GRANITE CONSTRUCTION INC 10-Q

Item 1. FINANCIAL STATEMENTS GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands, except share and per share data) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents ($ 164,810 and $ 173,894 related to consolidated construction joint ventures (“CCJVs”)) $ 379,074 $ 578,330 Short-term marketable securities 43,708 7,311 Receivables, net ($ 42,960 and $ 33,708 related to CCJVs) 471,336 511,742 Contract assets ($ 52,345 and $ 115,834 related to CCJVs) 274,592 328,353 Inventories 128,432 108,175 Equity in construction joint ventures 151,499 140,928 Other current assets ($ 2,957 and $ 3,982 related to CCJVs) 50,646 41,824 Total current assets 1,499,287 1,716,663 Property and equipment, net ($ 5,872 and $ 6,792 related to CCJVs) 722,135 716,184 Long-term marketable securities 90,295 — Investments in affiliates 93,667 94,031 Goodwill 214,296 214,465 Intangible assets 125,480 127,886 Right of use assets 94,839 89,791 Other noncurrent assets 67,101 66,635 Total assets $ 2,907,100 $ 3,025,655 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt $ 1,119 $ 1,109 Accounts payable ($ 68,843 and $ 74,745 related to CCJVs) 375,392 407,223 Contract liabilities ($ 77,412 and $ 80,096 related to CCJVs) 280,493 299,671 Accrued expenses and other current liabilities ($ 4,098 and $ 4,706 related to CCJVs) 296,640 323,956 Total current liabilities 953,644 1,031,959 Long-term debt 738,595 737,939 Long-term lease liabilities 77,734 73,638 Deferred income taxes, net 13,792 13,874 Other long-term liabilities 85,043 88,882 Commitments and contingencies (see Note 17) Equity Preferred stock, $ 0.01 par value, authorized 3,000,000 shares, none outstanding — — Common stock, $ 0.01 par value, authorized 150,000,000 shares; issued and outstanding: 43,737,491 shares as of March 31, 2025 and 43,424,646 shares as of December 31, 2024 437 434 Additional paid-in capital 427,804 410,739 Accumulated other comprehensive income (loss) 65 ( 582 ) Retained earnings 565,223 604,635 Total Granite Construction Incorporated shareholders’ equity 993,529 1,015,226 Non-controlling interests 44,763 64,137 Total equity 1,038,292 1,079,363 Total liabilities and equity $ 2,907,100 $ 3,025,655 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share data) Three Months Ended March 31, 2025 2024 Revenue $ 699,547 $ 672,275 Cost of revenue 615,698 617,990 Gross profit 83,849 54,285 Selling, general and administrative expenses 115,911 87,993 Other costs, net 9,426 11,010 Gain on sales of property and equipment, net ( 1,737 ) ( 1,418 ) Operating loss ( 39,751 ) ( 43,300 ) Other (income) expense Interest income ( 6,268 ) ( 6,702 ) Interest expense 7,757 8,083 Equity in income of affiliates, net ( 1,094 ) ( 3,970 ) Other income, net ( 63 ) ( 1,743 ) Total other (income) expense, net 332 ( 4,332 ) Loss before income taxes ( 40,083 ) ( 38,968 ) Benefit from income taxes ( 11,756 ) ( 9,526 ) Net loss ( 28,327 ) ( 29,442 ) Amount attributable to non-controlling interests ( 5,329 ) ( 1,541 ) Net loss attributable to Granite Construction Incorporated $ ( 33,656 ) $ ( 30,983 ) Net loss per share attributable to common shareholders (see Note 15): Basic $ ( 0.77 ) $ ( 0.70 ) Diluted $ ( 0.77 ) $ ( 0.70 ) Weighted average shares outstanding: Basic 43,463 43,988 Diluted 43,463 43,988 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited - in thousands) Three Months Ended March 31, 2025 2024 Net loss $ ( 28,327 ) $ ( 29,442 ) Other comprehensive income, net of tax Net unrealized gain on cash flow hedges, net of tax $ — $ 589 Less: reclassification for net gains included in interest expense, net of tax 185 226 Net change $ 185 $ 815 Foreign currency translation adjustments, net 462 ( 406 ) Other comprehensive income, net of tax $ 647 $ 409 Comprehensive loss, net of tax $ ( 27,680 ) $ ( 29,033 ) Non-controlling interests in comprehensive loss, net of tax ( 5,329 ) ( 1,541 ) Comprehensive loss attributable to Granite Construction Incorporated, net of tax $ ( 33,009 ) $ ( 30,574 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited - in thousands, except share data) Outstanding Shares Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Granite Shareholders’ Equity Non-controlling Interests Total Equity Balances at December 31, 2024 43,424,646 $ 434 $ 410,739 $ ( 582 ) $ 604,635 $ 1,015,226 $ 64,137 $ 1,079,363 Net loss — — — — ( 33,656 ) ( 33,656 ) 5,329 ( 28,327 ) Other comprehensive income — — — 647 — 647 — 647 Repurchases of common stock (1) ( 198,220 ) ( 2 ) ( 15,207 ) — — ( 15,209 ) — ( 15,209 ) RSUs vested 511,611 5 ( 5 ) — — — — — Dividends on common stock ($ 0.13 per share per quarter) — — 69 — ( 5,756 ) ( 5,687 ) — ( 5,687 ) Transactions with non-controlling interests — — — — — — ( 24,703 ) ( 24,703 ) Stock-based compensation expense and other ( 546 ) — 32,208 — — 32,208 — 32,208 Balances at March 31, 2025 43,737,491 $ 437 $ 427,804 $ 65 $ 565,223 $ 993,529 $ 44,763 $ 1,038,292 Balances at December 31, 2023 43,944,118 $ 439 $ 474,134 $ 881 $ 501,844 $ 977,298 $ 49,668 $ 1,026,966 Net loss — — — — ( 30,983 ) ( 30,983 ) 1,541 ( 29,442 ) Other comprehensive income — — — 409 — 409 — 409 Repurchases of common stock (1) ( 135,434 ) ( 1 ) ( 7,415 ) — — ( 7,416 ) — ( 7,416 ) RSUs vested 341,394 3 ( 3 ) — — — — — Dividends on common stock ($ 0.13 per share per quarter) — — 72 — ( 5,813 ) ( 5,741 ) — ( 5,741 ) Transactions with non-controlling interests — — — — — — 6,938 6,938 Stock-based compensation expense and other ( 434 ) — 12,891 — — 12,891 — 12,891 Balances at March 31, 2024 44,149,644 $ 441 $ 479,679 $ 1,290 $ 465,048 $ 946,458 $ 58,147 $ 1,004,605 (1) Represents shares withheld related to employee taxes for RSUs vested under our equity incentive plans in 2025 and 2024, as well as 200 shares repurchased under our share repurchase program in 2025. The accompanying notes are an integral part of these condensed consolidated financial statements. 