Financial Performance - For the three months ended December 31, 2025, revenues were $809.5 million, a 44% increase from $561.6 million in the same period of 2024 [145]. - Adjusted EBITDA for the same period was $112.2 million, representing an increase from $68.8 million year-over-year, with an adjusted EBITDA margin of 13.9% compared to 12.3% in 2024 [145]. - The company reported a net income of $17.2 million for the three months ended December 31, 2025, compared to a net loss of $3.1 million in the same period of 2024 [145]. - Adjusted net income for the three months ended December 31, 2025, was $26.4 million, up from $13.3 million in the same period of 2024 [145]. - Net income increased by $20.3 million, or 663.9%, to $17.2 million, primarily due to higher gross profit and reduced acquisition-related expenses [153]. Revenue and Profitability - Revenues for the three months ended December 31, 2025 increased by $247.9 million, or 44.1%, to $809.5 million from $561.6 million for the same period in 2024 [146]. - Gross profit for the same period increased by $44.9 million, or 58.7%, to $121.5 million, driven by higher revenues and improved gross profit margin [147]. Expenses and Costs - General and administrative expenses rose by $17.2 million, or 38.9%, to $61.5 million, attributed to expenses from acquired businesses and increased share-based compensation [148]. - Acquisition-related expenses decreased by $7.9 million to $11.6 million, reflecting lower transformative acquisition costs [149]. - Cost of revenues is influenced by fluctuations in commodity prices, particularly liquid asphalt and diesel fuel, with price adjustment provisions in place for public infrastructure contracts [138]. Acquisitions and Expansion - Recent acquisitions included the purchase of asphalt manufacturing and construction assets from Vulcan Materials Company, adding eight HMA plants in Texas, and the acquisition of P&S Paving, LLC, adding two HMA plants in Florida [134][135]. - The company also acquired GMJ Paving Company, LLC, adding an HMA plant in Baytown, Texas, further expanding operations in southeastern Texas [136]. Cash Flow and Capital Expenditures - Cash provided by operating activities, net of acquisitions, was $82.6 million, significantly up from $40.7 million in the same period of 2024 [156]. - Cash used in investing activities was $242.9 million, with $215.1 million related to acquisitions and $35.5 million for property, plant, and equipment [157]. - Capital expenditures for the three months ended December 31, 2025 were approximately $35.5 million, with expectations for total capital expenditures in fiscal 2026 to be between $165.0 million and $185.0 million [163]. Debt and Financing - As of December 31, 2025, the company has total debt obligations of $1.76 billion, with scheduled payments of $28.9 million in 2026 and $1.13 billion due thereafter [167]. - The company has $1.76 billion of variable rate debt, where a hypothetical 1% change in borrowing rates would result in a $17.6 million change in annual interest expense [171]. - The company’s interest payments on debt are projected to be $80.7 million in 2026, based on a weighted average SOFR-based floating rate of 6.16% [173]. - The company plans to utilize cash from operations and credit facilities to finance working capital and growth strategies [165]. Stock and Capital Management - The company has authorized a stock repurchase program of up to $40 million for Class A common stock, effective through March 5, 2026 [164]. - The company did not repurchase any Class A common stock during the three months ended December 31, 2024 [164]. Market and Economic Conditions - The company emphasizes a mix of federal, state, municipal, and private customers for its construction products and services, focusing on infrastructure projects [137]. - The company’s future cash flows are subject to variables such as inflation and supply chain constraints, impacting capital expenditures [166]. - The company’s ability to access outside capital sources is critical for future success and may be constrained by economic conditions [165]. - The company has $6.6 million in aggregate letters of credit and $3.6 million in minimum royalty payments related to aggregates facilities as of December 31, 2025 [169]. - The company has a conditional purchase agreement related to the Lone Star Acquisition for $30 million, which has expired as of December 31, 2025 [168].

Management described steady commercial demand supported by population migration to the Sun Belt, reshoring of manufacturing and supply chains, and continued build-out of AI-related infrastructure. Smith cited examples of projects the company is bidding or executing, including work tied to distribution facilities, manufacturing, and data-center-related infrastructure.The company ended the quarter with a project backlog of $3.09 billion as of December 31, 2025. Hoffman said approximately 80% to 85% of the nex ...

