, which we believe best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Customer Type Customers in our Construction segment are predominantly in the public sector which includes certain federal agencies, state departments of transportation, local transit authorities, county and city public works departments and school districts. Our private sector customers include, but are not limited to, developers, utilities and private owners of industrial, commercial and residential sites. Customers of our Materials segment include internal usage by our own construction projects, as well as third-party customers. Based on the nature of the Materials business, it is not meaningful to disaggregate revenue by customer type. The following table presents our revenue disaggregated by reportable segment and by customer type for the Construction segment: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2024 2023 2024 2023 Construction segment revenue: Public $ 696,710 $ 505,460 $ 1,116,527 $ 838,552 Private 221,244 243,953 396,640 414,277 Total Construction segment revenue 917,954 749,413 1,513,167 1,252,829 Materials segment revenue 164,532 149,139 241,594 205,791 Total revenue $ 1,082,486 $ 898,552 $ 1,754,761 $ 1,458,620 |
Unearned Revenue
Unearned Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Unearned Revenue | Unearned Revenue The following table presents our unearned revenue disaggregated by customer type as of the respective periods: (in thousands) June 30, 2024 December 31, 2023 Public $ 3,067,302 $ 2,892,255 Private 799,876 704,421 Total $ 3,867,178 $ 3,596,676 All unearned revenue is in the Construction segment. Approximately $2.7 billion of the June 30, 2024 unearned revenue is expected to be recognized within the next twelve months and the remaining amount will be recognized thereafter. |
Contract Assets and Liabilities
Contract Assets and Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | Contract Assets and Liabilities As a result of changes in contract transaction price related to performance obligations that were satisfied or partially satisfied prior to the end of the periods, we recognized revenue of $93.1 million and $177.4 million during the three and six months ended June 30, 2024 and $45.5 million and $89.7 million during the three and six months ended June 30, 2023. The changes in contract transaction price for the three and six months ended June 30, 2024 and 2023 were from items such as executed or estimated change orders and unresolved contract modifications and claims. As of June 30, 2024 and December 31, 2023, the aggregate claim recovery estimates included in contract asset and liability balances were $70.4 million and $77.9 million, respectively. The components of the contract asset balances as of the respective dates were as follows: (in thousands) June 30, 2024 December 31, 2023 Costs in excess of billings and estimated earnings $ 135,326 $ 100,106 Contract retention 174,050 162,881 Total contract assets $ 309,376 $ 262,987 As of June 30, 2024 and December 31, 2023, contract retention receivable from Brightline Trains Florida LLC represented 9.4% and 11.1%, respectively, of total contract assets. No other contract retention receivable individually exceeded 10% of total contract assets at any of the presented dates. The majority of the contract retention balance is expected to be collected within one year. As work is performed, revenue is recognized and the corresponding contract liabilities are reduced. We recognized revenue of $55.0 million and $253.3 million during the three and six months ended June 30, 2024, respectively, and $48.1 million and $171.1 million during the three and six months ended June 30, 2023, respectively, that was included in the contract liability balances at December 31, 2023 and 2022, respectively. The components of the contract liability balances as of the respective dates were as follows: (in thousands) June 30, 2024 December 31, 2023 Billings in excess of costs and estimated earnings, net of retention $ 245,536 $ 227,913 Provisions for losses 16,662 15,935 Total contract liabilities $ 262,198 $ 243,848 |
Receivables, net
Receivables, net | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables include billed and unbilled amounts for services provided to clients for which we have an unconditional right to payment as of the end of the applicable period and generally do not bear interest. The following table presents major categories of receivables: (in thousands) June 30, 2024 December 31, 2023 Contracts completed and in progress: Billed $ 304,766 $ 343,190 Unbilled 232,472 119,170 Total contracts completed and in progress 537,238 462,360 Materials sales 86,072 61,808 Other 86,889 76,084 Total gross receivables 710,199 600,252 Less: allowance for credit losses 951 1,547 Total net receivables $ 709,248 $ 598,705 Included in other receivables at June 30, 2024 and December 31, 2023 were items such as estimated recovery from back charge claims, notes receivable, fuel tax refunds and income tax refunds. Other receivables at June 30, 2024 and December 31, 2023 also included $25.0 million of working capital contributions in the form of a loan to a partner in one of our unconsolidated construction joint ventures, plus accrued interest. None of our customers had a receivable balance in excess of 10% of our total net receivables as of June 30, 2024 or December 31, 2023. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands): Fair Value Measurement at Reporting Date Using June 30, 2024 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 75,458 $ — $ — $ 75,458 Total assets $ 75,458 $ — $ — $ 75,458 Accrued and other current liabilities Heating oil swaps $ — $ 121 $ — $ 121 Crude oil swaps — 212 — 212 Diesel collars — 246 — 246 Total liabilities $ — $ 579 $ — $ 579 December 31, 2023 Cash equivalents Money market funds $ 101,275 $ — $ — $ 101,275 Total assets $ 101,275 $ — $ — $ 101,275 Accrued and other current liabilities Interest rate swap $ — $ 126 $ — $ 126 Heating oil swaps — 153 — 153 Diesel collars — 802 — 802 Total liabilities $ — $ 1,081 $ — $ 1,081 Interest Rate Swap In connection with entering into Amendment No. 2 to the Fourth Amended and Restated Credit Agreement, as amended (the "Credit Agreement") in November 2023, we entered into an interest rate swap designated as a cash flow hedge with an initial notional amount of $75.0 million and an effective date of December 2023 and a maturity date of June 2027. In conjunction with the payoff of our term loan in June 2024, the interest rate swap was terminated resulting in a gain of $1.4 million. Commodity Derivatives In 2023, we entered into collar contracts and commodity swaps to reduce our price exposure on diesel consumption and heating oil consumption, respectively. The collars and swaps were not designated as hedges and will be treated as mark-to-market derivative instruments through their maturity dates. The financial statement impact of the collar contracts and commodity swaps for the three and six months ended June 30, 2024 and 2023 was immaterial. In April 2024 and December 2022, we entered into commodity swaps designed as a cash flow hedge for crude oil with a notional amount of $9.2 million and $7.0 million, respectively, and maturity dates of October 31, 2024 and October 31, 2023, respectively. The financial statement impact of these swaps during the three and six months ended June 30, 2024 and 2023 was immaterial. Other Assets and Liabilities The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows: June 30, 2024 December 31, 2023 (in thousands) Fair Value Hierarchy Carrying Value Fair Carrying Value Fair Assets: Held-to-maturity marketable securities (1) Level 1 $ 10,500 $ 10,336 $ 35,863 $ 35,357 Liabilities (including current maturities): 3.25% Convertible Notes (2) Level 2 $ 373,750 $ 388,775 $ — $ — 3.75% Convertible Notes (2) Level 2 $ 373,750 $ 542,369 $ 373,750 $ 475,601 2.75% Convertible Notes (2) Level 2 $ 420 $ 825 $ 31,338 $ 51,045 Credit Agreement - Term Loan (2) Level 3 $ — $ — $ 150,000 $ 153,585 Credit Agreement - Revolver (2) Level 3 $ — $ — $ 100,000 $ 102,317 (1) All marketable securities were classified as held-to-maturity and consisted of U.S. Government and agency obligations as of June 30, 2024 and December 31, 2023. (2) The fair values of our 2.75% convertible senior notes due 2024 (the "2.75% Convertible Notes"), our 3.25% convertible senior notes due 2030 (the "3.25% Convertible Notes") and our 3.75% convertible senior notes due 2028 (the "3.75% Convertible Notes") are based on the median price of the notes in an active market. The fair value of the Credit Agreement is based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk. See Note 14 for more information about the 2.75% Convertible Notes, 3.25% Convertible Notes, 3.75% Convertible Notes and the Credit Agreement. During the six months ended June 30, 2024 and 2023, we had no material nonfinancial asset and liability fair value adjustments. |
Construction Joint Ventures
Construction Joint Ventures | 6 Months Ended |
Jun. 30, 2024 | |
Guarantees and Product Warranties [Abstract] | |
Construction Joint Ventures | Construction Joint Ventures We participate in various construction joint ventures. We have determined that certain of these joint ventures are consolidated because they are variable interest entities (“VIEs”) and we are the primary beneficiary. We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE. Based on our assessments during the three and six months ended June 30, 2024, we determined no change was required for existing joint ventures. Due to the joint and several nature of the performance obligations under the related owner contracts, if any of our partners fail to perform, we and the remaining partners, if any, would be responsible for performance of the outstanding work (i.e., we provide a performance guarantee). We are not able to estimate amounts that may be required beyond the current remaining forecasted cost of the work to be performed. These forecasted costs could be offset by billings to the customer or by proceeds from our partners’ corporate and/or other guarantees. See Note 13 for disclosure of the performance guarantee amounts recorded in the condensed consolidated balance sheets. Consolidated Construction Joint Ventures (“CCJVs”) As of June 30, 2024, we were engaged in ten active CCJV projects. Our proportionate share of the equity in these joint ventures was between 50.0% and 70.0%. During the three and six months ended June 30, 2024 and 2023, total revenue from CCJVs was $92.2 million, $163.8 million, $70.8 million, and $132.1 million, respectively. During the six months ended June 30, 2024 and 2023, CCJVs provided $8.6 million of operating cash flows and used $48.3 million of operating cash flows, respectively. As of June 30, 2024, our share of revenue remaining to be recognized on these CCJVs was $348.0 million and ranged from $2.6 million to $105.3 million by project. Unconsolidated Construction Joint Ventures As of June 30, 2024, we were engaged in five active unconsolidated construction joint venture projects. Our proportionate share of the