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DOTHAN, Ala. - Construction Partners, Inc. (NASDAQ:ROAD) shares jumped 7.6% after the civil infrastructure company reported third-quarter earnings that missed analyst expectations but maintained an optimistic full-year outlook that significantly exceeded consensus estimates.
The Sunbelt-focused roadway construction firm reported adjusted earnings of $0.81 per share for its fiscal third quarter, falling short of analyst expectations of $0.94. Revenue came in at $779.3 million, below the consensus estimate of $811.76 million but representing a 51% increase compared to the same quarter last year. The company cited record rainfall across many of its markets as a factor that delayed projects during the quarter.
Despite the earnings miss, investors responded positively to the company’s maintained fiscal 2025 guidance, which projects revenue between $2.77 billion and $2.83 billion, substantially higher than the analyst consensus of $2.14 billion. The company also expects adjusted net income between $124 million and $135 million.
"We are pleased to report strong performance and excellent YoY growth across our key financial metrics this quarter. Despite persistent weather-related delays, including record or near-record rainfall across many of our Sunbelt markets, our teams executed with discipline and delivered robust operational results," said Fred J. (Jule) Smith, III, the Company’s President and Chief Executive Officer.
The company’s adjusted EBITDA increased 80% to $131.7 million compared to $73.2 million in the same quarter last year, with adjusted EBITDA margin improving to 16.9% from 14.1% a year ago. Construction Partners also reported a record project backlog of $2.94 billion at the end of the quarter, up from $1.86 billion a year earlier.
The company’s revenue growth for the quarter included approximately 5% organic growth and 46% from recent acquisitions, including its newly announced purchase of Durwood Greene Construction Co., which expands its presence in the Houston metropolitan area.
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