Construction Partners, Inc. Announces Fiscal 2025 Third Quarter Results

Core Insights - Construction Partners, Inc. reported a 51% increase in revenue for Q3 FY25, reaching $779.3 million compared to $517.8 million in the same quarter last year [1][4] - Adjusted EBITDA rose by 80% to $131.7 million, with an adjusted EBITDA margin of 16.9%, up from 14.1% in the previous year [5][4] - The company has a record project backlog of $2.94 billion, significantly higher than $1.86 billion a year ago [5][4] Financial Performance - Revenue for Q3 FY25 was $779.3 million, a 51% increase from $517.8 million in Q3 FY24, with $235.7 million attributed to acquisitions and $25.8 million from existing markets [1][2] - Gross profit increased to $131.8 million from $83.5 million year-over-year, while general and administrative expenses rose to $51.0 million but decreased as a percentage of total revenues [3][4] - Net income for Q3 FY25 was $44.0 million, or $0.79 per diluted share, compared to $30.9 million, or $0.59 per diluted share, in the same quarter last year [4][5] Operational Highlights - The company faced weather-related challenges, including record rainfall, but managed to maintain operational discipline and cash flow generation [2][6] - The acquisition of Durwood Greene Construction Co. added nearly 200 employees and is expected to enhance operational capabilities in the Houston area [2][6] - The company is maintaining its fiscal 2025 outlook, anticipating continued demand for infrastructure projects in the Sunbelt region [6][11] Outlook - The company maintains its fiscal 2025 outlook for revenue in the range of $2.77 billion to $2.83 billion, net income between $106 million and $117 million, and adjusted EBITDA between $410 million and $430 million [11][21] - The strategic focus remains on scaling operations and expanding geographic footprint in a fragmented market, capitalizing on infrastructure investment trends [7][6]