equity in these unconsolidated construction joint ventures ranged from 30.0% to 50.0%. As of June 30, 2024, our share of the revenue remaining to be recognized on these unconsolidated construction joint ventures was $34.6 million and ranged from $0.9 million to $25.9 million by project. The following is summary financial information related to unconsolidated construction joint ventures: (in thousands) June 30, 2024 December 31, 2023 Assets Cash, cash equivalents and marketable securities $ 127,513 $ 117,962 Other current assets (1) 605,779 666,536 Noncurrent assets 37,794 52,580 Less: partners’ interest 527,663 574,723 Granite’s interest (1),(2) $ 243,423 $ 262,355 Liabilities Current liabilities $ 157,580 $ 191,175 Less: partners’ interest and adjustments (3) 64,623 85,131 Granite’s interest $ 92,957 $ 106,044 Equity in construction joint ventures (4) $ 150,466 $ 156,311 (1) Included in this balance and in accrued expenses and other current liabilities on the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023 was $57.8 million related to performance guarantees (see Note 13). (2) Included in this balance as of June 30, 2024 and December 31, 2023 was $68.4 million and $66.6 million, respectively, related to Granite’s share of estimated cost recovery of customer affirmative claims. In addition, this balance included $1.7 million related to Granite’s share of estimated recovery of back charge claims as of June 30, 2024 and December 31, 2023, respectively. (3) Partners’ interest and adjustments includes amounts to reconcile total net assets as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast differences. (4) Included in this balance and in accrued expenses and other current liabilities on our condensed consolidated balance sheets was $6.6 million and $14.9 million as of June 30, 2024 and December 31, 2023, respectively, related to deficits in unconsolidated construction joint ventures, which includes provisions for losses. Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Revenue Total $ 21,648 $ 25,211 $ 30,365 $ 63,385 Less: partners’ interest and adjustments (1) 14,455 15,691 12,942 39,020 Granite’s interest $ 7,193 $ 9,520 $ 17,423 $ 24,365 Cost of revenue Total $ 27,346 $ 40,564 $ 46,097 $ 84,935 Less: partners’ interest and adjustments (1) 18,106 25,912 28,376 56,316 Granite’s interest $ 9,240 $ 14,652 $ 17,721 $ 28,619 Granite’s interest in gross loss $ (2,047) $ (5,132) $ (298) $ (4,254) Net Income (Loss) Total $ (3,950) $ (14,574) $ (12,099) $ (20,228) Less: partners’ interest and adjustments (1) (2,412) (9,658) (12,851) (16,223) Granite’s interest in net income (loss) (2) $ (1,538) $ (4,916) $ 752 $ (4,005) (1) Partners’ interest and adjustments includes amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast and/or actual differences. (2) These joint venture net income amounts exclude our corporate overhead required to manage the joint ventures and include taxes only to the extent the applicable states have joint venture level taxes. |
Investments in Affiliates
Investments in Affiliates | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliates | Investments in Affiliates Our investments in affiliates balance consists of equity method investments in the following types of entities: (in thousands) June 30, 2024 December 31, 2023 Foreign $ 72,255 $ 68,407 Real estate 5,317 7,136 Asphalt terminal 15,927 17,367 Total investments in affiliates $ 93,499 $ 92,910 The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis: (in thousands) June 30, 2024 December 31, 2023 Current assets $ 192,560 $ 204,897 Noncurrent assets 141,950 159,694 Total assets $ 334,510 $ 364,591 Current liabilities $ 70,078 $ 81,899 Long-term liabilities (1) 46,799 54,591 Total liabilities $ 116,877 $ 136,490 Net assets $ 217,633 $ 228,101 Granite’s share of net assets $ 93,499 $ 92,910 (1) This balance is primarily related to local bank debt for equipment purchases and debt associated with our real estate investments. Of the $334.5 million of total affiliate assets as of June 30, 2024, we had investments in two real estate entities with total assets of $41.7 million, our foreign affiliates had total assets of $254.5 million and the asphalt terminal entity had total assets of $38.3 million. As of June 30, 2024 and December 31, 2023, all of the investments in real estate affiliates were in residential real estate in Texas. As of June 30, 2024, our percent ownership in the real estate entities ranged from 10% to 25%. We have direct and indirect investments in our foreign affiliates, and our percent ownership in foreign affiliates ranged from 25% to 50% as of June 30, 2024. Our percent ownership in the asphalt terminal entity was 50% as of June 30, 2024. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Balances of major classes of assets and total accumulated depreciation and depletion are included in property and equipment, net in the condensed consolidated balance sheets as follows: (in thousands) June 30, 2024 December 31, 2023 Equipment and vehicles $ 1,165,523 $ 1,140,195 Quarry property 252,633 251,922 Land and land improvements 107,230 105,872 Buildings and leasehold improvements 108,586 102,676 Office furniture and equipment 72,031 72,098 Property and equipment $ 1,706,003 $ 1,672,763 Less: accumulated depreciation and depletion 1,035,127 1,009,899 Property and equipment, net $ 670,876 $ 662,864 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities (in thousands) June 30, 2024 December 31, 2023 Accrued insurance $ 95,317 $ 81,936 Deficits in unconsolidated construction joint ventures 6,604 14,921 Payroll and related employee benefits 81,082 105,418 Performance guarantees 57,849 57,849 Short-term lease liabilities 16,255 16,826 Other 44,932 60,790 Total $ 302,039 $ 337,740 Other includes dividends payable, warranty reserves, asset retirement obligations, remediation reserves, legal accruals and other miscellaneous accruals, none of which were greater than 5% of total current liabilities at any of the presented dates. At December 31, 2023, the "other" balance above included the estimated LRC/MSG tax make-whole liability (see Note 3) which was finalized and paid in June 2024. |
Long-term Debt and Credit Arran
Long-term Debt and Credit Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Arrangements | Long-Term Debt and Credit Arrangements (in thousands) June 30, 2024 December 31, 2023 3.25% Convertible Notes $ 373,750 $ — 3.75% Convertible Notes 373,750 373,750 2.75% Convertible Notes 420 31,338 Credit Agreement - Term Loan — 150,000 Credit Agreement - Revolver — 100,000 Debt issuance costs and other (8,974) (375) Total debt $ 738,946 $ 654,713 Less: current maturities 1,510 39,932 Total long-term debt $ 737,436 $ 614,781 Credit Agreement In June 2022, we entered into the Credit Agreement which matures on June 2, 2027. The Credit Agreement consisted of a $350.0 million senior secured, five-year revolving credit facility (the “Revolver”), including an accordion feature allowing us to increase borrowings up to the greater of (a) $200.0 million and (b) 100% of twelve-month trailing consolidated EBITDA, subject to lender approval. The Credit Agreement includes a $150.0 million sublimit for letters of credit ($75.0 million for financial letters of credit) and a $20.0 million sublimit for swingline loans. In May 2023, we entered into Amendment No. 1 to the Credit Agreement ("Amendment No. 1"). Amendment No. 1 amended the Credit Agreement to, among other things, permit the Company to exchange its 2.75% Convertible Notes for cash and shares of its common stock and to clarify that (i) the issuance of the 3.75% Convertible Notes was permitted under the terms of the Credit Agreement and (ii) that a Swap Contract (as defined in the Credit Agreement) does not include any Permitted Call Spread Transaction (as defined in the Credit Agreement). In November 2023, we entered into Amendment No. 2 to the Credit Agreement ("Amendment No. 2") which amended the Credit Agreement to, among other things, provide for a $150.0 million senior secured term loan (the “Term Loan”), which was fully drawn on closing to fund the LRC/MSG acquisition. The Term Loan was scheduled to mature on June 2, 2027 and amortize 5% per year, payable in quarterly installments beginning in the first quarter of 2024. At March 31, 2024 there was $148.1 million outstanding on the Term Loan which was fully repaid with the net proceeds from our 3.25% Convertible Notes during the three months ended June 30, 2024. We may borrow on the Revolver, at our option, at either (a) the Secured Overnight Financing Rate (“SOFR”) term rate plus a credit adjustment spread plus applicable margin ranging from 1.0% to 2.0%, or (b) a base rate plus an applicable margin ranging from zero to 1.0%. The applicable margin is based on our Consolidated Leverage Ratio (as defined in our Credit Agreement), calculated quarterly. As of June 30, 2024, the total unused availability under the Credit Agreement was $333.4 million, resulting from $16.6 million in issued and outstanding letters of credit and nothing drawn under the Revolver. The letters of credit had expiration dates between July 2024 and December 2027. 3.25% Convertible Notes On June 11, 2024, we issued $373.8 million aggregate principal amount of our 3.25% Convertible Notes. The 3.25% Convertible Notes bear interest at a rate of 3.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The 3.25% Convertible Notes mature on June 15, 2030, unless earlier converted, redeemed or repurchased. Prior to the close of business on the business day immediately preceding December 15, 2029, the 3.25% Convertible Notes will be convertible at the option of the holders only upon the occurrence of certain events and during certain periods. Thereafter, the 3.25% Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding their maturity date. The 3.25% Convertible Notes have an initial conversion rate of 12.8398 shares of Granite’s common stock per $1,000 principal amount of the 3.25% Convertible Notes, which is equivalent to an initial conversion price of approximately $77.88 per share of Granite’s common stock, subject to adjustment if certain events occur. Upon conversion, we will settle the principal amount of the 3.25% Convertible Notes in cash, and any conversion premium in excess of the principal amount in cash, or a combination of cash and shares of common stock, at our election. In addition, upon the occurrence of a “fundamental change” as defined in the indenture governing the 3.25% Convertible Notes, holders may require us to repurchase for cash all or any portion of their 3.25% Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 3.25% Convertible Notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If certain corporate events that constitute a “make-whole fundamental change” as set forth in the indenture governing the 3.25% Convertible Notes occur prior to the maturity date of the 3.25% Convertible Notes or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 3.25% Convertible Notes in connection with such event or notice of redemption. We will not be able to redeem the 3.25% Convertible Notes prior to June 21, 2027. On or after June 21, 2027, we will be able to redeem for cash all or any portion of the 3.25% Convertible Notes, at our option, if the last reported sale price of Granite’s common stock is equal to or greater than 130% of the conversion price for a specified period of time at a redemption price equal to 100% of the principal amount of the 3.25% Convertible Notes to be redeemed, plus accrued but unpaid interest to, but excluding, the redemption date. The indenture governing the 3.25% Convertible Notes contains customary events of default. