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Core Insights - The focus is on analyzing diverse businesses, particularly in the technology, industrial, and conglomerate sectors, emphasizing the importance of strong foundational companies for long-term success [1] Group 1: Company Analysis - Companies with strong foundations are favored for their potential to perform well over time, indicating a preference for stability and growth in investment choices [1] - The analysis includes a combination of financial examination and narrative writing to provide insights into company performance and market understanding [1] Group 2: Research Approach - The approach involves a dual focus on quantitative financial data and qualitative storytelling to enhance comprehension of the financial landscape [1]

Company Performance - Persimmon Plc (PSMMY) has gained approximately 13.2% year-to-date, outperforming the average gain of 3.8% in the Construction sector [4] - The Zacks Consensus Estimate for PSMMY's full-year earnings has increased by 2.3% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Context - Persimmon Plc is part of the Building Products - Home Builders industry, which includes 17 stocks and currently ranks 210 in the Zacks Industry Rank. This industry has experienced an average loss of 2.4% year-to-date, highlighting Persimmon's relative strength [5] - Another notable stock in the Construction sector is Construction Partners (ROAD), which has returned 35.1% year-to-date and belongs to the Building Products - Miscellaneous industry, currently ranked 152 [4][6]

Group 1: Skillsoft Corp. (SKIL) - Skillsoft is an instructor-led training services company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 240.9% over the last 60 days [1] - The company has a PEG ratio of 0.51, compared to 0.96 for the industry, and possesses a Growth Score of B [1] Group 2: Construction Partners, Inc. (ROAD) - Construction Partners is a civil infrastructure company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its next year earnings has increased nearly 2% over the last 60 days [2] - The company has a PEG ratio of 1.03, compared to 1.71 for the industry, and possesses a Growth Score of B [2] Group 3: Ultrapar Participaçoes S.A. (UGP) - Ultrapar is a distributor of liquefied petroleum gas, gasoline, ethanol, diesel, fuel oil, and kerosene with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 33.3% over the last 60 days [3] - The company has a PEG ratio of 1.97, compared to 2.56 for the industry, and possesses a Growth Score of A [3]

Group 1 - Construction Partners is hosting its second Analyst Day in 2025, indicating the company's commitment to engaging with analysts and stakeholders [1] - The event is taking place in Raleigh, showcasing the company's efforts to connect with both in-person and virtual attendees [2] Group 2 - A live stream of the event is available on the company's website, with plans to archive the webcast for future access [2] - A PDF of the presentation will be posted on the website after the event, ensuring that information is accessible to a wider audience [2]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Summary of Construction Partners (NasdaqGS:ROAD) 2025 Investor Day Company Overview - **Company**: Construction Partners, Inc. (CPI) - **Industry**: Asphalt and Infrastructure Services - **Event Date**: October 22, 2025 Key Points and Arguments Market Position and Strategy - The asphalt market is large, growing, and highly fragmented, presenting opportunities for consolidation [5][6] - CPI aims to expand its market share through strategic acquisitions and organic growth, particularly in the Sun Belt region, which is growing five times faster than the national average [11][12] - The company has a long-term focus on infrastructure services, with a recurring revenue model based on road maintenance [9][10] Growth Metrics - CPI reported a **54% revenue increase** year-over-year, reaching approximately **$1.6 billion** in revenue for the fiscal year ending October 2023 [21][50] - The company aims for annual growth of **15-20%**, targeting revenues between **$2.7 billion and $3.2 billion** by 2027 [21] - CPI's EBITDA margins are expected to expand from **11%** to between **13% and 14%** by 2027 [22] Road 2030 Plan - The "Road 2030" plan outlines a five-year strategy to achieve over **$6 billion** in revenue and **$1 billion** in EBITDA by 2030 [42][45] - The plan includes a combination of organic growth and acquisitions, with no new state entries planned, focusing on existing operations in eight states [55] - CPI has added **53 new facilities** and **three new platform companies** in Texas, Oklahoma, and Tennessee since 2023 [26] Infrastructure Investment - The company anticipates continued federal and state investment in infrastructure, particularly through the Surface Transportation Program, which is expected to be reauthorized at higher funding levels [30][31] - CPI is positioned as a major consolidator in the asphalt industry, with many private owners nearing retirement, creating acquisition opportunities [29] Financial Performance and Backlog - CPI's backlog has shown **18 consecutive quarters of growth**, indicating strong future revenue confidence [54] - Approximately **80-85%** of the next 12 months' revenue is secured in the backlog, providing a solid foundation for future growth [53] Cash Flow and Leverage - The company generated **$658 million** in cash flow over the past three years, with cash flow from operations constituting **75-85%** of EBITDA [58] - CPI's leverage ratio is expected to stabilize between **1.5x to 2.5x** by 2030, following a temporary increase due to acquisitions [59] Management and Culture - The board of directors has a long-term focus, with five members having been with the company since its inception, fostering a culture of stability and long-term value creation [18] - The management team is described as younger and more dynamic, enhancing the company's ability to execute its growth strategy [14][47] Additional Important Insights - CPI's focus on technology and innovation aims to improve operational efficiency and bidding processes, enhancing overall profitability [34][35] - The company emphasizes maintaining its culture as a competitive advantage, which aids in attracting and retaining talent [16][47] - Recent acquisitions, such as P&S Paving and operations in Houston, are expected to enhance CPI's market presence and operational scale [40][41] This summary encapsulates the key insights and strategic direction of Construction Partners as discussed during the 2025 Investor Day, highlighting the company's growth trajectory, market opportunities, and financial performance.

Analyst Day October 22, 2025 A6A6A6 F5F4F1 F2F8FD 1F75B5 272727 FFC734 BUILDING CONNECTED COMMUNITIES Forward-Looking Statements Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "seek" "continue," "estimate," "predict," "potential," "targeting," "could," " ...

