#United States #Inc. #Fiscal 2025 #Construction Partners #Dothan #CPI

Construction Partners, Inc. Reports Strong Financial Results

Construction Partners, Inc. (CPI), a civil infrastructure company, has announced its financial results for the second quarter of fiscal 2025. The company reported a substantial increase in revenue and profitability, showcasing its ongoing growth trajectory.

In Q2 2025, CPI achieved revenues of $571.7 million, a 54% increase compared to the same period in the previous fiscal year when revenues stood at $371.4 million. This impressive growth was underpinned by both acquisitions and organic growth. Specifically, about $173.1 million of the revenue increase was attributed to recent acquisitions, while approximately $27.2 million came from existing market expansions. The company noted that its revenue growth was comprised of about 7% organic growth and 47% from acquisitions completed either during or after Q1 FY2025.

Moreover, the gross profit for the quarter surged to $71.4 million, up from $38.8 million in Q2 FY2024. A significant highlight was the Adjusted EBITDA, which soared by 135% year-over-year, climbing to $69.3 million. The Adjusted EBITDA margin also saw a remarkable increase, rising to 12.1%, a jump of more than 400 basis points compared to the same quarter last year.

“We are pleased to report a strong second quarter marked by significant year-over-year growth in revenues, net income, and Adjusted EBITDA,” stated Fred J. (Jule) Smith, III, the President and CEO of CPI. He emphasized the company’s continued success in securing project work across its Sunbelt operations, which contributed to a record backlog of $2.84 billion. This backlog marks a formidable increase from $1.79 billion a year earlier, indicating strong demand and a robust pipeline of future projects.

Construction Partners has also strategically expanded its operations through recent acquisitions. Last week, the company acquired PRI and added approximately 300 employees to its workforce, further solidifying its presence in Tennessee from Knoxville to Memphis. Smith expressed confidence in the new acquisition, highlighting the strength of the PRI leadership team and their alignment with CPI’s operational culture and safety focus. With this acquisition, CPI extends its operational capabilities across the state, enhancing its overall market share growth strategy.

Financially, CPI's net income turned positive for the first time in several quarters this year, posting $4.2 million net income or $0.08 per share. This is a significant turnaround from the net loss of $1.1 million recorded in Q2 FY2024. The general and administrative expenses, while increasing to $46.7 million, have decreased as a percentage of total revenues, showcasing improved efficiency.

Looking forward, CPI is optimistic about its fiscal 2025 performance and has raised its revenue outlook in light of the strong quarter. The company now expects revenues in the range of $2.77 billion to $2.83 billion, alongside projected net income of $106.0 million to $117.0 million and Adjusted EBITDA in the range of $410.0 million to $430.0 million.

“The infrastructure needs across the Sunbelt are significant and growing, and our strategic positioning allows us to capitalize on these opportunities,” stated Ned N. Fleming, III, the Executive Chairman of CPI. He reaffirmed the company’s commitment to executing its growth strategy and enhancing shareholder value.

CPI will hold a conference call today at 10:00 AM Eastern Time to discuss these results in detail and outline future strategies. Investors and analysts can join the call by dialing (412) 902-0003.

In conclusion, Construction Partners, Inc. is demonstrating robust growth and actively positioning itself for success in the competitive infrastructure market, fueled by strategic expansions and a significant project backlog that underscores its operational capabilities.