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, with respect to us or our significant subsidiaries, all outstanding 3.25% Convertible Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, then the trustee or the holders of at least 25% in aggregate principal amount of the 3.25% Convertible Notes then outstanding may declare the 3.25% Convertible Notes due and payable immediately. The net proceeds from the sale of the 3.25% Convertible Notes were approximately $365.0 million, after deducting the initial purchasers’ discount. We used approximately $46.0 million of the net proceeds from the 3.25% Convertible Notes offering to pay the cost of entering into capped call transactions in connection with the 3.25% Convertible Notes. In addition, we paid approximately $57.6 million of the net proceeds from the 3.25% Convertible Notes offering to repurchase approximately $30.2 million in aggregate principal amount of our 2.75% Convertible Notes in separate and individually negotiated transactions entered into concurrently with the pricing of the offering; repaid amounts outstanding under our Term Loan of $148.1 million; repurchased $13.3 million of shares under our authorized share repurchase program; with the remainder of the net proceeds available for general corporate purposes, which may include acquisitions. 2024 Capped Call Transactions In June 2024, we entered into privately negotiated capped call transactions in connection with the offering of the 3.25% Convertible Notes (the "2024 capped call transactions"). The 2024 capped call transactions are expected generally to reduce the potential dilution to Granite’s common stock upon any conversion of the 3.25% Convertible Notes and/or offset any cash payments Granite is required to make in excess of the principal amount of converted 3.25% Convertible Notes, as the case may be. If, however, the market price per share of Granite’s common stock, as measured under the terms of the 2024 capped call transactions, exceeds the cap price $119.82 of the 2024 capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such cash payments, in each case, to the extent that such market price exceeds the cap price of the 2024 capped call transactions. 3.75% Convertible Notes On May 11, 2023, we issued $373.8 million aggregate principal amount of our 3.75% Convertible Notes. The 3.75% Convertible Notes bear interest at a rate of 3.75% per annum payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2023 and mature on May 15, 2028, unless earlier converted, redeemed or repurchased. Prior to the close of business on the business day immediately preceding November 15, 2027, the 3.75% Convertible Notes will be convertible at the option of the holders only upon the occurrence of certain events and during certain periods. Thereafter, the 3.75% Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The initial conversion rate applicable to the 3.75% Convertible Notes is 21.6807 shares of Granite common stock per $1,000 principal amount of the 3.75% Convertible Notes, which is equivalent to an initial conversion price of approximately $46.12 per share of Granite common stock, subject to adjustment if certain events occur. Upon conversion, we will pay or deliver, as the case may be, cash, shares of Granite common stock or a combination of cash and shares of Granite common stock, at our election. In addition, upon the occurrence of a “fundamental change” as defined in the indenture governing the 3.75% Convertible Notes, holders may require us to repurchase for cash all or any portion of their 3.75% Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 3.75% Convertible Notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If certain corporate events that constitute a “make-whole fundamental change” as set forth in the indenture governing the 3.75% Convertible Notes occur prior to the maturity date of the 3.75% Convertible Notes or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 3.75% Convertible Notes in connection with such event or notice of redemption. We will not be able to redeem the 3.75% Convertible Notes prior to May 20, 2026. On or after May 20, 2026, we have the option to redeem for cash all or any portion of the 3.75% Convertible Notes if the last reported sale price of our common stock is equal to or greater than 130% of the conversion price for a specified period of time at a redemption price equal to 100% of the principal amount of the 3.75% Convertible Notes to be redeemed, plus any accrued but unpaid interest to, but excluding, the redemption date. The indenture governing the 3.75% Convertible Notes contains customary events of default. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, with respect to us or our significant subsidiaries, all outstanding 3.75% Convertible Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, then the trustee or the holders of at least 25% in aggregate principal amount of the 3.75% Convertible Notes then outstanding may declare the 3.75% Convertible Notes due and payable immediately. The net proceeds from the sale of the 3.75% Convertible Notes were approximately $364.4 million, after deducting the initial purchasers’ discount. We used approximately $53.0 million of the net proceeds from the offering to pay the cost of the 2023 capped call transactions (as described below). In addition, we used approximately $198.8 million of the net proceeds and issued 1,390,500 shares of Granite common stock in exchange for approximately $198.7 million aggregate principal amount of our 2.75% Convertible Notes concurrent with the offering in separate and individually negotiated transactions (the "Exchange Transaction"). In connection with the Exchange Transaction, we entered into partial unwind agreements (the "Unwind Agreements") with certain financial institutions to unwind a portion of the convertible note hedge and warrant transactions entered into in connection with the offering of the 2.75% Convertible Notes. Pursuant to the Unwind Agreements, we received 1,390,516 shares of our common stock (and cash in lieu of any fractional shares) in respect of the unwind of the portion of the existing convertible note hedge transactions that correspond to the 2.75% Convertible Notes that were exchanged in the Exchange Transaction described above and paid $13.2 million in cash in respect of the unwind of the portion of the existing warrant transactions that correspond to the 2.75% Convertible Notes that were exchanged in the Exchange Transaction described above. 2023 Capped Call Transactions In May 2023, we entered into capped call transactions (the "2023 capped call transactions") in connection with the offering of the 3.75% Convertible Notes. The 2023 capped call transactions are expected generally to reduce the potential dilution to Granite’s common stock upon conversion of the 3.75% Convertible Notes and/or offset any cash payments Granite is required to make in excess of the principal amount of converted 3.75% Convertible Notes, as the case may be. If, however, the market price per share of Granite’s common stock, as measured under the terms of the 2023 capped call transactions, exceeds the cap price $79.83 of the 2023 capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such cash payments, in each case, to the extent that such market price exceeds the cap price of the 2023 capped call transactions. 2.75% Convertible Notes The 2.75% Convertible Notes were issued in November 2019 in an aggregate principal amount of $230.0 million, with an interest rate of 2.75% and a maturity date of November 1, 2024, unless earlier converted, redeemed or repurchased. In June 2024, we called the 2.75% Convertible Notes for redemption and will redeem all outstanding aggregate principal amount of the 2.75% Convertible Notes on August 19, 2024. The redemption price per $1,000 principal amount of the 2.75% Convertible Notes is equal to $1,000 plus accrued and unpaid interest, if any, to, but excluding the redemption date. The 2.75% Convertible Notes may be converted, at the election of the holder of such notes, at any time before the close of business on August 15, 2024. The conversion rate for the 2.75% Convertible Notes is 31.7915 shares of Granite common stock per $1,000 principal amount of notes (which includes 0.0139 additional shares to which converting holders are entitled). With respect any 2.75% Convertible Note that is properly surrendered for conversion from and after the date of the redemption notice until the close of business on August 15, 2024, we have elected to settle such conversion by delivering cash of $1,000 per $1,000 principal amount of the 2.75% Convertible Notes and shares of our common stock in respect of the remainder of our conversion obligation in excess of the cash payment. The indenture governing the 2.75% Convertible Notes contains customary events of default. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, with respect to us or our significant subsidiaries, all outstanding 2.75% Convertible Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, then the trustee or the holders of at least 25% in aggregate principal amount of the 2.75% Convertible Notes then outstanding may declare the notes due and payable immediately. At June 30, 2024, $0.4 million remained outstanding of our 2.75% Convertible Notes. Covenants and Events of Default Our Credit Agreement requires us to comply with various affirmative, restrictive and financial covenants, including the financial covenants described below. Our failure to comply with these covenants would constitute an event of default under the Credit Agreement. Additionally, the 2.75% Convertible Notes, 3.25% Convertible Notes and 3.75% Convertible Notes are governed by the terms and conditions of their respective indentures. Our failure to pay principal, interest or other amounts when due or within the relevant grace period on our 2.75% Convertible Notes, our 3.25% Convertible Notes, our 3.75% Convertible Notes or our Credit Agreement would constitute an event of default under the 2.75% Convertible Notes indenture, the 3.25% Convertible Notes indenture, the 3.75% Convertible Notes indenture or the Credit Agreement. A default under our Credit Agreement could result in (i) us no longer being entitled to borrow under such facility; (ii) termination of such facility; (iii) the requirement that any letters of credit under such facility be cash collateralized; (iv) acceleration of amounts owed under the Credit Agreement; and/or (v) foreclosure on any collateral securing the obligations under such facility. A default under the 2.75% Convertible Notes indenture, the 3.25% Convertible Notes indenture or the 3.75% Convertible Notes indenture could result in acceleration of the maturity of the notes. The most significant financial covenants under the terms of our Credit Agreement require the maintenance of a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Leverage Ratio. As of June 30, 2024, we were in compliance with all covenants contained in the Credit Agreement. We are not aware of any non-compliance by any of our unconsolidated real estate entities with the covenants contained in their debt agreements. Debt Issuance Costs During the three and six months ended June 30, 2024, we recorded $1.5 million and $2.1 million, respectively, of amortization related to debt issuance costs. We also capitalized $9.7 million in third party offering costs related to the issuance of the 3.25% Convertible Notes. These debt issuance costs will be amortized over the expected life of the 3.25% Convertible Notes. During the three and six months ended June 30, 2023, we recorded $2.1 million and $2.4 million, respectively, of amortization related to debt issuance costs. This included $1.7 million of accelerated amortization of debt issuance costs associated with the 2.75% Convertible Notes that were repaid and are included in the loss on debt extinguishment. We also capitalized $9.8 million in third party offering costs related to the issuance of the 3.75% Convertible Notes. These debt issuance costs will be amortized over the expected life of the 3.75% Convertible Notes. |
