Construction Partners Reports 53.9% Revenue Growth to $571.7 Million in Latest Quarter

Construction Partners, Inc. reported significant financial growth in its latest quarterly filing, with revenues for the three months ended March 31, 2025, reaching $571.7 million, a 53.9% increase from $371.4 million in the same period last year. The company attributed this growth to $173.1 million in revenues from acquisitions and a $27.2 million increase in existing market revenues, driven by strong demand in both public and private sectors. Gross profit also saw a substantial rise, increasing 83.9% to $71.4 million, reflecting improved operational efficiency and favorable margins from completed projects.

In terms of profitability, Construction Partners reported a net income of $4.2 million for the quarter, a notable recovery from a net loss of $1.1 million in the prior year. This turnaround was supported by a significant increase in gross profit and gains from the sale of property, plant, and equipment, which rose to $3.4 million from $1.0 million. However, the company faced increased interest expenses, which surged to $21.6 million, primarily due to borrowings under its new Term Loan B Credit Agreement.

The company has been actively expanding its operations through strategic acquisitions, including the purchase of Overland Corporation in January 2025 and Mobile Asphalt Company in February 2025. These acquisitions added multiple hot mix asphalt (HMA) plants and expanded the company's footprint in Oklahoma and Alabama. As of March 31, 2025, Construction Partners reported a contract backlog of $2.8 billion, indicating a robust pipeline of future work, with $2.2 billion in uncompleted contracts and $0.6 billion in low bid/no contract projects.

Operationally, the company has seen an increase in its employee headcount, reflecting its growth strategy and the integration of acquired businesses. The total assets of Construction Partners increased to $2.75 billion, up from $1.54 billion at the end of the previous fiscal year, driven by the acquisitions and investments in property, plant, and equipment. The company also reported a cash position of $101.9 million, up from $74.7 million, providing a solid liquidity foundation for ongoing operations and future growth initiatives.

Looking ahead, Construction Partners remains optimistic about its growth trajectory, supported by a strong backlog and ongoing demand for infrastructure projects. The company plans to continue leveraging its acquisition strategy to enhance its market position and expand its operational capabilities across the Sunbelt region. However, management cautioned that future performance may be influenced by various factors, including market conditions, competition, and potential regulatory challenges.