Granite Construction Inc (GVA) 2025 Q1 法說會逐字稿

Good morning. My name is Dovin, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Granite 2025 first-quarter conference call. This call is being recorded. (Operator Instructions)

早安.我叫 Dovin，今天我將擔任你們的會議主持人。現在，我歡迎大家參加 Granite 2025 第一季電話會議。此通話正在錄音。（操作員指示）

It is now my pleasure to turn the floor over to your host, Granite Vice President of Investor Relations, Mike Barker.

現在我很高興將發言權交給主持人、Granite 投資者關係副總裁 Mike Barker。

Good morning, and thank you for joining us. I'm pleased to be here today with President and Chief Executive Officer, Kyle Larkin; and Executive Vice President and Chief Financial Officer, Staci Woolsey.

早安，感謝您加入我們。我很高興今天能與總裁兼執行長 Kyle Larkin 和執行副總裁兼財務長 Staci Woolsey 一起來到這裡。

Please note that today's earnings presentation will be available on the Events and Presentations page of our Investor Relations website. We begin today with a brief discussion regarding forward-looking statements and non-GAAP measures. Some of the discussion today may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

請注意，今天的收益報告將在我們投資者關係網站的活動和演示頁面上發布。今天我們首先簡要討論前瞻性陳述和非公認會計準則指標。今天的一些討論可能包括 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述。

These forward-looking statements are estimates reflecting the current expectations and best judgment of senior management regarding future events, occurrences, opportunities, targets, growth, demand, strategic plans, circumstances, activities, performance, shareholder value, outcomes, outlook, guidance, objectives, committed and awarded projects or CAP and results.

這些前瞻性陳述是反映高階管理層對未來事件、情況、機會、目標、成長、需求、策略計劃、情況、活動、績效、股東價值、結果、展望、指導、目標、承諾和授予的專案或 CAP 和結果的當前預期和最佳判斷的估計。

Actual results could differ materially from statements made today. Please refer to Granite's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these forward-looking statements. The company assumes no obligation to update forward-looking statements, except as required by law.

實際結果可能與今天的聲明有重大差異。請參閱 Granite 最新的 10-K 和 10-Q 文件，以獲得可能影響這些前瞻性聲明的風險因素的更完整描述。除法律要求外，本公司不承擔更新前瞻性陳述的義務。

Certain non-GAAP measures may be discussed during today's call and from time to time by the company's executives. These include, but are not limited to, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, and cash gross profit. The required disclosures regarding our non-GAAP measures are included as part of our earnings press releases and in company presentations, which are available on our website, graniteconstruction.com under Investor Relations.

公司高層可能會在今天的電話會議中以及不時討論某些非公認會計準則指標。這些包括但不限於調整後的 EBITDA、調整後的 EBITDA 利潤率、調整後的淨收入、調整後的每股盈餘和現金毛利。有關我們的非公認會計準則 (non-GAAP) 指標的必要揭露包含在我們的收益新聞稿和公司介紹中，您可以在我們的網站 graniteconstruction.com 的「投資者關係」部分找到。

Now I would like to turn the call over to Kyle Larkin.

現在我想把電話轉給凱爾拉金 (Kyle Larkin)。

Good morning and thank you for joining us today. I'm excited to talk about our first-quarter performance and would also like to take an opportunity to share our expectations for the year. Four months into the year, our markets and performance are in line with our expectations for another record year. As a result, we are confirming our 2025 guidance and our 2027 financial targets. Although there is a lot of uncertainty in today's macroeconomic environment, Granite's markets have largely performed as we were expecting.

早安，感謝您今天加入我們。我很高興談論我們第一季的業績，也想藉此機會分享我們對今年的期望。今年已經過去四個月了，我們的市場和業績符合我們對另一個創紀錄年份的預期。因此，我們確認了 2025 年的指導方針和 2027 年的財務目標。儘管當今的宏觀經濟環境存在著許多不確定性，但 Granite 的市場表現基本上符合我們的預期。

Coming into 2025, we expected a strong bidding environment with federal and state funding fueling opportunities across the public sector. We also expected to be in a position to pursue a number of strong opportunities in the private sector. At this point, the market has met our expectations, and we have won more work than in the first four months of 2024. This is a continuation of the trend that we have seen over the last several years.

進入 2025 年，我們預計投標環境將更加強勁，聯邦和州政府的資金將為公共部門帶來更多機會。我們也期望能夠在私營部門尋求一些強有力的機會。目前，市場已經滿足了我們的預期，我們贏得的工作比2024年前四個月還要多。這是我們過去幾年看到的趨勢的延續。

While we are in the second half of the federal infrastructure bill, the opportunities funded by the bill continue to increase because of the timing delay between allocation estates and funding for specific projects. The benefit from the bill should extend well beyond its termination in September of 2026. In addition, despite reports of project disruptions on certain federally funded work, the change in administration, we have not experienced any delays.

雖然我們正處於聯邦基礎設施法案的後半部分，但由於分配地產和特定項目資金之間的時間延遲，該法案資助的機會繼續增加。該法案帶來的好處將遠遠超出 2026 年 9 月終止的範圍。此外，儘管有報告指出某些聯邦政府資助的項目出現中斷，但由於政府的變動，我們並沒有遇到任何延誤。

Concern over tariffs has been a major source of uncertainty. Granite, 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. We will, of course, continue to closely monitor tariffs and work to mitigate negative impacts to the company where possible.