6 Table of Contents GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ( Unaudited - in thousands ) Three Months Ended March 31, 2025 2024 Operating activities Net loss $ ( 28,327 ) $ ( 29,442 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 30,171 29,068 Amortization related to long-term debt 1,081 758 Gain on sales of property and equipment, net ( 1,737 ) ( 1,418 ) Stock-based compensation 32,217 12,895 Equity in net income from unconsolidated construction joint ventures ( 1,246 ) ( 2,290 ) Net income from affiliates ( 1,094 ) ( 3,970 ) Other non-cash adjustments 164 ( 691 ) Changes in assets and liabilities: Receivables 40,684 169,965 Contract assets, net 34,578 ( 62,882 ) Inventories ( 20,261 ) ( 13,066 ) Contributions to unconsolidated construction joint ventures ( 9,163 ) ( 2,000 ) Distributions from unconsolidated construction joint ventures and affiliates 1,677 7,914 Other assets, net ( 9,504 ) ( 7,134 ) Accounts payable ( 33,852 ) ( 60,029 ) Accrued expenses and other liabilities, net ( 31,741 ) ( 13,605 ) Net cash provided by operating activities $ 3,647 $ 24,073 Investing activities Purchases of marketable securities ( 134,653 ) — Maturities of marketable securities 7,100 20,000 Purchases of property and equipment ( 32,206 ) ( 27,871 ) Proceeds from sales of property and equipment 3,449 2,535 Cash paid for purchase price adjustments on business acquisition — ( 6,119 ) Other investing activities — 693 Net cash used in investing activities $ ( 156,310 ) $ ( 10,762 ) Financing activities Debt principal repayments ( 274 ) ( 102,140 ) Cash dividends paid ( 5,652 ) ( 5,713 ) Repurchases of common stock ( 15,209 ) ( 7,416 ) Contributions from non-controlling partners — 10,000 Distributions to non-controlling partners ( 25,450 ) ( 3,950 ) Other financing activities, net ( 8 ) ( 3 ) Net cash used in financing activities $ ( 46,593 ) $ ( 109,222 ) Net decrease in cash and cash equivalents ( 199,256 ) ( 95,911 ) Cash and cash equivalents at beginning of period 578,330 417,663 Cash and cash equivalents at end of period $ 379,074 $ 321,752 Supplementary Information Right of use assets obtained in exchange for lease obligations $ 11,623 $ 6,498 Cash paid during the period for: Operating lease liabilities $ 6,702 $ 5,681 Interest $ 79 $ 4,099 Income taxes $ 23 $ 831 Non-cash investing and financing activities: RSUs issued, net of forfeitures $ 37,824 $ 17,987 Dividends declared but not paid $ 5,686 $ 5,739 Contributions from non-controlling partners $ 746 $ 888 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1.   General Basis of Presentation: The condensed consolidated financial statements included herein have been prepared by Granite Construction Incorporated (“we,” “us,” “our,” the “Company” or “Granite”) pursuant to the rules and regulations of the Securities and Exchange Commission, are unaudited and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (“Annual Report”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. Further, the condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to state fairly our financial position at March 31, 2025 and the results of our operations and cash flows for the periods presented. The December 31, 2024 condensed consolidated balance sheet data included herein was derived from audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. Seasonality: Our operations are typically affected more by weather conditions during the first and fourth quarters of our fiscal year which may alter our construction schedules and can create variability in our revenues and profitability. Therefore, the results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the full year. 2.   Recently Issued and Adopted Accounting Pronouncements We closely monitor all Accounting Standards Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB") and other authoritative guidance. Recently Issued Accounting Pronouncements: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments intended to improve the effectiveness of income tax disclosures. These new disclosure requirements are effective prospectively commencing with our annual report for the year ending December 31, 2025. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements: In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement , which requires that a joint venture apply a new basis of accounting upon formation. As a result, a newly formed joint venture, upon formation, would initially measure its assets and liabilities at fair value. This ASU is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Adoption of this ASU did not have a material impact on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures , which enhances the disclosures regarding an entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. We adopted this ASU retrospectively for the year ended December 31, 2024 and quarterly periods thereafter. See Note 18 for more information. No other new accounting pronouncements were recently issued or adopted in the three months ended March 31, 2025 that had or are expected to have a material impact on our financial statements. 3. Acquisition Dickerson & Bowen, Inc. On August 9, 2024, we completed the acquisition of Dickerson & Bowen, Inc. ("D&B") for $ 125.5 million in cash, subject to customary closing adjustments. D&B is an aggregates, asphalt and highway construction company serving central and southern Mississippi which expands our footprint in that region. D&B’s customers are in both the public and private 8 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) sectors. We have accounted for this transaction in accordance with Accounting Standards Codification ("ASC") Topic 805, Business Combinations (“ASC 805”). D&B's results have been included in the Construction and Materials segments since the acquisition date. Revenue and gross profit attributable to D&B for the three months ended March 31, 2025 were $ 15.6 million and $ 2.1 million, respectively. Preliminary Purchase Price Allocation In accordance with ASC 805, the preliminary purchase price was allocated to assets acquired and liabilities assumed based on their estimated fair values as of August 9, 2024. These estimates are subject to revision, which may result in adjustments to the values disclosed below. There are certain provisional estimates that are subject to finalization such as deferred taxes. As we continue to integrate the acquired business, we may obtain additional information which may result in revisions to preliminary valuation assumptions, estimates and the resulting fair values presented herein. We expect to finalize these amounts within 12 months from the acquisition date. For the purpose of the preliminary purchase price allocation, the contractual purchase price has been adjusted to exclude $ 4 million in cash acquired and include closing adjustments, resulting in an updated purchase price of $ 121.2 million. The tangible and identifiable intangible assets acquired, net of liabilities assumed, were $ 25.2 million and $ 27.9 million, respectively. This generated acquired goodwill of $ 68.1 million, none of which is tax deductible. The most significant assets acquired were $ 38.1 million of property and equipment and an $ 18.2 million customer relationships intangible asset. During the three months ended March 31, 2025, we made immaterial measurement period adjustments to reflect facts and circumstances in existence as of the acquisition date. 4.   