Construction Partners Surpasses 6,000 Employees and Achieves Record-Breaking Q2 Results
In its recent Second Quarter Earnings Conference Call, Construction Partners announced a plethora of impressive achievements. The company has successfully surpassed 6,000 employees, marking a significant milestone in its growth trajectory. This feat is a testament to the company's commitment to building a strong and capable workforce, which is crucial to its local market model.
With approximately 100 distinct market areas in 8 states, Construction Partners' local management teams and workforces perform higher-margin, lower-risk projects and generate recurring revenue for repeat customers each year. This approach provides a stable and predictable environment for the company's teams to bid, win, and build work in their communities.
In its family of companies structure, Construction Partners places great importance on character, experience, and talent, particularly in the management teams at its platform companies. The recent acquisition of PRI in Tennessee is a prime example of this strategy, with the company expanding its coverage across the state while leveraging the collective experience and technical expertise of seasoned industry veterans.
Turning to the quarter's financial results, Construction Partners reported outstanding operational performance, with revenue growth of 54% year-over-year and adjusted EBITDA growth of 135%. This also marked the company's highest Q2 adjusted EBITDA margin in history at 12.1%. The strong margin expansion during the winter quarter was driven by great project and plant performance, as well as the successful vertical integration assets in aggregates, services, and AC terminals.
The company continues to focus on building a great organization, with scale contributing to higher margins. Notably, tariffs have not been a significant issue for Construction Partners, as most of its supply chain and raw material inputs are sourced domestically. The Sunbelt states continue to benefit from healthy federal and state project funding, in addition to a population migration driving steady workflow of commercial projects.
Celebrating these impressive achievements, Jule Smith, CEO of Construction Partners, emphasized the importance of people in their strategy, stating, "Our people are the crucial element as we seek to take great care of our valuable customers and operate profitably." This sentiment is echoed by the company's focus on building a strong and capable workforce, which will undoubtedly drive future success.