Weighted Average Shares Outstan
Weighted Average Shares Outstanding and Net Loss Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding and Net Loss Per Share | Weighted Average Shares Outstanding and Net Income (Loss) Per Share The following table presents a reconciliation of the weighted average shares of common stock used in calculating basic and diluted net income (loss) per share as well as the calculation of basic and diluted net income (loss) per share: Three Months Ended June 30, Six Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Numerator Net income (loss) attributable to common shareholders for basic earnings per share $ 36,895 $ (17,000) $ 5,912 $ (40,023) Add: Interest expense related to Convertible Notes (1) 3,074 — — — Net income (loss) attributable to common shareholders for diluted earnings per share $ 39,969 $ (17,000) $ 5,912 $ (40,023) Denominator Weighted average common shares outstanding, basic 44,060 43,892 44,024 43,829 Add: Dilutive effect of RSUs 564 — 569 — Add: Dilutive effect of Convertible Notes (1) 8,103 — — — Weighted average common shares outstanding, diluted 52,727 43,892 44,593 43,829 Net income (loss) per share, basic $ 0.84 $ (0.39) $ 0.13 $ (0.91) Net income (loss) per share, diluted $ 0.76 $ (0.39) $ 0.13 $ (0.91) (1) The dilutive effect of the convertible notes was determined using the if-converted method. As the 2.75% Convertible Notes and 3.75% Convertible Notes will be convertible into cash, shares of our common stock or a combination thereof, at our election, the 2.75% Convertible Notes and 3.75% Convertible Notes are assumed to be converted into common stock at the beginning of the reporting period, and the resulting shares are included in the denominator of the calculation. In addition, interest charges, net of any income tax effects are added back to the numerator of the calculation. For the 3.25% Convertible Notes, we are required to settle the principal amount in cash and any conversion premium in excess of the principal amount in cash, shares of common stock, or a combination of cash and shares of common stock, at our election. As such, the 3.25% Convertible Notes only have an impact on diluted earnings per share when the average share price of our common stock exceeds the conversion price. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the provision for (benefit from) income taxes for the respective periods: Three Months Ended June 30, Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Provision for (benefit from) income taxes $ 20,693 $ 9,024 $ 11,167 $ (445) Effective tax rate 34.7 % (60.9 %) 54.3 % 0.9 % |
Contingencies - Legal Proceedin
Contingencies - Legal Proceedings | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies - Legal Proceedings | Contingencies - Legal Proceedings Liabilities relating to legal proceedings and government inquiries, to the extent that we have concluded such liabilities are probable and the amounts of such liabilities are reasonably estimable, are recorded in the consolidated balance sheets. Disclosure is required when a material loss is probable but not reasonably estimable, a material loss is reasonably possible but not probable, or when it is reasonably possible that the amount of a loss will exceed the amount recorded. The total liabilities recorded in our condensed consolidated balance sheets for legal proceedings and government inquiries were immaterial as of June 30, 2024 and December 31, 2023. It is possible that future developments in our legal proceedings and inquiries could require us to (i) adjust or reverse existing accruals, or (ii) record new accruals that we did not originally believe to be probable or that could not be reasonably estimated. Such changes could be material to our financial condition, results of operations and/or cash flows in any particular reporting period. Ordinary Course Legal Proceedings In the ordinary course of business, we and our affiliates are involved in various legal proceedings alleging, among other things, liability issues or breach of contract or tortious conduct in connection with the performance of services and/or materials provided, the various outcomes of which often cannot be predicted with certainty. For information on our accounting policies regarding affirmative claims and back charges that we are party to in the ordinary course of business, see Note 1 of our Annual Report. We and our affiliates are also subject to government inquiries in the ordinary course of business seeking information concerning our compliance with government construction contracting requirements and various laws and regulations, the outcomes which often cannot be predicted with certainty. Some of the matters in which we or our joint ventures and affiliates are involved may involve compensatory, punitive, or other claims or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that are not probable to be incurred or cannot currently be reasonably estimated. In addition, in some circumstances our government contracts could be terminated, we could be suspended, debarred or incur other administrative penalties or sanctions, or payment of our costs could be disallowed. While any of our pending legal proceedings may be subject to early resolution as a result of our ongoing efforts to resolve the proceedings, whether or when any legal proceeding will be resolved is neither predictable nor guaranteed. |
Reportable Segment Information
Reportable Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable Segment Information Our reportable segments are the same as our operating segments and correspond with how our chief operating decision maker, or decision-making group (our “CODM”), regularly reviews financial information to allocate resources and assess performance. We identified our CODM as our Chief Executive Officer and our Chief Operating Officer. Our reportable segments are: Construction and Materials. Summarized segment information is as follows (in thousands): Three months ended June 30, Construction Materials Total 2024 Total revenue from reportable segments $ 917,954 $ 239,468 $ 1,157,422 Elimination of intersegment revenue — (74,936) (74,936) Revenue from external customers $ 917,954 $ 164,532 $ 1,082,486 Gross profit $ 135,372 $ 29,339 $ 164,711 Depreciation, depletion and amortization $ 13,501 $ 10,917 $ 24,418 2023 Total revenue from reportable segments $ 749,413 $ 206,832 $ 956,245 Elimination of intersegment revenue — (57,693) (57,693) Revenue from external customers $ 749,413 $ 149,139 $ 898,552 Gross profit $ 79,154 $ 23,932 $ 103,086 Depreciation, depletion and amortization $ 10,238 $ 7,090 $ 17,328 Six Months Ended June 30, Construction Materials Total 2024 Total revenue from reportable segments $ 1,513,167 $ 328,172 $ 1,841,339 Elimination of intersegment revenue — (86,578) (86,578) Revenue from external customers $ 1,513,167 $ 241,594 $ 1,754,761 Gross profit $ 192,200 $ 26,796 $ 218,996 Depreciation, depletion and amortization $ 27,204 $ 21,394 $ 48,598 Segment assets as of period end $ 565,222 $ 570,908 $ 1,136,130 2023 Total revenue from reportable segments $ 1,252,829 $ 278,752 $ 1,531,581 Elimination of intersegment revenue — (72,961) (72,961) Revenue from external customers $ 1,252,829 $ 205,791 $ 1,458,620 Gross profit $ 115,859 $ 19,586 $ 135,445 Depreciation, depletion and amortization $ 19,993 $ 13,213 $ 33,206 Segment assets as of period end $ 443,112 $ 414,858 $ 857,970 A reconciliation of segment gross profit to consolidated income (loss) before income taxes is as follows: Three Months Ended June 30, Six Months Ended (in thousands) 2024 2023 2024 2023 Total gross profit from reportable segments $ 164,711 $ 103,086 $ 218,996 $ 135,445 Selling, general and administrative expenses 70,052 64,563 158,045 137,685 Other costs, net 10,225 13,607 21,235 18,130 Gain on sales of property and equipment, net (1,387) (3,944) (2,805) (5,981) Total other expense, net 26,271 43,682 21,939 35,674 Income (loss) before income taxes $ 59,550 $ (14,822) $ 20,582 $ (50,063) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 36,895 | $ (17,000) | $ 5,912 | $ (40,023) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price and Assumed Liabilities | The following table presents the preliminary purchase price allocation: (in thousands) Assets Cash and cash equivalents $ 12,798 Receivables 18,373 Contract assets 3,388 Inventories 13,738 Other current assets 1,032 Property and equipment 86,329 Right of use assets 15,539 Other noncurrent assets 3,718 Total tangible assets 154,915 Identifiable intangible assets 107,460 Liabilities Accounts payable 6,806 Contract liabilities 3,213 Accrued expenses and other current liabilities 10,166 Long-term lease liabilities 15,558 Other long-term liabilities 5,960 Total liabilities assumed 41,703 Total tangible and identifiable intangible net assets acquired 220,672 Goodwill 72,744 Estimated purchase price $ 293,416 |
Revisions in Estimates (Tables)
