Construction Partners (ROAD) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 ended with record results: revenue up 17% to $1.82 billion, net income up 41% to $68.9 million, and adjusted EBITDA up 28% to $220.6 million year-over-year.

• Eight acquisitions completed in 2024 expanded the geographic footprint and market share, notably the transformational Lone Star Paving acquisition in Texas.

• Record project backlog of $1.96 billion as of September 30, 2024, up from $1.60 billion a year earlier, marking 16 consecutive quarters of backlog growth.

• Strong cash flow from operations at $209 million for the year.

Financial highlights

• Revenue reached $1.82 billion, with 7% organic growth and 10% from acquisitions.

• Gross profit was $258.3 million, up 32% year-over-year; gross margin improved to 14.2% from 12.6%.

• Net income was $68.9 million, a 41% increase from the prior year.

• Adjusted EBITDA was $220.6 million, up 28%, with margin rising to 12.1% from 11%.

• General and administrative expenses for fiscal 2024 were $151.5 million, or 8.3% of revenue.

Outlook and guidance

• Fiscal 2025 revenue guidance: $2.48–$2.58 billion.

• Net income guidance: $97–$113 million; adjusted EBITDA: $347–$377 million.

• Adjusted EBITDA margin expected between 14% and 14.6%, reflecting Lone Star Paving's contribution.

• Capital expenditures for 2025 projected at $130–$140 million, with maintenance CapEx at 3.25% of revenue.