The following is a summary of the Construction Partners, Inc. (ROAD) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Construction Partners reported a 17% increase in annual revenue reaching $1.82 billion for fiscal 2024.

• Net income grew by 41%, and adjusted EBITDA increased by 28% with an ending Adjusted EBITDA margin of 12.1%.

• Cash flow from operations was recorded at $209 million.

• The company's completion of eight acquisitions in fiscal 2024 expanded its geographic footprint and market share across Sunbelt states.

Business Progress:

• CPI acquired Lone Star Paving, establishing a significant foothold in Texas, a state with a dynamic growth and well-funded infrastructure program. This acquisition is expected to boost CPI's growth according to their roadmap 2027 goals earlier than planned by two years.

• Record project backlog reported at $1.96 billion indicating sustained demand and growth in public and commercial construction markets.

• The company aims to continue strategic acquisitions and organic growth to enhance market share and operational capabilities in fiscal 2025.

Opportunities:

• The acquisition of Lone Star Paving which aligns with CPI's growth strategy to expand market share and operational excellence, leveraging Texas' robust infrastructure growth.

• CPI plans to capitalize on increased infrastructure funding from state and federal levels, specifically recognizing benefits from the IIJA which boosts federal highway funding. Several Sunbelt states CPI operates in have also passed supplemental infrastructure funding plans, creating opportunities for expansion and higher demand for CPI's services.

Risks:

• No explicit risks detected.

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