Revisions in Estimates (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Change in Accounting Estimates | The projects with decreases from revisions in estimates, which individually had an impact of $5.0 million or more on gross profit, are summarized as follows (dollars in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Number of projects with downward estimate changes 2 1 3 2 Range of reduction in gross profit from each project, net $ 5.3 - 10.1 $ 20.7 $ 5.9 - 17.8 $ 5.9 - 32.1 Decrease to project profitability, net $ 15.5 $ 20.7 $ 30.2 $ 38.0 Decrease to net income/increase to net loss $ 11.9 $ 15.8 $ 23.2 $ 29.0 Amounts attributable to non-controlling interests $ 2.7 $ 10.4 $ 3.2 $ 16.0 Decrease to net income/increase to net loss attributable to Granite Construction Incorporated $ 9.2 $ 5.4 $ 19.9 $ 13.0 Decrease to net income/increase to net loss per diluted share $ 0.17 $ 0.12 $ 0.45 $ 0.30 |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenue disaggregated by reportable segment and by customer type for the Construction segment: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2024 2023 2024 2023 Construction segment revenue: Public $ 696,710 $ 505,460 $ 1,116,527 $ 838,552 Private 221,244 243,953 396,640 414,277 Total Construction segment revenue 917,954 749,413 1,513,167 1,252,829 Materials segment revenue 164,532 149,139 241,594 205,791 Total revenue $ 1,082,486 $ 898,552 $ 1,754,761 $ 1,458,620 |
Unearned Revenue (Tables)
Unearned Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule Of Unearned Revenue | The following table presents our unearned revenue disaggregated by customer type as of the respective periods: (in thousands) June 30, 2024 December 31, 2023 Public $ 3,067,302 $ 2,892,255 Private 799,876 704,421 Total $ 3,867,178 $ 3,596,676 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Components of Contract Asset and Liability Balances | The components of the contract asset balances as of the respective dates were as follows: (in thousands) June 30, 2024 December 31, 2023 Costs in excess of billings and estimated earnings $ 135,326 $ 100,106 Contract retention 174,050 162,881 Total contract assets $ 309,376 $ 262,987 The components of the contract liability balances as of the respective dates were as follows: (in thousands) June 30, 2024 December 31, 2023 Billings in excess of costs and estimated earnings, net of retention $ 245,536 $ 227,913 Provisions for losses 16,662 15,935 Total contract liabilities $ 262,198 $ 243,848 |
Receivables, net (Tables)
Receivables, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Major Categories of Receivables | The following table presents major categories of receivables: (in thousands) June 30, 2024 December 31, 2023 Contracts completed and in progress: Billed $ 304,766 $ 343,190 Unbilled 232,472 119,170 Total contracts completed and in progress 537,238 462,360 Materials sales 86,072 61,808 Other 86,889 76,084 Total gross receivables 710,199 600,252 Less: allowance for credit losses 951 1,547 Total net receivables $ 709,248 $ 598,705 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands): Fair Value Measurement at Reporting Date Using June 30, 2024 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 75,458 $ — $ — $ 75,458 Total assets $ 75,458 $ — $ — $ 75,458 Accrued and other current liabilities Heating oil swaps $ — $ 121 $ — $ 121 Crude oil swaps — 212 — 212 Diesel collars — 246 — 246 Total liabilities $ — $ 579 $ — $ 579 December 31, 2023 Cash equivalents Money market funds $ 101,275 $ — $ — $ 101,275 Total assets $ 101,275 $ — $ — $ 101,275 Accrued and other current liabilities Interest rate swap $ — $ 126 $ — $ 126 Heating oil swaps — 153 — 153 Diesel collars — 802 — 802 Total liabilities $ — $ 1,081 $ — $ 1,081 |
Carrying Values and Estimated Fair Values of Financial Instruments Not Required to be Recorded at Fair Value | The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows: June 30, 2024 December 31, 2023 (in thousands) Fair Value Hierarchy Carrying Value Fair Carrying Value Fair Assets: Held-to-maturity marketable securities (1) Level 1 $ 10,500 $ 10,336 $ 35,863 $ 35,357 Liabilities (including current maturities): 3.25% Convertible Notes (2) Level 2 $ 373,750 $ 388,775 $ — $ — 3.75% Convertible Notes (2) Level 2 $ 373,750 $ 542,369 $ 373,750 $ 475,601 2.75% Convertible Notes (2) Level 2 $ 420 $ 825 $ 31,338 $ 51,045 Credit Agreement - Term Loan (2) Level 3 $ — $ — $ 150,000 $ 153,585 Credit Agreement - Revolver (2) Level 3 $ — $ — $ 100,000 $ 102,317 (1) All marketable securities were classified as held-to-maturity and consisted of U.S. Government and agency obligations as of June 30, 2024 and December 31, 2023. (2) The fair values of our 2.75% convertible senior notes due 2024 (the "2.75% Convertible Notes"), our 3.25% convertible senior notes due 2030 (the "3.25% Convertible Notes") and our 3.75% convertible senior notes due 2028 (the "3.75% Convertible Notes") are based on the median price of the notes in an active market. The fair value of the Credit Agreement is based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk. See Note 14 for more information about the 2.75% Convertible Notes, 3.25% Convertible Notes, 3.75% Convertible Notes and the Credit Agreement. |
Construction Joint Ventures (Ta
Construction Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Unconsolidated Joint Ventures Assets and Liabilities | The following is summary financial information related to unconsolidated construction joint ventures: (in thousands) June 30, 2024 December 31, 2023 Assets Cash, cash equivalents and marketable securities $ 127,513 $ 117,962 Other current assets (1) 605,779 666,536 Noncurrent assets 37,794 52,580 Less: partners’ interest 527,663 574,723 Granite’s interest (1),(2) $ 243,423 $ 262,355 Liabilities Current liabilities $ 157,580 $ 191,175 Less: partners’ interest and adjustments (3) 64,623 85,131 Granite’s interest $ 92,957 $ 106,044 Equity in construction joint ventures (4) $ 150,466 $ 156,311 (1) Included in this balance and in accrued expenses and other current liabilities on the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023 was $57.8 million related to performance guarantees (see Note 13). (2) Included in this balance as of June 30, 2024 and December 31, 2023 was $68.4 million and $66.6 million, respectively, related to Granite’s share of estimated cost recovery of customer affirmative claims. In addition, this balance included $1.7 million related to Granite’s share of estimated recovery of back charge claims as of June 30, 2024 and December 31, 2023, respectively. (3) Partners’ interest and adjustments includes amounts to reconcile total net assets as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast differences. (4) Included in this balance and in accrued expenses and other current liabilities on our condensed consolidated balance sheets was $6.6 million and $14.9 million as of June 30, 2024 and December 31, 2023, respectively, related to deficits in unconsolidated construction joint ventures, which includes provisions for losses. |
Schedule of Unconsolidated Joint Ventures Revenue and Costs | Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Revenue Total $ 21,648 $ 25,211 $ 30,365 $ 63,385 Less: partners’ interest and adjustments (1) 14,455 15,691 12,942 39,020 Granite’s interest $ 7,193 $ 9,520 $ 17,423 $ 24,365 Cost of revenue Total $ 27,346 $ 40,564 $ 46,097 $ 84,935 Less: partners’ interest and adjustments (1) 18,106 25,912 28,376 56,316 Granite’s interest $ 9,240 $ 14,652 $ 17,721 $ 28,619 Granite’s interest in gross loss $ (2,047) $ (5,132) $ (298) $ (4,254) Net Income (Loss) Total $ (3,950) $ (14,574) $ (12,099) $ (20,228) Less: partners’ interest and adjustments (1) (2,412) (9,658) (12,851) (16,223) Granite’s interest in net income (loss) (2) $ (1,538) $ (4,916) $ 752 $ (4,005) (1) Partners’ interest and adjustments includes amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast and/or actual differences. (2) These joint venture net income amounts exclude our corporate overhead required to manage the joint ventures and include taxes only to the extent the applicable states have joint venture level taxes. |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our investments in affiliates balance consists of equity method investments in the following types of entities: (in thousands) June 30, 2024 December 31, 2023 Foreign $ 72,255 $ 68,407 Real estate 5,317 7,136 Asphalt terminal 15,927 17,367 Total investments in affiliates $ 93,499 $ 92,910 |
Equity Method Investment Summarized Balance Financial Information | The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis: (in thousands) June 30, 2024 December 31, 2023 Current assets $ 192,560 $ 204,897 Noncurrent assets 141,950 159,694 Total assets $ 334,510 $ 364,591 Current liabilities $ 70,078 $ 81,899 Long-term liabilities (1) 46,799 54,591 Total liabilities $ 116,877 $ 136,490 Net assets $ 217,633 $ 228,101 Granite’s share of net assets $ 93,499 $ 92,910 (1) This balance is primarily related to local bank debt for equipment purchases and debt associated with our real estate investments. |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Balances of major classes of assets and total accumulated depreciation and depletion are included in property and equipment, net in the condensed consolidated balance sheets as follows: (in thousands) June 30, 2024 December 31, 2023 Equipment and vehicles $ 1,165,523 $ 1,140,195 Quarry property 252,633 251,922 Land and land improvements 107,230 105,872 Buildings and leasehold improvements 108,586 102,676 Office furniture and equipment 72,031 72,098 Property and equipment $ 1,706,003 $ 1,672,763 Less: accumulated depreciation and depletion 1,035,127 1,009,899 Property and equipment, net $ 670,876 $ 662,864 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | (in thousands) June 30, 2024 December 31, 2023 Accrued insurance $ 95,317 $ 81,936 Deficits in unconsolidated construction joint ventures 6,604 14,921 Payroll and related employee benefits 81,082 105,418 Performance guarantees 57,849 57,849 Short-term lease liabilities 16,255 16,826 Other 44,932 60,790 Total $ 302,039 $ 337,740 |
Long-term Debt and Credit Arr_2
Long-term Debt and Credit Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | (in thousands) June 30, 2024 December 31, 2023 3.25% Convertible Notes $ 373,750 $ — 3.75% Convertible Notes 373,750 373,750 2.75% Convertible Notes 420 31,338 Credit Agreement - Term Loan — 150,000 Credit Agreement - Revolver — 100,000 Debt issuance costs and other (8,974) (375) Total debt $ 738,946 $ 654,713 Less: current maturities 1,510 39,932 Total long-term debt $ 737,436 $ 614,781 |
Weighted Average Shares Outst_2