對關稅的擔憂一直是不確定性的主要來源。與所有公司一樣，花崗岩也無法免受關稅的直接和間接影響。然而，到目前為止，它們尚未對我們的業績或策略產生重大影響。當然，我們將繼續密切關注關稅，並盡可能減輕對公司的負面影響。

Since 2020, we have talked a lot about our efforts to derisk Granite's project portfolio. Among other things, we turned our focus away from long-term design build mega projects where contractors are not only responsible for all design risk, but also the risk of vendor or subcontractor price increases over the contract life which can often extend well over five years.

自 2020 年以來，我們已經多次談論降低 Granite 專案組合風險的努力。除其他事項外，我們將重點從長期設計建造大型專案轉移開來，在這些專案中，承包商不僅要負責所有設計風險，還要負責合約期限內供應商或分包商價格上漲的風險，而合約期限通常會延長至五年以上。

In a time of uncertain price increases, those types of contracts amplify the risks borne by contractor. In the current environment and with our project portfolio, our teams are focused on locking in on pricing at bid time to mitigate the risk of inflation or other price increases.

在價格上漲不確定的時期，這些類型的合約會加大承包商所承擔的風險。在當前環境下，透過我們的專案組合，我們的團隊專注於在投標時鎖定價格，以降低通貨膨脹或其他價格上漲的風險。

While it is impossible to eliminate all inflation risk in our contracts, we believe that our portfolio in CAP has significantly reduced risk compared to our portfolio from only a few years ago. We also worked to limit the risk on tariff revision inflation with commodities used in our work like natural gas, diesel, and liquid asphalt. We monitor these markets in the normal course of business throughout the year and apply measures to mitigate the risk of price fluctuations.

雖然我們不可能消除合約中的所有通膨風險，但我們相信，與幾年前的投資組合相比，我們在 CAP 中的投資組合風險已顯著降低。我們也致力於限制天然氣、柴油和液態瀝青等工作中使用的商品關稅修訂通膨風險。我們在全年的正常業務過程中監控這些市場，並採取措施降低價格波動的風險。

In summary, we are winning high-quality projects that should support our growth and margin expectations. We are continuing to strategically invest in our materials business. There are tremendous opportunities to strengthen our footprint in order to drive volumes and higher margins in our Materials business, we are acting on those opportunities.

總而言之，我們正在贏得高品質的項目，這些項目應該可以支持我們的成長和利潤預期。我們將繼續對材料業務進行策略性投資。我們擁有巨大的機會來加強我們的業務範圍，以推動材料業務的銷售和更高的利潤率，我們正在抓住這些機會。

And finally, we continue to pursue accretive M&A that will strengthen our home markets or expand our geographic footprint. The timing of M&A is difficult to predict, but the deal environment is active with numerous pursuits ongoing. We continue to target materials-focused, vertically integrated companies and smaller bolt-ons to strengthen our home markets. Our target of completing two to three deals in 2025 is unchanged.

最後，我們將繼續尋求增值性併購，以加強我們的本土市場或擴大我們的地理覆蓋範圍。併購時機難以預測，但交易環境活躍，正在進行許多追求。我們將繼續瞄準以材料為重點的垂直整合公司和規模較小的附加公司，以加強我們的本土市場。我們在 2025 年完成兩到三筆交易的目標保持不變。

Now let's turn to our first-quarter results, starting with the Materials segment. In our press release this quarter, we included product-level disclosures for aggregates and asphalt for the first time. This is another important step in the evolution of our Materials business. After years of underinvestment, we are committed to strengthening and growing the Materials segment that is core to a vertically integrated strategy.

現在讓我們來看看第一季的業績，從材料部門開始。在本季的新聞稿中，我們首次包含了骨材和瀝青的產品級揭露。這是我們材料業務發展的另一個重要舉措。經過多年的投資不足，我們致力於加強和發展作為垂直整合策略核心的材料部門。

From 2022 through 2024, we have invested organically and through M&A in the Materials business. This has increased our reserves by 56% to 1.6 billion tons. We also added 11 new aggregate crushing plants and 10 new asphalt plants during this three-year span. In addition, we completed numerous capital improvement projects to drive efficiency and reduce production costs such as aggregate plant automation projects.

從 2022 年到 2024 年，我們透過有機投資和併購方式對材料業務進行了投資。這使我們的儲量增加了56％，達到16億噸。在這三年中，我們還增加了 11 個新的骨材破碎廠和 10 個新的瀝青廠。此外，我們還完成了許多資本改善項目，以提高效率並降低生產成本，例如骨材廠自動化項目。

One year ago, we completed the realignment of our operational leadership, placing materials experts over our Materials business and centralizing management functions, such as sales and quality control. The team has made impressive progress over the last year in margin improvement in both aggregates and asphalt. I expect the team to continue to raise the bar, drive profitability, and increase shareholder value in 2025 and over the next several years. Demand in the materials business remains strong and our expectations are for volumes in 2025 to be consistent year over year, with price increases on aggregates in the high single digits and low single-digit increases on asphalt.

一年前，我們完成了營運領導層的調整，將材料專家置於材料業務領域，並集中管理職能，例如銷售和品質控制。去年，該團隊在骨材和瀝青的利潤率提高方面取得了令人矚目的進步。我希望團隊在 2025 年及未來幾年繼續提高標準、提高獲利能力並增加股東價值。材料業務的需求仍然強勁，我們預計 2025 年的銷售量將與去年同期保持一致，骨材價格將出現高個位數成長，瀝青價格將出現低個位數成長。

Now let's move to the Construction segment. We are off to a strong start to 2025 despite a wet march in many of our Western markets. As I mentioned earlier, our markets are strong, and this strength is reflected in our CAP. In the first quarter, CAP has increased $444 million to $5.7 billion, which is a new Granite record. As we discussed in the last call, there were a number of projects that were awaiting formal award, which are now included in CAP.

