GVA - Earnings call transcript Q3 2024 | Granite Construction Incorporated

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Operator

Good morning. My name is Andrea, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Granite Construction Incorporated 2024 Third Quarter Conference Call. This call is being recorded. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Granite Construction Incorporated Vice President of Investor Relations, Mike Barker. ahead. go Please

Michael Barker

Officer, thank Events be and Officer, joining I'm Investor be Chief us. Larkin, today's website. note Good presentation Relations Presentations earnings today you page with to will Financial and President here Executive on Executive Woolsey. President pleased Please and that the morning, available Vice for Staci and and Kyle our Chief of

forward-looking today statements discussion and with measures. begin We regarding a non-GAAP brief

meaning awarded reflecting the the events, shareholder and results. may projects circumstances, opportunities, These occurrences, judgment include expectations materially demand, growth, forward-looking Litigation of Act Actual Private and management activities, Some discussion results Reform future within Securities could value, the strategic statements today guidance, forward-looking statements performance, outlook, differ made statements the today. best plans, and or regarding of outcomes, of XXXX. senior from are of CAP targets, estimates committed objective, current

adjusted available are Relations. under measures earnings presentations, which but cash non-GAAP company gross segment part website, Materials a XX-Q time discussed adjusted on These Granite's required to the forward-looking company refer income, not EBITDA regarding Please to releases be company's could assumes our law. affect graniteconstruction.com except required call per as to, Certain our no may factors from press update include, statements. and by for and most share adjusted description measures non-GAAP these The as in of EBITDA, obligation profit. limited today's are margin, XX-K to and of risk statements, are that earnings Investor and forward-looking adjusted net included during disclosures our filings The time more recent executives. complete by

over I'd Now to turn call to Kyle the Larkin. like

Kyle Larkin

Good for us call. quarter joining on morning. third our Thanks

as were Almost years the I strategic our grow shared results, do ago, our geographically several our materials profitable by while in years. our platform. vision our business execute continue consistently and derisking we to company's the growth going integrated also that strengthening quarter said expectations our X financial so next our vertically business portfolio, our positions, plan discuss to delivering over for business and to we home market want our expanding performance to reviewing Before investing on results. we We project

Our teams supported accomplished vision have the out and what to we was of do. we set by all our across together, company,

flow Since adjusted adopting profit top beginning in strategy our new gross and generation strong cash expansion, CAP. XXXX, the revenue EBITDA we and produced growth, of record-breaking margin free have healthy line

to incremental should margin improvement believe forward we XXXX, I Construction margin Materials segments. time. improve grow and look over significantly As have near-term increase I we in and our through margin expect the opportunities revenue both and Construction Materials

strong. public environment, Forecasting the the remain to we macro market expect

the at been the come. of spent American not the the been have to will even the are benefits we that funds support states. IIJA Association only of at and estimates Builders While XXXX. In to line XX% IIJA funds of X-year years continue Bill of the terminate midpoint until this funding to time, or time available XXX% Road we Infrastructure our the though will allocated IIJA, for of many the industry does The to expect Transportation have

expect we result, a fund XXXX. As well the to construction projects IIJA beyond

CAP. than should year. of work more funding years by the We In opportunities trend the few we to did infrastructure in last continue quality strong the believe produce continue the XXXX, to we build previous bidding

geographies. as maintain strong we continue even on environment pursuits. increased are to more our bidding The discipline macro project a bidding our opportunities work We reflect across

the over this next tailwind X expect years. We continue to

private sector. able Construction approximately We be believe to amount significant in a private of supports funding While public we of the we performed should revenue, our work. XX% grow also revenue

infrastructure several of in Our years, and such last with constructing transportation expect facilities. for strong over near-term and data facilities infrastructure we commercial infrastructure, have technology, work of macroeconomic mines, the the and continued alignment growth private been drilling primarily goods. including solar private centers, energy in intermodal water real development, consists as for infrastructure site and These services, markets trends

organizational same are positions believe the the positions in our realignment clients better also the our seeing expect market. from Construction capitalize We key that recently us on Materials leverage to our announced benefit to robust tailwinds better to to we I serve the and segment. expertise segment us

have years. over flat increases growth to the over year, price next incremental and volumes relatively Materials been While X the growth revenue produce last we expect

we Given XXXX. our X% through private annual revenue a growth compounded at public growth and of organic X% to outlook, strong continue expect to rate

