Granite US Holdings Corp.

Overview Key strengths Key risks Broad geographic diversity, limited customer concentration, and diversified customer base and product range somewhat guard against performance volatility. Exposure to cyclical end markets such as power, and oil and gas. Managed top-line performance well despite pandemic-related headwinds. Integration risk with acquisition-based growth strategy. Positive cash flow generation to support acquisitions. The company?s new build orders have recovered, but aftermarket revenues have been relatively flat due to delays in the supply chain. In the first quarter of 2022, orders were up 39% year on year (26% organically), driven by broad-based strength across its end markets, such as coal power, energy and renewables, and industrial solutions, across both new build and aftermarket. However, with the increase in

...We expect Granite US Holdings Corp.'s (doing business as Howden) top line to improve over the next 12 months, supported by end market recovery. The company's new build orders have recovered, but aftermarket revenues have been relatively flat due to delays in the supply chain. In the first quarter of 2022, orders were up 39% year on year (26% organically), driven by broad-based strength across its end markets, such as coal power, energy and renewables, and industrial solutions, across both new build and aftermarket. However, with the increase in orders, there is still a lag in orders translating to revenues. Howden has good scale and scope,...

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