現在讓我們進入建築領域。儘管我們許多西方市場都經歷了雨水淋漓的時期，但我們在 2025 年仍取得了強勁開局。正如我之前提到的，我們的市場很強勁，這種優勢反映在我們的 CAP 中。第一季度，CAP增加了4.44億美元，達到57億美元，創下了Granite公司的新紀錄。正如我們在上次電話會議中討論的那樣，有許多項目正在等待正式授予，這些項目現在已納入 CAP。

Building out the fourth quarter of 2024, the first quarter has been another busy period in the bid round. Across the company, our teams have delivered again. They are winning more work than the prior year. All markets across the company are strong. California, Texas and the Federal division have been highlights in the number of opportunities and wins during the quarter.

展望 2024 年第四季度，第一季是招標過程中的另一個繁忙時期。在整個公司，我們的團隊再次取得了成果。他們贏得的工作比前一年多。本公司所有市場均表現強勁。加州、德州和聯邦分部是本季機會和勝利數量的亮點。

As I look at the bid list over the next several months, I'm encouraged by the number of excellent quality project opportunities ahead of us. We have a great opportunity to continue to build CAP in 2025. We've built what we believe is the highest quality project portfolio in Granite's history by focusing on our home markets and best value projects that better position us for success. With the work that we have in CAP, the project opportunities ahead of us, and the continued emphasis on operational excellence, I expect to meet our growth and margin expectations in 2025.

當我查看未來幾個月的投標清單時，我對我們面前大量優質的專案機會感到鼓舞。我們有很好的機會在 2025 年繼續建造 CAP。我們專注於本土市場和最有價值的項目，從而更好地幫助我們獲得成功，並建立了我們認為是 Granite 歷史上最高品質的項目組合。憑藉我們在 CAP 所做的工作、我們面前的專案機會以及對卓越營運的持續重視，我預計我們將在 2025 年實現成長和利潤預期。

Now I'll turn it over to Staci to review our financial performance for the quarter.

現在我將交給 Staci 來回顧我們本季的財務表現。

Thanks, Kyle. We are off to a great start to 2025. In the first quarter, revenue increased $28 million or 4%. Gross profit increased $30 million or 54%. Adjusted net income improved $9 million, adjusted EBITDA improved $14 million, and we achieved positive operating cash flow of $4 million in what is typically one of our most weather-impacted quarters.

謝謝，凱爾。2025 年我們迎來了一個好的開始。第一季度，營收增加了 2,800 萬美元，增幅為 4%。毛利增加 3,000 萬美元，增幅 54%。調整後的淨收入增加了 900 萬美元，調整後的 EBITDA 增加了 1,400 萬美元，並且在通常受天氣影響最嚴重的季度之一中，我們實現了 400 萬美元的正經營現金流。

In the Construction segment, revenue increased $19 million or 3% year over year to $615 million, driven by strong CAP across the company and favorable weather early in the quarter. In March, wet weather across many locations in the West slowed both progression of projects and recognition of revenue. Despite some bad weather in March, our outlook for 2025 is unchanged with a busy construction season ahead of us.

在建築部門，由於整個公司強勁的 CAP 和本季初有利的天氣，營收年增 1,900 萬美元（3%），達到 6.15 億美元。3月份，西部多地陰雨天氣，工程進度及收益確認均出現放緩。儘管 3 月天氣有些惡劣，但我們對 2025 年的展望並沒有改變，因為我們即將迎來繁忙的施工季節。

Construction segment gross profit improved $29 million to $85 million with a gross profit margin of 14%. This increase is largely due to improved execution and performance across our higher-quality project portfolio. As we expected, CAP increased in the quarter, and the market has continued to strengthen in 2025.

建築部門毛利增加 2,900 萬美元，達到 8,500 萬美元，毛利率為 14%。這一成長主要歸功於我們高品質專案組合的執行力和績效的提升。正如我們預期的那樣，本季 CAP 有所增加，市場在 2025 年將繼續走強。

With the heart of the construction season ahead of us, I expect that our year-over-year revenue growth will increase in the second and third quarters. Additionally, based on our CAP and current market conditions, we believe we are on track to meet our margin improvement target of over 1% when compared to 2024. I'm pleased by our start to 2025 in the Construction segment.

隨著建築旺季的到來，我預計第二季和第三季我們的營收年增將會加快。此外，根據我們的 CAP 和當前市場狀況，我們相信與 2024 年相比，我們有望實現利潤率提高 1% 以上的目標。我很高興看到我們在 2025 年建築領域取得開門紅。

In the Materials segment, we expanded our disclosures in the earnings press release to include product level information for aggregates and asphalt. The new disclosures include revenues, sales volumes, average selling prices, gross profit, and cash gross profit by product line.

在材料部門，我們擴大了收益新聞稿中的揭露範圍，包括骨材和瀝青的產品級資訊。新揭露的資訊包括按產品線劃分的收入、銷售量、平均售價、毛利和現金毛利。

In 2024, our investments in and focus on aggregates drove year-over-year improvements in gross profit margin and cash gross profit margin of 260 and 550 basis points, respectively. We believe it is important to disclose cash gross profit margin because the investments we have made in the Materials business through capital expenditures and M&A have added significant depreciation, depletion, and amortization costs in the segment.

2024年，我們對骨材的投資和關注推動毛利率和現金毛利率分別較去年同期成長260個基點和550個基點。我們認為揭露現金毛利率非常重要，因為我們透過資本支出和併購對材料業務的投資增加了該部門的折舊、耗竭和攤提成本。

As such, we believe that cash gross profit margin is more reflective of the performance of the business. The significant strides we have made in a short amount of time are highlighted by the increase in the average selling price of our aggregates and completion of projects to improve efficiency and reduce aggregate cost per ton.

