Construction Partners Inc (ROAD) Reports Stellar Fiscal 2023 Results with Record Backlog
FY23 Revenue increased by 20%, Net Income soared by 129%, and Adjusted EBITDA jumped by 57% compared to FY22.
Q4 Revenue up 21%, Net Income up 136%, and Adjusted EBITDA up 76% compared to Q4 FY22.
Construction Partners Inc (NASDAQ:ROAD) announces a record project backlog of $1.60 billion.
The company maintains a positive fiscal year 2024 outlook with further revenue growth and margin expansion expected.
On November 29, 2023, Construction Partners Inc (NASDAQ:ROAD) released its 8-K filing, announcing robust financial results for the fourth quarter and the fiscal year ended September 30, 2023. The company, a leading player in the civil infrastructure industry, reported significant growth in revenue, net income, and Adjusted EBITDA, both for the quarter and the year.
Fiscal 2023 Performance Highlights
Construction Partners Inc (NASDAQ:ROAD) experienced a 20% increase in annual revenue, reaching $1.56 billion in fiscal 2023, up from $1.30 billion in fiscal 2022. The company's gross profit surged by 41% to $196.4 million in fiscal 2023, compared to $139.3 million in the previous year. The fourth quarter was particularly strong, with revenues climbing 21% to $475.0 million and gross profit skyrocketing by 52% to $75.5 million.
Net income for fiscal 2023 stood at $49.0 million, a remarkable 129% increase from the $21.4 million reported in fiscal 2022. The fourth quarter net income also saw a substantial rise of 136% to $30.9 million. Adjusted EBITDA for the year improved by 57% to $174.1 million, with the Adjusted EBITDA Margin expanding to 11.1% from 8.5% in fiscal 2022. The fourth quarter Adjusted EBITDA was up by 76% to $69.5 million, resulting in an Adjusted EBITDA Margin of 14.6%.
Financial Position and Outlook
As of September 30, 2023, Construction Partners Inc (NASDAQ:ROAD) reported a record project backlog of $1.60 billion, indicating a strong pipeline for future revenue. The company's balance sheet remained solid with total assets of $1.22 billion and total liabilities of $703.1 million. Shareholders' equity also increased to $516.6 million.
Looking ahead to fiscal year 2024, Construction Partners Inc (NASDAQ:ROAD) is optimistic, maintaining its revenue forecast in the range of $1.750 billion to $1.825 billion, net income between $63 million and $70 million, and Adjusted EBITDA from $197 million to $219 million. The company expects an Adjusted EBITDA Margin between 11.3% and 12.0%.
"Fiscal year 2023 marked strong top-line growth and margin expansion consistent with CPIs historical trends. Since our IPO five years ago, CPI has doubled in size and outperformed all of the targets we set at that time," said Ned N. Fleming, III, Executive Chairman of Construction Partners Inc (NASDAQ:ROAD).
Comprehensive Financial Review
The company's income statement reflects a robust financial performance with significant growth in key metrics. General and administrative expenses for fiscal 2023 were $126.9 million, representing 8.1% of total revenue, a slight improvement from 8.3% in fiscal 2022. The balance sheet shows a healthy liquidity position, with cash and cash equivalents of $48.2 million.
The cash flow statement indicates strong cash generation from operations, amounting to $157.2 million for fiscal 2023. Capital expenditures were managed at $97.8 million, supporting the company's growth initiatives while maintaining a disciplined approach to capital allocation.
Construction Partners Inc (NASDAQ:ROAD) continues to demonstrate financial resilience and operational excellence, positioning itself favorably for sustained growth in the dynamic infrastructure sector. With a record backlog and a positive outlook for fiscal 2024, the company is well-placed to capitalize on the ongoing demand for infrastructure services in the southeastern United States.
For detailed financial figures and further information, readers are encouraged to review the full earnings report and financial statements provided by Construction Partners Inc (NASDAQ:ROAD).
Explore the complete 8-K earnings release (here) from Construction Partners Inc for further details.
This article first appeared on GuruFocus.
