Construction Partners, Inc. Announces Fiscal 2025 Fourth Quarter and Full Year Results

Revenue Up 54% Compared to FY24 Net Income Up 48% Compared to FY24 Adjusted EBITDA Up 92% Compared to FY24 Record Backlog of $3.0 Billion Company Reiterates Fiscal 2026 Outlook

Construction Partners, Inc. (NASDAQ: ROAD) (“CPI” or the “Company”), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways in local markets throughout the Sunbelt, today announced financial and operating results for its fiscal fourth quarter and year ended September 30, 2025.

Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, “We delivered a strong fourth quarter that capped a year of significant growth and margin expansion, in line with the preliminary financial ranges we announced in October. Our disciplined execution across our Sunbelt operations, powered by more than 6,800 employees, continues to drive record results through safe, efficient project construction and strong market demand. Fiscal 2025 was a transformative year for CPI, marked by strategic geographic expansion and accelerated financial performance. Through five strategic acquisitions, we entered Texas and Oklahoma and strengthened our footprint in Tennessee and Alabama, extending our reach into several high-growth local markets. In addition, we completed two acquisitions in October, subsequent to the end of our fiscal year, to enter the Daytona Beach market in Florida and significantly expand our operations in Houston, Texas.

“The significant topline growth in fiscal 2025 was driven by both strategic acquisitions and sustained and consistent organic growth of 8.4 percent compared to last year. We continue to experience strong infrastructure demand and an increasing need for new lane capacity throughout our Sunbelt markets, coupled with expanding addressable markets for roadway repair and maintenance and incremental revenue growth from our acquired companies in their local markets. We remain confident in the continued strength of our organic growth profile. As we enter fiscal 2026, we remain well-positioned to build on this momentum, supported by robust Sunbelt economic fundamentals, continued strong public infrastructure investment in our states and municipalities, and ongoing opportunities for both acquisitive and organic growth.”

Fiscal 2025 Financial Results

Revenue in fiscal 2025 was $2.812 billion, an increase of 54 percent compared to $1.824 billion in fiscal 2024.

Net income in fiscal 2025 was $101.8 million, an increase of 48 percent compared to $68.9 million in fiscal 2024.

Adjusted Net Income(1) in fiscal 2025 was $122.0 million, an increase of 73 percent compared to $70.4 million in fiscal 2024.

Adjusted EBITDA(1) in fiscal 2025 was $423.7 million, an increase of 92 percent compared to $220.6 million in fiscal 2024.

Adjusted EBITDA Margin(1) in fiscal 2025 was 15.1%, compared to 12.1% in fiscal 2024.

Project backlog was approximately $3.03 billion at September 30, 2025, compared to $2.94 billion at June 30, 2025 and $1.96 billion at September 30, 2024.

Smith commented, “As our family of companies continues to execute on our strategic growth plan, both organically and through acquisitions, we are advancing our position as a leading provider of infrastructure solutions across the Sunbelt. We remain focused on expanding margins through operational excellence and building scale, disciplined project execution, and increased vertical integration of our materials and services.

“The fundamentals in our core markets remain strong, supported by ongoing transportation investment, population growth, and healthy commercial demand. With these tailwinds, our fiscal 2026 outlook reflects another year of meaningful growth. We are confident in CPI's ability to build on its momentum and continue creating long-term value for our employees, partners, and shareholders.”

Fiscal Year 2026 Outlook

The Company's outlook for fiscal year 2026 with regard to revenue, net income, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin is as follows:

— Revenue in the range of $3.400 billion to $3.500 billion

— Net income in the range of $150.0 million to $155.0 million

— Adjusted Net Income(1) in the range $158.1 million to $164.2 million

— Adjusted EBITDA(1) in the range of $520.0 million to $540.0 million

— Adjusted EBITDA Margin(1) in the range of 15.3% to 15.4%

Ned N. Fleming, III, the Company's Executive Chairman, stated, “CPI's growth strategy, partnering with experienced local operators who know how to build and lead great businesses, has proven to be a scalable and repeatable model for long-term success. By integrating these operators into our broader organization, we strengthen our platform, expand our capabilities, and enhance profitability across our markets. With a strong balance sheet, a disciplined management team, and a growing presence across the Sunbelt, we are well-positioned to continue delivering strong returns as we expand our geographic footprint and increase the scale of our operations. The nation's infrastructure repair and maintenance needs remain significant and are accelerating alongside growing roadway capacity in the Sunbelt. The Board and I have never been more confident in CPI's future. We see powerful tailwinds ahead-from generational infrastructure investment and robust Sunbelt economic growth to compelling organic and acquisitive opportunities-that will allow us to continue creating lasting value for our shareholders.”

