- Construction Partners Inc (NASDAQ: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.
