Q4 2024: Construction Partners Inc's Surge in Revenue and Earnings

Construction Partners Inc (ROAD) reported impressive fiscal 2024 Q4 earnings, with revenue up 17% YoY, net income up 41% YoY, and Adjusted EBITDA up 28% YoY. The company's strong performance was driven by operational excellence across its 75 Sunbelt markets, despite hurricane impacts. ROAD's acquisition of Lone Star Paving in Texas is expected to accelerate ROAD-Map 2027 goals by nearly two years. For fiscal 2025, ROAD projects revenue of $2.48B-$2.58B, net income of $97M-$113M, Adjusted EBITDA of $347M-$377M, and Adjusted EBITDA Margin of 14.0%-14.6%.

Construction Partners Inc's Q4 2024 earnings call reflected the company's robust financial performance and strategic growth plans. Revenue growth of 17% YoY was driven by a combination of organic growth and acquisitions, particularly the addition of Lone Star Paving. Net income surged by 41% YoY, indicating strong profitability, while Adjusted EBITDA increased by 28% YoY, demonstrating the company's operational efficiency.


The acquisition of Lone Star Paving played a significant role in ROAD's financial performance and growth strategy. The deal, expected to close by the end of the first quarter of fiscal 2025, brings Lone Star's project backlog of approximately $660 million at September 30, 2024. This further strengthens CPI's market position in central Texas and serves three of the fastest-growing markets in the country. The acquisition is expected to be immediately accretive to earnings and accelerates CPI's ROAD-Map 2027 strategy by almost two years.


The record backlog of $1.96 billion at the end of Q4 2024 underscores Construction Partners Inc's future growth potential. This 23% increase from the previous quarter and 16% increase from the same period last year is a testament to the company's strategic acquisitions and robust pipeline of projects. With a strong pipeline and the integration of new acquisitions, Construction Partners Inc is well-positioned to maintain its growth trajectory in the coming years.

In conclusion, Construction Partners Inc's Q4 2024 earnings call demonstrated the company's strong financial performance and strategic growth plans. The acquisition of Lone Star Paving, coupled with the company's robust operational performance, has driven significant growth in revenue, net income, and Adjusted EBITDA. With a record backlog and a positive outlook for fiscal 2025, Construction Partners Inc is poised to continue its growth trajectory and deliver long-term value to investors.