Construction Partners, Inc. Announces Fiscal 2025 Fourth Quarter and Full Year Results

Revenue Up 54% Compared to FY24

Net Income Up 48% Compared to FY24

Adjusted EBITDA Up 92% Compared to FY24

Record Backlog of $3.0 Billion

Company Reiterates Fiscal 2026 Outlook

DOTHAN, Ala., Nov. 20, 2025 /PRNewswire/ -- Construction Partners, Inc. (NASDAQ:ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways in local markets throughout the Sunbelt, today announced financial and operating results for its fiscal fourth quarter and year ended September 30, 2025.

Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "We delivered a strong fourth quarter that capped a year of significant growth and margin expansion, in line with the preliminary financial ranges we announced in October. Our disciplined execution across our Sunbelt operations, powered by more than 6,800 employees, continues to drive record results through safe, efficient project construction and strong market demand. Fiscal 2025 was a transformative year for CPI, marked by strategic geographic expansion and accelerated financial performance. Through five strategic acquisitions, we entered Texas and Oklahoma and strengthened our footprint in Tennessee and Alabama, extending our reach into several high-growth local markets. In addition, we completed two acquisitions in October, subsequent to the end of our fiscal year, to enter the Daytona Beach market in Florida and significantly expand our operations in Houston, Texas.

"The significant topline growth in fiscal 2025 was driven by both strategic acquisitions and sustained and consistent organic growth of 8.4 percent compared to last year. We continue to experience strong infrastructure demand and an increasing need for new lane capacity throughout our Sunbelt markets, coupled with expanding addressable markets for roadway repair and maintenance and incremental revenue growth from our acquired companies in their local markets. We remain confident in the continued strength of our organic growth profile. As we enter fiscal 2026, we remain well-positioned to build on this momentum, supported by robust Sunbelt economic fundamentals, continued strong public infrastructure investment in our states and municipalities, and ongoing opportunities for both acquisitive and organic growth."

Fiscal 2025 Financial Results

Revenue in fiscal 2025 was $2.812 billion, an increase of 54 percent compared to $1.824 billion in fiscal 2024.

Net income in fiscal 2025 was $101.8 million, an increase of 48 percent compared to $68.9 million in fiscal 2024.

Adjusted Net Income⁽¹⁾ in fiscal 2025 was $122.0 million, an increase of 73 percent compared to $70.4 million in fiscal 2024.

Adjusted EBITDA⁽¹⁾ in fiscal 2025 was $423.7 million, an increase of 92 percent compared to $220.6 million in fiscal 2024.

Adjusted EBITDA Margin⁽¹⁾ in fiscal 2025 was 15.1%, compared to 12.1% in fiscal 2024.

Project backlog was approximately $3.03 billion at September 30, 2025, compared to $2.94 billion at June 30, 2025 and $1.96 billion at September 30, 2024.

Smith commented, "As our family of companies continues to execute on our strategic growth plan, both organically and through acquisitions, we are advancing our position as a leading provider of infrastructure solutions across the Sunbelt. We remain focused on expanding margins through operational excellence and building scale, disciplined project execution, and increased vertical integration of our materials and services.

"The fundamentals in our core markets remain strong, supported by ongoing transportation investment, population growth, and healthy commercial demand. With these tailwinds, our fiscal 2026 outlook reflects another year of meaningful growth. We are confident in CPI's ability to build on its momentum and continue creating long-term value for our employees, partners, and shareholders."

Fiscal Year 2026 Outlook

The Company's outlook for fiscal year 2026 with regard to revenue, net income, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin is as follows:

• Revenue in the range of $3.400 billion to $3.500 billion
• Net income in the range of $150.0 million to $155.0 million
• Adjusted Net Income⁽¹⁾ in the range $158.1 million to $164.2 million
• Adjusted EBITDA⁽¹⁾ in the range of $520.0 million to $540.0 million
• Adjusted EBITDA Margin⁽¹⁾ in the range of 15.3% to 15.4%

Ned N. Fleming, III, the Company's Executive Chairman, stated, "CPI's growth strategy, partnering with experienced local operators who know how to build and lead great businesses, has proven to be a scalable and repeatable model for long-term success. By integrating these operators into our broader organization, we strengthen our platform, expand our capabilities, and enhance profitability across our markets. With a strong balance sheet, a disciplined management team, and a growing presence across the Sunbelt, we are well-positioned to continue delivering strong returns as we expand our geographic footprint and increase the scale of our operations. The nation's infrastructure repair and maintenance needs remain significant and are accelerating alongside growing roadway capacity in the Sunbelt. The Board and I have never been more confident in CPI's future. We see powerful tailwinds ahead—from generational infrastructure investment and robust Sunbelt economic growth to compelling organic and acquisitive opportunities—that will allow us to continue creating lasting value for our shareholders."

Conference Call Information

The Company will conduct a conference call today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss financial and operating results for the fiscal fourth quarter and year ended September 30, 2025. To access the call live by phone, dial (412) 902-0003 and ask for the Construction Partners call at least 10 minutes prior to the start time.  A telephonic replay will be available through November 27, 2025 by calling (201) 612-7415 and using passcode ID: 13753225#. A webcast of the call will also be available live and for later replay on the Company's Investor Relations website at www.constructionpartners.net.

About Construction Partners, Inc.

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, the Company focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "project," "outlook," "believe" and "plan." The forward-looking statements contained in this press release include, without limitation, statements related to financial projections, future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: our ability to successfully manage and integrate acquisitions; failure to realize the expected economic benefits of acquisitions, including future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; declines in public infrastructure construction and reductions in government funding, including the funding by transportation authorities and other state and local agencies; risks related to our operating strategy; competition for projects in our local markets; risks associated with our capital-intensive business; government requirements and initiatives, including those related to funding for public or infrastructure construction, land usage and environmental, health and safety matters; unfavorable economic conditions and restrictive financing markets; our ability to obtain sufficient bonding capacity to undertake certain projects; our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us; the cancellation of a significant number of contracts or our disqualification from bidding for new contracts; risks related to adverse weather conditions; our substantial indebtedness and the restrictions imposed on us by the terms thereof; our ability to maintain favorable relationships with third parties that supply us with equipment and essential supplies; our ability to retain key personnel and maintain satisfactory labor relations; property damage, results of litigation and other claims and insurance coverage issues; risks related to our information technology systems and infrastructure; our ability to maintain effective internal control over financial reporting; and the risks, uncertainties and factors set forth under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and its subsequently filed Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.

Contact:

Rick Black

Dennard Lascar Investor Relations

[email protected]

(713) 529-6600

- Financial Statements Follow -

 

 

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation, depletion, accretion and amortization, (iv) share-based compensation expense, (v) loss on the extinguishment of debt, and (vi) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues for each period. Adjusted Net Income represents net income before (i) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws, and (ii) nonrecurring fees associated with financing arrangements incurred in connection with transformative acquisitions. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. We present Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income because management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these measures to evaluate companies in our industry. Our calculation of Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income may not be comparable to similarly named measures reported by other companies. Potential differences may include differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.

The following tables present a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to (i) Adjusted Net Income and (ii) Adjusted EBITDA (with the resulting calculation of Adjusted EBITDA Margin) for the applicable periods.

 

 

 

 

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SOURCE Construction Partners, Inc.