Acquisition Strategy - The company has completed its twelfth hot mix plant acquisition in the Houston market, enhancing its geographic footprint and throughput opportunities at the nearby liquid asphalt terminal [1][2] - The recent acquisition of GMJ Paving Company, a leading asphalt contractor in Houston, complements existing assets and strengthens market position [2][39] - The company has a robust pipeline of acquisition opportunities across its footprint and surrounding states, focusing on strategic cultural fits [5][44] Financial Performance - For fiscal 2026, the company reported revenue of $809.5 million, a 44% increase year-over-year, with 3.5% from organic growth and 40.6% from acquisitions [8] - Gross profit for Q1 was $121.5 million, up approximately 58% compared to the previous year, with a gross profit margin of 15% [8] - Adjusted EBITDA increased by 63% to $112.2 million, with an adjusted EBITDA margin of 13.9% [9] Market Outlook - The company anticipates a 10-15% increase in total federal, state, and local contract awards in FY '26, particularly for small and medium-sized maintenance projects [4][32] - The revenue outlook for fiscal 2026 is projected between $3.48 billion and $3.56 billion, with adjusted EBITDA expected to range from $534 million to $550 million [11] - The company expects organic growth of approximately 7% to 8% for the fiscal year [11][21] Operational Efficiency - General and administrative expenses as a percentage of total revenue decreased to 7.7% in Q1, down from 7.9% the previous year [9] - The company aims to reduce its debt to trailing twelve-month EBITDA ratio to approximately 2.5 times by late 2026, currently at 3.18 times [10][42] - Cash flow from operations for 2026 was reported at $82.6 million, up from $40.7 million in 2025, with expectations to convert 75% to 85% of EBITDA to cash flow [10][11] Growth Strategy - The company is focused on both organic growth and strategic acquisitions to build shareholder value, with plans to bring online several greenfield facilities [6][5] - The Road 2030 growth plan aims to double the company's size to over $6 billion in revenue by 2030, targeting an EBITDA margin growth to approximately 17% [6][7] - The company is actively integrating recent acquisitions to create organic growth opportunities and enhance operational efficiency [24][39]

Financial Data and Key Metrics Changes - First quarter revenue increased by 44% year-over-year, reaching $809.5 million, with 3.5% organic growth and 40.6% from acquisitions [5][14] - Adjusted EBITDA rose by 63% to $112.2 million, with an adjusted EBITDA margin of 13.9%, the highest first quarter margin in company history [5][15] - Net income was reported at $17.2 million, while adjusted net income was $26.4 million, translating to adjusted earnings per diluted share of $0.47 [15] Business Line Data and Key Metrics Changes - The company has a project backlog of $3.09 billion, indicating strong demand across its markets [5][18] - The commercial sector is experiencing steady project bidding, supported by population migration to the Sun Belt and reshoring trends [6][8] - The public sector is expected to see a 10%-15% increase in contract awards for FY 2026 compared to FY 2025, particularly in small and medium-sized maintenance projects [8][9] Market Data and Key Metrics Changes - The company is actively participating in approximately 1,000 commercial sector projects across eight states [7] - The federal and state governments are continuing to invest in infrastructure, which is expected to drive demand for the company's services [8][9] Company Strategy and Development Direction - The company aims to double its revenue to over $6 billion by 2030, targeting an EBITDA margin growth to approximately 17% [12][13] - Recent acquisitions, including GMJ Paving Company, are part of a strategy to strengthen market position and expand geographic footprint [10][11] - The company is focused on both organic growth and strategic acquisitions to enhance shareholder value [12][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for infrastructure projects and the positive impact of recent acquisitions on future growth [9][10] - The company anticipates a robust pipeline of acquisition opportunities and plans to continue using cash flow from operations to fund these acquisitions [81][82] - Management remains optimistic about the reauthorization of the Surface Transportation Program, expecting increased funding for infrastructure projects [82][83] Other Important Information - Cash flow from operations was $82.6 million in Q1, up from $40.7 million in the same quarter last year [16] - The company expects to convert 75%-85% of EBITDA to cash flow from operations