Gravel to businesses should we platform expanded addition Bowen. in the growth. execute & our to and intend serve expand and organic continue In with we acquisitions of Stone bolt-on year, growth, These In strategy Memphis and on Dickerson acquisitions expansion. M&A revenue further our strengthen via as the for & geographical to last a Lehman-Roberts, the Southeast

generation, opportunities With options be leverage EBITDA, target flow our adjusted to accretive to that X.Xx have margin. Granite's would cash adjusted at on long-term capitalize EBITDA borrowing capacity and liquidity, we secured larger M&A

integrated organically While larger in XXXX. a continue M&A are to and our position we very revenue pursue through strategy. growing through that selective, Overall, we Granite in are alignment great transactions will vertical with is

margin on thoughts improvement. our to Turning

gross a We XXXX. adjusted and improve SG&A. Granite's of to in we our margin increase XX% efficiency think to We EBITDA increase to profit range XX% margin can in expect

segment, on In margins. the quality projects the with and operational to today have significant our focus past drive the strides much in and improvement combined in Materials the both will Construction the X We excellence believe have our over CAP higher that we we segments believe years, more but made is we in Construction come. there

across a bar the the market and procuring We markets. the company. implemented the continue We've in focus owners to right the heightened be on to projects standardized selective in with right robust measures with a right quality processes raise

first year allows organizational the the we in we our In segment, our the improve to of functions such leaders centralized and quality believe performance through new Materials announced financial quarter sales control. structure, as which

asphalt to pricing margin pricing to both in and positioned experts improvement. drive and materials aggregates evaluate Materials are to continue expect now Our we better

integration vertical drive materials vertical and utilization business, to an Granite's leverage to higher opportunities is have our and profitability. integration we further to the asset

Lastly, down. investment in continue Materials our on that focus automation the strategic segment drive projects will costs other and with production the should

margin in Over drive the these next expansion expect to X years, segment. initiatives we this significant

efficient We inorganic are that more corporate support will and our building on growth. also structure organic focused a

XXXX. more processes are more should use expense result improve We This efficient in our SG&A and procedures investing order to resources our by to effectively. leverage in of

been when XXXX. integrated operating and has we flow have a been a flow. over significantly only today flow operating generate record to to cash we operating expect Granite of an improvement X in This business have X area model by ago. different major of generated a revenue the generation in business This XX% model strength change, the and range cash Granite to past a where cash over X% few improved has years new vertically the our has the next years, compared XXXX. of with to is is business the Turning years. Cash

expenditures with In to in our focus ongoing materials intend business. addition, we disciplined capital the on remain

result revenue to X% of reinvest in a half front margin shareholders in of of Granite of from create cash is believe and net of in of this equipment significant total. the should a of X% for flow while the in We opportunities and maintenance There's X% is property the revenue, sales XXXX, proceeds target free us. excitement ability CapEx approximately for Our across the of value business. to lot CapEx about

people the and happen. plan the to market, the make have We it

into a delayed This segment, $X.X that profitable operations was jump even XX% work there into XXXX. high increase were quarter year-over-year. projects pushed quarter. revenue increase a let's driven Now was the by reflected In record the our few Construction owners a billion. and third the as across were for geographies, totaled though This

Although it see some is project it not delays, is to unusual. disappointing

the it our shifted, burn. for revenue bolsters While CAP work delayed and future remains confidence in has

our notable this margins progress, I yet made the Even to higher margins not our driving last progress are years. with expect have project portfolio We gross X over be. with them transformed where

remain in higher produce this Our focused the future. CAP on should is execution margins in even strong. and segment we portfolio gross the and believe

in to our revenue during to addition an what in $XX of increase $XX of also from million the quarter seasonally XXXX. see in quarter at quarter. billion XXXX we strong a the CAP CAP added growth, million This third of third is is I'm quarter the to increase In billion. revenue largest of end happy $X.X quarter and $X.X

our home know to bid, vendors the focused the are teams pursuit and growth to and with projects expansion. are working We robust, projects continue that markets we margin Our we CAP drive and right well. building on in our subcontractors we revenue remain selective in be and that partners, markets winning

