DOTHAN, Ala. - Construction Partners, Inc. (NASDAQ:ROAD) saw its shares surge 2.88% after the civil infrastructure company reported fiscal third quarter results that beat analyst expectations and raised its full-year guidance.
The company posted adjusted earnings per share of $0.59 for the quarter ended June 30, surpassing the consensus estimate of $0.54. Revenue came in at $517.8 million, up 22.7% year-over-year and ahead of analysts' projections of $503.57 million.
Construction Partners cited strong demand across its southeastern U.S. markets as driving the robust performance. The company's project backlog reached a record $1.86 billion at quarter-end, up from $1.59 billion a year ago.
"We are pleased to report strong third quarter results representing substantial year-over-year growth in revenue, net income, Adjusted EBITDA and Adjusted EBITDA margin," said CEO Fred J. Smith, III in a statement.
Looking ahead, Construction Partners raised its fiscal 2024 revenue outlook to a range of $1.835 billion to $1.860 billion, up from its prior guidance of $1.750 billion to $1.825 billion. The new forecast tops the average analyst estimate of $1.83 billion.
The company also boosted its adjusted EBITDA projection to between $219 million and $228 million, compared to $200 million to $215 million previously.
Smith noted continued strong funding for public infrastructure projects and a steady commercial environment in the Southeast as tailwinds for the business. The raised outlook reflects "the sustained industry demand and funding trends, the outstanding operational performance across our family of companies, and our visibility into the rest of our heavy work season," he added.
Construction Partners' shares have gained over 30% year-to-date as the company benefits from increased infrastructure spending.
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