in FY 2026 [17] Q&A Session Summary Question: Can you provide more details on the acquisition pipeline? - Management indicated a robust pipeline with a mix of platform deals and tuck-ins, emphasizing strategic and cultural fit in acquisitions [24][25] Question: What is the size and scope of the data center project mentioned? - Management clarified that data centers are part of their commercial projects, with ongoing demand in southern and southeastern markets [28][29] Question: How do you expect to achieve the organic growth target of 7%-8% for the year? - Management explained that delays in project starts and competitive dynamics affected Q1 organic growth but reaffirmed the full-year target [34][35] Question: What is the outlook for public sector bidding? - Management expects public sector contract awards to increase by 10%-15% this year, with steady demand in the commercial market as well [50][54] Question: How confident are you in reducing leverage to 2.5 times by year-end? - Management expressed confidence in achieving the leverage target through strong cash flow generation and strategic acquisitions [78][81]

Financial Data and Key Metrics Changes - First quarter revenue increased by 44% year-over-year, reaching $809.5 million, with organic growth contributing 3.5% and acquisitive growth contributing 40.6% [14] - Adjusted EBITDA rose by 63% compared to the previous year, totaling $112.2 million, with an adjusted EBITDA margin of 13.9%, the highest first quarter margin in company history [5][15] - Net income was reported at $17.2 million, while adjusted net income was $26.4 million, translating to an earnings per diluted share of $0.47 [15] Business Line Data and Key Metrics Changes - The company has a project backlog of $3.09 billion, indicating strong demand across its markets [5][18] - The commercial sector is experiencing steady project bidding, supported by population migration to the Sun Belt and reshoring trends [6][8] - The public sector is expected to see a 10%-15% increase in total federal, state, and local contract awards for FY 2026 compared to FY 2025 [8][54] Market Data and Key Metrics Changes - The company operates across eight states and over 110 local markets, with approximately 1,000 commercial sector projects planned for the year [7] - The federal and state governments are continuing to invest in infrastructure, which is crucial for the growing economies in the Sun Belt [8][9] Company Strategy and Development Direction - The company aims to double its size to over $6 billion in revenue by 2030, targeting an EBITDA margin growth to approximately 17% [12][13] - Recent acquisitions, including GMJ Paving Company, are part of a strategy to strengthen market position and expand geographic footprint [10][11] - The company is focused on both organic growth and strategic acquisitions to enhance shareholder value [12][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for infrastructure projects and the positive impact of recent acquisitions on future growth [9][10] - The company anticipates a busy work season supported by a record backlog and favorable market conditions [13][18] - Management remains optimistic about the reauthorization of the Surface Transportation Program, expecting increased funding for infrastructure projects [9][82] Other Important Information - Cash flow from operations was $82.6 million in Q1, up from $40.7 million in Q1 of the previous year, with expectations to convert 75%-85% of EBITDA to cash flow from operations in FY 2026 [16][17] - The company is on track to reduce its debt to trailing twelve-month EBITDA ratio to approximately 2.5 times by late 2026 [16][80] Q&A Session Summary Question: Can you provide more details on the acquisition pipeline? - Management indicated a robust pipeline with a mix of platform deals and tuck-ins, emphasizing strategic fit and cultural alignment in acquisitions [24][25] Question: Can you elaborate on the organic growth expectations? - Management confirmed a target of 7%-8% organic growth for the fiscal year, despite a lower growth rate in Q1 due to project delays and competitive dynamics [34][35] Question: What is the outlook for public sector bidding? - Management expects public sector contract awards to increase by 10%-15%, with steady demand in the commercial market as well [50][54] Question: How is the integration of recent acquisitions progressing? - Management highlighted successful integration efforts, particularly in Houston, which have created organic growth opportunities [37][38] Question: What is the expected impact of weather on the second quarter? - Management stated that while weather can vary, they do not foresee significant negative impacts on the second quarter's performance [44][49]