Conference Call Information

The Company will conduct a conference call today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss financial and operating results for the fiscal fourth quarter and year ended September 30, 2025. To access the call live by phone, dial (412) 902-0003 and ask for the Construction Partners call at least 10 minutes prior to the start time. A telephonic replay will be available through November 27, 2025 by calling (201) 612-7415 and using passcode ID: 13753225#. A webcast of the call will also be available live and for later replay on the Company's Investor Relations website at www.constructionpartners.net.

About Construction Partners, Inc.

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, the Company focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as “may,” “will,” “expect,” “should,” “anticipate,” “intend,” “project,” “outlook,” “believe” and “plan.” The forward-looking statements contained in this press release include, without limitation, statements related to financial projections, future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: our ability to successfully manage and integrate acquisitions; failure to realize the expected economic benefits of acquisitions, including future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; declines in public infrastructure construction and reductions in government funding, including the funding by transportation authorities and other state and local agencies; risks related to our operating strategy; competition for projects in our local markets; risks associated with our capital-intensive business; government requirements and initiatives, including those related to funding for public or infrastructure construction, land usage and environmental, health and safety matters; unfavorable economic conditions and restrictive financing markets; our ability to obtain sufficient bonding capacity to undertake certain projects; our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us; the cancellation of a significant number of contracts or our disqualification from bidding for new contracts; risks related to adverse weather conditions; our substantial indebtedness and the restrictions imposed on us by the terms thereof; our ability to maintain favorable relationships with third parties that supply us with equipment and essential supplies; our ability to retain key personnel and maintain satisfactory labor relations; property damage, results of litigation and other claims and insurance coverage issues; risks related to our information technology systems and infrastructure; our ability to maintain effective internal control over financial reporting; and the risks, uncertainties and factors set forth under “Risk Factors” in the Company's most recent Annual Report on Form 10-K and its subsequently filed Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.

Contact:

Rick Black Dennard Lascar Investor Relations ROAD@DennardLascar.com (713) 529-6600

(1) Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin are financial measures not presented in accordance with generally accepted accounting principles (“GAAP”). Please see “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.