often of allowing in Larger relationships are or markets the $XXX of to of We with contractor better quarter. clients increase prioritize established the value quarter XXXX projects position best risk. and to value early larger design separated of methods smaller us is million packages projects progressive from continuing in the end billion for work our Best mitigate success to total at best also from workshops. like The $X.X value to or our minimizing utilized $XX projects into collaborative leverage multiple delivery third are we review projects XX% risk. while home by general the construction project us to projects XXXX. our and of represent manager, third third best CAP build, our where This an million value deliver work can quarter through identify

value more with have these and find are best fewer compared methods. history claims significantly generally contracting We a other constructed that and projects to of delivering successfully efficiently project

markets expand construction position build are and are growth CAP, public margins. a and great to drive and Our strong, we private in

Materials & maximizing through the In market. the to home our are business Materials Mississippi-based Bowen. in strategy. to central markets Southeastern completed we integration, of new Growing the and integration Their benefit our markets existing our Dickerson Moving segment. vertical segment acquisition vertical expands of August,

work continue business, margin as improvement. organically our invest in to materials drive We further through both M&A will and we to

for We the to pricing continue We are XX% of in aggregates increases In in continued continually and prior with targets on increases the assess we asphalt sales. markets. flat expect low Currently, asphalt. of averages we forward external orders volumes in to XXXX. our for average high both asphalt and price compared aggregates with and internal XXXX, of in realize XXXX and our alignment order our quarter, digits in single single look across year our ahead X% in with price asphalt aggregates digits to well into aggregates third

Officer Financial to over Officer as formally serving September. XXXX Now been to turn the has Staci role quarter. of financial discuss it Chief and our the Staci Woolsey, since for in our I'll Chief performance Officer assume

Staci Woolsey

here the Thanks, Kyle. be quarter, quarter continued XX%. profit third increased increased $XXX our we or Gross million strong I'm excited results. to Revenue In discuss to or $XX XX%. million improvement. our year-over-year $XXX XX%. million. income September million and for net EBITDA improved $XX flow XX, million cash XXXX, improved or Adjusted or the operating improved XX%, Adjusted X ended months and $XX

the The profit operations were were approximately across revenue $XX million Construction XX% to profit billion, In gross higher-quality largely CAP. These California, million $XX the Utah. portfolio. seen margin improved million a quarters, by in gains increases the levels higher $X.X to increase In previous of by of revenue project year-over-year Alaska our by of or $XXX geographies. our in increases margin and incremental the increased acquisitions. revenue gross Construction includes by with The segment driven XX%. majority gross driven segment from quarterly profit continuation segment, was of we've driven of primarily also increase the led

to gross to made strides and have profit XXXX strong with expect gains further strong improve the and market We achieve our significant we in CAP margin, environment.

offset segment, increased lower asphalt Materials for our volumes. the pricing aggregates and In asphalt

businesses Materials Cash increases revenue price increased quarter, $X $X strong, with to million million to gross Cash margins which newly be million, amortization continue improvement gross acquired profit During excludes to profitability. profit was in acquired increased drove totaling depletion XX% depreciation, million. $XX million gross The $XXX year-over-year in increase businesses. to and $XX as revenue of the in year-over-year. due profit, primarily

generation Through quarter. to to Turning operating project flow flow XXXX projects of the Historically, in operating to for Granite improved million. are we first significantly am compared I cash pleased a quarters months our year-over-year. cash was This with and improvement sites of working as seen $XXX the cash. by progress million fourth when cash fully most $XXX generation the X and cash September, before are have teams year-end. third hard our the to mobilized

play dynamic so that far. out certainly have We seen

our and With our return with which on expect positions good XXXX. These performance markets vertically repurchases this to been With believe position never our on exceed of strategy, revenue our to investments, With at has home the better this our and acquisition equivalents significantly markets. growth evaluating a for we to the and line near in share expanding cash value liquidity, a strong through we to focused we the in target term. execute in our is With drive generation, X% and integrated cash million actions bolstering are to expect allocation in new and strong strategy. our to platform value year, our are capital we capital shareholders opportunities Granite shareholders. in to cash position $XXX of we cash of are of return operating of quarter, end flow strategic

guidance for to Now I'll discuss XXXX. updates our

guidance to $X $X.X at the for unchanged year range billion revenue Our is billion. of a