Revisions in Estimates Our profit recognition related to construction contracts is based on estimates of transaction price and costs to complete each project. These estimates can vary significantly in the normal course of business as projects progress, circumstances develop and evolve, and uncertainties are resolved. Changes in estimates of transaction price and costs to complete may result in the reversal of previously recognized revenue if the current estimate adversely differs from the previous estimate. In addition, the estimated or actual recovery related to estimated costs associated with unresolved affirmative claims and back charges may be recorded in future periods or may be at values below the associated cost, which can cause fluctuations in the gross profit impact from revisions in estimates. When we experience significant revisions in our estimates, we undergo a process that includes reviewing the nature of the changes to ensure that there are no material amounts that should have been recorded in a prior period rather than as revisions in estimates for the current period. For revisions in estimates, generally we use the cumulative catch-up method for changes to the transaction price that are part of a single performance obligation. Under this method, revisions in estimates are accounted for in their entirety in the period of change. There can be no assurance that we will not experience further changes in circumstances or otherwise be required to revise our estimates in the future. In our review of these changes for the three months ended March 31, 2025 and 2024, we did not identify any material amounts that should have been recorded in a prior period. The projects with increases from revisions in estimates, which individually had an impact of $ 5.0 million or more on gross profit, are summarized as follows (dollars in millions, except per share data): Three Months Ended March 31, 2025 2024 Number of projects with upward estimate changes 1 1 Increase in gross profit, net $ 8.3 $ 7.4 Increase to project profitability, net $ 8.3 $ 7.4 Decrease to net loss $ 6.2 $ 5.6 Decrease to net loss attributable to Granite Construction Incorporated $ 6.2 $ 5.6 Decrease to net loss per diluted share attributable to common shareholders $ 0.14 $ 0.13 The increase during the three months ended March 31, 2025 was due to a change in the estimated amount of probable recovery on an outstanding claim and the increase during the three months ended March 31, 2024 was due to changes in 9 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) the estimated transaction price related to contract modifications resulting from revisions to project work plans, permitting and scheduling. None of the increases above had an impact on non-controlling interest. The projects with decreases from revisions in estimates, which individually had an impact of $ 5.0 million or more on gross profit, are summarized as follows (dollars in millions, except per share data): Three Months Ended March 31, 2025 2024 Number of projects with downward estimate changes 1 1 Reduction in gross profit, net $ 8.8 $ 7.7 Decrease to project profitability, net $ 8.8 $ 7.7 Increase to net loss $ 6.6 $ 5.8 Increase to net loss attributable to Granite Construction Incorporated $ 6.6 $ 5.8 Increase to net loss per diluted share attributable to common shareholders $ 0.15 $ 0.13 The decreases during the three months ended March 31, 2025 and 2024 were due to additional costs related to changes in project duration, lower productivity than originally anticipated and increased labor and materials costs. None of the decreases above had any impact on non-controlling interest. 5.   Disaggregation of Revenue In addition to disaggregating revenue by reportable segment (see Note 18), we further disaggregate Construction segment revenue by customer type and Materials segment revenue by product line. We believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Construction Segment Disaggregation by Customer Type Customers in our Construction segment are predominantly in the public sector which includes certain federal agencies, state departments of transportation, local transit authorities, county and city public works departments and school districts. Our private sector customers include, but are not limited to, developers, utilities and private owners of industrial, commercial and residential sites. Materials Segment Disaggregation by Product Line The Materials segment focuses primarily on production of aggregates, recycled materials, asphalt concrete and liquid asphalt. In the first quarter of 2025, we began disaggregating Materials segment revenue by product line. We categorize aggregates and recycled materials as Aggregates and asphalt concrete and liquid asphalt as Asphalt in the table below. Other includes immaterial amounts of revenue from products and services that are not considered to be core product lines. The following table presents our revenue disaggregated by reportable segment, by customer type for our Construction segment and product line for our Materials segment: Three Months Ended March 31, (in thousands) 2025 2024 Construction segment revenue: Public $ 395,885 $ 419,816 Private 218,733 175,397 Total Construction segment revenue $ 614,618 $ 595,213 Materials segment revenue: Aggregates $ 40,402 $ 36,089 Asphalt 43,982 40,813 Other 545 160 Total Materials segment revenue $ 84,929 $ 77,062 Total revenue $ 699,547 $ 672,275 10 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 6.   Unearned Revenue The following table presents our unearned revenue disaggregated by customer type as of the respective periods: (in thousands) March 31, 2025 December 31, 2024 Public $ 3,114,074 $ 2,801,273 Private 719,801 783,105 Total $ 3,833,875 $ 3,584,378 All unearned revenue is in the Construction segment. Approximately $ 2.8 billion of the March 31, 2025 unearned revenue is expected to be recognized within the next twelve months and the remaining amount will be recognized thereafter. 