struction Partners(ROAD) - 2025 Q3 - Quarterly Results

Third Quarter Fiscal 2025 Financial Highlights Construction Partners, Inc. achieved significant year-over-year growth in Q3 FY2025, with revenue up 51% to $779.3 million and Adjusted EBITDA increasing 80% to $131.7 million, reaching a record 16.9% margin Q3 FY2025 Key Financial Metrics (vs. Q3 FY2024) | Metric | Q3 FY2025 | Q3 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $779.3M | $517.8M | +51% | | Gross Profit | $131.8M | $83.5M | +58% | | Net Income | $44.0M | $30.9M | +42% | | Diluted EPS | $0.79 | $0.59 | +34% | | Adjusted EBITDA | $131.7M | $73.2M | +80% | | Adjusted EBITDA Margin | 16.9% | 14.1% | +280 bps | - The $261.5 million revenue increase was composed of $235.7 million from acquisitions and $25.8 million from organic growth in existing markets[2] - General and administrative expenses as a percentage of total revenues decreased by 70 basis points to 6.6% compared to 7.3% in the prior year's quarter[3] Operational Highlights and Strategic Developments The company achieved a record $2.94 billion project backlog and expanded its Texas footprint through the acquisition of Durwood Greene Construction Co., despite weather-related project delays - Project backlog reached a record $2.94 billion at June 30, 2025, a significant increase from $1.86 billion at June 30, 2024[1][6] - The company successfully managed persistent weather-related delays, including record or near-record rainfall across many Sunbelt markets, which impacted project timelines and fixed asset cost recoveries[2] - Announced the acquisition of Durwood Greene Construction Co. in the Houston metropolitan area, adding nearly 200 employees, three hot-mix asphalt plants, and a rail-served aggregates terminal[2] Fiscal 2025 Full-Year Outlook The company maintained its full-year fiscal 2025 outlook, incorporating the Durwood Greene acquisition and accounting for Q3 weather impacts, anticipating strong demand Fiscal 2025 Full-Year Guidance | Metric | Low Range | High Range | | :--- | :--- | :--- | | Revenue | $2.77 billion | $2.83 billion | | Net Income | $106.0 million | $117.0 million | | Adjusted Net Income | $124.0 million | $135.0 million | | Adjusted EBITDA | $410.0 million | $430.0 million | | Adjusted EBITDA Margin | 14.8% | 15.2% | - The company is well-positioned to capitalize on long-term infrastructure investment and population migration into the Sunbelt region[8] Financial Statements Consolidated financial statements show significant growth from acquisitions, with Q3 revenue up 51%, total assets nearly doubling to $2.9 billion, and strong operating cash flow of $179.3 million for the nine-month period Consolidated Statements of Comprehensive Income Q3 2025 revenues grew 51% to $779.3 million and net income increased 42% to $44.0 million, with nine-month revenues reaching $1.91 billion and operating income nearly doubling Income Statement Highlights (in thousands) | Metric | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $779,277 | $517,794 | $1,912,507 | $1,285,726 | | Gross Profit | $131,810 | $83,492 | $279,731 | $174,173 | | Operating Income | $82,943 | $45,657 | $124,040 | $65,472 | | Net Income | $44,047 | $30,908 | $45,211 | $39,627 | | Diluted EPS | $0.79 | $0.59 | $0.82 | $0.75 | Consolidated Balance Sheets As of June 30, 2025, total assets reached $2.93 billion, a significant increase from $1.54 billion, primarily driven by acquisitions and funded by a rise in long-term debt to $1.39 billion Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Sept 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | $809,443 | $585,006 | | Property, plant and equipment, net | $1,147,613 | $629,924 | | Goodwill | $775,756 | $231,656 | | Total Assets | $2,925,841 | $1,542,135 | | Total Current Liabilities | $552,198 | $380,454 | | Long-term debt, net | $1,392,639 | $486,961 | | Total Liabilities | $2,072,513 | $968,395 | | Total Stockholders' Equity | $853,328 | $573,740 | Consolidated Statements of Cash Flows For the nine months ended June 30, 2025, operating cash flow was $179.3 million, with $1.03 billion used in investing activities, primarily for acquisitions, funded by $893.4 million from financing activities Cash Flow Summary (Nine Months Ended June 30, in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $179,318 | $113,181 | | Net cash used in investing activities | ($1,033,130) | ($199,098) | | Net cash provided by financing activities | $893,433 | $95,280 | | Net change in cash | $39,621 | $9,363 | Reconciliation of Non-GAAP Financial Measures The company reconciles GAAP Net Income to non-GAAP Adjusted EBITDA and Adjusted Net Income, showing Q3 2025 Adjusted EBITDA of $131.7 million and providing similar adjustments for the full-year 2025 outlook Q3 Net Income to Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Net income | $44,047 | $30,908 | | Interest expense, net | $25,239 | $4,673 | | Provision for income taxes | $13,903 | $10,108 | | Depreciation, depletion, etc. | $39,294 | $23,507 | | Share-based compensation | $8,564 | $4,039 | | Transformative acquisition expenses | $663 | $— | | Adjusted EBITDA | $131,710 | $73,235 | FY2025 Outlook Net Income to Adjusted EBITDA Reconciliation (in thousands) | Line Item | Low | High | | :--- | :--- | :--- | | Net income | $106,000 | $117,000 | | Interest expense, net | $86,000 | $86,000 | | Provision for income taxes | $32,000 | $36,000 | | Depreciation, depletion, etc. | $143,000 | $145,000 | | Share-based compensation | $23,250 | $26,250 | | Transformative acquisition expenses | $19,750 | $19,750 | | Adjusted EBITDA | $410,000 | $430,000 | - Adjusted Net Income for Q3 2025 was $45.2 million, after adding back transformative acquisition expenses and related financing fees to the GAAP Net Income of $44.0 million[26]