There was a time when construction seemed insulated from the economic malaise hitting other industries, especially during the COVID-19 pandemic. When officials deemed building as an “essential” sector and exempted it from lockdowns early in the crisis, crews could keep working, largely uninterrupted.
But now, even as inflation has eased and supply chain struggles have been largely smoothed out, it’s become clear that construction isn’t immune to the ultimate business equalizer: higher interest rates over a sustained period.
That was the main takeaway from the first round of earnings reports from public construction companies in 2024. While infusions of cash from public funding have helped the sector immensely — backlogs at most of the eight firms we covered rose — continued challenges from the capital markets also put up roadblocks to sustained prosperity.
Just look at Skanska, where impairment charges for lower real estate values weighed on results. Or AECOM, whose otherwise upbeat profits were marred by two deals being pulled from its pipeline. Then there was Granite, whose small-ball approach seems to be paying dividends, if it can only exorcize the ghosts of past legacy projects.
Read on for details about each of the public firms that Construction Dive covers.
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