7.   Contract Assets and Liabilities As a result of changes in contract transaction price related to performance obligations that were satisfied or partially satisfied prior to the end of the periods, we recognized revenue of $ 49.5 million and $ 84.3 million during the three months ended March 31, 2025 and 2024, respectively. The changes in contract transaction price for the three months ended March 31, 2025 and 2024 were from items such as executed or estimated change orders and unresolved contract modifications and claims. As of March 31, 2025 and December 31, 2024, the aggregate claim recovery estimates included in contract asset and liability balances were $ 44.9 million and $ 46.6 million, respectively. The components of the contract asset balances as of the respective dates were as follows: (in thousands) March 31, 2025 December 31, 2024 Costs in excess of billings and estimated earnings $ 125,545 $ 139,436 Contract retention 149,047 188,917 Total contract assets $ 274,592 $ 328,353 As of March 31, 2025 and December 31, 2024, no contract retention receivables individually exceeded 10% of total contract assets. The December 31, 2024 contract retention balance included $ 29.2 million from Brightline Trains Florida LLC, all of which was collected in the first quarter of 2025. The majority of the contract retention balance is expected to be collected within one year. As work is performed, revenue is recognized and the corresponding contract liabilities are reduced. We recognized revenue of $ 207.8 million and $ 198.3 million during the three months ended March 31, 2025 and 2024, respectively, that was included in the contract liability balances at December 31, 2024 and 2023, respectively. The components of the contract liability balances as of the respective dates were as follows: (in thousands) March 31, 2025 December 31, 2024 Billings in excess of costs and estimated earnings, net of retention $ 267,734 $ 288,495 Provisions for losses 12,759 11,176 Total contract liabilities $ 280,493 $ 299,671 11 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 8.   Receivables, net Receivables include billed and unbilled amounts for services provided to clients for which we have an unconditional right to payment as of the end of the applicable period and generally do not bear interest. The following table presents major categories of receivables: (in thousands) March 31, 2025 December 31, 2024 Contracts completed and in progress: Billed $ 211,878 $ 250,656 Unbilled 126,837 127,776 Total contracts completed and in progress 338,715 378,432 Materials sales 45,892 55,770 Other 87,471 78,309 Total gross receivables 472,078 512,511 Less: allowance for credit losses 742 769 Total net receivables $ 471,336 $ 511,742 Included in other receivables at March 31, 2025 and December 31, 2024 were items such as estimated recovery from back charge claims, notes receivable and income and other tax refunds receivable. Other receivables at March 31, 2025 and December 31, 2024 also included $ 25.0 million of working capital contributions in the form of a loan to a partner in one of our unconsolidated construction joint ventures, plus accrued interest. None of our customers had a receivable balance in excess of 10 % of our total net receivables as of March 31, 2025 or December 31, 2024. 9.   Fair Value Measurement The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value measurement levels (in thousands): Fair Value Measurement at Reporting Date Using March 31, 2025 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 94,251 $ — $ — $ 94,251 Total assets $ 94,251 $ — $ — $ 94,251 Accrued and other current liabilities Heating oil swaps $ — $ 287 $ — $ 287 Total liabilities $ — $ 287 $ — $ 287 December 31, 2024 Cash equivalents Money market funds $ 73,031 $ — $ — $ 73,031 Total assets $ 73,031 $ — $ — $ 73,031 Accrued and other current liabilities Heating oil swaps $ — $ 531 $ — $ 531 Diesel collars — 177 — 177 Total liabilities $ — $ 708 $ — $ 708 Commodity Derivatives We have entered into collar contracts and commodity swaps to reduce our price exposure on diesel consumption and heating oil consumption, respectively. The collars and swaps were not designated as hedges and will be treated as a mark-to-market derivative instruments through their maturity dates. The collar contracts matured on March 31, 2025. The financial statement impact of the collar contracts and commodity swaps for the three months ended March 31, 2025 and 2024 was immaterial . 12 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) Other Assets and Liabilities The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows: March 31, 2025 December 31, 2024 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value Assets: Held-to-maturity marketable securities (1) Corporate notes and bonds Level 1 $ 46,754 $ 46,723 $ — $ — U.S. Government and agency obligations Level 1 $ 44,960 $ 44,925 $ 7,311 $ 7,312 Commercial paper Level 1 $ 26,434 $ 26,425 $ — $ — Municipal notes and bonds Level 1 $ 15,855 $ 15,843 $ — $ — Liabilities (including current maturities): 3.75 % Convertible Notes (2) Level 2 $ 373,750 $ 642,046 $ 373,750 $ 738,724 3.25 % Convertible Notes (2) Level 2 $ 373,750 $ 446,343 $ 373,750 $ 491,582 (1) All marketable securities were classified as held-to-maturity as of the periods presented. Of the above balances, $ 43.7 million and $ 7.3 million were short-term marketable securities on our condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024, respectively and $ 90.3 million were long-term marketable securities on our condensed consolidated balance sheets as of March 31, 2025. Our long-term securities have varying maturities between one and three years. ( 2) The fair values of our 3.25 % convertible senior notes due 2030 (the " 3.25 % Convertible Notes") and our 3.75 % convertible senior notes due 2028 (the " 3.75 % Convertible Notes") are based on the median price of the notes in an active market. See Note 14 for more information about our convertible notes. During the three months ended March 31, 2025 and 2024, we had no material nonfinancial asset and liability fair value adjustments. 10.   