Construction Partners, Inc. (CPI) is a civil infrastructure company engaged in the construction and maintenance of roadways throughout the Sunbelt region, including Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas. The company is experiencing a marked rise in its operational performance, with significant increases across several key financial metrics in the second quarter of fiscal 2025.

In its latest report, Construction Partners announced revenues of $571.7 million for the second quarter, representing a 54% increase from $371.4 million in the same period last year. This uptick consists of approximately $173.1 million attributable to acquisitions and around $27.2 million of organic revenue growth, equating to 7% of total revenue growth from existing operations.

Adjusted EBITDA surged 135% year-over-year, reaching $69.3 million, compared to $29.5 million in the previous year’s second quarter. The adjusted EBITDA margin also showed improvement, rising to 12.1% from 7.9% a year prior. The company reported net income of $4.2 million, or $0.08 per diluted share, a notable turnaround from a net loss of $1.1 million, or a diluted loss of $0.02 per share, in the same quarter of fiscal 2024.

CPI’s general and administrative expenses accounted for 8.2% of total revenues, decreasing from 9.7% in the same quarter last year. Furthermore, the company’s project backlog reached a record $2.84 billion as of March 31, 2025, up from $1.79 billion at the same time last year.

In light of these results, Construction Partners has raised its fiscal 2025 outlook. The revised ranges now project revenues between $2.77 billion and $2.83 billion, net income between $106 million and $117 million, adjusted net income between $122.5 million and $133.5 million, and adjusted EBITDA between $410 million and $430 million. Adjusted EBITDA margin is now forecasted to fall between 14.8% and 15.2%.

The company had $101.9 million in cash and cash equivalents at the end of the quarter, alongside $248.4 million available under its credit facility. The debt to trailing 12-month EBITDA ratio stands at 3.23x, with plans to reduce it to approximately 2.5x in the next four quarters. Cash provided by operating activities was recorded at $55.6 million, compared to $18.2 million in the corresponding quarter last year.

Capital expenditures for the quarter totaled $41.4 million, with expectations for the full fiscal year to land between $130 million and $140 million. These expenditures will support maintenance and new growth initiatives. As CPI enters its peak operational season, the company’s financial health and backlog suggest a strong outlook for continued project execution.