因此，我們認為現金毛利率更能反映業務表現。我們在短時間內取得的重大進展體現在骨材平均售價的提高以及提高效率和降低每噸骨材成本項目的完成。

Consolidated Materials segment revenue increased $8 million year over year to $85 million with gross loss decreasing by $1 million to a loss of $2 million. Volume and aggregate sales price increases resulted in gross profit and cash gross profit improvement in the quarter.

合併材料部門營收年增 800 萬美元，達到 8,500 萬美元，毛虧損減少 100 萬美元，至虧損 200 萬美元。銷量和總銷售價格的上漲導致本季毛利和現金毛利潤的提高。

With these strong first-quarter results, we believe we are on track to realize revenue, gross profit, and cash gross profit increases in 2025. Based on the performance of both of our segments in the first quarter, we are maintaining our guidance for 2025, including revenue of $4.2 billion to $4.4 billion and adjusted EBITDA margin of 11% to 12%.

憑藉第一季的強勁業績，我們相信我們預計在 2025 年實現收入、毛利和現金毛利的成長。根據我們兩個部門在第一季的表現，我們維持 2025 年的預期，包括 42 億美元至 44 億美元的營收和 11% 至 12% 的調整後 EBITDA 利潤率。

Turning to cash flow and the balance sheet, we generated $4 million of operating cash flow in the first quarter. Typically, the first quarter and first half of the year is a slow period for cash flow, with projects and operations in our colder climates in the start-up phase.

談到現金流和資產負債表，我們在第一季產生了 400 萬美元的營運現金流。通常，第一季和上半年是現金流的緩慢時期，因為我們較冷氣候的專案和營運處於啟動階段。

Then as we get deeper into the construction season, cash flow increases. These seasonal impacts were offset this quarter by the collection of a long outstanding contract retention value as well as the receipt of funds from a legal dispute that was sold in the fourth quarter.

隨著施工季節的深入，現金流也會增加。本季度，這些季節性影響被收取的長期未償合約保留價值以及第四季度出售的法律糾紛資金所抵銷。

As a result, our cash flow in the first quarter is slightly better than expected. We remain on track for our operating cash flow target of 9% of revenue for the year. As of the end of Q1, cash and marketable securities were $513 million. Availability under our credit agreement was $330 million and debt was largely unchanged from year-end at $740 million.

因此，我們第一季的現金流略優於預期。我們仍有望實現全年營業現金流佔收入 9% 的目標。截至第一季末，現金和有價證券為 5.13 億美元。根據我們的信貸協議，可用資金為 3.3 億美元，債務與年底相比基本沒有變化，為 7.4 億美元。

With our strong balance sheet and cash flow expectations for 2025, we are in a position to act on M&A opportunities that fit our strategic initiatives. As we said on our call last quarter, we have added experienced leadership and resources to our corporate development team and are pursuing deals across our footprint, ranging from small bolt-ons to larger geographic expansion opportunities. We continue to be selective, but we expect M&A should add to our cash flow generation and lead to increased shareholder value.

憑藉我們強勁的資產負債表和對 2025 年的現金流預期，我們能夠抓住符合我們策略計畫的併購機會。正如我們在上個季度的電話會議上所說，我們為企業發展團隊增加了經驗豐富的領導力和資源，並正在我們的業務範圍內尋求交易，從小型附加項目到更大的地理擴展機會。我們繼續保持選擇性，但我們預計併購應該會增加我們的現金流量並帶來股東價值的提高。

Now I'll turn it back over to Kyle.

現在我將把話題交還給凱爾。

Thanks, Staci. I'll close with the following points. Our start to 2025 is in line with our expectations. We will continue to closely follow the macroeconomic environment. At this time, however, Granite has not been significantly impacted by tariffs.

謝謝，史黛西。最後我想談談以下幾點。我們對 2025 年的開始符合我們的預期。我們將繼續密切關注宏觀經濟環境。不過，目前 Granite 尚未受到關稅的顯著影響。

Our CAP is benefiting from a strong public market environment supported by the IIJA as well as healthy state budgets across our geographies. There are a number of strong opportunities in the private market as well. And CAP increased in the first quarter as we expected, and we believe there are excellent opportunities ahead of us to continue to grow CAP. With our performance in the first quarter, we believe we are on track to meet our 2025 guidance.

我們的 CAP 受益於 IIJA 支持的強大公共市場環境以及各地區的健康州預算。私人市場也存在大量良好的機會。正如我們預期的那樣，第一季的 CAP 有所增長，我們相信未來還有絕佳的機會繼續提高 CAP。憑藉第一季的業績，我們相信我們有望實現 2025 年的預期。

In what has historically been a seasonally slow quarter, we generated positive operating cash flow, and I believe we should reach our target of operating cash flow of 9% of revenue for 2025. And finally, we are very busy analyzing a number of M&A opportunities. Timing is difficult to predict, but our target of completing two to three deals in 2025 is unchanged.

在歷史上季節性淡季，我們產生了正的經營現金流，我相信我們應該達到 2025 年經營現金流佔 9% 收入的目標。最後，我們正忙於分析一些併購機會。時間很難預測，但我們在 2025 年完成兩到三筆交易的目標並沒有改變。

Operator, I will now turn it back to you for questions.

接線員，現在我將把問題交還給您。

(Operator Instructions) Brent Thielman, D.A. Davidson.