Construction Joint Ventures We participate in various construction joint ventures. We have determined that certain of these joint ventures are consolidated because they are variable interest entities (“VIEs”) and we are the primary beneficiary. We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE. Based on our assessments during the three months ended March 31, 2025, we determined no change was required for existing joint ventures. Due to the joint and several nature of the performance obligations under the related owner contracts, if any of our partners fail to perform, we and the remaining partners, if any, would be responsible for performance of the outstanding work (i.e., we provide a performance guarantee). We are not able to estimate amounts that may be required beyond the current remaining forecasted cost of the work to be performed. These forecasted costs could be offset by billings to the customer or by proceeds from our partners’ corporate and/or other guarantees. See Note 13 for disclosure of the performance guarantee amounts recorded in the condensed consolidated balance sheets. Consolidated Construction Joint Ventures (“CCJVs”) As of March 31, 2025, we were engaged in nine active CCJV projects. Our proportionate share of the equity in these joint ventures was between 50.0 % and 70.0 %. During the three months ended March 31, 2025 and 2024, total revenue from CCJVs was $ 74.6 million and $ 71.6 million, respectively. During the three months ended March 31, 2025 and 2024, CCJVs provided $ 59.6 million and $ 5.8 million of operating cash flows, respectively. As of March 31, 2025, our share of revenue remaining to be recognized on these CCJVs was $ 369.2 million and ranged from $ 1.1 million to $ 188.9 million by project. Unconsolidated Construction Joint Ventures As of March 31, 2025, we were engaged in three active unconsolidated construction joint venture projects. Our proportionate share of the equity in these unconsolidated construction joint ventures ranged from 30.0 % to 50.0 %. As of March 31, 2025, our share of the revenue remaining to be recognized on these unconsolidated construction joint ventures was $ 21.8 million and ranged from $ 0.5 million to $ 18.6 million by project. 13 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) The following is summary financial information related to unconsolidated construction joint ventures: (in thousands) March 31, 2025 December 31, 2024 Assets Cash, cash equivalents and marketable securities $ 114,035 $ 94,856 Other current assets (1) 592,351 599,625 Noncurrent assets 33,328 35,886 Less: partners’ interest 505,669 498,872 Granite’s interest (1),(2) $ 234,045 $ 231,495 Liabilities Current liabilities $ 140,105 $ 151,655 Less: partners’ interest and adjustments (3) 54,651 57,437 Granite’s interest $ 85,454 $ 94,218 Equity in construction joint ventures (4) $ 148,591 $ 137,277 (1) Included in this balance and in accrued expenses and other current liabilities on the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 was $ 55.5 million related to performance guarantees (see Note 13). (2) Included in this balance as of March 31, 2025 and December 31, 2024 was $ 66.9 million related to Granite’s share of estimated cost recovery of customer affirmative claims. In addition, this balance included $ 1.7 million related to Granite’s share of estimated recovery of back charge claims as of March 31, 2025 and December 31, 2024. (3) Partners’ interest and adjustments includes amounts to reconcile total net assets as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast differences. (4) Included in this balance and in accrued expenses and other current liabilities on our condensed consolidated balance sheets was $ 2.9 million and $ 3.7 million as of March 31, 2025 and December 31, 2024, respectively, related to deficits in unconsolidated construction joint ventures, which includes provisions for losses. Three Months Ended March 31, (in thousands) 2025 2024 Revenue Total $ 4,071 $ 8,717 Less: partners’ interest and adjustments (1) ( 846 ) ( 1,513 ) Granite’s interest $ 4,917 $ 10,230 Cost of revenue Total $ 17,534 $ 18,751 Less: partners’ interest and adjustments (1) 13,584 10,270 Granite’s interest $ 3,950 $ 8,481 Granite’s interest in gross profit $ 967 $ 1,749 Net Income (Loss) Total $ ( 12,462 ) $ ( 8,149 ) Less: partners’ interest and adjustments (1) ( 13,678 ) ( 10,439 ) Granite’s interest in net income (2) $ 1,216 $ 2,290 (1) Partners’ interest and adjustments includes amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest adjusted to reflect our accounting policies and estimates primarily related to contract forecast and/or actual differences. (2) These joint venture net income amounts exclude our corporate overhead required to manage the joint ventures and include taxes only to the extent the applicable states have joint venture level taxes. 14 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 11.   Investments in Affiliates Our investments in affiliates balance consists of equity method investments in the following types of entities: (in thousands) March 31, 2025 December 31, 2024 Foreign $ 72,553 $ 72,075 Real estate 4,633 4,552 Asphalt terminal 16,481 17,404 Total investments in affiliates $ 93,667 $ 94,031 The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis: (in thousands) March 31, 2025 December 31, 2024 Current assets $ 189,152 $ 205,235 Noncurrent assets 134,813 130,451 Total assets $ 323,965 $ 335,686 Current liabilities $ 62,375 $ 68,679 Long-term liabilities (1) 45,790 45,007 Total liabilities $ 108,165 $ 113,686 Net assets $ 215,800 $ 222,000 Granite’s share of net assets $ 93,667 $ 94,031 (1) This balance is primarily related to local bank debt for equipment purchases and debt associated with our real estate ventures. Affiliate assets as of March 31, 2025 included $ 249.2 million of foreign affiliate assets, $ 39.2 million of assets in real estate ventures and $ 35.6 million of assets in the asphalt terminal entity. 12.   Property and Equipment, net Balances of major classes of assets and total accumulated depreciation and depletion are included in property and equipment, net in the condensed consolidated balance sheets as follows: (in thousands) March 31, 2025 December 31, 2024 Equipment and vehicles $ 1,216,375 $ 1,211,208 Quarry property 256,057 256,043 Land and land improvements 142,985 128,124 Buildings and leasehold improvements 114,881 115,147 Office furniture and equipment 77,761 75,078 Property and equipment $ 1,808,059 $ 1,785,600 Less: accumulated depreciation and depletion 1,085,924 1,069,416 Property and equipment, net $ 722,135 $ 716,184 13.   