expect the work impact we saw be the delays that revenue delays in sensitive, the performance fourth a -- quarter movement quarter. within strong in the fourth and that range. quarter, weather we impacted XXXX. our The quarter makes into is projects which risk fourth primary few These While will also revenue can the of third pushed

deferred X.X% and are as SG&A a to We increasing in X.X% a be from year a expense. expectation of to higher for compensation percent range primarily X%. incentive to to our X.X% The for of percentage from range SG&A relates increased nonqualified the compensation revenue

fourth to adjusted guidance have EBITDA CAP With XX% we the the to end approximately the we sale X.X% our narrowing year of a in in from of segments X fourth improvement of year-over-year our our quarter. on range optimization gain XX% we the margin Also, position into plan, XX.X%. our asset as in part months seen expect to Both quarter, are strong. to of first going assets We the $XX continue ongoing the of to million expect of year. are

spend our $XXX for expect with approximately now be through CapEx September, year we Finally, to the million.

to closing back over With remarks. it turn Kyle that, I'll for

Kyle Larkin

Thanks, Staci. the growth we $X.X the revenue our guidance billion, of quarter, to In year year first with points. half the of I'll quarter. we with close to with expect following for third the another the strong range continued the billion finish $X

Our CAP despite increased busiest the our third being quarter. quarter

markets in both the will In opportunities, the in XXXX, fourth we've build further made the XXXX the EBITDA significant to progress in margins ongoing year-over-year, many to and a raise CAP, increases margin guidance and narrowed see of adjusted to midpoint. I public believe with to private see to bar. continue in ahead project We no the our change continue we continue our with We and initiatives XXXX. and in CAP in work opportunities in quarter us

in that proven be cash that I'm free proud and the all made demonstrates X have Our have I next cash of leader strategy, strides well XXXX we X business last we progress generation generation. industry progress in way years. continue made to believe with the over years, through Granite's tremendous the expect to our the an we integrated vertically on are flow

through return now shareholders, are and to repurchases. in M&A value We a continued to position share both

X Finally, really Granite exciting. at the next be years should

We have great market, teams. and great a businesses great

We our are are achievable. growth capitalize to opportunities believe margin organic and they position become available. as in expansion targets on We

generate available bolt-on strategy businesses coupled our larger will when significant us liquidity, to and allow continue our We believe that pursuing the also cash with transactions. our of

Our improve home company. our we will expect strategy the business I shareholders our next a position over our that we for X remains value years, continue unchanged. building America's focused as strengthen infrastructure to as And of creation market Material's

to back questions. Operator, I now for you it will turn

Operator

[Operator Ramsey Instructions] first from question of Group. come our Thompson Steven Research will And

Steven Ramsey

of blocks and the ask more the of a years? couple building about EBITDA is of at both wanted wanted the of expansion, leverage questions to contributors. pretty equal at outlook. operational curious I'm I midpoint segment? next in midpoint long-term over were Thinking to on couple is the points how the and the XXX is if That a bit margin of get XX%. much last improvements In it years, hear SG&A the basis Materials I XXXX couple And general XXXX the of that just to about segments case XX.X%, there.

Kyle Larkin

Steven, this Kyle. is

our you primary margin, the there XX%. really, is EBITDA And range So Construction. way is XXXX going as to indicated, to get near term XX% we're in

even into expectation Our our Construction pipeline and to in projects actually continues QX, of a ramp to up carrying see We're XXXX. is improve. going

the expect on even with bit X%, be do to segment. through we So going little this coming of will about higher Construction portfolio a 'XX better up that projects

margin see improvement well. as the We in also Materials

business, materials progression pricing segment that business. grow longer-term raising a the improvements Now to we management, is of continued operational and, asset continue to aspect the excellence be as of business our and going through think the that we course, on automation margins in of

think So I across it's the board.

really our can our going uplift add near think us XXXX. is XXXX, It's to I construction in to business get nice continue really term, materials and on to business. it

Steven Ramsey

helpful. through That's And over other some put maybe states convergence margin if the I was between ago? in Okay. markets 'XX? And think years and about a couple context, next What there's versus wanted is your of implied that the where to other home it markets. profile couple to home then of the years markets gap

Kyle Larkin

market We Well, I'd today, markets our are moved all away of say home non-home from projects. markets.

