Construction Partners, Inc. (ROAD) Bundle
A Brief History of Construction Partners, Inc. (ROAD)
Company Formation and Early Years
Construction Partners, Inc. was incorporated in 2008 in the state of Delaware. Founded by a group of professionals with extensive experience in the construction industry, the company aimed to provide high-quality infrastructure services, particularly in the paving sector. The company commenced operations with a focus on asphalt paving and road construction in the southeastern United States.
Initial Public Offering (IPO)
In December 2018, Construction Partners, Inc. went public through an initial public offering, raising approximately $70 million. The IPO priced at $14 per share and allowed the company to expand its reach and capabilities in the construction market.
Acquisitions and Expansion
Since its IPO, Construction Partners, Inc. has pursued a strategy of growth through acquisitions. Notably, it acquired Southern Asphalt and Construction Company in July 2019, which added significant operational capacity and market reach.
In the fiscal year 2022, Construction Partners reported revenue of $506 million, reflecting a growth of approximately 25% year-over-year. The company has continued to enhance its service offerings, including environmental solutions linked to asphalt recycling and road maintenance.
Financial Performance
| Year | Revenue (in millions) | Net Income (in millions) | EBITDA (in millions) | Stock Price (end of year) |
|---|---|---|---|---|
| 2018 | $121 | $5.5 | $20.1 | $14.00 |
| 2019 | $162 | $8.2 | $29.5 | $14.20 |
| 2020 | $203 | $11.0 | $36.8 | $18.50 |
| 2021 | $405 | $20.9 | $58.7 | $29.40 |
| 2022 | $506 | $24.5 | $71.3 | $31.50 |
Market Position and Competitive Landscape
As of 2023, Construction Partners, Inc. is recognized as one of the leading regional companies in the asphalt paving sector, serving various public and private sector clients. The company holds significant market share in the southeastern U.S., where road construction and maintenance projects are abundant due to ongoing infrastructure investments.
Construction Partners has capitalized on federal and state funding for infrastructure, with estimates showing over $1.2 billion allocated towards improvements in the southeastern states over the next five years.
Sustainability Initiatives
In alignment with environmental goals, Construction Partners, Inc. has increased its investments in sustainable practices, including the use of recycled asphalt pavement (RAP). As of 2022, the company reported that approximately 25% of its asphalt production utilized RAP, contributing to both economic and environmental sustainability in its projects.
Future Outlook
Looking ahead, Construction Partners, Inc. aims to continue its trajectory of growth through strategic acquisitions and organic expansion. The management forecasts revenue growth of approximately 15% to 20% for the fiscal year 2023, supported by a robust pipeline of projects and continued investments in technology and innovation within the construction sector.
A Who Owns Construction Partners, Inc. (ROAD)
Company Ownership Structure
Construction Partners, Inc. (ROAD) is publicly traded on the NASDAQ stock exchange. As of the latest available data, the company's ownership structure consists of institutional investors, retail investors, and company insiders.
Institutional Ownership
Institutional investors hold a significant portion of Construction Partners, Inc. Below is a table detailing the largest institutional shareholders as of the last filing period:
| Institution Name | Shares Owned | Percentage of Total Shares | Filing Date |
|---|---|---|---|
| The Vanguard Group | 2,500,000 | 12.5% | 2023-06-30 |
| BlackRock, Inc. | 2,000,000 | 10% | 2023-06-30 |
| State Street Corporation | 1,800,000 | 9% | 2023-06-30 |
| Goldman Sachs Group | 1,200,000 | 6% | 2023-06-30 |
| Invesco Ltd. | 1,000,000 | 5% | 2023-06-30 |
Insider Ownership
Company insiders also own a portion of Construction Partners, Inc. The following table summarizes the ownership stakes held by key executives:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jamie D. McCorkle | CEO | 500,000 | 2.5% |
| Robert W. Griedl | COO | 300,000 | 1.5% |
| Emily R. Smith | CFO | 250,000 | 1.25% |
| Peter A. Jones | Board Member | 200,000 | 1% |
Retail Investor Ownership
The remaining shares of Construction Partners, Inc. are available for purchase by retail investors. Retail ownership accounts for approximately 50% of total shares outstanding as of the last reporting period.
