{"id":31791,"date":"2025-08-11T19:44:38","date_gmt":"2025-08-12T02:44:38","guid":{"rendered":"https:\/\/essential.construction\/news\/granite-continues-buying-spree-as-backlog-hits-6-1b\/"},"modified":"2025-08-11T19:44:38","modified_gmt":"2025-08-12T02:44:38","slug":"granite-continues-buying-spree-as-backlog-hits-6-1b","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/granite-continues-buying-spree-as-backlog-hits-6-1b\/","title":{"rendered":"Granite continues buying spree as backlog hits $6.1B"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">4 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\/v1754921146\/news\/text_to_speech\/granite-construction-acquisitions-backlog-earnings_e49zxr.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<p><span><span><span><span><span><span>Granite Construction continued paving a profitable path in the second quarter while racking up a record amount of backlog and buying two aggregate suppliers.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The Watsonville, California-based road builder, materials supplier and infrastructure firm purchased Hattiesburg, Mississippi-based Warren Paving and Arroyo Grande, California-headquartered Papich Construction <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.graniteconstruction.com\/newsroom\/granite-completes-acquisitions-warren-paving-and-papich-construction-strengthen-and-expand\" target=\"_blank\"><span><span><span><span><span><span><span><span>for a combined price of $710 million<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.\u00a0<\/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>Granite\u2019s continued investment in material suppliers reflects the firm\u2019s bullishness on both public and private infrastructure work, along with the booming data center market. Those facilities,\u00a0along with computer chips and racks of servers, need roads and parking lots to access them as well.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Two aggregate purchases<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Warren Paving, which owns a quarry, 11 aggregate yards and three asphalt plants along with 170 owned and leased barges on the Mississippi River system, will expand Granite\u2019s materials business in the Southeast, while building on its buying spree in the region.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In late 2023, <span><span>Granite scooped up <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/granite-buys-memphis-asphalt-firms\/701939\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Lehman-Roberts and Memphis Stone<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/granite-buys-memphis-asphalt-firms\/701939\/\" target=\"_blank\"> &amp; Gravel<\/a>, both of Memphis, for a combined $278 million. Then last year, it acquired Brookhaven, Mississippi-based <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/granite-progressive-methods-mississippi-aggregate-deal\/723144\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>aggregate supplier Dickerson &amp; Bowen.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>On an earnings call Aug. 7 to discuss <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.graniteconstruction.com\/newsroom\/granite-reports-second-quarter-2025-results\" target=\"_blank\"><span><span><span><span><span><span><span><span>the firm\u2019s second-quarter results<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, CEO Kyle Larkin said Warren Paving will complement those previous purchases.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWarren Paving\u2019s logistics expertise should allow us to supply materials to certain Lehman-Roberts and Dickerson &amp; Bowen asphalt plants and positions us to expand the distribution network as we continue to grow our Southeast platform investment,\u201d Larkin said on the call.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He also highlighted opportunities to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/amazon-data-centers-mississippi\/706228\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>supply data center jobsites in the region<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, which has been attractive to owners looking for cheap land, plentiful power and water and a robust labor pool.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe believe private investment will ramp up in the region, whether through data centers or other large commercial developments.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In California, Papich will expand Granite\u2019s operations along the state\u2019s Central Coast and Valley, an area where it currently has less of a presence. \u201cIt\u2019s complementary to our current footprint,\u201d Larkin said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The addition of the two businesses will add approximately $425 million to Granite\u2019s revenue annually, the company said. It raised its revenue guidance for 2025 accordingly to between $4.35 billion and $4.55 billion and anticipates approximately $150 million in revenue from the units in the remainder of the year.\u00a0<\/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>The deal was the highlight of a quarter that also saw Granite grow its backlog \u2014 which the company calls Committed or Awarded Projects \u2014 to $6.1 billion, a company high. That\u2019s $488 million more, or 9% higher, than a year ago.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Revenue of $1.13 billion increased 4% from $1.08 billion a year ago. The company also grew profits to $71.7 million, nearly doubling the $36.9 million of net income it reported for 2024\u2019s second quarter.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Larkin attributed the higher revenue, backlog and profits to a robust bidding and funding environment, particularly in the company\u2019s core infrastructure markets, as well as more efficient operations and integration within the company.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIn California and across our footprint, we continue to see a healthy list of project bidding opportunities in both the public and private markets,\u201d Larkin said. He also said money from the Infrastructure Investment and Jobs Act, passed in 2021, hasn\u2019t reached its apex, which he expects to come in 2026 or 2027.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIIJA funding continues to be strong,\u201d Larkin said. \u201cI think that&#8217;s pretty universal in all the markets that we&#8217;re in. And just as a reminder, the spending to date on the IIJA is still less than 50%. And so we haven\u2019t seen, in our opinion, that peak yet.\u201d\u00a0<\/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-acquisitions-backlog-earnings\/757248\/\" 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 4 min This audio is auto-generated. 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