Construction Partners (ROAD) ROAD Fiscal Q1 Financial Results Summary
QuoteReporter
Construction Partners, Inc. (ROAD) Q4 2025 Financial Results Summary
Released on November 20, 2025, Construction Partners, Inc. (NASDAQ: ROAD) announced its financial and operating results for the fiscal fourth quarter and year ended September 30, 2025. Below is a summary of the key highlights from the report:
Financial Performance Highlights for Fiscal Year 2025
- Revenue:
-
$2.812 billion, an increase of 54% compared to $1.824 billion in fiscal 2024.
-
Net Income:
-
$101.8 million, an increase of 48% compared to $68.9 million in fiscal 2024.
-
Adjusted Net Income:
-
$122.0 million, an increase of 73% compared to $70.4 million in fiscal 2024.
-
Adjusted EBITDA:
-
$423.7 million, an increase of 92% compared to $220.6 million in fiscal 2024.
-
Adjusted EBITDA Margin:
-
15.1%, compared to 12.1% in fiscal 2024.
-
Project Backlog:
- Approximately $3.03 billion at September 30, 2025, an increase from $2.94 billion at June 30, 2025 and $1.96 billion at September 30, 2024.
Operational Highlights
- The company experienced significant growth and margin expansion due to:
- Strategic acquisitions that enhanced geographic presence in high-growth local markets, notably Texas and Oklahoma.
- Increased demand for infrastructure development within the Sunbelt region.
-
Consistent organic growth rate of 8.4% compared to the previous year.
-
Strong market conditions have prompted optimism for future operations and investments in infrastructure.
Strategy and Outlook for Fiscal 2026
- For fiscal year 2026, the company provided the following outlook:
- Revenue: Projected in the range of $3.400 billion to $3.500 billion.
- Net Income: Expected in the range of $150.0 million to $155.0 million.
- Adjusted Net Income: Expected in the range of $158.1 million to $164.2 million.
- Adjusted EBITDA: Expected in the range of $520.0 million to $540.0 million.
- Adjusted EBITDA Margin: Expected in the range of 15.3% to 15.4%.
Additional Information
- Dividends and Share Repurchases:
-
The report did not specify any declared quarterly dividend payments or significant share repurchase programs.
-
Team and Growth Strategy:
- The company’s leadership emphasized a commitment to operational excellence, strategic acquisitions, and cultivating local partnerships as a cornerstone of their growth strategy.
Call to Action
- A conference call to discuss these results took place on November 20, 2025, and the full financial results are available on Construction Partners’ Investor Relations website.
Conclusion
Construction Partners, Inc. has demonstrated robust growth and operational efficiency as reflected in its fiscal 2025 financial results. With significant revenue and net income growth alongside an optimistic outlook for fiscal 2026, the company appears well-positioned to continue its strategic expansion in infrastructure development across the Sunbelt region.
Consolidated Statements of Comprehensive Income
(in thousands, except share and per share data)
| For the Three Months Ended | For the Fiscal Year Ended | |||
|---|---|---|---|---|
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |
| Revenues | $899,849 | $538,163 | $2,812,356 | $1,823,889 |
| Cost of revenues | $740,487 | $454,082 | $2,373,263 | $1,565,635 |
| Gross profit | $159,362 | $84,081 | $439,093 | $258,254 |
| General and administrative expenses | -$57,336 | -$38,185 | -$199,290 | -$147,607 |
| Acquisition-related expenses | -$3,729 | -$1,651 | -$25,903 | -$3,890 |
| Gain on sale of property, plant and equipment | $2,474 | $1,523 | $10,911 | $4,483 |
| Operating income | $100,771 | $45,768 | $224,811 | $111,240 |
| Interest expense, net | -$25,397 | -$6,084 | -$90,358 | -$19,071 |
| Other income (expense) | -$422 | -$117 | $86 | -$70 |
| Income before provision for income taxes | $74,952 | $39,567 | $134,539 | $92,099 |
