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Revenue: $2.812 billion, an increase of 54% compared to last year.

Organic Revenue Growth: 8.4% for the fiscal year.

Acquisitive Revenue Growth: 45.6% for the fiscal year.

Gross Profit: $439.1 million, up approximately 70% from last year.

Gross Profit Margin: 15.6%, compared to 14.2% last year.

General and Administrative Expenses: 7.1% of total revenue, down from 8.1% last year.

Net Income: $101.8 million, an increase of 48% compared to last year.

Adjusted Net Income: $122 million, up 73% from fiscal 2024.

Adjusted EBITDA: $423.7 million, an increase of 92% compared to last year.

Adjusted EBITDA Margin: 15%, compared to 12.1% in fiscal 2024.

Cash and Cash Equivalents: $156 million at fiscal year-end.

Cash Flow from Operations: $291 million, up from $209 million in fiscal 2024.

Capital Expenditures: $137.9 million for fiscal 2025.

Project Backlog: $3 billion at September 30, 2025.

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Release Date: November 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Construction Partners Inc (NASDAQ:ROAD) achieved a 54% total revenue growth in fiscal 2025, with a significant 92% increase in EBITDA year-over-year.

The company ended fiscal year 2025 with a record project backlog of $3 billion, indicating strong future business prospects.

Construction Partners Inc (NASDAQ:ROAD) successfully expanded its market presence through strategic acquisitions in Texas, Oklahoma, and Tennessee, enhancing its growth potential.

The company has set ambitious goals under its Road 2030 plan, aiming to double its revenue to over $6 billion by 2030 with a projected 18% compound annual growth rate in adjusted EBITDA.

The company reported a strong financial position with $156 million in cash and cash equivalents and a $1.1 billion credit facility, providing ample liquidity for future growth initiatives.

The company's debt to trailing 12 months EBITDA ratio stands at 3.1 times, with a focus on reducing it to approximately 2.5 times by late 2026, indicating a need for deleveraging.

Despite strong revenue growth, the company faces the challenge of integrating multiple acquisitions, which could pose operational risks.

The company operates in a highly competitive market, which could pressure margins despite the current healthy bidding environment.

There is uncertainty regarding the reauthorization of the Surface Transportation program, which could impact future infrastructure funding.

The company's cash flow from operations, although strong, was affected by large billings and cash outflows, pushing some cash receipts into the following fiscal year.

Q: Could you talk about your integration strategy for recent acquisitions and how it differs from five years ago? A: Fred Smith, CEO, explained that 2025 was transformational due to several acquisitions. The strategy remains to find the right markets with the right partners. Ned Fleming, Executive Chairman, added that the team is better at integration now, involving people throughout the company, which makes the process smoother and more effective.

Q: Did the recent government shutdown impact your business, and how do you plan for such events? A: Fred Smith, CEO, stated that the shutdown did not affect their industry as funds are distributed through the Highway Trust Fund, so there was no revenue or bidding impact during the shutdown.

Q: What is the confidence level around getting a vote on the reauthorization bill by spring? A: Fred Smith, CEO, mentioned that infrastructure is bipartisan in Washington. Despite the government shutdown, both chambers are working on the bill, and there is optimism for a vote by spring, aligning with the new fiscal year starting October 1.

Q: How much rollover M&A revenue should be modeled, and will these be neutral, accretive, or dilutive to margins? A: Gregory Hoffman, CFO, indicated that 2025 acquisitions will contribute $240-$250 million in revenue, and 2026 acquisitions will add another $200 million. The combined impact is expected to be neutral to current margin projections.

Q: What are you seeing on the cost inflation side, particularly with energy and pricing? A: Fred Smith, CEO, noted that 2025 was a benign inflation year with stable construction material costs. Gregory Hoffman, CFO, added that energy costs, including liquid asphalt and diesel, were stable, allowing for predictable pricing.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.