（操作員指示）Brent Thielman，D.A. Davidson。

Congrats on a great start here to the year. So, Kyle, I guess my first question from when I take the opening commentary, it sounds like active bidding environment overall within a lot of the markets you serve. Maybe if you could just maybe talk around a little more about what you're seeing and how we might think about the trajectory of CAP, which is obviously in a strong position here to start the year where that might go, given all you're seeing out there.

恭喜您今年有一個好的開始。所以，凱爾，我想我在開場評論時提出的第一個問題是，聽起來您所服務的許多市場總體上都呈現出活躍的競標環境。也許您可以再多談您所看到的情況以及我們如何看待 CAP 的發展軌跡，從您所看到的一切來看，CAP 顯然在年初處於有利地位。

Yeah. Thanks, Brent. Appreciate the question. The market is very strong, perhaps stronger in that public market than the private market. And I think our CAP balance an increase to a record level in Q1 reflects this. And our teams are just doing a great job, I think, across really all of our business units and capturing work. As we mentioned, we're bidding more work so far this year, capturing more of that work and the work has higher margins than the previous years. And I think that's just been a recurring trend that we've seen now for several years.

是的。謝謝，布倫特。感謝你的提問。市場非常強勁，也許公開市場比私人市場更強勁。我認為我們的 CAP 餘額在第一季增加到創紀錄的水平反映了這一點。我認為，我們的團隊在所有業務部門都表現出色，並且開展工作。正如我們所提到的，今年到目前為止，我們競標了更多的工作，獲得了更多的工作，而且利潤率比前幾年更高。我認為這是我們幾年來一直看到的趨勢。

So I think that's really exciting for the business. So we do expect really over the year for our CAP balance to continue to increase. I would say that the IIJA continues to provide really strong spending really across all of our geographies. And as a reminder, only about I would say 30% of that spend has happened to date, and we believe there's still several years of spending under the IIJA.

所以我認為這對企業來說真的是一件令人興奮的事情。因此，我們確實預計今年我們的 CAP 餘額將繼續增加。我想說的是，IIJA 繼續為我們所有的地區提供真正強勁的支出。需要提醒的是，我認為迄今為止只有大約 30% 的支出已經到位，而且我們認為在 IIJA 下仍需要幾年的支出。

And we also believe that there'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. So we'll see. And we can get that passed, but certainly, that will be good news for our industry and good news for Granite.

我們也相信，繼 IIJA 之後出台的另一項法案將得到兩黨的支持和強勁的勢頭，其支出水平將等於或高於我們在高速公路、橋樑和道路方面看到的支出水平。我們拭目以待。我們可以通過這項法案，但毫無疑問，這對我們的行業和 Granite 來說都是好消息。

Got it. And maybe just my follow-up more just on the quarter itself and then thinking about the strong margins in the Construction segment. I mean, you did mention some adversity related to weather. You didn't have a lot of growth in the Construction segment this quarter, but margins really popped. I guess what are you seeing at a project level that's driving these higher levels of profitability and otherwise with otherwise slower quarter for you and how we think about that going forward?

知道了。也許我只是對本季本身進行了更多的跟進，然後考慮了建築業的強勁利潤率。我的意思是，你確實提到了一些與天氣有關的逆境。本季建築部門的成長並不大，但利潤率卻大幅上升。我想您在專案層面看到了什麼，推動了這些更高水準的獲利能力，否則您的季度業績會比較慢，我們對未來有何看法？

Yeah. And Q1, as you know, is always -- it's not our biggest quarter. Certainly, it's most seasonal as well. And so any year, you compare quarter over quarter, it can depend on whether or not the prior year had on whether or not. And certainly, we had a little bit more weather in March. But despite that, we had really strong top line and seeing some growth in our Construction segment.

是的。如你所知，第一季始終不是我們業績最好的季度。當然，它也是最具季節性的。因此，任何一年，當你與每個季度進行比較時，它都會取決於前一年是否有所變化。當然，三月的天氣稍微好一點。但儘管如此，我們的營業收入仍然非常強勁，建築業務也出現了一些成長。

I think it's all down to execution. And we had mentioned that we expected our construction gross profit margin in 2025 to be at least 1% greater than what we saw in 2024, and that was a combination of improved execution. And our team is focused around execution and then just the improvement in our CAP.

我認為這一切都取決於執行。我們曾提到，我們預計 2025 年的建築毛利率將比 2024 年高出至少 1%，這是執行力提升的綜合結果。我們的團隊專注於執行，然後改進我們的 CAP。

So we did expect that to increase and certainly in Q1, we expect to see a continued improvement in gross profit margin throughout 2025 relative to 2024 in our Construction segment.

因此，我們確實預計這一數字會增加，而且在第一季度，我們預計 2025 年全年建築部門的毛利率將相對於 2024 年繼續提高。

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊，湯普森研究小組。

Another question on CAP and the quality of it, the strong bidding environment and the rising quality in it. For Q1, it looks like bid build projects grew 21% year over year, whereas best value was down around 10% year over year in the second quarter of decline. Can you may be put into context how these diverging movements of the different types of projects play into the quality of CAP? And do you expect CAP to lean towards bid build through the rest of 2025?

另一個問題是關於 CAP 及其品質、強勁的競標環境和不斷提高的品質。就第一季而言，投標建設項目似乎年增了 21%，而第二季的最佳價值卻比去年同期下降了約 10%。您能否說明不同類型專案的不同動向對 CAP 品質有何影響？您是否預計 CAP 在 2025 年剩餘時間內傾向於競標建設？

Yeah. I don't know. I mean, it's difficult to predict. In many ways, some of the best value projects are a little bit larger. They are the more larger complex projects that we can execute on with a really derisked contracting method.

