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• Revenue: $571.7 million, an increase of 54% year-over-year.

• Organic Revenue Growth: 7% of total revenue growth.

• Acquisition Revenue Growth: 47% of total revenue growth.

• Net Income: $4.2 million, compared to a net loss of $1.1 million in the same quarter last year.

• Earnings Per Share (EPS): $0.08 per diluted share, compared to a diluted loss per share of $0.02 last year.

• Adjusted EBITDA: $69.3 million, an increase of 135% year-over-year.

• Adjusted EBITDA Margin: 12.1%, compared to 7.9% last year.

• General & Administrative Expenses: 8.2% of total revenue, down from 9.7% last year.

• Project Backlog: $2.84 billion as of March 31, 2025.

• Cash and Cash Equivalents: $101.9 million at quarter end.

• Cash Flow from Operations: $55.6 million, compared to $18.2 million last year.

• Capital Expenditures: $41.4 million for the second quarter.

• Debt to EBITDA Ratio: 3.23 times, with a target to reduce to approximately 2.5 times in the next four quarters.

• Fiscal Year 2025 Revenue Guidance: $2.77 billion to $2.83 billion.

• Fiscal Year 2025 Net Income Guidance: $106 million to $117 million.

• Fiscal Year 2025 Adjusted EBITDA Guidance: $410 million to $430 million.

• Fiscal Year 2025 Adjusted EBITDA Margin Guidance: 14.8% to 15.2%.

• Warning! GuruFocus has detected 8 Warning Signs with ROAD.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Construction Partners Inc (NASDAQ:ROAD) reported a 54% year-over-year revenue growth for Q2 2025, driven by both organic growth and recent acquisitions.

• The company achieved a record Q2 adjusted EBITDA margin of 12.1%, marking the highest in its history.

• The acquisition of PRI in Tennessee expands the company's coverage and is expected to drive further growth with an experienced management team.

• The company's backlog reached a record $2.84 billion, indicating strong demand for its services.

• Construction Partners Inc (NASDAQ:ROAD) raised its fiscal 2025 outlook, reflecting confidence in continued growth and performance.

Negative Points

• The company's debt to trailing 12 months EBITDA ratio stands at 3.23 times, which is above its target leverage ratio.

• Despite strong performance, the company faces macroeconomic uncertainties that could impact future project delays or cancellations.

• The integration of recent acquisitions, while beneficial, presents challenges in maintaining consistent operational efficiency.

• The company is experiencing unusual movements in input costs, such as liquid asphalt and diesel, which could affect future margins.

• There is ongoing uncertainty regarding federal infrastructure funding and reauthorization, which could impact future project pipelines.