That's a in made than higher the markets. going have to some we today. And margin certainly, contribution moved But we consistent. business we the the have acquisitions way we're strategy, the a profile businesses home certain that fairly market of back we're is businesses, some think EBITDA the of stay. into across So have market I position home all implemented. overall, have that's margin do We in

performance why good the confidence strong forward. have we feel moving we that that's in about to really so continue that our ability and our performance And

Steven Ramsey

in that's I winning checks selectivity happening those excellent. I'm a were is And this projects is that to in the the Okay. couple how quick know selectivity me. turn how if targets you point curious for and has selective one next last part And marketplace broadly. choosing stay past robust, the organic the of been in environment way of of increased That's point to couple in strong in years? channel times? years, one a growth in would the less

Kyle Larkin

I Steven. at think Yes. Well, model. we're Thanks, a business this looking derisked perspective, maintaining from selectivity

question if build, gets market it the the think tougher, this is So I is design back go is The project tougher, the answer gets no. into we portfolio. high-risk

We model intention business derisk of have and the no We're doing our today. benefits portfolio that. enjoying new a of

So opportunity back already. be there's selective to go that. Today, are the no to we

where teams we can well -- and think year-over-year. I even successful selective, our work we're do our projects. more bidding We being know more we're in be

October September. seen strong, a we've strong a nice successful So through November. and month bid bid for month in really actually been and has schedule really a us, really volume see big bid we

to we that are Margins market continue. year-over-year. expect So up

that that seen business, our to again since in and continue we've we So margin bid progression on see XXXX.

So margins we're seeing market, a day. bid increased really of opportunities, plenty healthy on

to the early. mentioned through remarks, I We're prepared going still be IIJA around through in only XX% the As we're money, XXXX.

strong see still public we come. years . to really market a for So

Operator

question next D.A. from The Thielman Davidson. Brent comes from

Brent Thielman

that. odd, if love Kyle, into maybe can projects the you expand cause of somewhat could the in seems so talk It you maybe XXXX. delays I'd just on around just

Kyle Larkin

handful all were two. to a delayed a These It's to to small not or were couple proceed month due There being for project abnormal delays notice driven. projects. A Brent. Thanks, of Yes. owner was occur.

conditions, terms direction with just the in gas proceed, owner Texas. to started waiting the in one of We how down flow and have for one changing another from

shifted the it it's see business our towards news one that was get & right. didn't those Bowen. abnormal again, in is really of raise primary high that us to terms addition with some So factors momentum end going Dickerson into get range our the opportunity in of some to The good But to are get we we of get to our the of XXXX. is as as not work projects

we get So & We our say, to thought of opportunity. move the for book of, our able with Bowen neighborhood But guidance that a we had midpoint high in to $XX despite somewhere to the range as to year, to potential get will Dickerson combination or so work the X.X% add we're fact higher that we maintain projects this the few year. revenue that this are that end year, a million pleased the that that right. in and

Operator

The next comes from Research Partners. Dudas Vertical of question Michael

Michael Dudas

of than maybe 'XX. the different events? in the next thought to organic of the through volatile a recession, growth you through up less CAGR bit appears you Kyle, that little private wider more range there of private that each? cause growth a a you outcomes revenue the more sustainable of or share is as X-year slowdown, rate a Could might Is a X% assuming plan? move in dynamic on X% little Is put side. versus following rate I'm you with a [indiscernible] public? bit forth it how rate that public more Can a any anything as growth

Kyle Larkin

at Yes. Well, organic. revenue to one, of with X% growth look We this year. it, rate consistent is our X%

that been year. we've this achieve So to able

see line the it's of pretty with going in we're what moving to IIJA So consistent especially I forward, think funding.