是的。我不知道。我的意思是，這很難預測。從許多方面來看，一些最有價值的專案規模都比較大。它們是更大、更複雜的項目，我們可以採用真正低風險的承包方式來執行。

So the timing of those coming into our CAP can skew those numbers a little bit. So I wouldn't read too much into the percentages. I think over the long haul, we're going to see that breakdown to be pretty consistent with what we've seen historically. And I think that is good news, too, in the sense that it gives us a good balance.

因此，進入我們 CAP 的時間可能會稍微扭曲這些數字。所以我不會過度解讀百分比。我認為從長遠來看，我們會看到這種崩潰與我們歷史上所見的情況非常一致。我認為這也是一個好消息，因為它給我們帶來了良好的平衡。

So the bid build typically burns a little bit faster. Our average job size as a company is 5 million to 6 million most of those contracts burn within a 12-month cycle whereas those best value projects have a longer burn. And we think that's healthy. There's a two-year preconstruction period typically and then another three years for actual construction. So we'd like having mix. We think that's just a nice healthy mix for our business.

因此投標的建立通常會燃燒得更快一些。我們公司的平均工作規模為 500 萬至 600 萬美元，大多數合約在 12 個月的周期內消耗殆盡，而那些最有價值的項目則需要更長的時間。我們認為這是健康的。通常，施工前期為兩年，實際施工期則為三年。因此我們希望混合使用。我們認為這對我們的業務來說是一個很好的健康組合。

Okay. That's good context. And then I was looking at over the FY22 through '24 period, Materials revenue was in the 17% to 18% range of construction revenue. Looking at Q1 '25, it was 14% of revenue up 100 bps or so year over year. Just thinking about those two data points and your focus on vertical integration, do you expect Materials revenue to run in that range of 17% to 18% of construction sales for 2025 and thinking about these two data points, what does that tell you? And how do you think about where those go over the next couple of years?

好的。這是很好的背景。然後我觀察了 22 財年至 24 財年期間的情況，材料收入佔建築收入的 17% 至 18%。看看 25 年第一季度，其營收年增了 14% 左右。僅考慮這兩個數據點以及您對垂直整合的關注，您是否預計到 2025 年材料收入將佔建築銷售額的 17% 至 18% 之間，並考慮這兩個數據點，這告訴您什麼？您認為未來幾年這些會如何發展？

Yeah. Well, I think that's probably a safe assumption from a percentage perspective in 2025. Clearly, we've been reinvesting our Materials business now for a few years. It was underinvested previously and we've made up a lot of ground. I think it certainly -- as you look at our emphasis around materials or realignment of the organization last year around construction materials, we've already seen really strong benefits from all that effort and really a short amount of time that we're excited about where we can go even further.

是的。嗯，我認為從 2025 年的百分比角度來看這可能是一個安全的假設。顯然，幾年來我們一直在對材料業務進行再投資。之前投資不足，但我們已經取得了很大進展。我認為確實如此——正如你所看到的，我們去年重點關注材料或圍繞建築材料進行組織調整，我們已經從所有的努力中看到了非常巨大的收益，而且在很短的時間內，我們對能夠取得更大進步感到非常興奮。

And then if you look at where we've been from an M&A perspective, the deals we've done have been materials focused. So I think over the long haul, we expect our Materials business to become a larger part of our overall company.

如果你從併購的角度來看待我們所做的事情，那麼我們所做的交易都是以材料為重點的。因此我認為從長遠來看，我們預計材料業務將成為我們整個公司更大的一部分。

Michael Dudas, Vertical Research.

邁克爾·杜達斯，垂直研究。

Kyle, a couple of things. First, your federal business, you highlighted as a strength. Any cross currents or issues with regard to Washington policy and seems like Guam is still going to be active, given for the projection of where military wants to be here in the next several years.

凱爾，有幾件事。首先，您強調聯邦業務是您的一大優勢。就華盛頓的政策而言，任何交叉潮流或問題似乎都表明關島仍將保持活躍，因為可以預測未來幾年軍方希望在這裡駐紮的位置。

Is that something that's also looking pretty solid for you guys? And my follow-up would be, with regard to your Mississippi or Tennessee, the Southeast region, how has those businesses track relative to what you had thought in the acquisition with '18, almost 3 years ago -- was it 18 months ago? And is there a mix on like private? Is there a lot more industrial manufacturing activity? Are you seeing that in that world just typically the similar type of public versus private work in that area? Thank you.

對你們來說這也是一件相當可靠的事嗎？我的後續問題是，關於您的密西西比州或田納西州，即東南地區，這些業務的發展情況與您在 2018 年（差不多 3 年前）收購時所想的相比如何——是 18 個月前嗎？有沒有類似私人的混合？工業製造活動是否大幅增加？您是否看到，在那個世界中，公共工作和私人工作的類型通常都類似？謝謝。

Okay. So let me start. Thanks, Mike. For the federal business, we did highlight that. Certainly, we have picked up quite a bit of work in our federal business. And our federal business partners with a lot of our local home market teams, and we just capitalize on the federal market in itself. And we do think with the current administration, there are a lot of opportunities for us in the federal space.

好的。那麼就讓我開始吧。謝謝，麥克。對於聯邦事務，我們確實強調了這一點。當然，我們在聯邦業務方面已經完成了相當多的工作。我們的聯邦業務合作夥伴與許多當地本土市場團隊合作，我們只是利用聯邦市場本身。我們確實認為，在現任政府的領導下，聯邦領域為我們帶來了許多機會。

And Guam has been a highlight. So you've likely seen a lot of the press releases that we put out around some of the projects we have in Guam. We've been in Guam now for over a decade. So it's not -- it is a whole market for us in that regard. We've also been successful in other states, and I would highlight Texas. We have a few projects in Texas now, their federal projects. And we've seen a lot of success there as well.

