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Construction Partners, Inc. Announces Closing of Lone Star Paving Acquisition

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Construction Partners (NASDAQ: ROAD) has completed its acquisition of Lone Star Paving, a vertically integrated asphalt manufacturing and paving company operating in central Texas. Following the acquisition's closure, CPI has updated its fiscal 2025 guidance, projecting revenue of $2.48-2.58 billion, net income of $97-113 million, and Adjusted EBITDA of $347-377 million with an Adjusted EBITDA margin of 14.0-14.6%. The earlier-than-expected closing allows CPI to include Lone Star's operations in its first fiscal quarter outlook.

Construction Partners (NASDAQ: ROAD) ha completato l'acquisizione di Lone Star Paving, un'azienda integrata verticalmente nel settore della produzione e asfaltatura dell'asfalto che opera nel Texas centrale. Dopo la chiusura dell'acquisizione, CPI ha aggiornato le previsioni per il 2025, prevedendo ricavi di $2,48-2,58 miliardi, un utile netto di $97-113 milioni e un EBITDA rettificato di $347-377 milioni con un margine EBITDA rettificato del 14,0-14,6%. La chiusura anticipata consente a CPI di includere le operazioni di Lone Star nelle previsioni del suo primo trimestre fiscale.

Construction Partners (NASDAQ: ROAD) ha completado su adquisición de Lone Star Paving, una empresa de fabricación y pavimentación de asfalto integrada verticalmente que opera en el centro de Texas. Tras el cierre de la adquisición, CPI ha actualizado su guía fiscal para 2025, proyectando ingresos de $2.48-2.58 mil millones, ingreso neto de $97-113 millones y EBITDA ajustado de $347-377 millones con un margen de EBITDA ajustado del 14.0-14.6%. El cierre anticipado permite a CPI incluir las operaciones de Lone Star en su perspectiva del primer trimestre fiscal.

Construction Partners (NASDAQ: ROAD)는 텍사스 중앙에서 운영되는 수직 통합된 아스팔트 제조 및 포장 회사인 Lone Star Paving의 인수 완료를 발표했습니다. 인수 완료 이후, CPI는 2025 회계 연도에 대한 전망을 업데이트하며 수익을 $2.48-2.58억 달러, 순이익을 $97-113백만 달러, 조정된 EBITDA를 $347-377백만 달러로 예측하고 조정된 EBITDA 마진을 14.0-14.6%로 설정했습니다. 예상보다 이른 인수 완료 덕분에 CPI는 Lone Star의 운영을 첫 회계 분기 전망에 포함할 수 있게 되었습니다.

Construction Partners (NASDAQ: ROAD) a finalisé l'acquisition de Lone Star Paving, une entreprise de fabrication et de pavage d'asphalte intégrée verticalement opérant dans le centre du Texas. Suite à la clôture de l'acquisition, CPI a mis à jour ses prévisions pour l'exercice 2025, projetant un chiffre d'affaires de 2,48 à 2,58 milliards de dollars, un bénéfice net de 97 à 113 millions de dollars et un EBITDA ajusté de 347 à 377 millions de dollars avec une marge d'EBITDA ajustée de 14,0 à 14,6%. La clôture plus tôt que prévu permet à CPI d'inclure les opérations de Lone Star dans ses prévisions pour le premier trimestre fiscal.

Construction Partners (NASDAQ: ROAD) hat die Übernahme von Lone Star Paving, einem vertikal integrierten Unternehmen für Asphaltproduktion und -verlegung in Zentraltexas, abgeschlossen. Nach dem Abschluss der Übernahme hat CPI seine Prognose für das Geschäftsjahr 2025 aktualisiert und rechnet nun mit Umsätzen von $2,48-2,58 Milliarden, einem Nettogewinn von $97-113 Millionen und einem bereinigten EBITDA von $347-377 Millionen sowie einer bereinigten EBITDA-Marge von 14,0-14,6%. Der früher als erwartet erfolgte Abschluss ermöglicht es CPI, die Geschäfte von Lone Star in die Prognose für das erste Geschäftsjahr einzubeziehen.

Positive
  • Expansion into high-growth central Texas markets
  • Revenue projection increased to $2.48-2.58 billion for fiscal 2025
  • Strong projected net income range of $97-113 million
  • Healthy Adjusted EBITDA margin forecast of 14.0-14.6%
  • Earlier than expected closing accelerates strategic integration
Negative
  • None.

Insights

The acquisition of Lone Star Paving represents a significant strategic expansion into the high-growth Texas market, with immediate financial impact reflected in the updated FY2025 guidance. The projected $2.48-2.58 billion revenue outlook and $97-113 million net income guidance signal robust growth potential. The expected Adjusted EBITDA margin of 14.0-14.6% suggests strong operational efficiency and value creation from the integration.

The vertical integration strategy through this acquisition strengthens CPI's market position in the Sunbelt region and aligns with their ROAD-Map 2027 strategic initiatives. The prompt closing and immediate inclusion in fiscal guidance indicates confident execution and potential synergies. This expansion into central Texas's high-growth markets could provide significant opportunities for market share growth and enhanced profitability.

The Texas infrastructure market presents substantial growth opportunities, driven by population growth, urbanization and ongoing infrastructure development needs. Lone Star's established presence in central Texas provides CPI with immediate market access and operational capabilities in this strategic region. The cultural alignment mentioned regarding operational excellence and vertical integration suggests potential for smooth integration and operational synergies.

The timing of this acquisition is particularly advantageous given the increased infrastructure spending and development activities in Texas's major metropolitan areas. The enhanced EBITDA margin guidance indicates potential economies of scale and operational efficiencies that could drive long-term shareholder value.