Financial Data and Key Metrics Changes - First quarter revenue increased by 44% year-over-year, reaching $809.5 million, with a breakdown of 3.5% organic growth and 40.6% from acquisitions [5][13] - Adjusted EBITDA rose by 63% compared to the previous year, totaling $112.2 million, with an adjusted EBITDA margin of 13.9%, the highest first quarter margin in company history [5][15] - Net income was reported at $17.2 million, while adjusted net income was $26.4 million, translating to earnings per diluted share of $0.47 [15] Business Line Data and Key Metrics Changes - The company has a project backlog of $3.09 billion, indicating strong demand across its markets [5][18] - On the commercial side, the company is actively bidding on approximately 1,000 projects across eight states, driven by trends such as population migration to the Sun Belt and reshoring of manufacturing [5][6] - Public contract bidding is expected to increase by 10%-15% over FY 2025, particularly for small and medium-sized maintenance projects [7][8] Market Data and Key Metrics Changes - The company anticipates that federal, state, and local contract awards will rise significantly, reflecting ongoing investments in infrastructure [7][8] - The commercial market is described as steady, with expectations for stronger performance in the spring and summer [50] Company Strategy and Development Direction - The company aims to double its size to over $6 billion in revenue by 2030, targeting an EBITDA margin growth to approximately 17% [11][12] - Recent acquisitions, including GMJ Paving Company, are part of a strategy to strengthen market position and expand geographic footprint [9][10] - The company is focused on both organic growth and strategic acquisitions, with a robust pipeline of opportunities identified [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a leverage ratio of approximately 2.5 times by late 2026, supported by strong cash flow generation [16][81] - The company remains optimistic about the reauthorization of the Surface Transportation Program, expecting increased funding for infrastructure projects [82][83] Other Important Information - Cash flow from operations was $82.6 million in Q1, up from $40.7 million in the same quarter last year [16] - The company expects to convert 75%-85% of EBITDA to cash flow from operations in FY 2026 [17] Q&A Session Summary Question: Can you provide more details on the acquisition pipeline? - Management indicated a robust pipeline with a mix of platform deals and tuck-ins, emphasizing strategic and cultural fit in acquisitions [23][24][25] Question: Can you elaborate on the site prep job for data centers? - Management highlighted ongoing projects related to data centers, driven by macro trends such as reshoring and migration to the Sun Belt [27][28][29] Question: What are the expectations for organic growth? - Management reaffirmed a full-year organic growth expectation of 7%-8%, despite a lower Q1 figure due to project delays and competitive dynamics [33][34] Question: How is the integration of recent acquisitions progressing? - Management noted successful integration of recent acquisitions, which is expected to create organic growth opportunities [35][36][37] Question: What is the outlook for public sector bidding? - Management expects public sector contract awards to increase by 10%-15%, with steady performance in the commercial market [49][50][51] Question: What is the expected impact of M&A on revenue in FY 2026? - Management projected an M&A rollover impact of approximately $260 million-$280 million for FY 2026 [65][67] Question: How confident is the company in achieving its leverage target? - Management expressed confidence in reducing the leverage ratio to around 2.5 times by the end of the year, primarily funded by cash from operations [78][81]

分组1 - Construction Partners reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.25 per share a year ago, resulting in an earnings surprise of +51.61% [1] - The company achieved revenues of $809.47 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 7.00%, and up from $561.58 million year-over-year [2] - Construction Partners has outperformed the S&P 500, with shares increasing about 5.7% since the beginning of the year compared to the S&P 500's gain of 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $687 million, while for the current fiscal year, the estimate is $2.80 on revenues of $3.45 billion [7] - The Zacks Industry Rank indicates that the Building Products - Miscellaneous sector is currently in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8]