Accrued Expenses and Other Current Liabilities (in thousands) March 31, 2025 December 31, 2024 Accrued insurance $ 93,441 $ 80,797 Payroll and related employee benefits 71,102 119,510 Performance guarantees 55,488 55,488 Short-term lease liabilities 21,056 20,165 Other 55,553 47,996 Total $ 296,640 $ 323,956 15 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) Other includes deficits in unconsolidated construction joint ventures, dividends payable, taxes payable, interest payable, warranty reserves, asset retirement obligations, remediation reserves and other miscellaneous accruals, none of which were greater than 5% of total current liabilities at any of the presented dates. 14.   Long-Term Debt and Credit Arrangements (in thousands) March 31, 2025 December 31, 2024 3.25 % Convertible Notes due 2030 $ 373,750 $ 373,750 3.75 % Convertible Notes due 2028 373,750 373,750 Debt issuance costs and other ( 7,786 ) ( 8,452 ) Total debt $ 739,714 $ 739,048 Less: current maturities 1,119 1,109 Total long-term debt $ 738,595 $ 737,939 Credit Agreement In June 2022, we entered into the Fourth Amended and Restated Credit Agreement (the "Credit Agreement") which matures on June 2, 2027. The Credit Agreement consists of a $ 350.0 million senior secured, five-year revolving credit facility (the “Revolver”), including an accordion feature allowing us to increase borrowings up to the greater of (a) $ 200.0 million and (b) 100 % of twelve-month trailing consolidated EBITDA, subject to lender approval. The Credit Agreement includes a $ 150.0 million sublimit for letters of credit ($ 75.0 million for financial letters of credit) and a $ 20.0 million sublimit for swingline loans. We may borrow on the Revolver, at our option, at either (a) the Secured Overnight Financing Rate (“SOFR”) term rate plus a credit adjustment spread plus applicable margin ranging from 1.0 % to 2.0 %, or (b) a base rate plus an applicable margin ranging from zero to 1.0 %. The applicable margin is based on our Consolidated Leverage Ratio (as defined in our Credit Agreement), calculated quarterly. As of March 31, 2025, the total unused availability under the Credit Agreement was $ 330.4 million, resulting from $ 19.6 million in issued and outstanding letters of credit and no amount drawn under the Revolver. The letters of credit had expiration dates between June 2025 and November 2025. 3.25 % Convertible Notes On June 11, 2024, we issued $ 373.8 million aggregate principal amount of our 3.25 % Convertible Notes. The 3.25 % Convertible Notes bear interest at a rate of 3.25 % per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The 3.25 % Convertible Notes mature on June 15, 2030, unless earlier converted, redeemed or repurchased. Prior to the close of business on the business day immediately preceding December 15, 2029, the 3.25 % Convertible Notes will be convertible at the option of the holders only upon the occurrence of certain events and during certain periods. Thereafter, the 3.25 % Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding their maturity date. The 3.25 % Convertible Notes have an initial conversion rate of 12.8398 shares of our common stock per $1,000 principal amount of the 3.25 % Convertible Notes, which is equivalent to an initial conversion price of approximately $ 77.88 per share of our common stock, subject to adjustment if certain events occur. Upon conversion, we will settle the principal amount of the 3.25 % Convertible Notes in cash, and any conversion premium in excess of the principal amount in cash, or a combination of cash and shares of common stock, at our election. In addition, upon the occurrence of a “fundamental change” as defined in the indenture governing the 3.25 % Convertible Notes, holders may require us to repurchase for cash all or any portion of their 3.25 % Convertible Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 3.25 % Convertible Notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If certain corporate events that constitute a “make-whole fundamental change” as set forth in the indenture governing the 3.25 % Convertible Notes occur prior to the maturity date of the 3.25 % Convertible Notes or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 3.25 % Convertible Notes in connection with such event or notice of redemption. We will not be able to redeem the 3.25 % Convertible Notes prior to June 21, 2027. On or after June 21, 2027, we will be able to redeem for cash all or any portion of the 3.25 % Convertible Notes, at our option, if the last reported sale price of Granite’s common stock is equal to or greater than 130 % of the conversion price for a specified period of time at a redemption price equal to 100 % of the principal amount of the 3.25 % Convertible Notes to be redeemed, plus accrued but 16 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) unpaid interest to, but excluding, the redemption date. The indenture governing the 3.25 % Convertible Notes contains customary events of default. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, with respect to us or our significant subsidiaries, all outstanding 3.25 % Convertible Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, then the trustee or the holders of at least 25% in aggregate principal amount of the 3.25 % Convertible Notes then outstanding may declare the 3.25 % Convertible Notes due and payable immediately. 2024 Capped Call Transactions In June 2024, we entered into privately negotiated capped call transactions in connection with the offering of the 3.25 % Convertible Notes (the "2024 capped call transactions"). The 2024 capped call transactions are expected generally to reduce the potential dilution to our common stock upon any conversion of the 3.25 % Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 3.25 % Convertible Notes, as the case may be. If, however, the market price per share of our common stock, as measured under the terms of the 2024 capped call transactions, exceeds the cap price of $ 119.82 of the 2024 capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such cash payments, in each case, to the extent that such market price exceeds the cap price of the 2024 capped call transactions. 