WATSONVILLE, Calif. - Granite Construction Incorporated (NYSE:GVA) has been awarded a $34 million contract for seismic upgrades to the Oakland International Airport's perimeter dike. The project aims to shield the airport's runway from potential water intrusion from the San Francisco Bay, especially in the event of an earthquake.
The improvement initiative will focus on strengthening approximately 4,200 linear feet of the airport's dike using a cement deep soil mixing (CDSM) method. This process is intended to fortify the levee wall soils, thereby reducing the risk of dike failure during a seismic event. The CDSM work will be carried out by Keller North America, Inc, recognized for its geotechnical expertise.
In addition to the CDSM, the contract includes clearing and grubbing the site, constructing temporary work pads, ensuring the protection of wetlands, safeguarding existing fuel lines, and adding rip rap revetment and aggregate base surfacing to restore the perimeter road.
Granite's Vice President of Regional Operations, Brent Fogg, highlighted the project's strategic importance and the operational challenges it presents, noting the need for detailed logistical planning to maintain airport operations during the construction.
The project, supported in part by Federal Aviation Administration funding, will be included in Granite's third-quarter Capital Projects Account. Work is scheduled to commence in the first quarter of 2025 with an anticipated completion in the third quarter of 2026.
Granite, established in 1922 and known as America's Infrastructure Company, is one of the nation's leading construction and materials companies, offering a wide range of civil construction services. The company is recognized for its commitment to ethical standards, safety, quality, and sustainability.
This report is based on a press release statement.
In other recent news, Granite Construction Incorporated has secured a $113 million contract for new construction at the Marine Corps Base Camp Blaz, in a joint venture with Obayashi Corporation. The company also announced a strong second quarter, with a 22% increase in revenue within its Construction segment and a 60% rise in gross profit. Additionally, Granite has made executive-level changes, appointing Ms. Woolsey as the new CFO, and entering into a Separation and Transition Agreement with the outgoing CFO, Ms. Curtis.
Granite has also secured several notable contracts, including a $65 million contract for the SR-30 Improvement Project with the Utah Department of Transportation, a $45 million contract for the upgrade of the John Wilkie Safety Roadside Rest Area on Interstate 40, and a $38 million contract to enhance the Highway 101 corridor in southern Santa Barbara. The company also announced the strategic acquisition of Dickerson & Bowen, expected to close in the third quarter, which will expand the company's Southeastern market presence.
These are some of the recent developments for Granite, supported by a $5.6 billion committed and awarded projects portfolio. As part of its future plans, Granite intends to increase disclosures around the Materials business in 2025 for better financial visibility and provide future targets for 2025, 2026, and 2027 in the upcoming third quarter.
InvestingPro Insights
Granite Construction's recent $34 million contract award aligns with its strong market position and financial performance. According to InvestingPro data, the company's revenue growth stands at an impressive 16.84% over the last twelve months, with a notable 20.47% growth in the most recent quarter. This growth trajectory supports the company's ability to secure significant projects like the Oakland International Airport's seismic upgrade.
InvestingPro Tips highlight that Granite Construction has maintained dividend payments for 35 consecutive years, demonstrating financial stability and commitment to shareholder returns. This consistency is particularly relevant given the long-term nature of infrastructure projects like the airport dike upgrade.
The company's stock has shown remarkable performance, with a 113.5% price total return over the past year. This strong market sentiment may reflect investor confidence in Granite's project pipeline and execution capabilities.
It's worth noting that Granite is trading near its 52-week high, with the current price at 97.81% of its peak. This could indicate market optimism about the company's prospects, including its ability to secure and execute major infrastructure projects.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips for Granite Construction, providing a deeper understanding of the company's financial health and market position.
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