What factors drove the changes in Construction's revenue and profit?

What guidance did Construction's management provide for the next earnings period?

What were the key takeaways from Construction's earnings call?

What is the market's earnings forecast for Construction next quarter?

Did Construction beat or miss consensus estimates last quarter?

What does Construction do and what are its main business segments?

What is Construction's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Construction year over year?

- **Record Growth**: FY25 revenue up 54% to $2.812B, EBITDA surging 92% to $423.7M. FY26 targets $3.4B-$3.5B revenue and $520M-$540M EBITDA.
- **Strategic Vision**: ROAD 2030 aims for $6B+ revenue by 2030 with 17% EBITDA margin, fueled by Sunbelt growth and 23% FY26 revenue growth.
- **Financial Health**: 17.1% Q4 EBITDA margin, $291M cash flow from ops, 3.1x debt/EBITDA, targeting 2.5x by late 2026.
- **Market Momentum**: $3B backlog, 80%+ FY26 coverage, stable cost environment, and resilient private/public construction demand.

**【CEO Summary Section】**
- Fiscal 2025 was transformative with 54% revenue growth ($2.812B) and 92% EBITDA increase ($423.7M), driven by 8.4% organic growth and 45.6% acquisitive growth. Acquisitions included Lone Star Paving (Texas), Durwood Greene (Houston), and P&S Paving (Florida). 
- Introduced ROAD 2030 strategic plan targeting $6B+ revenue by 2030 (18% CAGR) and 17% EBITDA margin. FY26 goals: $3.4B-$3.5B revenue, $520M-$540M EBITDA, 15.3%-15.4% margin.
- Four macro trends: Sunbelt migration, reshoring, infrastructure funding, and generational industry transition. FY25 backlog reached $3B, 80%-85% covered for next 12 months.

**【CFO Financial Commentary】**
- Q4 2025: $900M revenue (+67% YoY), $154M EBITDA (+100% YoY), 17.1% margin. FY25: $439.1M gross profit (+70%), 7.1% G&A as % of revenue. Cash flow from ops: $291M (+39% YoY). FY26 capex: $165M-$185M (3.25% maintenance + growth).
- Debt: 3.1x EBITDA at FY25 end, targeting 2.5x by late 2026. FY26 outlook: 40%-42% revenue/30%-34% EBITDA in H1, 58%-60% revenue/66%-68% EBITDA in H2.

**【Q&A Key Highlights】**
- **Acquisition Integration**: Smooth process due to strategic partner selection, cultural fit, and cross-functional team involvement. 2025 acquisitions contributed $240M-$250M in FY26 revenue, neutral to margin.
- **Government Shutdown Impact**: No revenue impact as Highway Trust Fund funding continued. FY26 public contracts expected +15% YoY.
- **Cost Environment**: Stable liquid asphalt, diesel, and labor costs (3%-4% growth). Pricing trends support margin expansion.
- **Data Center Demand**: Participating in site infrastructure for large projects in Sunbelt markets, similar to industrial facilities.
- **Infrastructure Reauthorization**: Bipartisan momentum for Surface Transportation Program reauthorization, expected spring 2026 vote.

Construction Partners, Inc. (ROAD) Q4 2025 Earnings Call Transcript

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