3.75 % Convertible Notes On May 11, 2023, we issued $ 373.8 million aggregate principal amount of our 3.75 % Convertible Notes. The 3.75 % Convertible Notes bear interest at a rate of 3.75 % per annum payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2023 and mature on May 15, 2028, unless earlier converted, redeemed or repurchased. Prior to the close of business on the business day immediately preceding November 15, 2027, the 3.75 % Convertible Notes will be convertible at the option of the holders only upon the occurrence of certain events and during certain periods. Thereafter, the 3.75 % Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The initial conversion rate applicable to the 3.75 % Convertible Notes is 21.6807 shares of Granite common stock per $1,000 principal amount of the 3.75 % Convertible Notes, which is equivalent to an initial conversion price of approximately $ 46.12 per share of Granite common stock, subject to adjustment if certain events occur. Upon conversion, we will pay or deliver, as the case may be, cash, shares of Granite common stock or a combination of cash and shares of Granite common stock, at our election. In addition, upon the occurrence of a “fundamental change” as defined in the indenture governing the 3.75 % Convertible Notes, holders may require us to repurchase for cash all or any portion of their 3.75 % Convertible Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 3.75 % Convertible Notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If certain corporate events that constitute a “make-whole fundamental change” as set forth in the indenture governing the 3.75 % Convertible Notes occur prior to the maturity date of the 3.75 % Convertible Notes or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 3.75 % Convertible Notes in connection with such event or notice of redemption. We will not be able to redeem the 3.75 % Convertible Notes prior to May 20, 2026. On or after May 20, 2026, we have the option to redeem for cash all or any portion of the 3.75 % Convertible Notes if the last reported sale price of our common stock is equal to or greater than 130 % of the conversion price for a specified period of time at a redemption price equal to 100 % of the principal amount of the 3.75 % Convertible Notes to be redeemed, plus any accrued but unpaid interest to, but excluding, the redemption date. The indenture governing the 3.75 % Convertible Notes contains customary events of default. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, with respect to us or our significant subsidiaries, all outstanding 3.75 % Convertible Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, then the trustee or the holders of at least 25 % in aggregate principal amount of the 3.75 % Convertible Notes then outstanding may declare the 3.75 % Convertible Notes due and payable immediately. 2023 Capped Call Transactions In May 2023, we entered into capped call transactions (the "2023 capped call transactions") in connection with the offering of the 3.75 % Convertible Notes. The 2023 capped call transactions are expected generally to reduce the potential dilution to our common stock upon conversion of the 3.75 % Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 3.75 % Convertible Notes, as the case may be. If, however, the market price per share of our common stock, as measured under the terms of the 2023 capped call transactions, exceeds the cap price of $ 79.83 of the 2023 capped call transactions, there would nevertheless be dilution and/or there would not be an 17 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) offset of such cash payments, in each case, to the extent that such market price exceeds the cap price of the 2023 capped call transactions. Covenants and Events of Default Our Credit Agreement requires us to comply with various affirmative, restrictive and financial covenants, including the financial covenants described below. Our failure to comply with these covenants would constitute an event of default under the Credit Agreement. Additionally, the 3.25 % Convertible Notes and 3.75 % Convertible Notes are governed by the terms and conditions of their respective indentures. Our failure to pay principal, interest or other amounts when due or within the relevant grace period on our 3.25 % Convertible Notes, our 3.75 % Convertible Notes or our Credit Agreement would constitute an event of default under the 3.25 % Convertible Notes indenture, the 3.75 % Convertible Notes indenture or the Credit Agreement. A default under our Credit Agreement could result in (i) us no longer being entitled to borrow under such facility; (ii) termination of such facility; (iii) the requirement that any letters of credit under such facility be cash collateralized; (iv) acceleration of amounts owed under the Credit Agreement; and/or (v) foreclosure on any collateral securing the obligations under such facility. A default under the 3.25 % Convertible Notes indenture or the 3.75 % Convertible Notes indenture could result in acceleration of the maturity of the notes. The most significant financial covenants under the terms of our Credit Agreement require the maintenance of a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Leverage Ratio. As of March 31, 2025, we were in compliance with all covenants contained in the Credit Agreement. We are not aware of any non-compliance by any of our unconsolidated real estate ventures with the covenants contained in their debt agreements. Debt Issuance Costs During the three months ended March 31, 2025 and 2024, we recorded $ 0.9 million and $ 0.6 million, respectively, of amortization related to debt issuance costs. 15.   Weighted Average Shares Outstanding and Net Loss Per Share The following table presents a reconciliation of the weighted average shares of common stock used in calculating basic and diluted net loss per share as well as the calculation of basic and diluted net loss per share: Three Months Ended March 31, (in thousands, except per share amounts) 2025 2024 Numerator Net loss attributable to common shareholders $ ( 33,656 ) $ ( 30,983 ) Denominator Weighted average common shares outstanding, basic 43,463 43,988 Weighted average common shares outstanding, diluted 43,463 43,988 Net loss per share, basic $ ( 0.77 ) $ ( 0.70 ) Net loss per share, diluted $ ( 0.77 ) $ ( 0.70 ) Due to net losses for the three months ended March 31, 2025 and 2024, both the unvested RSUs representing 585,000 and 573,000 shares, respectively, and the potential dilution from the convertible notes converting into 8,427,000 and 9,099,000 shares, respectively, of common stock have been excluded from the calculation of diluted earnings per share, as their inclusion would have been anti-dilutive. In connection with the issuance of the 3.25 % Convertible Notes and 3.75 % Convertible Notes, we entered into the 2024 capped call transactions and 2023 capped call transactions, respectively, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. 