Construction Joint Ventures

12 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

9. Construction Joint Ventures

We participate in various construction joint ventures. As discussed in Note 1, we have determined that certain of these joint ventures are consolidated because they are 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 years ended December 31, 2024, 2023 and 2022, 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). At December 31, 2024, there was $100.6 million of remaining contract value on unconsolidated and line item construction joint venture contracts of which $35.6 million represented our share and the remaining $65.0 million represented our partners’ share. 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 consolidated balance sheets and Note 1 for additional discussion regarding performance guarantees.

Consolidated Construction Joint Ventures

At December 31, 2024, 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 years ended December 31, 2024, 2023 and 2022, total revenue from CCJVs was $349.5 million, $307.2 million and $437.1 million, respectively. During the years ended December 31, 2024, 2023 and 2022, CCJVs provided $69.8 million, and used $38.1 million and $5.7 million of operating cash flows, respectively. As of December 31, 2024, our share of revenue remaining to be recognized on these CCJVs was $337.7 million and ranged from $1.9 million to $132.9 million by project.

Unconsolidated Construction Joint Ventures

As discussed in Note 1, where we have determined we are not the primary beneficiary of a joint venture but do exercise significant influence, we account for our share of the operations of unconsolidated construction joint ventures on a pro rata basis in revenue and cost of revenue in the consolidated statements of operations and in equity in construction joint ventures or accrued expenses and other current liabilities in the consolidated balance sheets.

As of December 31, 2024, we were engaged in five 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 December 31, 2024, our share of the revenue remaining to be recognized on these unconsolidated construction joint ventures was $26.1 million and ranged from $0.4 million to $21.3 million by project.

The following is summary financial information related to unconsolidated construction joint ventures:


(in thousands)	December 31, 2024		December 31, 2023
Assets:
Cash, cash equivalents and marketable securities	$	94,856	$	117,962
Other current assets (1)	599,625		666,536
Noncurrent assets	35,886		52,580
Less: partners’ interest	498,872		574,723
Granite’s interest (1),(2)	$	231,495	$	262,355
Liabilities:
Current liabilities	$	151,655	$	191,175
Less: partners’ interest and adjustments (3)	57,437		85,131
Granite’s interest	$	94,218	$	106,044
Equity in construction joint ventures (4)	$	137,277	$	156,311

(1)Included in this balance and in accrued expenses and other current liabilities on the consolidated balance sheets as of December 31, 2024 and 2023 was $55.5 million and $57.8 million, respectively, related to performance guarantees (see Note 13).

(2)Included in this balance as of December 31, 2024 and 2023 was $66.9 million and $66.6 million, respectively, 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 December 31, 2024 and 2023.

(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 consolidated balance sheets was $3.7 million and $14.9 million as of December 31, 2024 and 2023, respectively, related to deficits in unconsolidated construction joint ventures which includes provisions for losses.


Years Ended December 31,	2024		2023		2022
(in thousands)
Revenue
Total	$	66,871	$	66,738	$	330,835
Less: partners’ interest and adjustments (1)	39,081		42,230		210,678
Granite’s interest	$	27,790	$	24,508	$	120,157
Cost of revenue
Total	$	95,448	$	95,448	$	378,237
Less: partners’ interest and adjustments (1)	60,603		51,359		238,699
Granite’s interest	$	34,845	$	44,089	$	139,538
Granite’s interest in gross loss	$	(7,055)	$	(19,581)	$	(19,381)
Net Loss
Total	$	(21,837)	$	(24,843)	$	(47,904)
Less: partners’ interest and adjustments (1)	(16,735)		(6,226)		(28,228)
Granite’s interest in net loss (2)	$	(5,102)	$	(18,617)	$	(19,676)

(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 ventures' net loss 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.