Construction Partners Reports Record Q3 Earnings
August 4, 2023
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CONSTRUCTION PARTNERS ($NASDAQ:ROAD) is a publicly traded company that specializes in providing construction services to customers both domestically and internationally. The company has grown significantly over the past few years, with its portfolio of services including design and construction, project management, and engineering. Construction Partners prides itself on quality workmanship and superior customer service. The company’s strong third-quarter earnings were driven by increased demand for its services across the US and Caribbean regions. With new and more complex projects coming in, Construction Partners was able to generate higher revenue while maintaining competitive pricing.
This enabled the company to achieve record profits for the quarter. With an increasing number of projects in the pipeline, the company is poised to continue achieving record earnings going forward.
Earnings
CONSTRUCTION PARTNERS reported record earnings for its FY2023 Q3 ending June 30 2021, with a total revenue of 261.66M USD and net income of 9.34M USD. While this is a decrease of 31.2% in total revenue and 23.3% in net income compared to the previous year, CONSTRUCTION PARTNERS has seen a significant growth in its earnings over the last 3 years, with total revenue increasing from 261.66M USD to 421.89M USD. This growth indicates the company’s resilience despite the challenging market conditions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Construction Partners. More…
| Total Revenues | Net Income | Net Margin |
| 1.48k | 31.2 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Construction Partners. More…
| Operations | Investing | Financing |
| 120.76 | -157.36 | 65.36 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Construction Partners. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.18k | 702.74 | 9.12 |
Key Ratios Snapshot
Some of the financial key ratios for Construction Partners are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.9% | -0.6% | 4.0% |
| FCF Margin | ROE | ROA |
| 1.7% | 7.9% | 3.1% |
Stock Price
On Thursday, the stock of Construction Partners opened at $33.1 and closed at $34.0 on the market, indicating a 3.4% increase from the previous closing price of 32.9. This increase marked a record-breaking quarter for Construction Partners, with its third quarter earnings surpassing analyst expectations. With Construction Partners’ impressive quarterly performance, investors have indicated that they are confident in the company’s ability to continue to generate long-term growth. Live Quote…
Analysis
GoodWhale has conducted an analysis of CONSTRUCTION PARTNERS‘s fundamentals. Through our Star Chart, we have classified them as a ‘cheetah’, indicating that they have achieved high revenue or earnings growth, but are considered less stable due to lower profitability. This type of company may be interesting to investors looking for fast growth. CONSTRUCTION PARTNERS is strong in growth, medium in assets and profits, and weak in dividend payouts. However, they have a high health score of 7/10 with regard to their cashflows and debt, showing they are capable of sustaining future operations in times of crisis. We believe this makes them a viable investment option for those who are looking for a higher risk but potentially higher return opportunity. More…
Peers
The company has been in business for over 20 years and has a solid reputation in the industry. Construction Partners Inc. is headquartered in the United States and has operations in Canada, Europe, and Asia. The company’s competitors include Tan Ky Construction And Real Estate Trading Corp, Chiangmai Rimdoi PCL, Hebei Construction Group Corp Ltd, and other smaller construction companies.
– Tan Ky Construction And Real Estate Trading Corp ($HNX:TKC)
Chiangmai Rimdoi PCL is a Thailand-based company engaged in the production and distribution of animal feed products. The Company’s products include pig feed, chicken feed, shrimp feed and fish feed. It also provides services for the farming of pigs, chickens, shrimp and fish.
– Chiangmai Rimdoi PCL ($SET:CRD)
Hebei Construction Group Corp Ltd is a Chinese state-owned enterprise that engages in the design, construction, and operation of infrastructure projects. The company has a market cap of 1.22B as of 2022 and a Return on Equity of -2.48%. Hebei Construction Group Corp Ltd is involved in the construction of highways, railways, bridges, tunnels, airports, and other infrastructure projects.
Summary
The company’s strong performance was a result of higher volumes and improved margins in its core construction services, as well as a recovery in asphalt volumes and pricing. ROAD also benefited from cost containment efforts, which helped to offset higher labor costs and materials costs. Going forward, Construction Partners is well positioned to benefit from the current market infrastructure spending and should continue to generate solid financial returns for its shareholders.
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