Construction Partners, Inc. Reports Strong Growth and 2026 Outlook
Construction Partners, Inc. Announces Preliminary Financial Results
In an exciting announcement, Construction Partners, Inc. (NASDAQ: ROAD) revealed its preliminary financial results for fiscal 2025. The company, which excels in civil infrastructure, reported a robust year driven by dynamic growth across its operations.
Performance Overview for Fiscal 2025
The preliminary results indicate that revenue is anticipated to fall within the range of $2.800 billion to $2.820 billion, marking a significant increase from $1.824 billion in fiscal 2024. This growth reflects the company's successful strategies in expanding its operations.
Net Income Highlights
Net income for fiscal 2025 is forecasted to be between $101.0 million and $101.8 million, compared to $68.9 million in the prior year. This notable increase showcases the company’s commitment to improving profitability.
Adjusted Metrics Pointing to Operational Strength
Adjusted Net Income is projected to be in the range of $120.0 million to $122.0 million for fiscal 2025, alongside Adjusted EBITDA expected between $421.0 million and $425.0 million, compared to $220.6 million in fiscal 2024. Furthermore, the Adjusted EBITDA Margin is estimated to rise to between 15.0% and 15.1%, a significant improvement from 12.1% last year.
Strong Project Backlog
As of September 30, 2025, Construction Partners anticipates a project backlog of around $3.0 billion, up from $2.94 billion at June 30, 2025, and notably higher than the $1.96 billion reported a year earlier. This solid backlog provides a strong foundation for future growth.
Looking Ahead: Fiscal Year 2026 Outlook
The company outlined its outlook for fiscal 2026, projecting revenues in the range of $3.400 billion to $3.500 billion. Net income is expected to fall between $150.0 million and $155.0 million, reflecting continued operational growth and expansion in markets.
Projected Growth Metrics
The anticipated Adjusted Net Income for 2026 ranges from $158.1 million to $164.2 million, with Adjusted EBITDA forecasted between $520.0 million and $540.0 million. Additionally, the Adjusted EBITDA Margin is expected to be between 15.3% and 15.4%.
Strategic Initiatives and Market Conditions
Smith expressed confidence in the strategic growth plan, emphasizing that the company is focusing on operational enhancements, increased margins, and integration of construction materials and services, positioning itself strongly in the marketplace. The favorable trends in demographic growth and government funding for infrastructure projects in the Sunbelt have also contributed to the positive outlook.
Analyst Day Insights
The upcoming Analyst Day is set to provide further insights into the company’s strategic initiatives, growth priorities, and overall business outlook, further engaging stakeholders in understanding future directions.
About Construction Partners, Inc.
As a leading civil infrastructure company operating primarily in the Sunbelt, Construction Partners, Inc. specializes in construction and maintenance of local roadways and other surface infrastructures. The company primarily undertakes publicly funded projects, which include vital transportation infrastructures such as highways, airport runways, and bridges.
For inquiries, interested parties can reach out to Investor Relations via email at ROAD@DennardLascar.com or call (713) 529-6600.
Frequently Asked Questions
1. What are the preliminary fiscal results for Construction Partners, Inc.?
The preliminary results indicate a revenue range of $2.800 billion to $2.820 billion for fiscal 2025, showing substantial growth from the previous year.
2. How has net income changed compared to last year?
Net income is expected to be between $101.0 million and $101.8 million for fiscal 2025, an increase from $68.9 million last year.
3. What does the growth outlook for fiscal 2026 look like?
The company projects revenues of $3.400 billion to $3.500 billion and expects significant net income growth as well.
4. What are the expected Adjusted Net Income figures for fiscal 2026?
Adjusted Net Income is anticipated to range from $158.1 million to $164.2 million.
5. How does Construction Partners plan to achieve its growth goals?
The company is focused on operational enhancements, strategic bidding, and increasing vertical integration opportunities within construction materials and services.
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