Financial Performance - Revenue for Q1 FY26 was $809.5 million, a 44.1% increase compared to $561.6 million in Q1 FY25[3] - Adjusted net income for Q1 FY26 was $26.4 million, compared to a net loss of $3.1 million in Q1 FY25[5] - Adjusted EBITDA for Q1 FY26 was $112.2 million, reflecting a 63.1% increase from $68.8 million in Q1 FY25[5] - Net income for the three months ended December 31, 2025, was $17,205,000, a significant improvement from a net loss of $3,051,000 in the same period of 2024[21] - Adjusted EBITDA for the same period was $112,201,000, representing an increase from $68,797,000 year-over-year, with an Adjusted EBITDA margin of 13.9% compared to 12.3%[25] - Total revenues for the three months ended December 31, 2025, were $809,469,000, up from $561,580,000 in 2024, indicating a growth of approximately 44.2%[25] Strategic Acquisitions - The company completed two strategic acquisitions in Q1 FY26 and announced another acquisition in Houston, Texas, enhancing market share in high-growth regions[3] - The company has completed eight strategic acquisitions in less than fifteen months, demonstrating the scalability of its growth strategy[8] Financial Outlook - The fiscal 2026 revenue outlook has been raised to a range of $3.480 billion to $3.560 billion, reflecting better-than-expected Q1 results[13] - The company anticipates organic growth of approximately 7% to 8% for fiscal 2026, supported by strong infrastructure funding[7] - Adjusted EBITDA margin for fiscal 2026 is projected to be in the range of 15.34% to 15.45%[13] - The company expects fiscal year 2026 revenues to range between $3,480,000,000 and $3,560,000,000, with an Adjusted EBITDA forecast of $534,000,000 to $550,000,000[29] - Adjusted net income for fiscal year 2026 is projected to be between $163,500,000 and $168,700,000[31] Cash Flow and Assets - Cash flows from operating activities for the three months ended December 31, 2025, provided $82,567,000, compared to $40,663,000 in the prior year[21] - Total assets increased to $3,358,587,000 as of December 31, 2025, up from $3,238,856,000 at the end of September 2025[19] - Long-term debt, net of current maturities, rose to $1,704,656,000, compared to $1,573,614,000 in the previous quarter[19] - Cash, cash equivalents, and restricted cash at the end of the period were $104,190,000, down from $133,068,000 in the previous year[21] Expenses - General and administrative expenses were $61.5 million in Q1 FY26, decreasing as a percentage of total revenues to 7.7% from 7.9% in Q1 FY25[4] - The company reported a significant increase in share-based compensation expense, totaling $14,882,000 for the three months ended December 31, 2025, compared to $14,403,000 in 2024[21] Project Backlog - The company reported a record project backlog of $3.09 billion as of December 31, 2025, up from $2.66 billion a year earlier[5]

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Core Insights - Construction Partners, Inc. reported a strong start to fiscal 2026 with a 44% increase in revenue and a 63% increase in Adjusted EBITDA compared to the same quarter last year, achieving a record Adjusted EBITDA margin of 13.9% [2][6] - The company ended the quarter with a record project backlog of $3.09 billion, indicating strong demand across its markets [2][6] - The company has raised its fiscal 2026 outlook based on better-than-expected first-quarter results and anticipated contributions from recent acquisitions [7][8] Financial Performance - Revenue for the first quarter of fiscal 2026 was $809.5 million, up from $561.6 million in the same quarter last year, representing a 44.1% increase [3][6] - Adjusted net income for the quarter was $26.4 million, compared to a net loss of $3.1 million in the same quarter last year [5][21] - Adjusted EBITDA reached $112.2 million, a 63.1% increase from $68.8 million in the prior year [6][21] Operational Highlights - The company completed two strategic acquisitions in high-growth regions during the quarter, with plans for further expansion in the Houston market [3][8] - General and administrative expenses increased to $61.5 million but decreased as a percentage of total revenues to 7.7% from 7.9% year-over-year [4][21] - The company emphasized its culture of operational excellence and commitment to safety as key drivers of its performance [3][9] Future Outlook - The company anticipates organic revenue growth of approximately 7% to 8% for fiscal 2026, supported by strong industry tailwinds and increasing infrastructure funding [7][8] - The fiscal 2026 outlook has been raised for revenue, net income, Adjusted net income, Adjusted EBITDA, and Adjusted EBITDA margin [8][22] - The company is well-positioned to capitalize on the growing infrastructure repair and maintenance needs across the Sunbelt region [9][22]