we're side So point the to your we and through going to market that. on maybe visibility that, even a to see really likely 'XX healthy beyond do beyond that have good public and XXXX

the the year in. good We're visibility so. are to point, really confidence over no, a we lot shipped so about we to looking bit about markets private or feel go public But again, our little experiencing in private asphalt we public certain really for see than not But in market again, to and it a in up. XX% Certainly last any or see aggregate And -- things XX% out, we're still plays the example, slowdown signs And or the do we have about of private, have little XX% general. see public volumes public, market. private XX%, confidence the sales is in actually recovery more more a private that business So good market, date. the for is especially feel less mean how market, we the our your continue say, opportunities there's Materials but year California. volumes, like to market, next market, on private the side, Northern definitely parts on bit of

see So opportunities improvement XXXX. we into do for

Michael Dudas

My very flow for but operating that that to systemic assuming reasonable of be fair -- more under-capital XXXX achieved? How about cash free opportunistic allocation flow I is on will impressive improvement been probably And it discipline, there may obviously, follow-up sense improving, is -- generation balanced in the with acquisitions or forward. of going are targets on be have in the of when on the well-capitalized so anticipating? optimistic cash observation they X% shares. think target far. free to come a acquisitions a execution sheet is through and flow guys are with acquisition, should targets be cash and that balance occur we I might you going How -- cash repurchasing be the think is know more size given the X% flow those -- and

Kyle Larkin

per and going to flow our really share grow? -- say they're X question question -- how to would cash part is the maybe should in we be start are side So to can So & similar is, strong going deal they we I Dickerson M&A of Or deals I'll things. to Stone convert sized the so deals & sure performance to make we operating of first mean then size and that how much Certainly, able pipeline today, Memphis operating correct, to there's of flow, the with the Gravel I correlated and which got hopefully, convert repurchases? in cash to a Bowen. X M&A? are considering year. be we the space Lehman-Roberts or Mike. M&A

can expectation. be bit terms little a would in think So a it reasonable timing. lumpy I be that of Obviously,

today, businesses still are supporting ones We about. strengthening we we the on our the business, markets focused and have talked the just home --

We out our are looking Southeast building and platform. still

also then primary a for is well. as that we can develop other And as So we're looking us platforms well. focus that for

So where -- we're that's looking at things. that's

larger evaluated deals. have We

looked deal So at that we'll I want we it to has to add that's very anything for thoughts well. something understand at, have you business that don't a very, repurchases but granted share know we and be and to right there. and regarding our continue if look on the certainly the

Sorry, ahead. go I apologize. I start,

Staci Woolsey

doing opportunities they going That's in and investing okay. come cash along. with with dividend. course, I positions, just the we We'll to investment those strategy. capital our look and, add dependent as on, at Kyle of the we continue prioritize allocation our our M&A current to was business mentioned repurchases of to share our potential is And want on timing of

we've repurchases. year, repurchase purchased done our XXX,XXX million share authorized this year Earlier share have in we so what about $XX for million. the Board shares $XXX to just on we recap far remaining under So And plan.

that something timing continuing as that other doing the and we with in investments. of it evaluate a So we're looking larger at the to then and near prioritize term M&A bit than

Michael Dudas

to type -- And you was of you transactions prices Excellent. purchase Kyle, mentioned with X just the that Southeast et combined the a Lehman-Roberts what cetera. Dixon, is that type to... the those number, And that big how large to is relative just thinking forward? number about acquisitions? is light clarification. of we're a year and Or size you of relative for -- you've in going in X done What similar a of large that the

Kyle Larkin

were million. deals around My ballpark those $XXX -- Yes. Yes. X

continue in that's year, alignment so what each we usually doing in think with I be perform. can to

target around As we is mentioned, X.Xx. our leverage

deals. what larger what So And I that fit look a would terms it'd the of make had at a I at was naturally, we be size something when lot the be look larger in right deal Again, think to would be. it really have that would of sense. to and for company,

necessarily at to you well. obviously, the turned we and to to I we'd closely. that's have very we'd have mean, look understand larger be be with to materials-focused very wouldn't question relative evaluate comes when integrated deal very business relationship public-private needed the asked. that risk, that It that more that Our around. And something a deal

certainly, have be reinvest where cash and of a Yes, to lot or excited a distribute position it in we're certainly to it. opportunities we

Michael Dudas

Yes. came board on Certainly, call. this this to you run better we before

success. So congratulations on all that

Operator

is Thielman question from Davidson. D.A. next The from Brent

Brent Thielman

CAGR the be the on answered the Should sure and Kyle. this. I guess, XXXX as was financial the Anyway, or apologize you've XXXX using we clarify you baseline? the could answer on I'm great, XXXX organic -- target, I if

Kyle Larkin

Yes, we XXXX. should be using

did we So But X% based about growth. X% growth clarify that on to rate. to XXXX yes, talk

