Construction 2025 Q3 Earnings Strong Performance as Net Income Surges 42.5%

Construction (ROAD) reported its fiscal 2025 Q3 earnings on Aug 07th, 2025, delivering results that significantly outperformed expectations. The company’s revenue surged 50.5% year-over-year, and net income jumped 42.5%. It maintained its full-year guidance, reflecting confidence in its performance and strategic execution.

Revenue
The total revenue for Construction increased by 50.5% to $779.28 million in 2025 Q3, a sharp rise from $517.79 million in 2024 Q3. Within the revenue breakdown, the private segment contributed $273.53 million, while the public segment accounted for a larger portion of the growth, generating $505.75 million. Combined, these segments reflect robust demand across both public infrastructure and private development projects.

Earnings/Net Income
Construction’s earnings per share (EPS) rose by 33.3% to $0.80 in 2025 Q3, compared to $0.60 in 2024 Q3, demonstrating continued earnings expansion. The company’s net income reached $44.05 million, marking a 42.5% increase from $30.91 million in the same period last year, underscoring strong profitability and operational efficiency.

Price Action
The stock price of Construction has edged up 2.61% during the latest trading day, climbed 3.71% over the most recent full trading week, and gained 2.00% month-to-date.

Post Earnings Price Action Review
Despite missing Q3 earnings estimates by $0.06 per share, ROAD's stock showed resilience with a positive earnings surprise of +6.90%, suggesting strong investor confidence. Recent performance highlights include a 51% year-over-year revenue increase to $779.28 million, surpassing consensus estimates, and a record $2.94 billion in backlog, reflecting robust demand and strategic execution. Management reaffirmed FY2025 guidance, projecting revenue between $2.77 billion and $2.83 billion, with net income ranging from $106 million to $117 million. The company’s acquisition strategy is expected to continue driving growth over the next 30 days. While historical data for ROAD is limited, broader market trends for construction and building materials stocks suggest that positive earnings reports often lead to price appreciation. Risks remain tied to macroeconomic conditions and operational execution, but the outlook remains optimistic for near-term performance.

CEO Commentary
Fred J. (Jule) Smith, III, President and CEO, emphasized the company’s strong year-over-year financial growth despite weather-related delays, particularly in the Southeast, which affected project timelines and cost recoveries. The company achieved a record Adjusted EBITDA margin of 16.9% and maintained a backlog of $2.94 billion. Smith highlighted the acquisition of Durwood Greene Construction Co., adding 200 employees in Houston, and noted the firm’s vertical integration opportunities and Texas growth potential. He expressed optimism about the company’s position and execution capabilities, maintaining a tone of confidence and strategic alignment.

Guidance
The company maintains its FY2025 guidance, including revenue of $2.77–$2.83 billion, net income of $106.0–$117.0 million, Adjusted net income of $124.0–$135.0 million, Adjusted EBITDA of $410.0–$430.0 million, and an Adjusted EBITDA margin of 14.8–15.2%. The outlook accounts for the Durwood Greene acquisition and third-quarter weather disruptions, with no adjustments made to the full-year ranges.

Additional News
Within three weeks of the earnings report, the most-discussed non-earnings related news centered on Construction’s acquisition of Durwood Greene Construction Co. The acquisition, based in Houston, added approximately 200 employees and expanded the company’s footprint in key construction markets. Management highlighted the strategic value of the acquisition, emphasizing its contribution to workforce expansion and vertical integration capabilities. No C-level executive changes or dividend announcements were reported during this time. The deal is expected to play a significant role in supporting long-term growth and positioning the company for continued success in the construction sector.