Construction Partners Blazes Trail with Record Revenue and Strong Growth in Q1 2025
Construction Partners, a leading infrastructure services company, has kicked off its fiscal year 2025 on a high note, reporting record revenue and significant growth in margins. The company's strong start to the year is attributed to favorable weather conditions, which enabled them to generate a few extra workdays, resulting in a 42% year-over-year increase in revenue.
According to Jule F. Smith, CEO of Construction Partners, the company's record revenue quarter was driven by strong project execution from their construction teams. The company's vertical integration strategy continues to pay off, with enhanced margins through both construction services and manufacturing asphalt, as well as contributions from liquid asphalt terminals.
One of the key highlights of the quarter is the acquisition of Overland Corporation, which joined Construction Partners' CPI family of companies on January 2. The addition of Overland's strong presence in Southern and Western Oklahoma has created a wide footprint for the company, with 8 hot mix asphalt plants spanning from Durant to the Texas Panhandle. This strategic move has strengthened the company's market share in Oklahoma.
Construction Partners also welcomed Mobile Asphalt Company to their Alabama platform company, Wiregrass Construction, as a branded division. The acquisition of Mobile Asphalt has added 5 hot mix asphalt plants and 130 employees to the company's operational footprint in Southwest Alabama, establishing a much wider presence along the growing Gulf Coast.
The company's focus on employee safety and well-being is evident in their first core value: family. CEO Jule Smith emphasized the importance of supporting and strengthening the almost 6,000 families that rely on Construction Partners each day. The company's culture is built on this principle, with a commitment to ensuring that all operations and policies are designed to support these families.
Market conditions in the Sun Belt within the company's geographic footprint remain strong, with local markets growing and states focused on maintaining and improving road quality. This trend is expected to continue, driving demand for Construction Partners' infrastructure services.
The company's financial results demonstrate a significant growth in EBITDA margins, with almost 200 basis points improvement year-over-year. The acquisition of Overland Corporation and Mobile Asphalt Company has contributed to this growth, enhancing the company's market share and operational footprint.
Construction Partners' Q1 2025 results are a testament to the company's strategic vision and commitment to delivering high-quality infrastructure services. As the demand for construction and infrastructure services continues to grow in the Sun Belt region, Construction Partners is well-positioned to capitalize on this trend.
