Construction Partners Reports 44.1% Revenue Growth to $809.5 Million in Latest Quarter

Construction Partners, Inc. reported significant financial growth in its latest quarterly results, with revenues for the three months ended December 31, 2025, reaching $809.5 million, a 44.1% increase from $561.6 million in the same period last year. The company attributed this growth to $228.2 million in revenues from acquisitions completed during or after the previous fiscal year, alongside a $19.7 million increase from existing markets driven by strong demand in both public and private sectors. Gross profit also saw a substantial rise, increasing by 58.7% to $121.5 million, reflecting improved operational efficiency and higher margins.

In terms of profitability, Construction Partners reported a net income of $17.2 million, a significant turnaround from a net loss of $3.1 million in the prior year. This improvement was primarily due to the increased gross profit and a reduction in acquisition-related expenses, which fell to $11.6 million from $19.5 million. The company’s operating income surged to $50.4 million, compared to $13.8 million in the previous year, indicating a strong operational performance. Adjusted EBITDA for the quarter was $112.2 million, representing a margin of 13.9%, up from 12.3% a year earlier.

The company’s balance sheet reflects a total asset increase to $3.36 billion as of December 31, 2025, up from $3.24 billion at the end of the previous quarter. This growth was driven by acquisitions, including the purchase of asphalt manufacturing assets from Vulcan Materials Company and P&S Paving, which added significant operational capacity in Texas and Florida. The company’s contract backlog stood at $3.1 billion, indicating a robust pipeline of future work, with $2.4 billion in uncompleted contracts expected to generate revenue in the upcoming fiscal year.

Operationally, Construction Partners reported a decrease in accounts payable and accrued expenses, which fell by $93.6 million, reflecting improved cash management. The company also experienced a decrease in contracts receivable, which dropped by $127 million, indicating efficient collection processes. However, total liabilities increased to $2.39 billion, primarily due to higher long-term debt, which rose to $1.76 billion as the company continues to leverage debt for growth and acquisitions.

Looking ahead, Construction Partners remains optimistic about its growth trajectory, supported by a strong contract backlog and ongoing demand for infrastructure projects. The company plans to continue its acquisition strategy while managing its capital expenditures, which are projected to be between $165 million and $185 million for fiscal 2026. The management believes that the combination of operational efficiencies and strategic acquisitions will sustain its growth momentum in the coming quarters.