Recent Stock Performance
The stock price of Construction Partners, Inc. (ROAD) has experienced fluctuations in the past year. Notable figures include:
- 52-week high: $20.50
- 52-week low: $12.75
- Current price (as of 2023-10-15): $18.00
- Market capitalization: $1.44 billion
Financial Highlights
As of the most recent quarterly reporting:
- Revenue: $450 million
- Net Income: $30 million
- Earnings Per Share (EPS): $0.75
- Total Assets: $800 million
Construction Partners, Inc. (ROAD) Mission Statement
Core Values
Construction Partners, Inc. (ROAD) emphasizes its commitment to quality, integrity, and safety in all aspects of its operations. The core values that drive the company's mission include:
- Quality: Delivering superior services through skilled workmanship.
- Integrity: Conducting business honestly and ethically.
- Safety: Prioritizing the health and safety of employees and the community.
Financial Performance Metrics
In the fiscal year 2022, Construction Partners, Inc. reported significant financial metrics that reflect its commitment to growth and customer satisfaction:
| Metric | 2022 Amount | 2021 Amount | Growth Rate (%) |
|---|---|---|---|
| Revenue | $482.3 million | $420.7 million | 14.7% |
| Net Income | $36.5 million | $30.0 million | 21.7% |
| Gross Margin | 15.5% | 14.3% | 8.4% |
| EBITDA | $64.2 million | $55.1 million | 16.6% |
Community Engagement
Construction Partners, Inc. believes in giving back to the communities it serves. The company invests in various community initiatives and charitable activities:
- Charitable Contributions: $1.2 million donated in 2022.
- Employee Volunteer Hours: 5,000 hours contributed to local projects.
- Partnerships: Collaborates with 10 local non-profits.
Environmental Commitment
The company is dedicated to sustainable practices within the construction industry. Significant measures include:
- Recycled Materials: 25% of materials used in projects are recycled.
- Waste Reduction: Achieved a 30% reduction in construction waste.
- Energy Efficiency: Implemented energy-efficient practices on 100% of projects.
Employee Development
Recognizing that employees are its greatest asset, Construction Partners, Inc. focuses on continuous development:
| Development Program | Participants (2022) | Investment ($) |
|---|---|---|
| Safety Training | 1,200 | $500,000 |
| Leadership Development | 150 | $300,000 |
| Technical Skills Training | 800 | $400,000 |
Long-term Vision
The long-term vision of Construction Partners, Inc. involves expanding its market presence while maintaining its commitment to quality and community engagement:
- Market Expansion: Aim to increase market share by 10% annually.
- Sustainability Goals: Target a 50% reduction in carbon footprint by 2030.
- Innovative Practices: Invest in new technologies to enhance efficiency.
How Construction Partners, Inc. (ROAD) Works
Company Overview
Construction Partners, Inc. (ticker: ROAD) is a leading infrastructure and road construction company based in the United States, operating across various states. As of FY 2023, the company reported revenues of approximately $1.1 billion.
Revenue Sources
The primary revenue streams for Construction Partners, Inc. include:
- Road Construction Services
- Asphalt Production
- Aggregate Production
- Maintenance and Repair Services
Operational Footprint
As of October 2023, Construction Partners, Inc. operates in 12 states with over 80 operational locations. The breakdown by state includes:
| State | Number of Locations | Revenue Contribution (%) |
|---|---|---|
| Alabama | 25 | 20% |
| Florida | 20 | 30% |
| Georgia | 15 | 15% |
| North Carolina | 10 | 10% |
| South Carolina | 8 | 5% |
| Mississippi | 5 | 3% |
| Tennessee | 7 | 5% |
| Louisiana | 4 | 2% |
| Texas | 2 | 4% |
| Arkansas | 2 | 2% |
| Virginia | 1 | 1% |
| Kentucky | 1 | 1% |
Financial Performance
For the fiscal year ending September 30, 2023, Construction Partners, Inc. reported:
- Net Income: $50 million
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): $135 million
- Total Assets: $750 million
- Debt-to-Equity Ratio: 0.45
Market Position
Construction Partners, Inc. holds a significant market share in the southeastern U.S. road construction segment. As of Q3 2023, the company has captured approximately 15% market share in the asphalt paving market within its operational states.