Financial Statements Follow –

Construction Partners, Inc.Consolidated Statements of Comprehensive Income(in thousands, except share and per share data) For the Three Months Ended For the Fiscal Year Ended September 30, September 30, 2025 2024 2025 2024Revenues $ 899,849 $ 538,163 $ 2,812,356 $ 1,823,889Cost of revenues 740,487 454,082 2,373,263 1,565,635Gross profit 159,362 84,081 439,093 258,254General and administrative expenses (57,336) (38,185) (199,290) (147,607)Acquisition-related expenses (3,729) (1,651) (25,903) (3,890)Gain on sale of property, plant and equipment 2,474 1,523 10,911 4,483Operating income 100,771 45,768 224,811 111,240Interest expense, net (25,397) (6,084) (90,358) (19,071)Other income (expense) (422) (117) 86 (70)Income before provision for income taxes and 74,952 39,567 134,539 92,099earnings from investment in joint ventureProvision for income taxes 18,382 10,256 32,746 23,161Loss from investment in joint venture – (3) (12) (3)Net income $ 56,570 $ 29,308 $ 101,781 $ 68,935Other comprehensive income (loss), net of taxUnrealized loss on interest rate swap contract, net (1,204) (6,722) (3,221) (11,889)Unrealized gain on restricted investments, net 88 418 88 697Other comprehensive loss, net (1,116) (6,304) (3,133) (11,192)Comprehensive income $ 55,454 $ 23,004 $ 98,648 $ 57,743Net income per share attributable to commonstockholders:Basic $ 1.03 $ 0.57 $ 1.85 $ 1.33Diluted $ 1.02 $ 0.56 $ 1.84 $ 1.31Weighted average number of common sharesoutstanding:Basic 55,215,931 51,792,183 54,943,919 51,883,760Diluted 55,830,920 52,590,344 55,371,061 52,574,503Construction Partners, Inc.Consolidated Balance Sheets(in thousands, except share and per share data) September 30, 2025 2024ASSETSCurrent assets:Cash and cash equivalents $ 156,062 $ 74,686Restricted cash 2,953 1,998Contracts receivable including retainage, net 549,884 350,811Costs and estimated earnings in excess of billings on uncompleted contracts 45,340 25,966Inventories 155,133 106,704Prepaid expenses and other current assets 25,459 24,841Total current assets 934,831 585,006Property, plant and equipment, net 1,153,070 629,924Operating lease right-of-use assets 76,355 38,932Goodwill 943,309 231,656Intangible assets, net 79,230 20,549Investment in joint venture 72 84Restricted investments 23,176 18,020Other assets 28,813 17,964Total assets $ 3,238,856 $ 1,542,135LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 284,218 $ 182,572Billings in excess of costs and estimated earnings on uncompleted contracts 129,300 120,065Current portion of operating lease liabilities 19,867 9,065Current maturities of long-term debt 38,500 26,563Accrued expenses and other current liabilities 110,163 42,189Total current liabilities 582,048 380,454Long-term liabilities:Long-term debt, net of current maturities and deferred debt issuance costs 1,573,614 486,961Operating lease liabilities, net of current portion 57,201 30,661Deferred income taxes, net 80,079 53,852Other long-term liabilities 33,951 16,467Total long-term liabilities 1,744,845 587,941Total liabilities 2,326,893 968,395Commitments and contingenciesStockholders' Equity:Preferred stock, par value $0.001; 10,000,000 shares authorized at September 30, 2025 – -and September 30, 2024 and no shares issued and outstandingClass A common stock, par value $0.001; 400,000,000 shares authorized, 47,963,617 shares 47 44issued and 47,406,498 shares outstanding at September 30, 2025, and 44,062,830 sharesissued and 43,819,102 shares outstanding at September 30, 2024Class B common stock, par value $0.001; 100,000,000 shares authorized, 11,463,770 shares 12 12issued and 8,538,165 shares outstanding at September 30, 2025, and 11,784,650 sharesissued and 8,861,698 shares outstanding at September 30, 2024Additional paid-in capital 541,179 278,065Treasury stock, Class A common stock, par value $0.001, at cost, 557,119 shares at September (34,589) (11,490)30, 2025, and 243,728 shares at September 30, 2024Treasury stock, Class B common stock, par value $0.001, at cost, 2,925,605 shares at (16,046) (15,603)September 30, 2025 and 2,922,952 shares at September 30, 2024Accumulated other comprehensive income, net 4,369 7,502Retained earnings 416,991 315,210Total stockholders' equity 911,963 573,740Total liabilities and stockholders' equity $ 3,238,856 $ 1,542,135Construction Partners, Inc.Consolidated Statements of Cash Flows(in thousands) For the Fiscal Year Ended September 30, 2025 2024Cash flows from operating activities:Net income $ 101,781 $ 68,935Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, depletion, accretion and amortization 148,270 92,920Amortization of deferred debt issuance costs 3,833 362Unrealized loss on derivative instruments – 184Provision for bad debt 478 491Gain on sale of property, plant and equipment (10,911) (4,483)Realized losses on restricted investments 84 53Share-based compensation expense 37,005 14,412Loss from investment in joint venture 12 3Deferred income taxes 27,461 22,681Other non-cash adjustments (592) (300)Changes in operating assets and liabilities:Contracts receivable including retainage (55,962) (6,627)Costs and estimated earnings in excess of billings on uncompleted contracts (10,777) 5,531Inventories (5,151) (15,480)Prepaid expenses and other current assets 7,480 (13,015)Other assets (2,579) (522)Accounts payable 47,472 13,433Billings in excess of costs and estimated earnings on uncompleted contracts (5,591) 24,869Accrued expenses and other current liabilities 9,592 4,828Other long-term liabilities (602) 804Net cash provided by operating activities, net of acquisitions 291,303 209,079Cash flows from investing activities:Purchases of property, plant and equipment (137,931) (87,930)Proceeds from sale of property, plant and equipment 17,769 14,059Business acquisitions, net of cash acquired (1,155,153) (231,777)Proceeds from the sale of restricted investments 9,897 3,553Purchases of restricted investments (14,769) (5,490)Net cash used in investing activities (1,280,187) (307,585)Cash flows from financing activities:Proceeds from issuance of long-term debt, net of debt issuance costs 1,242,107 210,235Principal payments of long-term debt (147,350) (72,813)Purchase of treasury stock (23,542) (11,312)Net cash provided by (used in) financing activities 1,071,215 126,110Net change in cash, cash equivalents and restricted cash 82,331 27,604Cash, cash equivalents and restricted cash:Beginning of year 76,684 49,080End of year $ 159,015 $ 76,684Supplemental cash flow information:Cash paid for interest $ 80,579 $ 21,680Cash paid for income taxes $ 5,506 $ 5,447Cash paid for operating lease liabilities $ 17,392 $ 6,874Non-cash items:Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 48,622 $ 29,097Property, plant and equipment financed with accounts payable $ 6,523 $ 7,227Amounts (receivable) payable to sellers in business combinations $ 57,471 $ (153)

