Construction Partners (ROAD) Q4 2025 earnings summary

Executive summary

• Achieved 54% revenue growth to $2.812 billion in fiscal 2025, driven by acquisitions and 8.4% organic growth.

• Adjusted EBITDA surged 92% to $423.7 million, with margin expanding to 15.1% from 12.1% in the prior year.

• Net income rose 48% to $101.8 million, with adjusted net income up 73% to $122 million year-over-year.

• Record project backlog reached $3.03 billion at year-end, positioning for continued expansion and margin improvement.

• Five strategic acquisitions expanded into Texas, Oklahoma, Tennessee, and Alabama.

Financial highlights

• Fiscal 2025 revenue: $2.812 billion, up 54% year-over-year, with 8.4% organic and 45.6% acquisitive growth.

• Adjusted EBITDA: $423.7 million, up 92% year-over-year; margin improved to 15.1%.

• Net income: $101.8 million, up 48%; adjusted net income: $122 million, up 73%.

• Backlog at year-end: $3.03 billion, up from $1.96 billion a year ago.

• Gross profit margin improved to 15.6% from 14.2% year-over-year.

Outlook and guidance

• Fiscal 2026 revenue guidance: $3.4–$3.5 billion; net income: $150–$155 million; adjusted EBITDA: $520–$540 million; margin: 15.3%–15.4%.

• Adjusted net income forecast: $158.1–$164.2 million.

• Expect 23% revenue growth in 2026, with EBITDA margin expansion of 30 basis points.

• Projected to double revenue to over $6 billion and reach $1 billion in adjusted EBITDA by 2030.

• 80–85% of next 12 months’ contract revenue covered by backlog.