Recent Developments
In 2023, Construction Partners, Inc. made notable investments in technology and equipment, streamlining its operations. Key investments include:
- Acquisition of 10 new asphalt plants for $25 million
- Implementation of advanced project management software costing approximately $2 million
- Investment of $5 million in employee training programs
Employee Demographics
As of October 2023, Construction Partners, Inc. employs approximately 1,500 employees. The workforce breakdown is as follows:
| Department | Number of Employees | Percentage of Total Workforce (%) |
|---|---|---|
| Construction | 900 | 60% |
| Management | 300 | 20% |
| Sales & Marketing | 100 | 7% |
| Administrative | 200 | 13% |
Future Outlook
Looking ahead, Construction Partners, Inc. aims to increase its revenue by 10% annually, driven by strategic acquisitions and expansion into new markets. The company projects capital expenditures of around $50 million over the next two years for infrastructure upgrades and capacity expansions.
How Construction Partners, Inc. (ROAD) Makes Money
Revenue Streams
Construction Partners, Inc. generates revenue through various sources. The primary revenue streams include:
- Asphalt Paving Services: This segment contributes significantly to the total revenue through public and private sector contracts.
- Construction Materials: The production and sale of construction materials, including asphalt, are vital for supporting the paving services.
- Transportation Services: Providing transport for materials helps streamline operations and improve efficiency.
Financial Performance
The financial performance of Construction Partners, Inc. can be observed through the following key metrics:
| Fiscal Year | Revenue ($ millions) | Net Income ($ millions) | Gross Profit Margin (%) |
|---|---|---|---|
| 2020 | 348.4 | 20.3 | 15.7 |
| 2021 | 395.6 | 25.8 | 16.0 |
| 2022 | 427.9 | 30.1 | 17.0 |
| 2023 | 456.3 | 35.2 | 17.5 |
Cost Structure
The cost structure of Construction Partners, Inc. is essential in understanding how the company maintains profitability. Major costs include:
- Labor Costs: Skilled labor constitutes a large portion of the operational expenses.
- Material Costs: The acquisition of raw materials such as asphalt and gravel represents a significant expense.
- Equipment Maintenance: Ongoing maintenance of machinery and equipment is crucial for operational efficiency.
Market Position and Trends
Construction Partners, Inc. holds a competitive position in the market, with increasing demand for infrastructure development leading to growth opportunities. The industry is projected to experience continued expansion, supported by government spending on infrastructure:
| Year | Total U.S. Infrastructure Spending ($ billions) | Growth Rate (%) |
|---|---|---|
| 2020 | 388 | 4.2 |
| 2021 | 410 | 5.7 |
| 2022 | 435 | 6.1 |
| 2023 | 460 | 5.7 |
Strategic Partnerships and Contracts
Construction Partners, Inc. has formed strategic partnerships that enhance its ability to secure contracts and improve operational efficiency:
- State Contracts: Long-term contracts with state governments for road construction and repairs.
- Private Sector Collaborations: Partnerships with private companies for commercial construction projects.
- Joint Ventures: Collaborations with other construction firms to bid on large projects.
Future Outlook
The future outlook for Construction Partners, Inc. appears promising due to factors such as:
- Increased Government Spending: Anticipated infrastructure bills will likely increase funding for construction projects.
- Technological Advancements: Adoption of new technologies to improve efficiency and reduce costs.
- Sustainable Practices: Growing emphasis on environmentally friendly construction methods may broaden market opportunities.
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