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation, depletion, accretion and amortization, (iv) share-based compensation expense, (v) loss on the extinguishment of debt, and (vi) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues for each period. Adjusted Net Income represents net income before (i) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws, and (ii) nonrecurring fees associated with financing arrangements incurred in connection with transformative acquisitions. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. We present Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income because management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these measures to evaluate companies in our industry. Our calculation of Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income may not be comparable to similarly named measures reported by other companies. Potential differences may include differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.

The following tables present a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to (i) Adjusted Net Income and (ii) Adjusted EBITDA (with the resulting calculation of Adjusted EBITDA Margin) for the applicable periods.

Construction Partners, Inc.Net Income to Adjusted EBITDA ReconciliationFiscal Years Ended September 30, 2025 and 2024(in thousands, except percentages) For the Fiscal Year Ended September30, 2025 2024Net income $ 101,781 $ 68,935Interest expense, net 90,358 19,071Provision for income taxes 32,746 23,161Depreciation, depletion, accretion and amortization 148,270 92,920Share-based compensation expense 28,783 15,031Transformative acquisition expenses 21,780 1,455Adjusted EBITDA $ 423,718 $ 220,573Revenues $ 2,812,356 $ 1,823,889Adjusted EBITDA Margin 15.1% 12.1%Construction Partners, Inc.Net Income to Adjusted Net Income ReconciliationFiscal Years Ended September 30, 2025 and 2024(in thousands) For the Fiscal Year Ended September30, 2025 2024Net income $ 101,781 $ 68,935Transformative acquisition expenses 21,780 1,455Financing fees related to transformative acquisition 4,870 -Tax impact due to above reconciling items (6,437) -Adjusted Net Income $ 121,994 $ 70,390Construction Partners, Inc.Net Income to Adjusted EBITDA ReconciliationFiscal Year 2026 Outlook(unaudited, in thousands, except percentages) For the Fiscal Year Ending September30, 2026 Low HighNet income $ 150,000 $ 155,000Interest expense, net 106,000 110,000Provision for income taxes 48,500 50,000Depreciation, depletion, accretion and amortization 180,000 186,000Share-based compensation expense 26,000 28,000Transformative acquisition expenses 9,500 11,000Adjusted EBITDA $ 520,000 $ 540,000Revenues $ 3,400,000 $ 3,500,000Adjusted EBITDA Margin 15.3% 15.4%Construction Partners, Inc.Net Income to Adjusted Net Income ReconciliationFiscal Year 2026 Outlook(unaudited, in thousands) For the Fiscal Year Ending September30, 2026 Low HighNet income $ 150,000 $ 155,000Transformative acquisition expenses 9,500 11,000Financing fees related to transformative acquisition 1,200 1,200Tax impact due to above reconciling items (2,600) (3,000)Adjusted Net Income $ 158,100 $ 164,200

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