| Provision for income taxes | $18,382 | $10,256 | $32,746 | $23,161 |
| Loss from investment in joint venture | $— | -$3 | -$12 | -$3 |
| Net income | $56,570 | $29,308 | $101,781 | $68,935 |
| Unrealized loss on interest rate swap contract, net | -$1,204 | -$6,722 | -$3,221 | -$11,889 |
| Unrealized gain on restricted investments, net | $88 | $418 | $88 | $697 |
| Other comprehensive loss, net | -$1,116 | -$6,304 | -$3,133 | -$11,192 |
| Comprehensive income | $55,454 | $23,004 | $98,648 | $57,743 |
| Net income per share attributable to common stockholders: Basic | $1.03 | $0.57 | $1.85 | $1.33 |
| Diluted | $1.02 | $0.56 | $1.84 | $1.31 |
| Weighted average number of common shares outstanding: Basic | 55,215,931 | 51,792,183 | 54,943,919 | 51,883,760 |
| Diluted | 55,830,920 | 52,590,344 | 55,371,061 | 52,574,503 |
Consolidated Balance Sheets
(in thousands, except share and per share data)
| ASSETS | September 30, 2025 | September 30, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $156,062 | $74,686 |
| Restricted cash | $2,953 | $1,998 |
| Contracts receivable including retainage, net | $549,884 | $350,811 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | $45,340 | $25,966 |
| Inventories | $155,133 | $106,704 |
| Prepaid expenses and other current assets | $25,459 | $24,841 |
| Total current assets | $934,831 | $585,006 |
| Property, plant and equipment, net | $1,153,070 | $629,924 |
| Operating lease right-of-use assets | $76,355 | $38,932 |
| Goodwill | $943,309 | $231,656 |
| Intangible assets, net | $79,230 | $20,549 |
| Investment in joint venture | $72 | $84 |
| Restricted investments | $23,176 | $18,020 |
| Other assets | $28,813 | $17,964 |
| Total assets | $3,238,856 | $1,542,135 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $284,218 | $182,572 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | $129,300 | $120,065 |
| Current portion of operating lease liabilities | $19,867 | $9,065 |
| Current maturities of long-term debt | $38,500 | $26,563 |
| Accrued expenses and other current liabilities | $110,163 | $42,189 |
| Total current liabilities | $582,048 | $380,454 |
| Long-term liabilities: | ||
| Long-term debt, net of current maturities and deferred debt issuance costs | $1,573,614 | $486,961 |
| Operating lease liabilities, net of current portion | $57,201 | $30,661 |
| Deferred income taxes, net | $80,079 | $53,852 |
| Other long-term liabilities | $33,951 | $16,467 |
| Total long-term liabilities | $1,744,845 | $587,941 |
| Total liabilities | $2,326,893 | $968,395 |
| Stockholders’ Equity: | ||
| Preferred stock, par value $0.001; 10,000,000 shares authorized at September 30, 2025 and September 30, 2024 and no shares issued and outstanding | $— | $— |
| Class A common stock, par value $0.001; 400,000,000 shares authorized, 47,963,617 shares issued and 47,406,498 shares outstanding at September 30, 2025, and 44,062,830 shares issued and 43,819,102 shares outstanding at September 30, 2024 | $47 | $44 |
| Class B common stock, par value $0.001; 100,000,000 shares authorized, 11,463,770 shares issued and 8,538,165 shares outstanding at September 30, 2025, and 11,784,650 shares issued and 8,861,698 shares outstanding at September 30, 2024 | $12 | $12 |
| Additional paid-in capital | $541,179 | $278,065 |
| Treasury stock, Class A common stock, par value $0.001, at cost, 557,119 shares at September 30, 2025, and 243,728 shares at September 30,2024 | -$34,589 | -$11,490 |
| Treasury stock, Class B common stock, par value $0.001, at cost, 2,925,605 shares at September 30, 2025 and 2,922,952 shares at September 30, 2024 | -$16,046 | -$15,603 |
| Accumulated other comprehensive income, net | $4,369 | $7,502 |
| Retained earnings | $416,991 | $315,210 |
| Total stockholders’ equity | $911,963 | $573,740 |
| Total liabilities and stockholders’ equity | $3,238,856 | $1,542,135 |