Brent Thielman

the Okay. Excellent. or -- the pricing mean what consistent here into is in I that we've I'm else upper single from high peers to the little catch there the next And confidence to And side, mean platform expectations. I anything pricing we Materials up maybe the bit some to maybe in at gives what of a heard end really expectations your some to that low-hanging Anything approach you group, on consider of pretty the around that that market? you there's about confidence supports historical in that. supports aggregates maybe the then terms that in guess realization? for ought unique digits XXXX to year? I that think recently Kyle the fruit of thinking

Kyle Larkin

our to was what alignment we job. target with did teams on have set we increases a really on out aggregates, Sure. asphalt, to our and Well, do what XX% and in And price in XXXX. X% this we're out year, set nice

on and So high in digits gives high public And again, increases market. next what single year, see aggregate confidence have confidence is low digit on the really we us for we asphalt. single price

So really we there. visibility out into the good that's that funding get with

we visibility. that do So have

some seeing have private we're that mentioned, being I of the couple Certainly, California of about market now like As some Northern for recovery talking the on a years a been softer. side. softer. markets We've been

which volumes good some we ag a up That seeing of XXXX, holds true, are signs then going recovery. see all We is sign. in

already XXXX. Asphalt orders up are for

that gives visibility year. some next into So us

year. then that volumes that, believe well we as we see So holds asphalt improve next should

improved see to confidence that us what performance going the next that's year. So gives we're

efforts some quality, going around well our also put to year profitability And the in manage is segment -- excellence how to of around and beyond. this we materials reorganization, that of higher our as some raising operational the that within drive we bar automation, next business in

Operator

Goldman The from of Jerry Revich next Sachs. comes question

Adam Bubes

This And is share double-digit gains on you the of Bubes mixed. attribute do well? is organic potential forward? Revich as we're gains strong some a potential market environment, and for data think going cadence, share Jerry growth you outlook for What order Really today. year-to-date Adam would based tracking And on the there's in to? strong end

Kyle Larkin

done strong I the the certainly So you're our day on think share nice bid I board, We've revenue a really row. executed really a primarily portfolio. our teams fact Adam, and from seen gain. say really CAP thinking in I across across would we've testament to had our have market record entire which think CAP the is X a record despite a we've job quarters

CAP build up our to So with. we continue

share teams specifically of our a that market I take nice West, just advantage really though the gaining say the across will in as that's in it we -- board continuing market. appears California. I we're think to

contribute and So share been what we're really our gained where and that's markets some markets it's success. growth and we've way. to market to market seeing the understand our us coming projects home rate has tied But hit driving the markets, owners on the some to to strategy back understand those to getting our market certainly are this allowed in is the that really we in up home our really, helping I better, opportunities think there. understand hadn't

Adam Bubes

talked pipeline. M&A a about strong you Kyle, And

available? of terms assets, there integrated the meaningful types assets In vertically are still of

Kyle Larkin

lot say at as X, it's lot, seen, would certainly deal a X should to and why mentioned I well. we we've of lot. that we year over of and that's are still pipeline a there as the since look we in able few confidence I deals that good be of get There's looking space, just And healthy to and done X now a wholeheartedly. there's for about a opportunities been years, a a as we've have at pretty out ones because larger the X there size

Adam Bubes

term, and outlook are XXXX on early puts for some Really targets. of margin one then last And margin expansion? me. XXXX takes the for what attractive Near

Kyle Larkin

year. a for question next So good

construction improve expect that January around we get we at mentioned, X. least just on I of little projects our the as a As see X%, pipeline really here about as business, uplift bit in higher we corner

see that we will So in next year.

So that business. nice. do will a We be really expansion see some margin materials in

in bottom come margin range of to to for but XXXX, with at 'XX We our out will be the going from close perspective. pretty getting guidance end an EBITDA expect I QX some we're would

Operator

Kyle our to remarks. like back concludes This Mr. I'd for call to session. the Larkin turn question-and-answer any closing over

Kyle Larkin

you Okay. Well, for call thank today. the joining

Thank to to interest As you thank your our We day. in we speaking look want you for all they forward work for always, with of soon. all do every the Granite. employees

Operator

The you for now attending concluded. and may conference you has Thank presentation, now today's disconnect.

Granite Construction (GVA) 31 Oct 242024 Q3 Earnings call transcript