而關島則是其中的亮點。您可能已經看到我們發布的有關關島一些項目的許多新聞稿。我們已經在關島待了十多年了。所以，從這個方面來看，這對我們來說是一個完整的市場。我們在其他州也取得了成功，我想特別強調的是德州。我們現在在德克薩斯州有幾個項目，是他們的聯邦項目。我們在那裡也看到了許多成功。

So I think going to the question around the acquisitions in the Southeast, we're really pleased with the performance of our business down in the Southeast from a deal perspective. And I think the real highlight for us was moving into an M&A strategy around vertically integrated businesses. And I think the real success for us is just the integration -- the integration has gone really well.

因此，我認為，關於東南部的收購問題，從交易的角度來看，我們對東南部業務的表現感到非常滿意。我認為我們真正的亮點是圍繞垂直整合業務轉向併購策略。我認為我們真正的成功就是整合──整合進展非常順利。

It gives us a lot of confidence to continue to build on that Southeast platform confidence to do other deals and other arrangements. I think that we're looking for really good businesses, healthy and growing markets with strong leadership, and we found that. I can tell you, look of all, there's exceptional leadership in those businesses. It gives us a lot of confidence to build out that Southeast platform.

這給了我們很大的信心，讓我們有信心繼續在東南平台上進行其他交易和其他安排。我認為我們正在尋找真正優秀的企業、健康且不斷成長的市場以及強大的領導力，而我們找到了。我可以告訴你們，首先，這些企業擁有卓越的領導力。這給了我們很大的信心去打造東南平台。

So all in all, it's going well. I'll talk a little bit more about M&A as well. Three focus areas today is really support in strengthening our business down in the West, these home markets that we've had in place is continuing to build out the southeast platform. I mean, we are looking for other platforms that we can grow upon. Those are still to be determined.

總而言之，一切進展順利。我還會再多談一些有關併購的事情。今天的三個重點領域真正支持了我們加強在西部的業務，我們已經建立的本土市場正在繼續建立東南平台。我的意思是，我們正在尋找其他可以讓我們成長的平台。這些還有待確定。

But yeah, I think we're in good shape. And I think that the acquisitions that we completed are really just giving us a lot more confidence to continue down that path.

但是是的，我認為我們狀況良好。我認為，我們完成的收購確實給了我們更多信心繼續沿著這條道路前進。

Jerry Revich, Goldman Sachs.

高盛的傑瑞·雷維奇。

Can I ask you folks in terms of the additional disclosures, really appreciate the information and good progress in aggregates unit profitability for the team in '24. As we look at cash gross profit per ton for your business with '24, it's about $4. Vulcan's footprint is obviously different, but they're $11 plus. Can you just talk about what the difference is beyond the geographic locations? I believe you folks are higher in -- or excuse me, lower in crush stone, iron sand and gravel? How much of a factor is that can you just talk about where could cash unit profitability move over time as you look at your peers?

我可以問一下你們關於額外披露的問題，非常感謝這些信息以及 24 年團隊在總體單位盈利能力方面取得的良好進展。當我們查看貴公司‘24’業務每噸的現金毛利時，它約為 4 美元。Vulcan 的佔地面積明顯不同，但它們的價格要 11 美元以上。您能談談除了地理位置之外還有哪些差異嗎？我相信你們在碎石、鐵砂和礫石方面比較高——或者不好意思，比較低？當您觀察同行時，能否談談現金單位獲利能力隨時間如何變化？

Yeah. That's a great question, Jerry. And it's a challenge because we don't have any perfect peers and certainly have peers that are in the aggregates and asphalt business. So if we look at costs, I think, certainly, our cash gross profit per ton is very different than the larger peer group out there.

是的。這個問題問得真好，傑瑞。這是一個挑戰，因為我們沒有完美的同行，而且肯定有從事骨料和瀝青業務的同行。因此，如果我們考慮成本，我認為，我們的每噸現金毛利肯定與較大的同行集團有很大不同。

I do think geography matters. I think that is an important driver. I think you hit on kind of the outlet -- a lot of aggregates go into compete ready-mix. Naturally, the numbers, my understanding around 50% we're a lot lower than that. We're -- at 45%, we're closer to around 30%. So that's another big variance that goes there.

我確實認為地理位置很重要。我認為這是一個重要的驅動力。我認為您找到了一種出路——大量的骨料都用於製作完整的預拌混凝土。當然，根據我的理解，這個數字大約是 50%，但實際上要低得多。我們的比率是 45%，接近 30% 左右。這是另一個巨大的差異。

And from a market perspective and geography, one product could have even a $10 or $15 sales price difference in different markets based on scarcity of aggregates within that market. So that does play in the things. I think what we're looking at is our business, and we're looking at our Materials business. We're looking at that cash flow as profit improvement that we've seen between '23 and '24 with just that reorganization of business within one year. We really made huge strides that we're really proud of, and I'm proud of the team for really focusing on pricing, standardizing how we operate, setting higher standards and expectations for our business units.

