{"id":30246,"date":"2025-05-02T16:15:05","date_gmt":"2025-05-02T23:15:05","guid":{"rendered":"https:\/\/essential.construction\/news\/granite-shrugs-off-tariff-impacts-hints-at-new-iija\/"},"modified":"2025-05-02T16:15:05","modified_gmt":"2025-05-02T23:15:05","slug":"granite-shrugs-off-tariff-impacts-hints-at-new-iija","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/granite-shrugs-off-tariff-impacts-hints-at-new-iija\/","title":{"rendered":"Granite shrugs off tariff impacts, hints at new IIJA"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">5 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1746196452\/news\/text_to_speech\/granite-construction-tariffs-earnings-q1-2025_qhzdkw.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>Granite Construction paved its way to increased revenue and backlog in the first quarter of 2025, even as its net loss widened from a year ago and tariff worries cropped up on its radar.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The Watsonville, California-based contractor, which has a strong focus on roadbuilding and aggregate production and sales, said it hasn\u2019t been significantly negatively impacted by the Trump administration\u2019s tariffs to date. But it also said those policies could lead to higher costs for its equipment outlays in the coming months.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>\u201cWe do expect there to be some equipment cost increases, parts increases, some repair cost increases,\u201d CEO Kyle Larkin told analysts on a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/investor.graniteconstruction.com\/news-and-events\/press-releases\/year\/2025\/05-01-2025\" target=\"_blank\"><span><span><span><span><span><span><span><span>conference call to discuss Q1 results<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. \u201cSo those things are going to happen and we&#8217;ve been navigating that environment.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>Beyond those added costs, however, Larkin remained optimistic about federal outlays, even as the Trump administration has halted the disbursement of funds in some areas.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"Kyle Larkin Granite CEO\" data-imagemodel=\"91724\" src=\"https:\/\/imgproxy.divecdn.com\/L31a8a_gCl3AXnUoPL39mC6hmwngU7JTF6Uw7F0trLY\/g:ce\/rs:fit:1600:0\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9TY3JlZW5zaG90XzIwMjAtMDktMjhfYXRfOC40OC4wN19BTS5wbmc=.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Kyle Larkin<\/p>\n<p>Permission granted by Granite Construction<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cDespite reports of project disruptions on certain federally funded work, the change in administration, we have not experienced any delays,\u201d Larkin said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That said, tariffs were on his mind.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cConcern over tariffs has been a major source of uncertainty,\u201d Larkin said. \u201cGranite, like all companies, is not immune to the direct and indirect impacts of tariffs. However, to date, they have not significantly impacted our results or our strategy.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He said the firm would continue to closely monitor the situation and work to mitigate negative impacts where possible.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Another IIJA?<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Larkin\u2019s upbeat outlook despite the uncertainty came from the large amount of work the company continues to see from the $1.2 trillion Infrastructure Investment and Jobs Act of 2021, as well as the possibility of follow-on legislation once it lapses.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Passed and implemented during former President Joe Biden\u2019s term \u2014 and thus a potential target for President Donald Trump \u2014 Larkin said that IIJA money has continued to flow, with only about a third of funding spent to date. Due to that cadence and the timing of money getting to state DOTs, he said dollars will keep coming for projects under the law well past its 2026 sunset.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe IIJA continues to provide really strong spending, really across all of our geographies,\u201d Larkin said. \u201cWe believe there&#8217;s still several years of spending under the IIJA.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He also said there\u2019s potentially more where that came from, with political will in Congress to pass a follow-on bill after the original IIJA\u2019s window closes.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe also believe that there&#8217;s bipartisan support and a lot of momentum around another bill that will come on following the IIJA that will have spending levels equal to or greater than what we see around highways, bridges and roads,\u201d Larkin said. \u201cWe\u2019ll see if we can get that passed, but certainly that would be good news for our industry and good news for Granite.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He added that \u201cwe do think that with the current administration, there are a lot of opportunities for us in the federal space.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>By the numbers<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Granite reported a net loss of $33.7 million for the quarter, up from a $31 million loss a year ago. Revenue, however, increased about 4% to $699.5 million from $672.3 million during the same period in 2024.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The firm\u2019s backlog, which it refers to as committed and awarded projects, or CAP, increased $241 million year over year to $5.74 billion, also a 4% gain.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Those results prodded the company to maintain its guidance of $4.2 billion to $4.4 billion of revenue in 2025.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Larkin also said the firm continued to see healthy bidding, particularly in California and Texas, and hopes to build on its backlog in 2025.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cComing into 2025, we expected a strong bidding environment with federal and state funding fueling opportunities across the public sector,\u201d Larkin said. \u201cAt this point, the market has met our expectations and we have won more work than in the first four months of 2024.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/granite-construction-tariffs-earnings-q1-2025\/746974\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 5 min This audio is auto-generated. 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