Construction Partners Q3 revenue misses estimates

Construction Partners

07/08/2025 12:43

Overview

Construction Partners 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/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$779.28 mln
$783.60 mln (6 Analysts)
Q3 Adjusted EPS
Miss
$0.81
$0.82 (6 Analysts)
Q3 Net Income
$44.05 mln
Q3 Gross Profit
$131.81 mln
Q3 Operating Income
$82.94 mln
Q3 Pretax Profit
$57.95 mln


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 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: ID:nPn9dmn5Fa

(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.)