Construction Partners (ROAD) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY25 grew 41.6% year-over-year to $561.6 million, driven by robust demand, organic growth, and strategic acquisitions including Lone Star Paving, Overland Corporation, and Mobile Asphalt Company.

• Adjusted EBITDA increased 68% to $68.8 million, with margin improving to 12.3% from 10.3% year-over-year.

• Adjusted net income rose 35% to $13.3 million, while reported net loss was $3.1 million due to non-recurring acquisition and interest expenses.

• Record project backlog reached $2.66 billion, up from $1.62 billion a year ago, supporting strong revenue visibility.

• Organic growth was 11.2% in the quarter, with continued focus on workforce development and vertical integration.

Financial highlights

• Q1 2025 revenue was $561.6 million, up $165.1 million (41.6%) year-over-year; $120.9 million from acquisitions and $44.2 million from existing markets.

• Gross profit was $76.6 million, up 47.6% year-over-year, with margin at 13.6%.

• Adjusted diluted EPS was $0.25, compared to $0.19 last year; reported diluted EPS was $(0.06).

• General and administrative expenses were $44.3 million, 7.9% of revenue, down from 8.9% a year ago.

• Net cash provided by operating activities was $40.7 million; cash and equivalents at quarter-end were $132.5 million.

Outlook and guidance

• FY 2025 revenue guidance raised to $2.66–$2.74 billion.

• Net income expected between $93 million and $105.6 million; adjusted net income $109.5–$122.1 million.

• Adjusted EBITDA guidance of $375–$400 million; margin projected at 14.1%–14.6%.

• Capital expenditures for FY 2025 expected to be $130–$140 million.

• Backlog of $2.66 billion supports strong revenue visibility, with $1.4 billion expected to be recognized in FY2025.