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Mar 31, 2022
Construction Partners Q2 2022 Earnings Report
Reported a revenue increase of approximately 36 percent compared to the same quarter last year, driven by organic and acquisitive growth. Experienced an unprecedented inflationary cost environment that negatively impacted profitability.
Key Takeaways
Construction Partners, Inc. reported a 35.9% increase in revenue compared to the second quarter of last year, with organic growth of approximately 19 percent and acquisitive growth of approximately 17 percent. The company experienced a net loss of $9.4 million, compared to a net loss of $4.9 million in the second fiscal quarter of 2021, impacted by an unprecedented inflationary cost environment.
Second quarter revenue increased approximately 36 percent compared to the same quarter last year.
Organic revenue growth of approximately 19 percent and acquisitive growth of approximately 17 percent.
Project backlog of $1.28 billion at March 31, 2022 was the largest in company history.
New project backlog margins continue to increase, and we anticipate that profit margins will further improve as higher-margin backlog is converted.
Construction Partners
Construction Partners
Forward Guidance
The Company has updated its full-year 2022 guidance to reflect the strong project demand environment and to reflect the continued inflation and elevated energy costs that it believes will persist during the fiscal year.
Positive Outlook
- Revenue in the range of $1.15 billion to $1.20 billion
- Net income in the range of $14.5 million to $25.3 million
- Adjusted EBITDA in the range of $105.0 million to $120.3 million
- Opportunity for continued growth and expansion of the Company represents the best longer-term visibility we have seen in the Company’s more than 20-year history.
- Construction Partners is well positioned to capitalize on future infrastructure demand that the $1.2 trillion infrastructure bill will create over the next decade.
Challenges Ahead
- Unprecedented economic challenges impeding profitability in the first half of the year
- Continued inflation
- Elevated energy costs
- Supply challenges
- Labor challenges