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© 2020 Granite Construction. All Rights Reserved. Capital International Virtual Meeting

Capital International Virtual MeetingAugust 19, 2020


Any statements contained in this presentation that are not based on historical facts, including statements regarding future events, occurrences, circumstances, activities, performance, growth, demand, strategic plans, outcomes, outlook, guidance, backlog, Committed and Awarded Projects (CAP) and results and preliminary results, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by words such as “future,” “outlook,” “assumes,” “believes,” “expects,” “estimates,” “preliminary,” “anticipates,” “intends,” “plans,” “appears,” “may,” “will,” “should,” “could,” “would,” “continue,” and the negatives thereof or other comparable terminology or by the context in which they are made. These forward-looking statements are estimates reflecting the best judgment of senior management and reflect our current expectations regarding future events, occurrences, circumstances, activities, performance, growth, demand, strategic plans, outcomes, outlook, guidance, backlog, CAP, results and preliminary results. These expectations may or may not be realized. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our business, financial condition, results of operations, cash flows and liquidity. Such risks and uncertainties include, but are not limited to, the results of the ongoing Audit/Compliance Committee investigation, the ultimate geographic spread, duration and severity of the coronavirus (COVID-19) outbreak, and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact as well as those described in greater detail in our filings with the Securities and Exchange Commission, particularly those specifically described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Due to the inherent risks and uncertainties associated with our forward-looking statements, the reader is cautioned not to place undue reliance on them. The reader is also cautioned that the forward-looking statements contained herein speak only as of the date of this presentation and, except as required by law; we undertake no obligation to revise or update any forward-looking statements for any reason.

SAFE HARBOR

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James H. RobertsPresident and Chief Executive Officer

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Granite is America’s Infrastructure CompanyTM

Granite is in the business of delivering Infrastructure Solutions for public and private clients in the Americas.

Infrastructure Solutions is the consistent delivery of ideas, innovations, products and services to power today’s mobile

society and improve the everyday life of our clients.

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SunLink Modern Streetcar Tucson, AZ

98YEARS

About Granite

ForbesForbes Magazine, one of America’s

Best Mid-Size Employers

ENR2019 Results

#24 Top 400#1 Highways#1 Mining#2 Sanitary/Storm Sewers#2 Water Transmission #5 Bridges#6 Dams/Reservoirs

#6 Transportation#8 Water Supply#9 Transmission/Dist.#14 Solar#16 Airports#18 Mass Transit/Rail

Engineering News Record

7,200EMPLOYEES

11 YearsWorld’s Most Ethical Companies

11 Years in a row (2010-2020)

NAPANational Asphalt Paving Association

40 Napa quality awards for paving projects

CertifiedGreat Place to Work (2019-2020)

AGCAssociated General Contractors

First Place: Heavy/Civil/HighwayDivision over 1 million worker hours

Excellence Award: US12 Emergency Repair Project

FORTUNEWorld’s Most Admired Companies

CATALYST CEO Champions For Change

Granite is committed to continuing making diversity, inclusion, and gender

equality a priority in the workplace.

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DIVERSIFICATION: LAYNE, LIQUIFORCE ACQUISITIONS FUEL GROWTH OPPORTUNITIES

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• Shift to lower-risk, higher-margin projects

• Smaller work is booked and burned faster

• Focus on best-value procurement work is progressing

Execution of Diversified StrategyProject Portfolio

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Number of Projects4,000 – 4,500

Average Project Size~$2M

97% of Projects* <$20M

Operating in 44 States

* Open projects as of June 30, 20198


Strategic Plan Focus: 2023 Business Growth & Sustainability

Excellence in Execution

Focus on our People

Our employees pursue excellence, know what is expected of them, have proper resources and are accountable for results

Consistently and safely provide infrastructure solutions that exceed stakeholder expectations and create value for Granite

Increase the size, diversity and profitability of our business through acquisition and organic growth

Granite Stakeholder Value Creation

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Our expert teams go above and beyond to provide high-quality, technical, logistics and scheduling solutions to our internal and external construction materials customers

49 Asphalt Plants54 Quarries>716 Million Tons ofPermitted Reserves*

QUALITY AWARDS | 28 Granite Plants received National Asphalt Pavement Association (NAPA) Diamond Achievement Quality Commendations (2019)

SUSTAINABILITY AWARDS | 23 Granite Plants received NAPA Diamond Achievement Sustainable Commendations (2019)

*As of August 12, 2020

Construction Materials

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Ownership of aggregate materials and asphalt plants

• Control of quality and sourcing of key inputs for our

construction business

• Retain margins through the complete value chain

• Have two opportunities to participate in a project

• Sustains value through a down cycle

Ownership of sizable fleet of heavy equipment

• Economical option of highly utilized equipment

• Heavy equipment fleet managed centrally and

available across the organization

VALUE PROPOSITION FOR VERTICAL INTEGRATION

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Key facts about the U.S. surface transportation

Investing

Jobs

Infrastructure

A total of 43 percent of major roads in the U.S. are in poor or mediocre condition. Driving on deteriorated roads costs the nation’s motorists $130 billion a year

The design, construction and maintenance of transportation infrastructure in the U.S. supports approximately 4 million full-time jobs across all sectors of the states economy

Investments in the surface transportation system will boost the nation’s economy in the short-term by creating jobs and in the long-term will enhance economic competitiveness

