Overview

* Construction Partners ( ROAD ) fiscal Q3 revenue rises 51% yr/yr, misses analyst expectations

* Adjusted EBITDA for fiscal Q3 up 80%, reflecting strong operational performance

* Company acquires Durwood Greene, expanding Texas market presence

Outlook

* Company maintains FY25 revenue outlook of $2.77 bln to $2.83 bln

* Company sees FY25 net income between $106 mln and $117 mln

* Company expects FY25 adjusted EBITDA of $410 mln to $430 mln

* Company anticipates FY25 adjusted EBITDA margin of 14.8% to 15.2%

Result Drivers

* ACQUISITIONS - Revenue growth largely driven by acquisitions contributing $235.7 mln, per CEO Fred J. Smith

* WEATHER CHALLENGES - Record rainfall in Southeast caused project delays, impacting fixed asset cost recoveries

* BACKLOG - Record project backlog of $2.94 bln indicates strong future demand, per CEO Fred J. Smith

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $779.28 $783.60

Revenue mln mln (6

Analysts

)

Q3 Miss $0.81 $0.82 (6

Adjusted Analysts

EPS )

Q3 Net $44.05

Income mln

Q3 Gross $131.81

Profit mln

Q3 $82.94

Operatin mln

g Income

Q3 $57.95

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction & engineering peer group is "buy"

* Wall Street's median 12-month price target for Construction Partners Inc ( ROAD ) is $114.50, about 18.4% above its August 6 closing price of $93.43

* The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)