從市場角度和地理位置來看，根據市場內聚合物的稀缺性，產品在不同市場的銷售價格甚至可能相差 10 美元或 15 美元。所以這確實在起作用。我認為我們正在關注的是我們的業務，我們正在關注我們的材料業務。我們將現金流視為利潤的成長，我們在 2023 年至 2024 年期間就看到了這一點，而這僅僅是在一年內進行業務重組的結果。我們確實取得了巨大的進步，對此我們感到非常自豪，我為團隊真正專注於定價、標準化營運方式、為我們的業務部門設定更高的標準和期望而感到自豪。

These automation investments are big for us and, of course, reinvesting in right reserves, and we're seeing the results of that. So on the asphalt side, we're up almost 2% on cash gross profit perspective and on aggregates close to 6%. I think just within one year, that's really good improvement.

這些自動化投資對我們來說意義重大，當然，也要對正確的儲備進行再投資，而且我們正在看到其成果。因此，就瀝青方面而言，我們的現金毛利增加了近 2%，而骨材的毛利增加了近 6%。我認為僅僅在一年之內，這確實是一個很大的進步。

And if anything, as you look at our peer group, it certainly gives us a lot of opportunity to continue to challenge ourselves and find other ways we continue to expand margins. And we believe even in 2025, we expect our gross cash gross profit margins in Materials segment to go up over 3%. So we think we can look at that for this year. We think even beyond 2025, there's room for us to continue to expand our cash gross margins in this segment.

如果你看看我們的同行，你會發現這確實給了我們很多機會來繼續挑戰自己，並找到其他方法來繼續擴大利潤率。我們相信，即使到 2025 年，材料部門的毛現金毛利率仍將上升 3% 以上。因此我們認為我們今年可以考慮這個問題。我們認為，即使到了 2025 年以後，我們仍有空間繼續擴大該領域的現金毛利率。

And Kyle, just to make sure I'm on the same page with you. When you say cash gross profit margin expansion of 300 basis points, that's not a growth in the cash gross profit per ton. That's a percent margin increase of 300 basis points in just one year?

凱爾，我只是想確保我和你的想法一致。當你說現金毛利率擴大 300 個基點時，這並不是每噸現金毛利的成長。短短一年時間，利潤率增加了 300 個基點？

That's right. Yeah, that's correct.

這是正確的。是的，沒錯。

Well done. Very good. And then can we shift gears? In terms of the cadence of the main we're hearing from other companies with your market exposure, January, February, soft March really sharp acceleration and surprisingly strong demand through April. Can you comment on whether that's consistent with what you've seen in your business given the macro uncertainty out there, what's going on or what happened in April is a big question.

做得好。非常好。那我們可以換個話題嗎？就主要的節奏而言，我們從其他公司了解到您的市場曝光度，一月、二月、三月表現疲軟，四月需求卻出乎意料地強勁。考慮到宏觀不確定性，您能否評論一下這是否與您在業務中看到的情況一致，四月份發生的事情是一個大問題。

Yeah. I would say just in general, January and February were actually pretty strong. I mean, March, as we mentioned, we had a little weather in March. So that was a little bit of a slowdown for us in some regards. So I think overall and certainly in the Materials segment, we expect things to be relatively flat certainly in the ag side and asphalt side, maybe a little bit up.

是的。我想說，總體而言，一月和二月的表現其實相當強勁。我的意思是，三月，正如我們所提到的，三月的天氣有點不太好。所以從某些方面來說，這對我們來說是有點放緩。因此，我認為總體而言，尤其是在材料領域，我們預計農業和瀝青方面的情況會相對平穩，甚至可能略有上升。

It just depends on what's going to happen on the private market, and we're looking for that to pick up in the back half of the year. We'll have to see how that shakes out.

這取決於私人市場將會發生什麼，我們預計私人市場將在今年下半年回升。我們將拭目以待，看看結果如何。

And can you comment on April?

您能評論一下四月份的情況嗎？

Yeah. I mean, April so far, there's -- it appears to be a strong month for us, nothing out of the ordinary to report today.

是的。我的意思是，到目前為止，四月對我們來說似乎是一個強勁的月份，今天沒有任何異常的報告。

And lastly, can I ask in terms of the tariff impact on equipment purchases or leases? Can you talk about what you're seeing from your suppliers? And any changes in your CapEx plan to maybe get ahead of any tariff increases? Can you flesh that out for us, if you don't mind?

最後，我可以問一下關稅對設備購買或租賃的影響嗎？您能談談您從供應商看到的情況嗎？您的資本支出計劃是否有任何變化，以便能夠領先於任何關稅上調？如果您不介意的話，您能為我們詳細說明一下嗎？

Yeah, we do expect there to be some equipment cost increases, parts increases, some repair cost increases. So those things are going to happen. And we've been navigating that environment now, pre-tariff tax for several years. So we do typically go -- get preauthorization for CapEx for the following year early, so we can get those orders in as soon as possible. So that's kind of a normal course of business for us today.

是的，我們確實預期設備成本、零件成本和維修成本都會增加。所以這些事情將會發生。我們現在已經適應這種環境，實施關稅前稅收已經好幾年了。因此，我們通常會提前獲得下一年度資本支出的預授權，以便我們能夠盡快獲得這些訂單。所以這對我們來說是今天的正常業務流程。

This is the end of Q&A. And now I would like to turn the call back over to Mr. Larkin.

問答到此結束。現在我想把電話轉回給拉金先生。

Okay. Well, thank you for joining the call today. As always, we want to thank all of our employees for the work they do every day. I look forward to seeing many of you next week during the construction industry's Safety Week. Thank you for joining the call and your interest in Granite. We look forward to speaking with you all soon.

好的。好吧，感謝您今天參加電話會議。像往常一樣，我們要感謝所有員工每天所做的工作。我期待下週在建築業安全週期間見到你們。感謝您參加電話會議並關注 Granite。我們期待很快與大家交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。