Financial Performance - The company reported a revenue of $2.7 billion for FY 2023, with an adjusted EBITDA margin of 15.0%[24] - Adjusted EBITDA for FY 23A was $423 million, with a projected increase to $530 million in FY 24A, representing a 25% growth[52] - Revenue for FY 23A was $2.81 billion, expected to grow to $3.45 billion in FY 24A, indicating a 23% increase[62] - The company achieved an adjusted EBITDA margin of 15.05% in FY 23A, with a target of 15.36% for FY 24A[62] - Net income for the fiscal year ended September 30, 2023, was $49,001,000, projected to increase to $68,935,000 in 2024[127] - Adjusted EBITDA for the fiscal year 2023 was $172,609,000, expected to rise to $220,573,000 in 2024, reflecting a growth of 27.8%[127] - For fiscal year 2025, revenues are projected to range from $2,800,000,000 to $2,820,000,000, with an Adjusted EBITDA forecast between $421,000,000 and $425,000,000[128] - The Adjusted EBITDA Margin for fiscal year 2025 is expected to be between 15.04% and 15.07%[128] - In fiscal year 2026, revenues are projected to be between $3,400,000,000 and $3,500,000,000, with Adjusted EBITDA ranging from $520,000,000 to $540,000,000[129] - The Adjusted EBITDA Margin for fiscal year 2026 is anticipated to be between 15.29% and 15.43%[129] - Interest expense is projected to increase from $17,346,000 in 2023 to $19,071,000 in 2024, and further to between $90,000,000 and $110,000,000 in 2025 and 2026 respectively[127][128][129] - Provision for income taxes is expected to rise from $16,403,000 in 2023 to $23,161,000 in 2024, and further to between $32,600,000 and $50,000,000 in 2025 and 2026 respectively[127][128][129] - Share-based compensation expense is projected to increase from $10,759,000 in 2023 to $15,031,000 in 2024, and further to between $28,850,000 and $29,050,000 in 2025[127][128] Growth Strategy - The company aims for a revenue target of $6.03 billion by FY 2030, representing a CAGR of 15%[47] - The company has experienced a 29% revenue CAGR from FY 2020 to FY 2025, highlighting strong growth potential[36] - The federal infrastructure investment includes $365 billion allocated for highway programs over five years, supporting the company's growth strategy[31] - The company plans to expand its operational footprint with 53 new facilities and 7 new brands since October 2023[28] - The company has identified significant growth opportunities in the Sunbelt region, driven by migration and reshoring trends[29] - The midpoint of FY 26 outlook implies a 16% revenue growth from closed acquisitions and 7% from organic growth[61] - The company is focusing on M&A activity consistent with historical levels to support its growth strategy through 2030[118] - The company has a long acquisitive runway in its core business, supported by favorable economic conditions and infrastructure spending trends[120] Market Demand and Infrastructure Investment - The addressable market for road maintenance has expanded by 8% in lane miles and 16% in vehicle miles traveled since 2001, indicating increased demand for infrastructure services[14] - The company operates in 6 of the 10 states with the highest population growth, which is expected to drive demand for infrastructure services[15] - The company anticipates a robust addressable market driven by ongoing infrastructure investments and population growth, with significant funding allocated across various states[116] - The company is actively investing in growing markets, leveraging state and local government funding initiatives to enhance its infrastructure capabilities[121] - The company is investing in strategic locations and expanding its service offerings to capitalize on growing markets, particularly in Florida and Texas[86][90] Operational Efficiency - The company has a goal to achieve an adjusted EBITDA margin of 17% by FY 2030, with a targeted annual increase of 30-50 basis points[48] - The adjusted EBITDA margin is projected to remain strong, reflecting the company's commitment to maintaining operational efficiency[119] - The company is focusing on vertical integration to secure supply and reduce cost volatility, enhancing its competitive position[37] - The company has maintained a robust backlog with 18 consecutive quarters of growth, supporting future revenue[64] - Cash flow from operations is projected to be approximately $658 million since 2023, representing 75-85% of adjusted EBITDA[71] - The net leverage ratio is expected to gradually decrease towards a target range of 2.5-2.75x following a transformational acquisition[73]

Core Insights - Construction Partners, Inc. (CPI) announced preliminary financial results for fiscal year 2025, highlighting strong operational performance and record year-end results for revenue and profitability [1][2] - The company expects continued growth in fiscal year 2026, driven by favorable economic indicators in the Sunbelt region and strategic initiatives [1][6] Fiscal Year 2025 Preliminary Financial Results - Revenue is projected to be between $2.800 billion and $2.820 billion, a significant increase from $1.824 billion in fiscal 2024 [2] - Net income is expected to range from $101.0 million to $101.8 million, up from $68.9 million in the previous fiscal year [2] - Adjusted EBITDA is anticipated to be between $421.0 million and $425.0 million, compared to $220.6 million in fiscal 2024 [3] Fiscal Year 2026 Outlook - Revenue for fiscal year 2026 is forecasted to be between $3.400 billion and $3.500 billion [6] - Net income is expected to range from $150.0 million to $155.0 million [6] - Adjusted EBITDA is projected to be between $520.0 million and $540.0 million, with an Adjusted EBITDA Margin of 15.3% to 15.4% [6][7] Strategic Growth Initiatives - The company plans to enhance operational performance and expand margins through strategic bidding and vertical integration opportunities [5][7] - CPI aims to leverage transportation funding programs and healthy commercial markets in the Sunbelt for continued growth [7] Project Backlog - The project backlog is expected to be approximately $3.0 billion as of September 30, 2025, an increase from $1.96 billion at the same time last year [3]