Construction Partners, Inc. reported fiscal 2025 revenue of $2.812 billion, a 54% year‑over‑year increase, and net income of $101.8 million, up 48% from $68.9 million in 2024. Adjusted EBITDA reached $423.7 million, a 92% jump from $220.6 million in 2024, and the adjusted EBITDA margin expanded to 15.1% from 12.1% the prior year. Backlog stood at $3.03 billion as of September 30, 2025, up from $1.96 billion at the end of fiscal 2024. While revenue and margin metrics beat expectations, the company missed the consensus earnings‑per‑share estimate for the fourth quarter, reporting an adjusted EPS of $1.02 versus the $1.11 consensus.
The revenue surge was largely driven by Construction Partners’ acquisition strategy, which accounted for 45.6% of the 54% total growth, while organic growth contributed 8.4%. In the fourth quarter alone, revenue rose 67% year‑over‑year to approximately $900 million, reflecting strong demand in the Sunbelt infrastructure markets and successful integration of newly acquired assets.
Margin expansion was supported by higher‑margin acquisitions and disciplined cost management. The adjusted EBITDA margin grew to 15.1% as the company leveraged its vertical integration—hot‑mix asphalt plants, aggregate facilities, and liquid asphalt terminals—to capture pricing power and operational efficiencies. The 3.0‑percentage‑point lift also reflects a favorable mix shift toward higher‑margin roadway repair and maintenance contracts.
Construction Partners missed the fourth‑quarter EPS estimate by about 9%, reporting an adjusted EPS of $1.02 against the $1.11 consensus. The miss was driven by higher-than‑expected cost inflation and integration expenses associated with recent acquisitions, which offset the revenue gains. Despite the EPS shortfall, net income rose 48% year‑over‑year, underscoring the company’s ability to convert top‑line growth into profitability, albeit with some margin pressure.
Management reaffirmed its fiscal 2026 outlook, guiding for revenue of $3.435 billion to $3.500 billion, net income of $150 million to $155 million, and adjusted EBITDA of $520 million to $540 million. The guidance, unchanged from prior forecasts, signals confidence in continued demand for Sunbelt infrastructure services and the scalability of the acquisition‑driven model.
CEO Fred J. Smith highlighted the company’s “transformative year” and noted that “strong infrastructure demand and an expanding addressable market” will sustain growth. He also acknowledged the EPS miss, emphasizing that the company remains focused on cost discipline and integration efficiency to protect margins moving forward. The company’s recent upgrade to a BB‑ rating by S&P Global reflects market confidence in its margin expansion and free operating cash‑flow generation.
The market reaction was muted, with shares falling 4–5% in pre‑market trading, largely driven by the EPS miss. Investors weighed the revenue and margin gains against the shortfall in earnings, underscoring the importance of profitability metrics in valuation assessments.
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