INFRASTRUCTURE SPENDING – IMPACT ON ECONOMIC GROWTH AND SAFETY

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DOT Shortfalls

State & Local Support

Bipartisan SupportBipartisan support for increased surface transportation funding with Senate and House proposals significantly above the current Fixing America’s Surface Transportation (FAST) Act levels

Strong support at the state and local government level for infrastructure funding in the next round of federal stimulus

Projected state Department of Transportation (DOT) shortfalls less than feared, however, much variation by state

FAST ActCurrent FAST Act expires September 30, 2020 but a continuing resolution likely if no other action is taken

Great American Outdoors ActGreat American Outdoors Act - maintenance for Federal Lands/Parks - $9.5B over 5 years - fully funded

FEDERAL LEGISLATION NEEDED TO FUND HIGHWAY MARKET IN 2021 AND BEYOND

Federal Share of Publicly-Funded Highway Construction Market

AASHTO $37B Request$15B in House HEROS Act

FY21 AppropriationsFiscal Year Starts Oct 1, 2020House = ?Senate = ?

Highway ReauthorizationHouse = $61.1BSenate = $54.4BFAST FY20 = $48.6B

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* Current Fiscal Year that includes $46.4 billion under FAST Act + $2.2 billion in General Fund Appropriations.** For FY 2021, House INVEST Act proposes $46.4 billion from the Highway Trust Fund + $14.7 billion in General Fund appropriations.In addition, for FY 2021 only, the House INVEST Act proposes to make the Federal payable share on all highway projects at 100%.

COMPARISON OF HOUSE AND SENATE PROPOSALS

$54.40 $55.50 $56.70 $57.90 $59.10 $61.10 ** $62.10 $63.00 $63.30 $65.10

$48.60

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

2020* 2021 2022 2023 2024 2025

Senate ATI Act House INVEST Act N/A

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State Current Public Activity

California• Despite economic uncertainties and falling gas tax collection due to COVID, California’s enacted FY’21 budget contains

no negative impact to Caltrans budget• Caltrans scheduled to let $5B-worth of work in FY’21 while SB-1 collection is forecasted to grow 40%+ YOY in FY’21• Caltrans has no plans to slow work, planning or design in the face of an expiring highway bill

Utah • UDOT has publicly stated that the agency can adapt to COVID-induced reduction by delaying some advertising schedules without significant impact to the overall construction program

Arizona• ADOT is deferring its Five-Year Program update from June to October, hoping for a better revenue outlook by the Fall• ADOT will honor all existing Highway User Revenue Fund projects currently in regional Transportation Improvement

Programs (TIPs) but will likely not award any further projects in the short term• Recent data suggests a better outlook than the initial COVID-adjusted forecast

Nevada • Recently enacted state budget cuts does not include reductions to the DOT

Washington • WSDOT in early June proposed delaying the addition of new assets to the system as an option to close funding gap and shift focus to smaller local street connectivity projects from large highway infrastructure investment

Alaska • Nearly 100% of ADOT’s $350MM highway program is federally funded. Lower gas tax collection has small impact.

KEY STATE OVERVIEW

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The State Rainy Day fund is indicative of a state’s financial readiness for a recession

Source: NASBO Fall 219 Fiscal Survey of the States

STATE RAINY DAY FUNDS BY STATE | 2020

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Source: Federal Tax Administrators, FHWA,PC

LESS RELIANCE ON FEDERAL FUNDS

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Select Financial Metrics

Jigisha DesaiSenior Vice President & CFO

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$206 $246

$295

$98

$219$169

Q2'19 Q1'20* Q2'20*

REVOLVER CAPACITY

CASH AND MARKETABLE SECURITIES

$304

$465 $464

$ I N M I L L I O N S

$415

$364

$414

Q2'19 Q1'20* Q2'20*

TOTAL DEBT

Maintaining normal cyclical balances

LIQUIDITY AND FINANCIAL FLEXIBILITY

*Preliminary results

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© 2020 Granite Construction. All Rights Reserved. Capital International Virtual Meeting 20

$ I N B I L L I O N S

TOTAL COMPANY COMMITTED & AWARDED

PROJECTS (CAP)AT JUNE 30

$4.1B

$3.7 $3.7 $3.4 $3.6 $3.3

$0.7 $1.0 $0.8 $0.8

FY'17 FY'18 FY'19* Q1'20* Q2'20*

COMMITTED PROJECTS

CONTRACT BACKLOG

$3.7

$4.4$4.4$4.4$4.1

Committed Projects includes our best-value procurement work which is awarded based on contractor qualifications and experience. These contacts are referred to as Construction Manager/General Contractor (CMGC), Construction Manager at Risk (CMAR) or progressive design build.

Our procurement strategy is to focus on making this a larger portion of our portfolio and we are seeing owners shift to this type of procurement methodology.

*Preliminary results

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CONCLUSION

How Granite stands apart –

• Granite has differentiated itself through a diversified portfolio of end-markets

• Our vertically integrated business provides us a competitive advantage

• Safety is first and foremost in all our work practices

• Our people are what make Granite what it is today – that is our culture

Outlook –

• Projected state Department of Transportation (DOT) shortfalls less than feared, however, much variation by state

• However, we are still in very uncertain times and do not have much clarity into the future

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Thank you. Question? 22


Investor Contact:

Investor Contact

[email protected]

Lisa CurtisVice President, Investor Relations

(831) 728-7532

Corporate Office:

585 West Beach St.Watsonville, CA 95076

(831) 724-1011

www.graniteconstruction.com

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