18 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 16.   Income Taxes The following table presents the benefit from income taxes for the respective periods: Three Months Ended March 31, (dollars in thousands) 2025 2024 Benefit from income taxes $ ( 11,756 ) $ ( 9,526 ) Effective tax rate 29.3 % 24.4 % Our effective tax rate for the three months ended March 31, 2025 is higher than the prior period because of an increase in the estimated annual effective tax rate combined with an increase in year-to-date discrete benefit associated with lapsed RSU awards. The estimated annual effective tax rate is higher than the prior period primarily due to changes in the estimated state tax liability and equity earnings of subsidiaries. 17.   Contingencies - Legal Proceedings Liabilities relating to legal proceedings and government inquiries, to the extent that we have concluded such liabilities are probable and the amounts of such liabilities are reasonably estimable, are recorded in the consolidated balance sheets. Disclosure is required when a material loss is probable but not reasonably estimable, a material loss is reasonably possible but not probable, or when it is reasonably possible that the amount of a loss will exceed the amount recorded. The total liabilities recorded in our condensed consolidated balance sheets for legal proceedings and government inquiries were immaterial as of March 31, 2025 and December 31, 2024. It is possible that future developments in our legal proceedings and inquiries could require us to (i) adjust or reverse existing accruals, or (ii) record new accruals that we did not originally believe to be probable or that could not be reasonably estimated. Such changes could be material to our financial condition, results of operations and/or cash flows in any particular reporting period. Ordinary Course Legal Proceedings In the ordinary course of business, we and our affiliates are involved in various legal proceedings alleging, among other things, liability issues or breach of contract or tortious conduct in connection with the performance of services and/or materials provided, the various outcomes of which often cannot be predicted with certainty. For information on our accounting policies regarding affirmative claims and back charges that we are party to in the ordinary course of business, see Note 1 of our Annual Report. We and our affiliates are also subject to government inquiries in the ordinary course of business seeking information concerning our compliance with government construction contracting requirements and various laws and regulations, the outcomes which often cannot be predicted with certainty. Some of the matters in which we or our joint ventures and affiliates are involved may involve compensatory, punitive, or other claims or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that are not probable to be incurred or cannot currently be reasonably estimated. In addition, in some circumstances our government contracts could be terminated, we could be suspended, debarred or incur other administrative penalties or sanctions, or payment of our costs could be disallowed. While any of our pending legal proceedings may be subject to early resolution as a result of our ongoing efforts to resolve the proceedings, whether or when any legal proceeding will be resolved is neither predictable nor guaranteed. 18.  Reportable Segment Information We manage our operations under two reportable segments, Construction and Materials, which are distinguished by differences in business activities. Our reportable segments are the same as our operating segments and correspond with how our chief operating decision maker, or decision-making group (our “CODM”) regularly reviews financial information to allocate resources and assess performance. We identified our CODM as our Chief Executive Officer and our Chief Operating Officer. Our CODM evaluates segment performance and makes business decisions based on operating income, which excludes non-operating income or expense. Segment assets include property and equipment, intangibles, goodwill, inventory and equity in construction joint ventures. 19 Table of Contents GRANITE CONSTRUCTION INCORPORATED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) Summarized segment information is as follows (in thousands): Three Months Ended March 31, Construction Materials Total 2025 Total revenue from reportable segments $ 614,618 $ 105,580 $ 720,198 Elimination of intersegment revenue — ( 20,651 ) ( 20,651 ) Revenue 614,618 84,929 699,547 Cost of revenue 529,180 86,518 615,698 Gross profit (loss) 85,438 ( 1,589 ) 83,849 Selling, general and administrative expenses 62,327 8,545 70,872 Gain on sales of property and equipment, net ( 1,849 ) ( 69 ) ( 1,918 ) Operating income (loss) from reportable segments $ 24,960 $ ( 10,065 ) $ 14,895 Depreciation, depletion and amortization $ 14,452 $ 13,555 $ 28,007 Segment assets as of period end $ 613,882 $ 698,718 $ 1,312,600 2024 Total revenue from reportable segments $ 595,213 $ 88,704 $ 683,917 Elimination of intersegment revenue — ( 11,642 ) ( 11,642 ) Revenue 595,213 77,062 672,275 Cost of revenue 538,385 79,605 617,990 Gross profit (loss) 56,828 ( 2,543 ) 54,285 Selling, general and administrative expenses 48,824 5,142 53,966 Gain on sales of property and equipment, net ( 1,222 ) ( 528 ) ( 1,750 ) Operating income (loss) from reportable segments $ 9,226 $ ( 7,157 ) $ 2,069 Depreciation, depletion and amortization $ 13,703 $ 10,477 $ 24,180 Segment assets as of period end $ 594,437 $ 562,581 $ 1,157,018 A reconciliation of operating income from reportable segments to consolidated loss before income taxes is as follows: Three Months Ended March 31, (in thousands) 2025 2024 Total operating income from reportable segments $ 14,895 $ 2,069 Corporate selling, general and administrative expenses 45,039 34,027 Corporate loss on sales of property and equipment, net 181 332 Other costs, net 9,426 11,010 Total operating loss ( 39,751 ) ( 43,300 ) Total other (income) expense, net 332 ( 4,332 ) Loss before income taxes $ ( 40,083 ) $ ( 38,968 ) 20 Table of Contents