Granite Wins $130M Contract

Zacks

Granite Construction Incorporated (GVA) has received a design-build contract worth $130 million from the North Carolina Department of Transportation for the I-40/440 reconstruction project. Construction work is scheduled to begin later this year and the project will be complete in late 2016.

Located in Raleigh, the venture involves rehabilitation of fourteen bridges along with the widening of two existing bridges. Granite is also required to replace the existing portland cement concrete structure with asphalt pavement. The interstate reconstruction project also includes widening of additional auxiliary lanes throughout the length of the project and improvement of drainage system.

Recently, Granite has also been awarded a $61 million dam removal contract by California American Water. The project work entails the removal of the San Clemente and Old Carmel River Dams and construction of a new combined flow reach and reroute channels. The project will be undertaken primarily to address safety issues, protect the Carmel River and save its wildlife.

The existing dam, which is Located in Monterey County, will be restored with a focus on steelhead trout passage and upland habitat restoration. The construction work is scheduled to start in July 2013 and will be concluded in late 2015.

Granite expects to book both the projects into backlog during the second quarter of 2013. The addition of above projects into the backlog of the company will provide it the opportunity for top-line growth.

Granite recorded a backlog of $2.4 billion in first-quarter 2013, up 14% from $2.1 billion in the year-ago quarter. The rise was driven by significant and large project awards. Granite continues to be benefited by the quality of backlog.

Watsonville, Calif.-based Granite is one of the largest infrastructure contractors and construction materials producers. Granite’s project teams represent some of the best in the industry serving owners in the transportation, power, federal, tunneling, underground, and industrial, mining and water resources markets, which serve both public- and private-sector clients.

Granite currently retains a short-term Zacks Rank #5 (Strong Sell).

Other companies in the building and heavy construction industry with favorable Zacks Ranks are Primoris Services Corporation (PRIM), Chicago Bridge & Iron Company N.V. (CBI) and Orion Marine Group, Inc (ORN). While Primoris Services holds a Zacks Rank #1 (Strong Buy), Chicago Bridge and Orion Marine carry a Zacks Rank #2 (Buy).
 

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