Constr Partners Stock Price, News & Analysis

Construction Partners (NASDAQ: ROAD) has completed its acquisition of Lone Star Paving, a vertically integrated asphalt manufacturing and paving company operating in central Texas. Following the acquisition's closure, CPI has updated its fiscal 2025 guidance, projecting revenue of $2.48-2.58 billion, net income of $97-113 million, and Adjusted EBITDA of $347-377 million with an Adjusted EBITDA margin of 14.0-14.6%. The earlier-than-expected closing allows CPI to include Lone Star's operations in its first fiscal quarter outlook.

Construction Partners, Inc. (NASDAQ: ROAD) announced preliminary financial results for fiscal year 2024 and introduced fiscal year 2025 outlook. Key highlights include:

- FY2024 revenue expected between $1.821-$1.825 billion, up 17% from FY2023
- FY2024 net income projected at $68-$70 million, a 40% increase from FY2023
- FY2024 Adjusted EBITDA estimated at $219-$222 million, up 27% from FY2023
- FY2024 Adjusted EBITDA Margin expected to be 12.0-12.2%, improved from 11.0% in FY2023
- Project backlog of approximately $1.95 billion as of September 30, 2024

For FY2025, the company projects revenue of $2.420-$2.520 billion, net income of $90-$106 million, and Adjusted EBITDA of $338-$368 million. The outlook includes the expected results from the pending acquisition of Lone Star Paving, which is anticipated to close by the end of Q1 FY2025.

Construction Partners, Inc. (NASDAQ: ROAD) has announced a definitive agreement to acquire Lone Star Paving, a vertically integrated asphalt manufacturing and paving company in central Texas, for $654 million in cash and 3 million shares. The acquisition is expected to be immediately accretive to earnings upon closing in Q1FY25 and generate an annualized run-rate contribution of $530 million in revenue and $120 million in Adjusted EBITDA in fiscal 2025.

This transformational transaction will add 10 hot-mix asphalt plants, four aggregate facilities, and one liquid asphalt terminal to CPI's operations. It is anticipated to significantly accelerate CPI's ROAD-Map 2027 goals, including reaching the Adjusted EBITDA Margin goal of 13% to 14% in fiscal 2025, two years ahead of schedule.

Construction Partners, Inc. (NASDAQ: ROAD) has acquired John G. Walton Construction Company, Inc., based in Mobile, Alabama. This strategic acquisition includes a hot-mix asphalt plant and related equipment, expanding ROAD's presence into the Mobile metro area. The new plant's location offers both water and rail access, positioning ROAD to serve the growing southwestern Alabama market effectively.

CEO Fred J. (Jule) Smith, III highlighted the significance of this acquisition, noting that it gives ROAD a presence in all four of Alabama's largest markets. The company continues to seek further investment opportunities to strengthen its operations in the state. This move aligns with ROAD's strategy of vertical integration and expansion in the southeastern United States.

Construction Partners, Inc. (NASDAQ: ROAD) reported strong fiscal 2024 third quarter results, with revenue up 22.7% to $517.8 million and net income up 42.4% to $30.9 million compared to Q3 FY23. The company's Adjusted EBITDA increased by 30.5% to $73.2 million. CPI achieved a record project backlog of $1.86 billion, up from $1.59 billion a year ago. Based on sustained industry demand and strong operational performance, the company raised its fiscal 2024 outlook, projecting revenue between $1.835 billion to $1.860 billion and net income ranging from $73.5 million to $76.5 million. The company continues to focus on organic growth and strategic acquisitions to expand its market share in the southeastern United States.

Construction Partners, Inc. (NASDAQ: ROAD) has announced the acquisition of Robinson Paving Company, based in Columbus, Georgia. This strategic move expands CPI's operations into the Columbus metro area, adding three hot-mix asphalt plants and related crews and equipment to their portfolio. The acquisition aligns with CPI's growth strategy in Georgia, leveraging Robinson's skilled workforce and the area's growing economy supported by Fort Moore. Fred J. (Jule) Smith, III, CPI's President and CEO, emphasized the importance of this market expansion and the natural progression of their growth in Georgia. The acquired business will continue to operate under the Robinson Paving Company name as a new branded division of CPI's Georgia platform company, The Scruggs Company.

Construction Partners, a civil infrastructure firm (NASDAQ: ROAD), will release its fiscal Q3 2024 results on August 9, 2024, before market open. The company will host a conference call at 10:00 AM ET to discuss these results. Participants can join by phone or webcast, with replay options available until August 16, 2024. The call details and webcast can be accessed via the company's Investor Relations website.

Construction Partners (NASDAQ: ROAD) has acquired Hudson Paving, expanding its operations in the Sandhills region of North Carolina. The acquisition includes a hot-mix asphalt plant and associated crews and equipment, enhancing CPI's service capabilities in the Pinehurst and Southern Pines areas. Fred J. Smith, III, CEO of CPI, highlighted the strategic fit of this bolt-on acquisition for their North Carolina platform company, Fred Smith Company. The integration aims to capitalize on the region's rapid growth and aligns culturally with CPI's values, welcoming new employees into the fold.

Construction Partners (NASDAQ: ROAD) will participate in the Baird 2024 Global Consumer, Technology & Services Institutional Investors Conference on June 5, 2024. The management team is set to meet with investors and will host a 'Fire Side Chat' at 3:10 p.m. Eastern Time, which will be broadcast live online via their website. This event aims to engage investors and provide insights into the company's operations and future plans.