Question · Q4 2025
Tal Woolley inquired about the long-term opportunity and potential scale of Granite's investment in England, the underlying market fundamentals in the U.K. given past disruptions, and where borrowing costs are expected to settle, including hedging strategies.
Answer
Kevan Gorrie, President and CEO, stated that the U.K. is expected to become an important market for Granite in Europe, with a scale similar to other significant markets, likely over a 5-year plan. He noted a sharp rebound in U.K. absorption in H2 2025, strong 3PL activity, and high expectations for the market's strength over the next few years. Teresa Neto, CFO, estimated a 5-year bond rate around 3.75% and credit facility rates around 3.5%, confirming continued hedging, especially for euro-denominated debt.
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