Weighted Average Shares Outstanding and Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the weighted average shares of common stock used in calculating basic and diluted net income (loss) per share as well as the calculation of basic and diluted net income (loss) per share: Three Months Ended June 30, Six Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Numerator Net income (loss) attributable to common shareholders for basic earnings per share $ 36,895 $ (17,000) $ 5,912 $ (40,023) Add: Interest expense related to Convertible Notes (1) 3,074 — — — Net income (loss) attributable to common shareholders for diluted earnings per share $ 39,969 $ (17,000) $ 5,912 $ (40,023) Denominator Weighted average common shares outstanding, basic 44,060 43,892 44,024 43,829 Add: Dilutive effect of RSUs 564 — 569 — Add: Dilutive effect of Convertible Notes (1) 8,103 — — — Weighted average common shares outstanding, diluted 52,727 43,892 44,593 43,829 Net income (loss) per share, basic $ 0.84 $ (0.39) $ 0.13 $ (0.91) Net income (loss) per share, diluted $ 0.76 $ (0.39) $ 0.13 $ (0.91) (1) The dilutive effect of the convertible notes was determined using the if-converted method. As the 2.75% Convertible Notes and 3.75% Convertible Notes will be convertible into cash, shares of our common stock or a combination thereof, at our election, the 2.75% Convertible Notes and 3.75% Convertible Notes are assumed to be converted into common stock at the beginning of the reporting period, and the resulting shares are included in the denominator of the calculation. In addition, interest charges, net of any income tax effects are added back to the numerator of the calculation. For the 3.25% Convertible Notes, we are required to settle the principal amount in cash and any conversion premium in excess of the principal amount in cash, shares of common stock, or a combination of cash and shares of common stock, at our election. As such, the 3.25% Convertible Notes only have an impact on diluted earnings per share when the average share price of our common stock exceeds the conversion price. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the provision for (benefit from) income taxes for the respective periods: Three Months Ended June 30, Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Provision for (benefit from) income taxes $ 20,693 $ 9,024 $ 11,167 $ (445) Effective tax rate 34.7 % (60.9 %) 54.3 % 0.9 % |
Reportable Segment Information
Reportable Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Summarized segment information is as follows (in thousands): Three months ended June 30, Construction Materials Total 2024 Total revenue from reportable segments $ 917,954 $ 239,468 $ 1,157,422 Elimination of intersegment revenue — (74,936) (74,936) Revenue from external customers $ 917,954 $ 164,532 $ 1,082,486 Gross profit $ 135,372 $ 29,339 $ 164,711 Depreciation, depletion and amortization $ 13,501 $ 10,917 $ 24,418 2023 Total revenue from reportable segments $ 749,413 $ 206,832 $ 956,245 Elimination of intersegment revenue — (57,693) (57,693) Revenue from external customers $ 749,413 $ 149,139 $ 898,552 Gross profit $ 79,154 $ 23,932 $ 103,086 Depreciation, depletion and amortization $ 10,238 $ 7,090 $ 17,328 Six Months Ended June 30, Construction Materials Total 2024 Total revenue from reportable segments $ 1,513,167 $ 328,172 $ 1,841,339 Elimination of intersegment revenue — (86,578) (86,578) Revenue from external customers $ 1,513,167 $ 241,594 $ 1,754,761 Gross profit $ 192,200 $ 26,796 $ 218,996 Depreciation, depletion and amortization $ 27,204 $ 21,394 $ 48,598 Segment assets as of period end $ 565,222 $ 570,908 $ 1,136,130 2023 Total revenue from reportable segments $ 1,252,829 $ 278,752 $ 1,531,581 Elimination of intersegment revenue — (72,961) (72,961) Revenue from external customers $ 1,252,829 $ 205,791 $ 1,458,620 Gross profit $ 115,859 $ 19,586 $ 135,445 Depreciation, depletion and amortization $ 19,993 $ 13,213 $ 33,206 Segment assets as of period end $ 443,112 $ 414,858 $ 857,970 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of segment gross profit to consolidated income (loss) before income taxes is as follows: Three Months Ended June 30, Six Months Ended (in thousands) 2024 2023 2024 2023 Total gross profit from reportable segments $ 164,711 $ 103,086 $ 218,996 $ 135,445 Selling, general and administrative expenses 70,052 64,563 158,045 137,685 Other costs, net 10,225 13,607 21,235 18,130 Gain on sales of property and equipment, net (1,387) (3,944) (2,805) (5,981) Total other expense, net 26,271 43,682 21,939 35,674 Income (loss) before income taxes $ 59,550 $ (14,822) $ 20,582 $ (50,063) |
General - Narrative (Details)
General - Narrative (Details) | 3 Months Ended |
Jun. 30, 2024 reportableSegments operatingGroups | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reportable segments | reportableSegments | 2 |
Operating groups | operatingGroups | 3 |
Headroom percentage | 25% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||||||
Amount drawn under revolver | $ 0 | $ 55,000 | ||||
The Credit Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Line of credit borrowing capacity | $ 200,000 | |||||
Revolving Credit Facility | The Credit Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Line of credit borrowing capacity | $ 350,000 | |||||
Amount drawn under revolver | $ 100,000 | 0 | ||||
Secured Debt | The Term Loan | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Line of credit borrowing capacity | 150,000 | $ 148,100 | ||||
LRC/MSG | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 278,000 | |||||
Revenue since acquisition date | $ 45,500 | 59,500 | ||||
Net loss before taxes since acquisition date | 7,900 | $ (700) | ||||
Increase in purchase price | 4,600 | |||||
Closing adjustments | $ 13,200 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price and Assumed Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Nov. 30, 2023 |
Liabilities | |||
Goodwill | $ 146,768 | $ 155,004 | |
LRC/MSG | |||
Assets | |||
Cash and cash equivalents | $ 12,798 | ||
Receivables | 18,373 | ||
Contract assets | 3,388 | ||
Inventories | 13,738 | ||
Other current assets | 1,032 | ||
Property and equipment | 86,329 | ||
Right of use assets | 15,539 | ||
Other noncurrent assets | 3,718 | ||
Total tangible assets | 154,915 | ||
Identifiable intangible assets | 107,460 | ||
Liabilities | |||
Accounts payable | 6,806 | ||
Contract liabilities | 3,213 | ||
Accrued expenses and other current liabilities | 10,166 | ||
Long-term lease liabilities | 15,558 | ||
Other long-term liabilities | 5,960 | ||
Total liabilities assumed | 41,703 | ||
Total tangible and identifiable intangible net assets acquired | 220,672 | ||
Goodwill | 72,744 | ||
Estimated purchase price | $ 293,416 |
Revisions in Estimates (Details
Revisions in Estimates (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Change in Accounting Estimate [Line Items] | ||||
Gross profit | $ 164,711 | $ 103,086 | $ 218,996 | $ 135,445 |
Net income (loss) | $ 38,857 | $ (23,846) | $ 9,415 | $ (49,618) |
Net income per share, diluted (USD per share) | $ 0.76 | $ (0.39) | $ 0.13 | $ (0.91) |
Revisions in Estimates, Decrease | ||||
Change in Accounting Estimate [Line Items] | ||||
Gross profit | $ 5,000 | |||
Net income (loss) | $ 11,900 | $ 15,800 | 23,200 | $ 29,000 |
Amounts attributable to non-controlling interests | $ 2,700 | $ 10,400 | $ 3,200 | $ 16,000 |
Net income per share, diluted (USD per share) | $ 0.17 | $ 0.12 | $ 0.45 | $ 0.30 |
Revisions in Estimates - Summar
Revisions in Estimates - Summary of Impact of Revisions in Estimates to Gross Profit (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) project $ / shares | Jun. 30, 2023 USD ($) project $ / shares | Jun. 30, 2024 USD ($) project $ / shares | Jun. 30, 2023 USD ($) project $ / shares | |
Change in Accounting Estimate [Line Items] | ||||
Range of change in gross profit from each project, net | $ 164,711 | $ 103,086 | $ 218,996 | $ 135,445 |
Changes to project profitability, net | 59,550 | (14,822) | 20,582 | (50,063) |
Changes to net income (loss) | 38,857 | (23,846) | 9,415 | (49,618) |
Changes to net income (loss) attributable to Granite Construction Incorporated | $ 36,895 | $ (17,000) | $ 5,912 | $ (40,023) |
Net income per share, diluted (USD per share) | $ / shares | $ 0.76 | $ (0.39) | $ 0.13 | $ (0.91) |
Minimum | ||||
Change in Accounting Estimate [Line Items] | ||||
Range of change in gross profit from each project, net | $ 5,900 | |||
Maximum | ||||
Change in Accounting Estimate [Line Items] | ||||
Range of change in gross profit from each project, net | $ 32,100 | |||
Revisions in Estimates, Decrease | ||||
Change in Accounting Estimate [Line Items] | ||||
Number of projects with estimate changes | project | 2 | 1 | 3 | 2 |
Range of change in gross profit from each project, net | $ 5,000 | |||
Changes to project profitability, net | $ 15,500 | $ 20,700 | 30,200 | $ 38,000 |
Changes to net income (loss) | 11,900 | 15,800 | 23,200 | 29,000 |
Amounts attributable to non-controlling interests | 2,700 | 10,400 | 3,200 | 16,000 |
Changes to net income (loss) attributable to Granite Construction Incorporated | $ 9,200 | $ 5,400 | $ 19,900 | $ 13,000 |
Net income per share, diluted (USD per share) | $ / shares | $ 0.17 | $ 0.12 | $ 0.45 | $ 0.30 |
Revisions in Estimates, Decrease | Minimum | ||||
Change in Accounting Estimate [Line Items] | ||||
Range of change in gross profit from each project, net | $ 5,300 | $ 20,700 | $ 5,900 | |
Revisions in Estimates, Decrease | Maximum | ||||
Change in Accounting Estimate [Line Items] | ||||
Range of change in gross profit from each project, net | $ 10,100 | $ 17,800 |
Disaggregation of Revenue - Sch
Disaggregation of Revenue - Schedule of Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) reportableSegments operatingGroups | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Reportable segments | reportableSegments | 2 | |||
Operating groups | operatingGroups | 3 | |||
Revenue | $ 1,082,486 | $ 898,552 | $ 1,754,761 | $ 1,458,620 |
Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 917,954 | 749,413 | 1,513,167 | 1,252,829 |
Construction | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 696,710 | 505,460 | 1,116,527 | 838,552 |
Construction | Private | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 221,244 | 243,953 | 396,640 | 414,277 |
Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 164,532 | $ 149,139 | $ 241,594 | $ 205,791 |
Unearned Revenue (Details)
Unearned Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 3,867,178 | $ 3,596,676 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 2,700,000 | |
Expected timing of satisfaction | 12 months |
Unearned Revenue - Schedule of
Unearned Revenue - Schedule of Unearned Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation | $ 3,867,178 | $ 3,596,676 |
Public | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation | 3,067,302 | 2,892,255 |
Private | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation | $ 799,876 | $ 704,421 |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Product Information [Line Items] | ||||||
Claim recovery estimates | $ 70.4 | $ 70.4 | $ 77.9 | |||
Revenue recognized | 55 | $ 48.1 | $ 253.3 | $ 171.1 | ||
Customer Concentration Risk | Accounts Receivable | Brightline Trains Florida LLC | ||||||
Product Information [Line Items] | ||||||
Concentration risk | 11.10% | 9.40% | ||||
Performance Obligations | ||||||
Product Information [Line Items] | ||||||
Revenue adjustment | $ 93.1 | $ 45.5 | $ 177.4 | $ 89.7 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities - Component of Contract Asset and Liability Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Costs in excess of billings and estimated earnings | $ 135,326 | $ 100,106 |
Contract retention | 174,050 | 162,881 |
Total contract assets | 309,376 | 262,987 |
Billings in excess of costs and estimated earnings, net of retention | 245,536 | 227,913 |
Provisions for losses | 16,662 | 15,935 |
Total contract liabilities | $ 262,198 | $ 243,848 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Working capital contributions | $ 25 | $ 25 |
Percentage of receivables | 10% | 10% |
Receivables, net - Schedule of
