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Granite Secures $113M Marine Corps Contract, Stock Gains
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Granite Construction Incorporated (GVA - Free Report) secured a significant contract valued at approximately $113 million for constructing new facilities at Marine Corps Base Camp Blaz (MCCB). The construction will be carried out in partnership with Obayashi Corporation through the Granite-Obayashi 2 Joint Venture.
GVA stock moved up 0.5% during the trading session on Sept. 24.
Key Project Highlights
This project will be funded by the Department of Defense’s (DOD) Military Construction (MILCON) program and will be included in Granite’s third-quarter CAP. This marks the company’s second major facilities project at MCCB, reinforcing its role as the primary constructor of the main cantonments for the new Marine Corps base. This shift to building base facilities demonstrates GVA's dedication to supporting the strategic goals of the U.S. Marine Corps in the Pacific region.
Per the contract, the company will construct low-rise facilities to support the Marine Expeditionary Force (MEF) 9th Engineer Support Battalion. These buildings will feature reinforced concrete structural frames, walls, floors, roofs and shallow foundation systems. The project also includes the construction of an auto organization shop, an electrical and communications maintenance shop, organic storage, a vehicle wash rack and a vehicle laydown area.
The contract will strengthen the company's partnership with NAVFAC Pacific on this critical mission while reinforcing GVA's role as a key contributor to the successful realignment of Marines from Okinawa to Guam. The project is expected to begin in October 2024 and be completed in January 2027.
GVA's Share Price Performance
Shares of GVA have soared 40.2% in the past six months compared with the Zacks Building Products - Heavy Construction industry’s 29.4% rise. Earnings per share (EPS) estimates for 2024 have moved up to $5.24 from $4.76 in the past 60 days. The estimated figure indicates 66.9% year-over-year growth. The company’s EPS topped analysts’ expectations in three of the past four quarters, with an average of 26.4%.
Also, it has been diversifying and expanding its business through acquisitions and investments. Recently, it announced the acquisition of Dickerson & Bowen, Inc. (D&B), a leading regional aggregates, asphalt and highway construction company serving Central and Southern Mississippi. This bolt-on buyout is highly complementary to GVA’s prior acquisition of Lehman-Roberts Company and Memphis Stone & Gravel (LRC and MSG). (Read more: Granite Acquires D&B, Expands Footprint in Southeast).
GVA’s Zacks Rank & Other Key Picks
GVA currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Construction sector are:
The Zacks Consensus Estimate for STRL’s 2024 sales and earnings per share (EPS) indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
Howmet Aerospace Inc. (HWM - Free Report) presently sports a Zacks Rank #2. HWM has a trailing four-quarter earnings surprise of 10.9%, on average.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.
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Granite Secures $113M Marine Corps Contract, Stock Gains
Granite Construction Incorporated (GVA - Free Report) secured a significant contract valued at approximately $113 million for constructing new facilities at Marine Corps Base Camp Blaz (MCCB). The construction will be carried out in partnership with Obayashi Corporation through the Granite-Obayashi 2 Joint Venture.
GVA stock moved up 0.5% during the trading session on Sept. 24.
Key Project Highlights
This project will be funded by the Department of Defense’s (DOD) Military Construction (MILCON) program and will be included in Granite’s third-quarter CAP. This marks the company’s second major facilities project at MCCB, reinforcing its role as the primary constructor of the main cantonments for the new Marine Corps base. This shift to building base facilities demonstrates GVA's dedication to supporting the strategic goals of the U.S. Marine Corps in the Pacific region.
Per the contract, the company will construct low-rise facilities to support the Marine Expeditionary Force (MEF) 9th Engineer Support Battalion. These buildings will feature reinforced concrete structural frames, walls, floors, roofs and shallow foundation systems. The project also includes the construction of an auto organization shop, an electrical and communications maintenance shop, organic storage, a vehicle wash rack and a vehicle laydown area.
The contract will strengthen the company's partnership with NAVFAC Pacific on this critical mission while reinforcing GVA's role as a key contributor to the successful realignment of Marines from Okinawa to Guam. The project is expected to begin in October 2024 and be completed in January 2027.
GVA's Share Price Performance
Shares of GVA have soared 40.2% in the past six months compared with the Zacks Building Products - Heavy Construction industry’s 29.4% rise. Earnings per share (EPS) estimates for 2024 have moved up to $5.24 from $4.76 in the past 60 days. The estimated figure indicates 66.9% year-over-year growth. The company’s EPS topped analysts’ expectations in three of the past four quarters, with an average of 26.4%.
Image Source: Zacks Investment Research
GVA has been consistently receiving contracts on the back of its solid execution efforts (read more: Granite Stock Gains With $65M Utah Road Improvement Contract).
Also, it has been diversifying and expanding its business through acquisitions and investments. Recently, it announced the acquisition of Dickerson & Bowen, Inc. (D&B), a leading regional aggregates, asphalt and highway construction company serving Central and Southern Mississippi. This bolt-on buyout is highly complementary to GVA’s prior acquisition of Lehman-Roberts Company and Memphis Stone & Gravel (LRC and MSG). (Read more: Granite Acquires D&B, Expands Footprint in Southeast).
GVA’s Zacks Rank & Other Key Picks
GVA currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Construction sector are:
Sterling Infrastructure, Inc. (STRL - Free Report) flaunts a Zacks Rank #1 (Strong Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for STRL’s 2024 sales and earnings per share (EPS) indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
Howmet Aerospace Inc. (HWM - Free Report) presently sports a Zacks Rank #2. HWM has a trailing four-quarter earnings surprise of 10.9%, on average.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.