Construction Partners Q1 Earnings Exceed Expectations; Maintains FY22 Outlook

  • Construction Partners Inc ROAD reported first-quarter FY22 revenue growth of 49.3% year-over-year to $284.96 million, beating the consensus of $238.52 million.
  • EPS decreased to $0.11 from $0.15 in 1Q21, beating the consensus of $0.08.
  • The gross margin contracted by 446 bps to 11.6%. The operating income declined by 22% Y/Y to $8.46 million, and the margin contracted by 271 bps to 2.9%.
  • Adjusted EBITDA improved 12.2% Y/Y to $26.36 million, and margin contracted by 305 bps to 9.3%.
  • Construction Partners used cash from operating activities of $0.577 million, compared to cash generated $0.709 million a year ago.
  • The company's Project backlog was $1.09 billion as of December 31, 2021, compared to $966.2 million on September 30, 2021, and $655.6 million a year ago.
  • Maintains FY22 Outlook: Construction Partners expects revenue of $1.075 billion - $1.150 billion versus the consensus of $1.12 billion.
  • The company expects net income of $34.7 million - $41.8 million, Adjusted EBITDA of $122 million - $132 million.
  • "We are pleased that our backlog margins continue to increase, and we anticipate that profit margins will further improve as higher-margin backlog is converted," said CEO Fred J. (Jule) Smith.
  • Price Action: ROAD shares traded higher by 2.17% at $25.92 on the last check Friday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceSmall CapBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!