Lone Star Paving Becomes Texas Platform Company

Company Raises Fiscal 2025 Outlook to Reflect November Closing

DOTHAN, Ala., Nov. 4, 2024 /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways in local markets throughout the Sunbelt, today announced that it has completed its previously announced acquisition of Asphalt Inc., LLC d/b/a Lone Star Paving ("Lone Star"), a vertically integrated asphalt manufacturing and paving company operating in attractive high-growth markets in central Texas.

Fred J. (Jule) Smith, III, CPI's President and Chief Executive Officer, said, "This is an exciting day for CPI, and we are pleased to welcome the Lone Star team to the CPI family of companies.  Lone Star is a uniquely complementary cultural fit within CPI, with its focus on operational excellence, employee advancement and smart vertical integration initiatives. The addition of Lone Star positions CPI to accelerate our ROAD-Map 2027 strategy and to deliver long-term value to our investors and other stakeholders."

Updated Fiscal 2025 Outlook

In connection with the closing of the Lone Star acquisition, CPI increased its guidance for fiscal 2025 with regard to revenue, net income, Adjusted EBITDA and Adjusted EBITDA Margin, as follows:

  • Revenue in the range of $2.48 billion to $2.58 billion
  • Net income in the range of $97 million to $113 million
  • Adjusted EBITDA(1) in the range of $347 million to $377 million
  • Adjusted EBITDA Margin(1) in the range of 14.0% to 14.6%

Smith continued, "The Lone Star acquisition closed promptly after signing, allowing us to include Lone Star's expected operations in our outlook earlier than previously anticipated. Accordingly, we are updating our fiscal 2025 outlook to reflect what we expect to be a meaningful contribution from Lone Star for the last two months of our first fiscal quarter." 

(1) Adjusted EBITDA and Adjusted EBITDA Margin are financial measures not presented in accordance with generally accepted accounting principles ("GAAP"). Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this press release.

About Construction Partners, Inc.

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee and Texas. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, CPI focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "seek" "continue," "estimate," "predict," "potential," "targeting," "could," "might," "may," "will," "expect," "should," "anticipate," "intend," "project," "outlook," "believe," "plan" and similar expressions or their negative. The forward-looking statements contained in this press release include, without limitation, statements regarding the benefits of the Lone Star acquisition and statements regarding CPI's fiscal year 2025 outlook. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, among others: CPI's indebtedness, including the indebtedness CPI has incurred in connection with the acquisition and the need to generate sufficient cash flows to service and repay such debt; the possibility that CPI may be unable to successfully integrate Lone Star's operations with those of CPI; the possibility that such integration may be more difficult, time-consuming or costly than expected; the risk that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, contractors and customers) may be greater than expected following the acquisition; CPI's ability to retain certain key employees of Lone Star; potential litigation relating to the acquisition that could be instituted against CPI or its directors; and the other risk factors set forth in CPI's most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K and other reports CPI files with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. CPI assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances or other changes affecting such statements, except to the extent required by applicable law.

Contact:

Rick Black / Ken Dennard
Dennard Lascar Investor Relations
ROAD@DennardLascar.com
(713) 529-6600

- Financial Statements Follow –

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation, depletion, accretion and amortization, (iv) share-based compensation expense, (v) loss on the extinguishment of debt, and (vi) extraordinary acquisition expenses incurred outside the ordinary course of the Company's business that the Company does not expect to reoccur. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues for each period. These metrics are supplemental measures of the Company's operating performance that are neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of the Company's operating performance. The Company presents Adjusted EBITDA and Adjusted EBITDA Margin because management uses these measures as key performance indicators, and management believes that securities analysts, investors and others use these measures to evaluate companies in the Company's industry. The Company's calculation of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly named measures reported by other companies. Potential differences may include differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.

The following table presents a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to Adjusted EBITDA and the calculation of Adjusted EBITDA Margin for the periods presented:

Construction Partners, Inc.

Net Income to Adjusted EBITDA Reconciliation

Fiscal Year 2025 Updated Outlook

(unaudited, in thousands, except percentages)




For the Fiscal Year Ending

September 30, 2025



Low


High

Net income


$97,000


$113,000

Interest expense, net


64,072


62,715

Provision (benefit) for income taxes


32,471


38,432

Depreciation, depletion and amortization


128,957


138,353

Equity-based compensation expense


21,500


21,500

Acquisition expenses


3,000


3,000

          Adjusted EBITDA


$347,000


$377,000






Revenues


$2,480,000


$2,580,000

          Adjusted EBITDA Margin


14.0 %


14.6 %

 

Cision View original content:https://www.prnewswire.com/news-releases/construction-partners-inc-announces-closing-of-lone-star-paving-acquisition-302294503.html

SOURCE Construction Partners, Inc.

FAQ

What is the projected revenue range for Construction Partners (ROAD) in fiscal 2025 after the Lone Star acquisition?

Construction Partners projects revenue in the range of $2.48 billion to $2.58 billion for fiscal 2025 following the Lone Star Paving acquisition.

What is the expected Adjusted EBITDA margin for Construction Partners (ROAD) in fiscal 2025?

Construction Partners expects an Adjusted EBITDA margin in the range of 14.0% to 14.6% for fiscal 2025.

How will the Lone Star Paving acquisition affect Construction Partners' (ROAD) first fiscal quarter?

The acquisition will contribute to Construction Partners' operations for the last two months of their first fiscal quarter, earlier than previously anticipated.

What markets does the Lone Star Paving acquisition add to Construction Partners' (ROAD) operations?

The Lone Star Paving acquisition adds operations in high-growth markets in central Texas to Construction Partners' portfolio.

Construction Partners, Inc.

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