Receivables, net - Schedule of Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 710,199 | $ 600,252 |
Less: allowance for credit losses | 951 | 1,547 |
Total net receivables | 709,248 | 598,705 |
Contracts completed and in progress: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | 304,766 | 343,190 |
Unbilled | 232,472 | 119,170 |
Receivables | 537,238 | 462,360 |
Materials sales | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 86,072 | 61,808 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 86,889 | $ 76,084 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Apr. 30, 2024 | Nov. 30, 2023 | Dec. 31, 2022 | |
2.75% Convertible Notes | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Interest rate | 2.75% | ||||
Diesel collars | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Realized gain (loss) | $ 0 | $ 0 | |||
Interest rate swap | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Notional amount | $ 75 | ||||
Commodity Contract, Maturing October 31, 2023 | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Gain (loss) on commodity swap | $ 0 | ||||
Commodity Contract, Maturing October 31, 2023 | Designated as Hedging Instrument | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Notional amount | $ 9.2 | $ 7 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 75,458 | $ 101,275 |
Total liabilities | 579 | 1,081 |
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 126 | |
Heating oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 121 | |
Accrued and other current liabilities | 153 | |
Diesel collars | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 246 | 802 |
Crude oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 212 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 75,458 | 101,275 |
Total liabilities | 0 | 0 |
Level 1 | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 0 | |
Level 1 | Heating oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 0 | |
Accrued and other current liabilities | 0 | |
Level 1 | Diesel collars | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 0 | 0 |
Level 1 | Crude oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 579 | 1,081 |
Level 2 | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 126 | |
Level 2 | Heating oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 121 | |
Accrued and other current liabilities | 153 | |
Level 2 | Diesel collars | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 246 | 802 |
Level 2 | Crude oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 212 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 0 | |
Level 3 | Heating oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 0 | |
Accrued and other current liabilities | 0 | |
Level 3 | Diesel collars | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | 0 | 0 |
Level 3 | Crude oil swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 0 | |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 75,458 | 101,275 |
Money Market Funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 75,458 | 101,275 |
Money Market Funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money Market Funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Carrying and Fair Value Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | May 11, 2023 |
3.75% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate | 3.75% | 3.75% | |
2.75% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate | 2.75% | ||
3.25% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate | 3.25% | ||
Carrying Value | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity marketable securities | $ 10,500 | $ 35,863 | |
Carrying Value | Level 2 | 3.75% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible notes | 373,750 | 373,750 | |
Carrying Value | Level 2 | 2.75% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible notes | 420 | 31,338 | |
Carrying Value | Level 2 | 3.25% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible notes | 373,750 | 0 | |
Carrying Value | Level 3 | Term Loan | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit agreement | 0 | 150,000 | |
Carrying Value | Level 3 | Revolver | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit agreement | 0 | 100,000 | |
Fair Value | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity marketable securities | 10,336 | 35,357 | |
Fair Value | Level 2 | 3.75% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible notes | 542,369 | 475,601 | |
Fair Value | Level 2 | 2.75% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible notes | 825 | 51,045 | |
Fair Value | Level 2 | 3.25% Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible notes | 388,775 | 0 | |
Fair Value | Level 3 | Term Loan | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit agreement | 0 | 153,585 | |
Fair Value | Level 3 | Revolver | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit agreement | $ 0 | $ 102,317 |
Construction Joint Ventures - N
Construction Joint Ventures - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) project | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) project | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Guarantor Obligations [Line Items] | |||||
Total revenue | $ 1,082,486 | $ 898,552 | $ 1,754,761 | $ 1,458,620 | |
Contract liabilities | 262,198 | 262,198 | $ 243,848 | ||
Unconsolidated Construction Corporate Joint Venture | |||||
Guarantor Obligations [Line Items] | |||||
Contract liabilities | 34,600 | 34,600 | |||
Minimum | Unconsolidated Construction Corporate Joint Venture | |||||
Guarantor Obligations [Line Items] | |||||
Contract liabilities | $ 900 | $ 900 | |||
Ownership in joint venture | 30% | 30% | |||
Maximum | Unconsolidated Construction Corporate Joint Venture | |||||
Guarantor Obligations [Line Items] | |||||
Contract liabilities | $ 25,900 | $ 25,900 | |||
Ownership in joint venture | 50% | 50% | |||
Variable Interest Entity, Primary Beneficiary | Consolidated Construction Corporate Joint Venture | |||||
Guarantor Obligations [Line Items] | |||||
Total revenue | $ 92,200 | $ 70,800 | $ 163,800 | 132,100 | |
Operating cash flows | $ 8,600 | $ (48,300) | |||
Variable Interest Entity, Primary Beneficiary | Minimum | Consolidated Construction Corporate Joint Venture | |||||
Guarantor Obligations [Line Items] | |||||
Share in equity of joint venture | 50% | ||||
Variable Interest Entity, Primary Beneficiary | Maximum | Consolidated Construction Corporate Joint Venture | |||||
Guarantor Obligations [Line Items] | |||||
Share in equity of joint venture | 70% | ||||
Consolidated Construction Corporate Joint Venture | Variable Interest Entity, Primary Beneficiary | |||||
Guarantor Obligations [Line Items] | |||||
Number of projects | project | 10 | 10 | |||
Contract liabilities | $ 348,000 | $ 348,000 | |||
Consolidated Construction Corporate Joint Venture | Variable Interest Entity, Primary Beneficiary | Minimum | |||||
Guarantor Obligations [Line Items] | |||||
Contract liabilities | 2,600 | 2,600 | |||
Consolidated Construction Corporate Joint Venture | Variable Interest Entity, Primary Beneficiary | Maximum | |||||
Guarantor Obligations [Line Items] | |||||
Contract liabilities | $ 105,300 | $ 105,300 | |||
Unconsolidated Construction Corporate Joint Venture | Variable Interest Entity, Primary Beneficiary | |||||
Guarantor Obligations [Line Items] | |||||
Number of projects | project | 5,000,000 | 5,000,000 |
Construction Joint Ventures - U
Construction Joint Ventures - Unconsolidated Construction Joint Ventures Financial Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Guarantor Obligations [Line Items] | ||
Cash, cash equivalents and marketable securities | $ 127,513 | $ 117,962 |
Other current assets | 605,779 | 666,536 |
Noncurrent assets | 37,794 | 52,580 |
Current liabilities | 157,580 | 191,175 |
Equity in construction joint ventures | 150,466 | 156,311 |
Accumulated deficit | (495,679) | (501,844) |
Unconsolidated Construction Corporate Joint Venture | ||
Guarantor Obligations [Line Items] | ||
Customer affirmative claims | 68,400 | 68,400 |
Back charge claims | 1,700 | 1,700 |
Accumulated deficit | 6,600 | 14,900 |
Performance Guarantee | Unconsolidated Construction Corporate Joint Venture | ||
Guarantor Obligations [Line Items] | ||
Performance guarantees | 57,800 | 57,800 |
Other Partners Interest in Partnerships | ||
Guarantor Obligations [Line Items] | ||
Unconsolidated construction joint venture assets | 527,663 | 574,723 |
Unconsolidated construction joint venture liabilities | 64,623 | 85,131 |
Reporting Entitys Interest in Joint Venture | ||
Guarantor Obligations [Line Items] | ||
Unconsolidated construction joint venture assets | 243,423 | 262,355 |
Unconsolidated construction joint venture liabilities | $ 92,957 | $ 106,044 |
Construction Joint Ventures - S
Construction Joint Ventures - Schedule of Unconsolidated Construction Joint Ventures Revenue and Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Guarantor Obligations [Line Items] | ||||
Cost of revenue | $ 917,775 | $ 795,466 | $ 1,535,765 | $ 1,323,175 |
Changes to net income (loss) | 38,857 | (23,846) | 9,415 | (49,618) |
Granite’s interest in net income (loss) | (752) | 4,005 | ||
Collaborative Arrangement | ||||
Guarantor Obligations [Line Items] | ||||
Revenue | 7,193 | 9,520 | 17,423 | 24,365 |
Cost of revenue | 9,240 | 14,652 | 17,721 | 28,619 |
Granite’s interest in gross loss | (2,047) | (5,132) | (298) | (4,254) |
Granite’s interest in net income (loss) | (1,538) | (4,916) | 752 | (4,005) |
Collaborative Arrangement | Corporate Joint Venture | ||||
Guarantor Obligations [Line Items] | ||||
Revenue | 21,648 | 25,211 | 30,365 | 63,385 |
Cost of revenue | 27,346 | 40,564 | 46,097 | 84,935 |
Changes to net income (loss) | (3,950) | (14,574) | (12,099) | (20,228) |
Collaborative Arrangement | Co-venturer | Other Partners Interest in Partnerships | ||||
Guarantor Obligations [Line Items] | ||||
Revenue | 14,455 | 15,691 | 12,942 | 39,020 |
Cost of revenue | 18,106 | 25,912 | 28,376 | 56,316 |
Changes to net income (loss) | $ (2,412) | $ (9,658) | $ (12,851) | $ (16,223) |
Investments in Affiliates - Nar
Investments in Affiliates - Narrative (Details) $ in Thousands | Jun. 30, 2024 USD ($) entity | Dec. 31, 2023 USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
Assets | $ 2,881,369 | $ 2,813,540 |
Real estate | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership in joint venture | 10% | |
Real estate | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership in joint venture | 25% | |
Foreign | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership in joint venture | 25% | |
Foreign | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership in joint venture | 50% | |
Asphalt terminal | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership in joint venture | 50% | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets | $ 334,510 | $ 364,591 |
Real estate | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets | $ 41,700 | |
Number of real estate entities | entity | 2 | |
Foreign | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets | $ 254,500 | |
Asphalt terminal | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets | $ 38,300 |
