Construction Partners, Inc. Reports 50.5% Revenue Growth to $779.3 Million in Latest Quarter

Construction Partners, Inc. reported significant financial growth in its latest quarterly filing, with revenues for the three months ended June 30, 2025, reaching $779.3 million, a 50.5% increase from $517.8 million in the same period last year. For the nine months ended June 30, 2025, revenues totaled $1.91 billion, up 48.7% from $1.29 billion in the prior year. The company's net income also saw a substantial rise, increasing 42.5% to $44.0 million for the quarter and 14.1% to $45.2 million for the nine-month period. This growth was attributed to strong demand in both public and private sectors, as well as contributions from recent acquisitions.

The company’s operational metrics reflected a robust performance, with gross profit for the quarter increasing to $131.8 million, up 57.9% year-over-year. The gross profit margin improved to 16.9%, driven by efficient utilization of resources and favorable project completions. General and administrative expenses rose to $51.0 million, primarily due to costs associated with acquired businesses and increased share-based compensation. Acquisition-related expenses also surged, reflecting the costs associated with the company's aggressive acquisition strategy, which included several significant transactions in the past year.

Construction Partners has expanded its footprint through multiple acquisitions, including the recent purchase of Asphalt Inc., LLC, and Overland Corporation, which added substantial operational capacity in Texas and Oklahoma. As of June 30, 2025, the company reported a contract backlog of $2.9 billion, indicating a strong pipeline of future work. The backlog includes $2.2 billion of uncompleted work and $0.7 billion from low bid projects, showcasing the company's growth potential in the infrastructure sector.

The company’s financial position has also strengthened, with total assets increasing to $2.93 billion from $1.54 billion a year earlier. This growth was supported by a significant rise in cash and cash equivalents, which reached $114.3 million, up from $74.7 million. However, total liabilities also increased, primarily due to new debt incurred for acquisitions, with long-term debt rising to $1.39 billion. The company’s interest expense surged to $25.2 million for the quarter, reflecting the impact of its increased borrowing.

Looking ahead, Construction Partners anticipates continued growth driven by its strategic acquisitions and strong demand in the civil infrastructure market. The company expects to generate approximately $0.7 billion in revenue from its current backlog during the remainder of the fiscal year, with an additional $1.5 billion projected thereafter. The management remains optimistic about leveraging its expanded operational capabilities to capture further market share in the coming quarters.