US-based civil construction company Granite Construction has recorded a net loss of $17m in the second quarter (Q2) of 2023 compared to its net income of $19m reported in Q2 2022.
The company has said that the loss was due to a $51m non-cash charge attributed to refinancing its convertible notes and an added $12m charge for litigation.
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After excluding these one-time factors, the business recorded an adjusted net income of $46m from $34m the previous year, and revenue growth of $899m, a rise from $849m in Q2 2022.
The construction and materials divisions within Granite also increased on a year-over-year (YoY) basis, with its California and Mountain Groups surpassing a minor reduction in revenue in the Central Group.
Gross profit rose by $5m to $103m, up from $98m in Q2 2022 and reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $80m, up from $63m in the same quarter last year.
Granite president and CEO Kyle Larkin said: “Our public and private markets remain very strong across our geographies, and we believe we are winning the work necessary to meet our 2024 growth and margin targets.
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By GlobalData“I expect we will see continued year-over-year improvement in materials and construction revenue and gross profit in the second half of the year.”
“As a reminder, we disclosed our 2024 strategic plan revenue and adjusted EBITDA margin targets back in the first quarter of 2021.
“Since that time, we have taken steps to de-risk the company, grow a higher-quality CAP portfolio, and with a renewed focus on operational excellence, I believe we are well on our way to meet these targets.”