Investments in Affiliates - Equ
Investments in Affiliates - Equity Method Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 93,499 | $ 92,910 |
Foreign | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | 72,255 | 68,407 |
Real estate | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | 5,317 | 7,136 |
Asphalt terminal | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 15,927 | $ 17,367 |
Investments in Affiliates - Sum
Investments in Affiliates - Summarized Balance Sheet Information for Equity Method Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 1,706,168 | $ 1,643,451 |
Total assets | 2,881,369 | 2,813,540 |
Current liabilities | 1,016,403 | 1,029,883 |
Granite’s share of net assets | 93,499 | 92,910 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 192,560 | 204,897 |
Noncurrent assets | 141,950 | 159,694 |
Total assets | 334,510 | 364,591 |
Current liabilities | 70,078 | 81,899 |
Long-term liabilities | 46,799 | 54,591 |
Total liabilities | 116,877 | 136,490 |
Net assets | $ 217,633 | $ 228,101 |
Property and Equipment, net - P
Property and Equipment, net - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,706,003 | $ 1,672,763 |
Less: accumulated depreciation and depletion | 1,035,127 | 1,009,899 |
Property and equipment, net | 670,876 | 662,864 |
Equipment and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,165,523 | 1,140,195 |
Quarry property | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 252,633 | 251,922 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 107,230 | 105,872 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 108,586 | 102,676 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 72,031 | $ 72,098 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Accrued insurance | $ 95,317 | $ 81,936 |
Deficits in unconsolidated construction joint ventures | 6,604 | 14,921 |
Payroll and related employee benefits | 81,082 | 105,418 |
Performance guarantees | 57,849 | 57,849 |
Short-term lease liabilities | 16,255 | 16,826 |
Other | 44,932 | 60,790 |
Total | $ 302,039 | $ 337,740 |
Long-term Debt and Credit Arr_3
Long-term Debt and Credit Arrangements (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Nov. 30, 2023 USD ($) | May 11, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Nov. 30, 2019 USD ($) | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | May 31, 2023 | |
Debt Instrument [Line Items] | |||||||||||
Capped call transactions | $ 46,046 | $ 53,035 | |||||||||
Extinguishment of debt | $ 49,335 | 49,335 | |||||||||
Proceeds from warrants | 13,201 | ||||||||||
Outstanding debt | $ 738,946 | 738,946 | $ 654,713 | ||||||||
Amount drawn under revolver | $ 0 | 55,000 | |||||||||
Common Stock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Extinguishment of debt | $ 14 | $ 14 | |||||||||
Exercise of bond hedge (in shares) | shares | 1,390,516 | 260,883 | 1,390,516 | 260,883 | 1,390,516 | ||||||
The 3.75% Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Default percentage | 25% | ||||||||||
The 3.75% Convertible Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 3.75% | 3.75% | 3.75% | ||||||||
Principal amount | $ 373,800 | ||||||||||
Conversion ratio | 0.0216807 | ||||||||||
Conversion price (USD per share) | $ / shares | $ 46.12 | ||||||||||
Debt instrument, redemption price, percentage | 100% | ||||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130% | ||||||||||
Debt proceeds | $ 364,400 | ||||||||||
2.75% Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 2.75% | 2.75% | |||||||||
Principal amount | $ 230,000 | ||||||||||
Conversion ratio | 0.0317776 | ||||||||||
Amortization of debt issuance costs | $ 2,100 | $ 1,500 | |||||||||
Default percentage | 25% | ||||||||||
2.75% Convertible Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 2.75% | 2.75% | 2.75% | ||||||||
Termination fees | $ 198,800 | ||||||||||
Loss on debt extinguishment (in shares) | shares | 1,390,500 | ||||||||||
Extinguishment of debt | $ 198,700 | ||||||||||
Proceeds from warrants | 13,200 | ||||||||||
Outstanding debt | $ 420 | $ 420 | 31,338 | ||||||||
The Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit borrowing capacity | $ 200,000 | ||||||||||
Sublimit for letters of credit | 150,000 | ||||||||||
Outstanding letters of credit | 16,600 | $ 16,600 | |||||||||
The Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 1% | ||||||||||
The Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 2% | ||||||||||
The Credit Agreement | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 0% | ||||||||||
The Credit Agreement | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 1% | ||||||||||
The Credit Agreement | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | 0 | $ 0 | 100,000 | ||||||||
The Credit Agreement | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit borrowing capacity | $ 350,000 | ||||||||||
Debt term | 5 years | ||||||||||
Percent of EBITDA | 100% | ||||||||||
Line of credit remaining borrowing capacity | 333,400 | 333,400 | |||||||||
Amount drawn under revolver | $ 100,000 | 0 | |||||||||
The Credit Agreement | Financial Standby Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit borrowing capacity | $ 75,000 | ||||||||||
The Credit Agreement | Swingline Loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Sublimit for swingline loans | $ 20,000 | ||||||||||
Capped Call Transaction | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capped call transactions | $ 53,000 | ||||||||||
The Term Loan | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 0 | $ 0 | $ 150,000 | ||||||||
The Term Loan | Secured Debt | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5% | ||||||||||
Line of credit borrowing capacity | $ 150,000 | $ 148,100 |
Long-term Debt and Credit Arr_4
Long-term Debt and Credit Arrangements - Schedule of Long-term Debt and Credit Agreement (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | May 31, 2023 | May 11, 2023 | Nov. 30, 2019 |
Debt Instrument [Line Items] | |||||
Total debt | $ 738,946 | $ 654,713 | |||
Debt issuance costs and other | (8,974) | (375) | |||
Less: current maturities | 1,510 | 39,932 | |||
Total long-term debt | $ 737,436 | 614,781 | |||
3.75% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.75% | 3.75% | |||
2.75% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.75% | ||||
3.25% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.25% | ||||
Convertible Debt | 3.75% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 373,750 | 373,750 | |||
Convertible Debt | 2.75% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 420 | 31,338 | |||
Interest rate | 2.75% | 2.75% | |||
Convertible Debt | The 3.75% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.75% | 3.75% | |||
Convertible Debt | 3.25% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 373,750 | 0 | |||
Line of Credit | The Term Loan | |||||
Debt Instrument [Line Items] | |||||
Total debt | 0 | 150,000 | |||
Line of Credit | The Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 100,000 |
Weighted Average Shares Outst_3
Weighted Average Shares Outstanding and Net Loss Per Share - Reconciliation of the Weighted Average Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator | ||||
Net income (loss) attributable to common shareholders for diluted earnings per share | $ 36,895 | $ (17,000) | $ 5,912 | $ (40,023) |
Add: Interest expense related to 2.75% Convertible Notes | 3,074 | 0 | 0 | 0 |
Net income (loss) attributable to common shareholders for diluted earnings per share | $ 39,969 | $ (17,000) | $ 5,912 | $ (40,023) |
Denominator | ||||
Weighted average common shares outstanding, basic (in shares) | 44,060 | 43,892 | 44,024 | 43,829 |
Dilutive effect of RSUs (in shares) | 564 | 0 | 569 | 0 |
Dilutive effect of 2.75% Convertible Notes (in shares) | 8,103 | 0 | 0 | 0 |
Weighted average common shares outstanding, diluted (in shares) | 52,727 | 43,892 | 44,593 | 43,829 |
Net income per share, basic (USD per share) | $ 0.84 | $ (0.39) | $ 0.13 | $ (0.91) |
Net income per share, diluted (USD per share) | $ 0.76 | $ (0.39) | $ 0.13 | $ (0.91) |
Weighted Average Shares Outst_4
Weighted Average Shares Outstanding and Net Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2024 | |
Convertible Debt Securities | 2.75% Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,138,000 | |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 584,000 |
Income Taxes - Schedule of (Ben
Income Taxes - Schedule of (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 20,693 | $ 9,024 | $ 11,167 | $ (445) |
Effective tax rate | 34.70% | (60.90%) | 54.30% | 0.90% |
Contingencies - Legal Proceed_2
Contingencies - Legal Proceedings (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total liabilities for legal proceedings | $ 0 | $ 0 |
Reportable Segment Informatio_2
Reportable Segment Information - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 1,082,486 | $ 898,552 | $ 1,754,761 | $ 1,458,620 | |
Gross profit | 164,711 | 103,086 | 218,996 | 135,445 | |
Assets | 2,881,369 | 2,881,369 | $ 2,813,540 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 1,157,422 | 956,245 | 1,841,339 | 1,531,581 | |
Gross profit | 164,711 | 103,086 | 218,996 | 135,445 | |
Depreciation, depletion and amortization | 24,418 | 17,328 | 48,598 | 33,206 | |
Assets | 1,136,130 | 857,970 | 1,136,130 | 857,970 | |
Consolidation, Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | (74,936) | (57,693) | (86,578) | (72,961) | |
Construction | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 917,954 | 749,413 | 1,513,167 | 1,252,829 | |
Construction | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 917,954 | 749,413 | 1,513,167 | 1,252,829 | |
Gross profit | 135,372 | 79,154 | 192,200 | 115,859 | |
Depreciation, depletion and amortization | 13,501 | 10,238 | 27,204 | 19,993 | |
Assets | 565,222 | 443,112 | 565,222 | 443,112 | |
Construction | Consolidation, Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 0 | 0 | 0 | 0 | |
Materials | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 164,532 | 149,139 | 241,594 | 205,791 | |
Materials | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 239,468 | 206,832 | 328,172 | 278,752 | |
Gross profit | 29,339 | 23,932 | 26,796 | 19,586 | |
Depreciation, depletion and amortization | 10,917 | 7,090 | 21,394 | 13,213 | |
Assets | 570,908 | 414,858 | 570,908 | 414,858 | |
Materials | Consolidation, Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ (74,936) | $ (57,693) | $ (86,578) | $ (72,961) |
Reportable Segment Informatio_3
Reportable Segment Information - Reconciliation of Segment Gross (Loss) Profit to Consolidated Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting [Abstract] | ||||
Gross profit | $ 164,711 | $ 103,086 | $ 218,996 | $ 135,445 |
Selling, general and administrative expenses | 70,052 | 64,563 | 158,045 | 137,685 |
Other costs, net | 10,225 | 13,607 | 21,235 | 18,130 |
Gain on sales of property and equipment, net | (1,387) | (3,944) | (2,805) | (5,981) |
Total other expense, net | 26,271 | 43,682 | 21,939 | 35,674 |
Income (loss) before income taxes | $ 59,550 | $ (14,822) | $ 20,582 | $ (50,063) |